The Supreme Court upholds the Center’s ‘One Rank, One Pension’ Scheme, stating that there is “no legal mandate that same rank pensioners must be given the same pension.”

*Paromita Das

The petitioners claimed that there was a significant difference between the policy as it existed on paper and the policy as it was actually implemented, resulting in many one-rank pensions.

The Supreme Court ruled on Wednesday that there was no legal mandate requiring ex-servicemen of the same rank to receive the same amount of pension. In doing so, it determined that there was no constitutional flaw in the manner in which the Central Government implemented the one-rank, one-pension policy (OROP).

The bench has directed, however, that the policy-mandated re-fixation exercise be carried out with effect from July 1, 2019, and that pension arrears be paid to pensioners within three months.

The petitioners claimed that there was a significant difference between the policy as written and the policy as implemented, resulting in a large number of one-rank pensions.

On Wednesday, the Supreme Court, a three-judge bench comprised of Justices DY Chandrachud, Surya Kant, and Vikram Nath, ruled that there was no legal requirement that ex-servicemen of the same rank receive the same amount of pension. In doing so, it determined that the Central Government’s implementation of the one-rank, one-pension policy did not violate the Constitution (OROP).

The Court also stated that the government must conduct a refixation exercise for a period of five years with regard to the pension payable to Army personnel as stated in the OROP policy in accordance with the November 7, 2015, notification. “A refixation exercise will begin on July 1, 2019.” “Also, arrears must be paid to Army personnel within three months,” the Bench ruled.

However, they claimed that doing so would be extremely unfair to the 24 lakh ex-servicemen, 6.5 lakh war widows, and widows of ex-servicemen.

During the February 16 hearing, the bench remarked that the Center’s position on the OROP policy presented a much “rosier picture” than what was actually given to the pensioners.

The government, on the other hand, had asked the court not to intervene in the case because it was an executive matter with financial ramifications. In an affidavit, the Centre stated that if equalisation were to occur every year, the financial outflow likely to be incurred beginning in 2014 would be around Rs 42,776 crore.

To counter this, the IESM pointed out that a report presented in Parliament in 2011 by BJP leader and current Maharashtra Governor Bhagat Singh Koshiyari recommended that OROP should effectively mean a uniform pension for all armed forces personnel retiring in the same rank and with the same years of service, regardless of their retirement date.

What exactly is OROP?

The ‘One Rank, One Pension’ rule states that retired soldiers of the same rank and length of service receive the same pension, regardless of when they retired.

According to the scheme, the benefit will begin on July 1, 2014, and arrears will be paid in four half-yearly instalments. All Army widows will be paid in one lump sum, and OROP will be based on the calendar year 2013.

When did it become pending, and when did it go into effect?

It had been pending for more than four decades. It became effective in 2018.