APIP or OROP by Maj Gen RN Radhakrishnan

‘APIP’ or ‘OROP’- Simply Put

by

Major General (Retd) RN Radhakrisnan



1. Definition of OROP "One Rank One Pension" (OROP) was the terminology, presumably, coined by Sri KP Singh Deo, while reviewing the pension policy for the Armed Forces personnel, way back in 1985. OROP existed prior to 1970. A soldier (the word is used to mean all ranks in all the wings of the Armed Forces), in those distant days, was granted pension based only on the rank he held when he retired, provided that he was eligible for pension. More length of service put in by him did not earn him more of pension. Sri Singh Deo suggested, again presumably, that OROP should mean ‘same rank same total length of service same pension’. Since then OROP meant just that, with a different definition to include the service element unlike the pre 1970 vintage. The definition is:



“No two soldiers holding the same rank and same total length of service to their credit shall draw different pensions.”



2. The definition implies that as and when the pay of serving soldiers is revised the effect of such revision on the pension per force is applicable to the existing pensioners at the time of pay revision. In other words the pay of the ex-servicemen (ESM) also is revised, of course notionally, for the purpose of revising the pension and the pension accordingly revised. Thus parity between two soldiers is absolutely established (APIP). The spirit of OROP / APIP is the recognition of the special status of a soldier and not the increase in pension.



3. Fixing the Pay in the Revised Scale. Bound by the mandate that ‘pensioners of the same rank with same total length of service must draw the same pension’, the pension has to be related to the prevalent revised pay. Therefore, the fixing of pay, in the revised scale of pay (RSP), has to be judiciously done.



4. Initial Fixation of pay. It is absolutely necessary, at this juncture, to accept the special status of a soldier due to his and his family’s sacrifices and, the hardships he has to undergo while serving and on forced early retirement. Having accepted the special status of the soldier, the initial fixation of pay for a soldier must, more appropriately and judiciously, be done as described below:

· First step – Take the bottom of the equivalent RSP as basis for fixing pay.

· Second step – Build up his pay granting annual increments, equal to the number of increments he had drawn in the existing scale of pay (ESP) for each year of his service, taking into account the financial upgrade due to the concept of assured Career Progression (ACP) / time scale promotion.

· Third step – Thus, arrive at the correct pay commensurate to the total number of years of service to the soldier’s credit.

This may sound complicated. But for an accountant, it is a simple matter of drawing two tables one for the commissioned officers and one for the others, in a time frame of a few hours. I have already drawn these tables and attached as Appendix ‘A’.



5. On the contrary, the initial pay fixation as on 01-01-2008 in terms of SAI 1&2/S/2008) has been complicated due to the application of arbitrary formulae without any rationale. In the bargain, the SAI has led to bunching up two levels in the ESP by granting one increment in the RSP, for most of the soldiers in the various ranks. In other words, one who earned more number of increments and hence higher pay is now drawing the same pay as that of a soldier one year junior to him. As expected, the whole serving soldiers’ community has mutely accepted this injustice.



6. Revision of Pension To make things worse, the revision of pension was devised ignoring the rationale mentioned above adopting more complicated and arbitrary formulae independent of the revised pay to which the ESM is rightly eligible, notionally of course. Thus anomaly rose in violation of ‘OROP’ or ‘APIP’. See Appendix ‘B’ for illustration.



7. The Correct Method. If the notional pay for an ESM is correctly fixed as described in para 4 above, the correct pension is easily and in a fair manner calculated for the ESM. As the notional pay in the revised scale, commensurate to his rank and the total length of service is known, his correct pension is easily and in a fair manner calculated for the ESM. The pension as shown in the tables at Appendix ‘A’ is worked out as a proportion (70% in the case of ranks from sepoy to Havildar, 60% for JCOs and 50% in others’ case) of the total of the pay so determined, the Grade pay, the Military Service Pay and Group pay where applicable.



8. Conclusion OROP or APIP can be assured, only by opting for the fair and just method as described in para 7. While addressing the issue of OROP, it is essential to consider the possibility of

· treating the retired soldiers other than the Commissioned officer as of one group namely X Group, so that an ESM of the same rank with same length of service gains equality in the retired life by earning same pension,

· granting pension at pro-rata basis for those who have served for a few years (say a minimum of five years) as a token of recognition of the noble service they rendered in protecting the nation, so that they have a sense of pride attached to them.

