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    Thursday, 3 March 2016

    MODALITIES FOR CALCULATIONS FOR OROP

    Modalities for Calculations for OROP

    Clarification sought by PCDA (P) Guidance provided by MoD
    It may be clarified whether average of minimum & maximum pension is to be determined separately for three Services and the highest among them be allowed or average of minimum and maximum pension is to be determined with reference to entire data of three services. Issue may be dealt in reference to suggestion at para 1 above. Average of minimum and maximum may be determined with reference to entire data for three Services.
    Where rates of proposed pension at lower qualifying service is higher than the rates for higher qualifying service in same rank/group? In case of such anomalies, pension of higher qualifying services would be stepped up to the level of pension of same rank/group with lower qualifying service.
    Where proposed rates of pension in higher ranks is lower than the rates in lower rank(s) with same qualifying service? In case of such anomalies, pension of higher rank/group with same qualifying service may be stepped up to the level of pension of lower rank(s) with identical group) with same qualifying service.
    Where retirees for any rank/Group is not available for lower qualifying service but available after certain length of service? Where data in a rank is available but the same is not available for certain lower qualifying service, pension for lower service may be determined allowing cut of 3% (compounded) for each completed year to the first rate available for any qualifying service in the particular rank/group. The reduction will be subject to protection with rates of pension determined for lower rank(s)/Group(s).
    From 1.9.2008 onwards, JCOs/ORs are getting 3 financial upgradations in scale of higher rank under MACP scheme. These upgradations are allowed after 8/16/24 years. However, rank of the personnel doesn’t change. A confirmation is required whether these data of pensioners is to be considered with reference to the rank held or is to be taken with reference to grade pay drawn after financial upgradation. Specific cases from data of 2013 available be segregated with reference to GP and not with reference to rank last held. Thus, personnel who retire with higher grade pay due to financial upgradation may be considered with higher rank for determining revised pension.
    In terms of recommendations of CSC-2012, JCO/OR pensioners are allowed pension based on highest notional pay across the 3 services. A confirmation required whether the proposed pension is to be determined with reference to entire data across three services for both JCO/OR and Commissioned Officers or otherwise? The present policy for pre-2006 JCO/OR retirees viz., across three services may continue. As the pre-revised/revised pay structure for Commissioned Officers across the Services were same, such dispensation was not considered for them earlier. It is now proposed that pension for JCOs/ORs/Offrs may be determined with reference to entire data across the three services.
    A methodology needs to be adopted for determining proposed pension for ranks/groups where there are no retirees in calendar year 2013. When data in a rank is not available, protection in pension be allowed with reference to lower rank(s). Where data in Gp X for a rank is not available, pension may be determined by adding Rs 700 (50% of X Gp pay)in Gp Y Pension subject to protection with rates of pension determined for Gp X in lower rank.
    Methodology be adopted for certain types of pension viz Liberalised family pension/2ndlife awards, where cases are not available in calendar year 2013 data or data available is very less. CSC-2012 established linkage between rates of all kind of family pension with rated of service pension in respect of JCO/OR pensioners may continue. Similar dispensation may also be adopted for rates of family pensions in respect of Commissioned Officers.
    For post 2006 disables cases, rates for disability/war injury element linked with pay last drawn which is reduced pro-rata for lesser percentage of disability. Methodology to finalise rates of these awards for each rank/group and qualifying service may be required. Rates of disability/war injury element be linked with rates of revised retiring/service pension. The rates of disability element shall be 60% of retiring/service pension in each qualifying service for 100% disability. The rates of war injury element shall be 120% of retiring/service pension (discharge cases) and 200% of retiring/service pension (invalidment cases) in each qualifying service for 100% disability.
    Method for revision of PSU absorbees who had opted for 100%commutation of pension as policy for 100% commutation is withdrawn from April 1996 and no such retirees exists in 2013. Pension of such retirees be revised based on revised pension determined for regular ranks. However, existing restored amount of pension shall continue as the methodology for the same has been finalised with reference to Hon’ble Supreme Court judgment.
    As per existing formula applicable topre-2006 retires, pension is determined up to maximum terms of engagement for JCO/OR and up to 33 years of service for Commissioned Officers despite of the fact whether they have rendered service beyond that limit. Confirmation required whether the same has to be continued in proposed formulation of OROP or proposed pension of each personnel retired in calendar year 2013 irrespective of qualifying service has to be notified to allow this benefit for past pensioners. Rates of pension may be determined up to the terms of engagement only and maximum pension determined for rank/group shall be allowed for higher QS. However, in case of officers of the rank of Major General and above which gets their rank at a higher qualifying service, first available rate of pension of qualifying service with 33 years or more may be treated as rates for 33 years of service subject to pro-rata reduction for lower qualifying service.
    While reviewing the data of post- 2006 retirees at different points of time in the past it has been observed by Ministry that out layers should be removed from the data to determine revised pension. Methodology in this regard would be required. It is suggested that out layers be excluded by identifying cases getting benefit of higher pension due to various Court decisions extra increment/out of turn promotions earned by individuals, cut in rates of pay/pension due to punishments, direct entry in higher ranks. PSAs may identify minimum/maximum cases for each rank/group /qualifying service from their data base and get it confirmed from respective Record offices/Pay Account offices to exclude these cases from relevant data.
    As per the announcement made by the Government for OROP, personnel retire voluntarily/on his own request are to be excluded from these benefits. Confirmation would be required whether cases of voluntary retirement/retire on own request has to be excluded from the data of 2013 before determining revised pension. Decision awaited

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