Friday, March 27, 2026

Pension

 ANOMALIES IN PENSION
Why PCDA (P) Sparsh has sent a note to JCOs that there is no change in their Pension, as they are getting more to the OROP 3 pension.
The PCDA (P) Sparsh notice to JCOs (Junior Commissioned Officers) regarding no change in pension due to OROP (One Rank, One Pension) implementation has caused confusion due to the following avoidable conditions:-

1. OROP was Introduced in 2015 to ensure equal pension for same-rank of same length of service of veterans.
2. Aimed to bridge pension disparities due to different retirement dates.

PCDA (P) Sparsh Notice:
1. Stated JCOs already receiving higher pension than OROP rates.
2. No revision or increase in pension due to OROP implementation.
Possible Reasons:

1. JCOs' existing pension already meets or exceeds OROP rates which should not have happened. 
2. OROP tables didn't account for individual variations by substancial increase of pension of 2023 retiries to bring at par with the benefits ratio being given in other ranks.
3. PCDA's system might not reflect updated OROP calculations due to mismatch of pension of 2015 onward retiries due to the reasons explained in subsequent paragraphs due to which existing pension remains unchanged.
Implications for JCOs.
For personalized assistance, JCOs should reach out to PCDA (P) Sparsh directly with the plea that  It was well known that JCOs pension has been  fixed at the higher rate to the futuring JCOs which continued till date, but why the pay of serving JCOs not fexed in, with regard to retired JCOs pension, as the pension of Junior Commissioned Officers (JCOs) has indeed been fixed at a higher rate for future retirees, but the pay of serving JCOs hasn't been adjusted accordingly to match the pension of retired JCOs. This discrepancy stems from the way pension revisions are handled.
Historically, the Seventh Central Pay Commission (CPC) revised pensions for pre-1986 retirees, including JCOs, but didn't provide notional fixation of pay for JCOs/ORs (Other Ranks). This means that while retired JCOs receive a higher pension, serving JCOs' pay scales weren't adjusted to reflect this change, however
to address this issue, the government has implemented measures like delinking qualifying service of 33 years for revised pension, but this doesn't directly impact serving JCOs' pay.

Key Factors Contributing to the Disparity:

Pension Revision Methodology_: The Seventh CPC's revision methodology for pre-1986 retirees didn't include notional pay fixation for JCOs/ORs.

Pay Fixation Principles: Pay fixation for re-employed individuals follows the "pay minus pension" principle .
Government Policies: Delinking qualifying service for revised pension aims to address pension disparities.
Government also issued orders of maximum pension at 20 years of service, which also put at disadvantage those served for more years.
 The government's order on maximum pension at 20 years of service has has also raised concerns among veterans who served for more years. Here's a summary:
*Maximum Pension at 20 Years:*

1. This was aimed to encourage early retirement and reduce pension liability.
2. Applies to all government employees, including defence personnel.

Implications for Veterans:

1. Reduced pension benefits for those serving beyond 20 years.
2. No incremental pension increase for additional service years.
3. Disproportionate impact on veterans with longer service.

*Concerns Raised by Veterans:*

1. Inequitable treatment compared to those serving fewer years.
2. No recognition of additional service and experience.
3. Financial hardship for veterans relying on pension.


*Representations and Demands:*

1. Veterans' associations have submitted representations to the government.
2. Demands include revising pension calculations to reflect full service.
3. Requests for incremental pension increases for additional years.


*Government Response:*

1. The government has acknowledged concerns but hasn't revised the policy.
2. Emphasis on encouraging early retirement and reducing pension burden.

*Possible Solutions:*

1. Gradual pension increments for additional service years.
2. Weighted pension calculation considering full service.
3. Alternative compensation for veterans serving beyond 20 years.


*References:*

1. Department of Pension and Pensioners' Welfare (DoPPW) notifications.
2. Ministry of Defence (MoD) circulars.
3. Veterans' associations' representations and memoranda.


Would you like more information on pension policies or veterans' welfare initiatives?
[05/10, 8:34 am] Meta AI: The change in pension policy to 20 years indeed impacted the implementation of One Rank, One Pension (OROP). Here's how:


OROP Pension Formula:_

1. Pension = (Rank) x (Number of Years of Service) x (Average Pay)


Impact of 20-Year Pension Policy:_

1. Reduced number of years considered for pension calculation.
2. Disrupted OROP's foundational principle: equal pension for equal rank and length of service.


Challenges in Implementing OROP:_

1. Inconsistent pension calculations due to varying service lengths.
2. Difficulty in determining average pay for OROP purposes.
3. Complexities in integrating OROP with the new 20-year pension policy.


Government's OROP Implementation:_

1. Introduced OROP in 2015, despite challenges.
2. Used a modified formula: Pension = (Rank) x (Average Pay) x (2.57 multiplier).
3. Adjusted pension tables to account for reduced service years.


Shortcomings:_

1. OROP tables didn't fully account for variable service lengths.
2. Veterans with more service years felt disadvantaged.
3. Disparities persisted, leading to continued demands for revision.


Potential Solutions:_

1. Revising OROP tables to reflect actual service lengths.
2. Introducing incremental pension increases for additional years.
3. Harmonizing OROP with the 20-year pension policy.


_References:_

1. Ministry of Defence (MoD) OROP notifications.
2. Department of Ex-Servicemen Welfare (DESW) guidelines.
3. Veterans' associations' representations and memorand(

The intersection of the 20-year pension policy and OROP has posed challenges. Veterans continue to advocate for refined pension calculations reflecting their full service.

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