· Granting pension at 60% to Junior Commissioned Officers who are also retired quite early in their life.

· Granting any other awards and special components of the pension (like the disability pension) as a proportion or a multiple of the basic pension.




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Appendix A



PAY AND PENSION TABLES

(All tables are to be treated as model and the actual figures need to be reworked)

P-Part Pension F-Full Pension M-Maximum Pension

Pension for Sepoy to Sub Major based on completed years of service




Table 1A – X Group

1 2 3 4 5 6 7

Years Band Pay Gr Pay MSP X Gp pay Total Note 1

1 6840 2000 2000 1400 12240 N/A

2 7150 2000 2000 1400 12550 N/A

3 7470 2000 2000 1400 12870 N/A

4 7800 2000 2000 1400 13200 N/A

5 8140 2000 2000 1400 13540 P-3510

6 8490 2000 2000 1400 13890 P-4680

7 8850 2000 2000 1400 14250 P-5840

8N 9220 2400 2000 1400 15020 P-7010

9 9620 2400 2000 1400 15420 P-8180

10 10030 2400 2000 1400 15830 P-9350

11 10450 2400 2000 1400 16250 P-10520

12* 10880 2400 2000 1400 16680 F-11680*

13 11330 2400 2000 1400 17130 F-12000

14 11790 2400 2000 1400 17590 F-12320

15 12260 2400 2000 1400 18060 F-12650

16H 12750 2800 2000 1400 18950 F-13280

17 13260 2800 2000 1400 19460 F-13630

18 13790 2800 2000 1400 19990 F-14000

19 14330 2800 2000 1400 20530 F-14380

20 14890 2800 2000 1400 21090 F-14770

21 15470 2800 2000 1400 21670 F-15180

22 16070 2800 2000 1400 22270 F-15600

23 16680 2800 2000 1400 22880 F-16020

24NS* 17330 4200 2000 1400 24930 M-25440

25 18000 4200 2000 1400 25600 M-25440

26 18710 4200 2000 1400 26310 M-25440

27 19440 4200 2000 1400 27040 M-25440

28 20200 4200 2000 1400 27800 M-25440

29S 20200 4600 2000 1400 27800 M-25680

30 20200 4600 2000 1400 27800 M-25680

31SM 20200 4800 2000 1400 27800 M-25800

32 20200 4800 2000 1400 27800 M-25800





Notes


1. The pension is calculated @70% for Sepoy to Havildar (PB1) and 60% for JCOs (PB2).

2. The minimum pay of Rs 6840 for sepoy and the grade pay and MSP 2000 have been taken from SAI 1/S/2008 Appendix F and the table built up on that basic value of 6840

3. The table above is based on TS promotion to Naik, Havaldar and Nb Subedar after 8, 16 and 24 years respectively.

4. Existing Havildar on completion of his term of engagement must be treated as having qualifying Service of 24 years and given the benefit of Maximum Pension

5. Nb Subedar (TS) retires after 4 years of service.

6. Keeping in consonance with the principle that the pay and pension to a soldier is homage paid by the nation and that parity in retired life is more valuable, it is recommended that the pension for SPOTCO be determined as per the X Group.

7. It is recommended that maximum pension (M) at the maximum of the pay band be permitted on completion of 24 years of service, full pension (F) at 70% / 60% at the pay drawn be permitted on completion of 12 years.

8. Part pension (P) starts on completion of five years of SQP @30% full pension entitled on completion of 12 years and for every additional year of service 10% increase is permitted. Thus on completion of 12 years one gets full pension



Table 1B – Naib Subedars Yet to be prpared

Table 1C – Subedars Yet to be prpared

Table 1D – Sub Major Yet to be prpared

Table 2A- Lieutenant to Colonel (TS)

