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What is the latest Judgement on OROP?

NEW DELHI: The Supreme Court on Monday agreed with the Union government that payment of Rs 28,000 crore towards ‘ One-Rank-One-Pension ‘ (OROP) arrears for nearly 21 lakh ex-servicemen at one go could impact defence preparedness and allowed staggered payment of arrears with the last instalment payable by February 28, 2024.

1. The widows and gallantry award winners would receive their arrears by March 31, followed by those above 70 years by June 30 and the rest in three instalments by September and December 2023, and February 28, 2024.
2. After pulling up the defence secretary for issuing a letter on January 20 for instalment-based payment of OROP arrears and terming it an attempt to overreach the SC judgement directing payment of arrears by March 15, a bench of Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala saw reason behind the Centre’s decision for staggered payment of the arrears, which are due since 2019.

When pensioners’ counsel Huzefa A Ahmadi asked “why is it the last priority of the government to pay full arrears as per its own OROP policy”, attorney general R Venkataramani handed over the communication between the defence and finance ministries over release of Rs 28,000 crore towards OROP arrears and the finance ministry’s inability to provision such a huge amount at the end of the 2022-23 financial year.

The CJI-led bench said, “If we ask the Centre to pay the arrears by March 31 and it says it does not have the money, what can be done? It is a staggering Rs 28,000 crore. We were upset with the earlier letter. But we cannot lose sight of national interest.” The AG informed the court that there are 25 lakh ex-servicemen drawing pension.

“All regular pensions are paid to them timely. It is only the question of arrears. Of the 25 lakh ex-servicemen, 4 lakh are ineligible for arrears as they are receiving higher pension; six lakh are in the category of family pension (widows) and gallantry award winners, four lakh are above 70 years-old; and 10-11 lakh are regular pensioners.” Accepting the categorisation, the bench said widows and gallantry award winners will receive their entire OROP arrears by March 31; those ex-servicemen above 70-years of age would receive either in one go or in instalments their entire arrears by June 30 (Centre had suggested July 31); and the rest 10-11 lakh ex-servicemen would receive their OROP arrears in three instalments – August 31, November 30 and February 28 (Centre had suggested September 30, December 31 and March 31).

• In an important clarification, the AG said the delay in payment of OROP arrears would not impact the next exercise for equalisation of pension under OROP scheme.
• Ahmadi also demanded that the government pay interest on the arrears because of delay, but the SC declined to pass orders in this regard.
• In its affidavit, the Centre told the SC that of the total defence budget outlay of Rs 5.85 lakh crore for 2022-23, Rs 1.32 lakh crore was planned expenditure towards payment of regular pension to 25 lakh ex-servicemen.

Of this, Rs 1.2 lakh crore have already been spent by February 28 this year. This crunch at the end of the financial year coupled with the finance ministry’s inability to provide more funds convinced the court to allow the government to categorise the ex-servicemen different groups and make instalment-based payments.

What is the latest decision for one rank one pension?

Police evict protesting ex-servicemen from Jantar Mantar in New Delhi. (PTI, file) Listen to this article Clear all OROP dues by Feb 28, 2024, Supreme Court directs Centre x Pointing out that the central government was duty-bound to comply with the 2022 judgement in terms of the One Rank One Pension (OROP) scheme, the Supreme Court Monday directed the government to clear the dues of 10-11 lakh pensioners by February 28, 2024, in three equal instalments, PTI reported.

“The Union government is duty-bound to comply with the judgement of this court in the terms of the OROP scheme,” it said. The top court instructed the government to pay OROP dues to retired servicemen aged 70 and above in one or more instalments by June 30, 2023, and clear pending OROP arrears to six lakh family pensioners and gallantry award winners by April 30.

The SC also made it clear that the payment of the dues “will not affect further equalisation of pension of ex-servicemen to be done in 2024”. The apex court made these remarks while hearing the Indian Ex-Servicemen Movement’s (IESM) plea over the payment of OROP arrears to ex-service personnel.

Refusing to accept the sealed cover note submitted by the central government in the OROP arrears case, Chief Justice of India D Y Chandrachud Monday said: “I am personally averse to sealed covers. There has to be transparency in court This is about implementing orders. What can be secret here?” Mentioning that the practice of submitting notes in sealed covers should end, a bench of CJI D Y Chandrachud and Justices P S Narasimha and J B Pardiwala stated that it was “fundamentally contrary to the basic process of fair justice.” The top court had, on March 13, taken exception to the Defence ministry issuing a communication (on January 20) stating that the OROP arrears would be paid in four half-yearly instalments.

