One Rank, One Pension approved

Before going into the general elections, Finance Minister P Chidambaram lured Defence personnel with approving their long-pending demand of One Rank, One Pension (OROP) in his Interim Budget.

The announcement came few days after Congress Vice President had assured defence personnel of looking into their demand of ‘One Rank, One Pension’.

"I am on your side. I understand your concerns. You give your life for the country, I will do all that I can to see that your demands are met," said Gandhi, addressing a gathering of over 500 ex-servicemen in Delhi.

Delivering speech on Vote on Account in the Lok Sabha, Chidambaram said Rs 500 crore estimated requirement for implementing one-rank-one-pay scheme for armed forces in 2014-15. 

OROP basically implies payment of uniform pension to personnel retiring in the same rank with the same length of service irrespective of their date of retirement. Consequently, any further enhancement in pension rates will automatically be passed on to past pensioners.