1 2 3 4 5 6 7

Rank QYS Band Pay Grade Pay MSP Total Pension

Lt 1 15600 5400 6000 27000 NA

2 16230 5400 6000 27630 NA

Capt
3
16880
6100
6000
28980
NA


4
17570
6100
6000
29670
NA


5
18280
6100
6000
30380
P-7530


6
19020
6100
6000
31120
P-9040

Major
7
19780
6600
6000
32380
P-10550


8
20580
6600
6000
33180
P-12050


9
21400
6600
6000
34000
P-13560


10
22240
6600
6000
34840
P-15060


11
23110
6600
6000
35710
P-15570


12
24010
6600
6000
36610
P-18080


13
24930
6600
6000
37530
P-19580

Lt Col
14
37400
8000
6000
51400
P-21090


15
38770
8000
6000
52770
P-22590


16
40180
8000
6000
54180
P-24100


17
41630
8000
6000
55630
P-25610


18
43120
8000
6000
57120
P-27010


19
44660
8000
6000
58660
P-28610


20
46240
8000
6000
60240
F-30120


21
47870
8000
6000
61870
F-30935


22
49550
8000
6000
63550
F-31775


23
51280
8000
6000
65280
F-32640


24
53060
8000
6000
67060
F-33530


25
54900
8000
6000
68900
F-34450


26
56790
8000
6000
70790
F-35395

Col(TS)
27
58740
8700
6000
73440
F-36720


28
60770
8700
6000
75470
F-37735


29
62860
8700
6000
77560
F-38780


30
65010
8700
6000
79710
F-39855


31
67000
8700
6000
81700
M-40850




Note


1 From 6th year till 19 years one is eligible for the part pension (P). The full pension is reduced prorate of the service divided by 20 years. as shown under column 7. This amounts to 5% reduction in the full pension for every one year of shortfall.

2 On completion of twenty years the officer is entitled to full pension (F).

3 Part pension for Major and Captains is based on the full pension applicable to Lt Colonel taking into account the Grade pay of 8000, because it is meant to compensate the ESP, who were deprived of the present liberal promotion policy and hence had to retire earlier.

4 Maximum pension (M) is at the top of PB once TOE/ 30 years of service

5 If the decision to ensure promotion to the rank of Colonel on completion of 15 years is made applicable this, table needs to be revised.

Table 2B Colonel (Selection Grade)

1
2
3
4
5
6

Years of Service
Band Pay
Grade Pay
MSP
Total
Pension

@50%

24
53060
8700
6000
67760
F-33880

25
54920
8700
6000
69620
F-34810

26
56830
8700
6000
71530
F-35765

27
58800
8700
6000
73500
F-36750

28
60830
8700
6000
75530
F-37765

29
62920
8700
6000
77620
F-38810

30
65070
8700
6000
79770
F-39885

31
67000
8700
6000
81700
M-40850



Tale 2C Brigadier
1
2
3
4
5
6

Years of Service
Band Pay
Grade Pay
MSP
Total
Pension

26
56830
8900
6000
71730
F-35865

27
58810
8900
6000
73710
F-36855

28
60850
8900
6000
75750
F-37875

29
62950
8900
6000
77850
F-38925

30
65110
8900
6000
80010
F-40005

31
67000
8900
6000
81900
M-40950



Table 2D Major General
1
2
3
4
5
6

Years of Service
Band Pay
Grade Pay
MSP
Total
Pension

28
60850
10000
6000
76850
F-38425

29
62980
10000
6000
78980
F-39490

30
65170
10000
6000
81170
F-40580

31
67000
10000
6000
83000
M-41500



Table 2E Lt General
1
2
3
4
5
6

Years of Service
Band Pay
Grade Pay
MSP
Total
Pension

28
62980
12000
6000
80980
F-40490

29
65230
12000
6000
83230
F-41120

30
67000
12000
6000
85000
M-42500



Note: In the case of Major General and Lt Generals denying the MSP is irrational and leads to anomaly in pay and pension. We have included the MSP and worked out the pension entitlement.


Pension of Vice Chiefs and Commanders. 40000 + 3000 (due to MSP)

Table 3 - Pension on Retiring after Completion of Term of Engagement subject to completion of 30 years in the case of Commissioned Officers and 24 years for others.

Rank
Pension Arithmetic
Pension

Havildar (ESP)
(20200+2800+2000+1400) * 70%
M-18480

Naib Subedar
(34800+4200+2000+1400) * 60%
M-25440

Subedar
(34800+4600+2000+1400) * 60%
M-25560

Sub Major
(34800+4800+2000+1400) * 60%
M-25680

Major (ESP)
(39100+6600+6000) * 55%
M-28440

Lt Colonel (ESP)
(67000+8000+6000) * 50%
M-40450

Colonel (TS)
(67000+8700+6000) * 50%
M-40850

Colonel (Selection Grade)
(67000+8700+6000) * 50%
M-40850

Brigadier
(67000+8900+6000) * 50%
M-40950

Major General
(67000+10000+6000) * 50%
M-41500

Lt General
(67000+12000+6000) * 50%
M-42500

Vice Chief & Equivalent
(80000+6000) * 50%
M-43000

The Chiefs
90000 * 50%
M-45000




Note :


1. In future no commissioned officer retires below the rank of Colonel. However, this table provides for the Majors and Lt Colonels of Existing Service Pensioners. If they had retired on completion of the term of engagement the shortfall for the qualifying service of 30 years for maximum pension may notionally added.

2. In the case of Major being applicable only to ESM community and placed in PB3 the pension is calculated @55%

3. In the cases of Major Generals and above Rs6000, the MSP component has been notionally added to the maximum of the pay band failing which an anomaly arises.





The case of SL Commissioned officers

And

Officers passing out of the Army Cadet College

The case of SL Commissioned officers and Officers passing out of the A C College has to be separately dealt, taking into account the combined service in the various ranks the officer was holding before being commissioned. One point however worth mentioning now is that the Service Qualifying for Pension (SQP) can be counted by adding to the years of service as commissioned officer with 40% years of qualifying service in the other ranks. The SQP so arrived can be used for determining the eligibility for part, full, and maximum pension.



(PLEASE NOTE THAT THESE TABLES HAVE BEEN WORKED OUT FROM MEAGRE UNAUTHENTICATED DATA AVAILABLE AND ARE MEANT TO SHOW THE FEASIBILITY OF THE PENSION REVISION SUGGESED IN THIS PAPER.)



ACKNOWLEDGEMENT

All these tables have been initially worked out by AVM RP Mishra. Subsequently the author built upon the basic structure of the tables to cater for the implementation of the concept of “Part Pension”, “Full pension” and “Maximum Pension”.



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Appendix ‘B’






Anomaly

Case of a Sepoy of ‘Y’ Group



This shall lead to anomaly in fixing pension in contradiction to the concept of OROP. Let us illustrate the case of a Sepoy, belonging to ‘Y’ Group. Pay fixation is in terms of SAI 1/S/2008. ACP benefit of GP of Naik on completion of 8 years, Havildar 16 years and Nb Sub 24 years has been considered. Annual increment @ 3% on Scaled Pay plus Grade pay is permitted wef 01-01-06. Pension is worked out @70%.



Case 1 Emoluments (Scaled Pay + Grade Pay + Military Service Pay) and pension of Sepoy enrolled post 01-01-2006



· In the first year in the RSP 6250+2000+2000 as Sepoy 10250

· On completing 16 years if notionally promoted as Havildar (ACP 2nd promotion)

o Emoluments 11450+2800+2000 16250

o Pension @ 70% (rounded to near 10) 11380

· On completing 24 years if notionally promoted as Nb Sub (ACP 3rd promotion)

o Emoluments 15340+4200+2000 21540

o Pension @ 70% (rounded to near 10) 15080



Case 2 Comparing with a Sepoy of the same group, retiring with 16 years of service during the year 2006



· Without the benefit of notional ACP promotions

o Emoluments 8650+2000+2000 12650

o Pension @ 70% (rounded to near 10) 8860

· With the benefit of notional ACP promotion up to Havildar if made applicable

o Emoluments 10000+2800+2000 14800

o Pension @ 70% (rounded to near 10) 10360


Case 3 In the case of a Sepoy who is a pensioner as on 31-12-2005 having retired on completion of 16 years of service, the scale post 01-01-1996 was 3250-70-4300. Hence in the 16th year he is entitled for 4300 as basic pay. A Sepoy retiring in the year 2005 has to have 6 years of service in pre 1996 scale of pay. Hence it appears that his basic pay was fixed wef from 1996 such that he could reach only maximum of 3448 (not 4300) and his pension @50% was 1724.

· The result. His pension post 2006 is fixed as (1724*2.26) = 3897



Whereas had he been given the benefit of notional pay commensurate to his 16 years of service as 4300, his pension would have been at least (4300*1.13) = 4859



“Now study the various figures shown as pensions and compare the reality of 3897 to the possibility of 15080. Draw your own conclusion if the pay revision, its implementation and the consequent application for the revision of pension have any semblance of fairness and justice towards the ESM community.”



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THE END