The court had then asked the government to withdraw the communication. “The Defence ministry cannot take the law in its handWithdraw the communication of January 20 which is directly contrary to our order or will ask the secretary defence to present himself in court,” Chief Justice of India D Y Chandrachud presiding over a three-judge bench told Attorney General R Venkataramani.

What is the meaning of OROP has been revised?

The ‘one rank, one pension’ rule means that retired soldiers of the same rank and length of service will receive the same pension, regardless of when they retire. Future enhancements in the rates of pension would be automatically passed on to the past pensioners.

– Maj Gen Jagatbir Singh,VSM ( Retd) On December 23, the Union Cabinet approved the One Rank-One Pension (OROP) revision for Ex Servicemen. This welcome development surprisingly came a week after the government had asked the Supreme Court for extension of time till March 15 2023 for payment of arrears of the OROP scheme.

It had first moved the Supreme Court in June and sought three months to compute and make payment. The approved revision of pension of Armed Forces Pensioners/family pensioners under OROP will be effective from July 1, 2019. All the Armed Forces Personnel who retired up to 30 June 2019, will be covered under this revision, said the government.

• It is estimated that over 25.13 lakh Armed Forces pensioners/family pensioners will be benefited.
• The government said that the pension for those drawing above the average will be protected and be extended to family pensioners, including war widows and disabled pensioners.
• While the arrears will be paid in four half-yearly installments all family pensioners, including those in receipt of special/liberalised family pension and Gallantry Award winners, shall be paid arrears in one installment.

The estimated annual expenditure for the implementation of the revision has been calculated as approximately Rs 8,450 crore at 31 percent Dearness Relief (DR). The arrears with effect from July 1, 2019 – December 31, 2021, have been calculated as over Rs 19,316 crore based on DR at 17 percent for the period from July 1, 2019 to June 30, 2021 and at 31 percent for the period from July 1, 2021 to December 31, 2021.

• Also arrears with effect from July 1, 2019 to June 30, 2022 have been calculated as approximately Rs 23,638 crore as per the applicable dearness relief.
• Earlier on November 7, 2015, the government had issued a policy letter for revision of OROP pension with effect from July 1, 2014.
• In the letter, it was mentioned that in future the pension would be re-fixed every five years.

Approximately Rs 57,000 crore has been spent at Rs 7,123 crore per year in eight years in the implementation of OROP. The ‘one rank, one pension’ rule means that retired soldiers of the same rank and length of service will receive the same pension, regardless of when they retire.

Future enhancements in the rates of pension would be automatically passed on to the past pensioners. This implies bridging the gap between the rate of pension of current and past pensioners at periodic intervals. This equalisation of pension was to happen periodically every five years which meant that it should have been revised on July 1 2019.

The rank-wise pension figures for OROP in the tables as provided in the official press release are only broad figures meant for information. The actual figures would vary for each rank as per length of service. There are many other factors & sub-categories, for example the rank of Lt Gen has three grades (HAG, HAG+, Apex/Levels 15, 16, 17).

• Then there are sub-categories among other ranks also such as Honorary Ranks.
• There is no doubt that an examination of the tables which have been released show a substantial increase in the basic pensions across all ranks from Jan 1 2016 and that as July 1 2021.
• Though the announcement has been delayed, it has brought relief to pensioners and closure to one of the major anomalies with regards to the demands of a certain section of ESM’s regarding the implementation of the OROP and is a welcome step.

The PCDA in consultation with the MoD Finance would have worked out the various tables which reflect the changes in pension for every rank depending on the length of Service in great detail after a great deal of deliberation and with due diligence. This equalisation will no doubt give a fillip in the pensions being received.

• There will no doubt be some anomalies in specific cases that may emerge and these will need to be examined, addressed and resolved as per the existing rules and provisions.
• However, on the face of it there has been a substantial increase in the basic pensions, for example as per the tables released a Naiks basic pension between 2016 and 2021 has gone up by approximately Rs 3500 and Colonels by approximately Rs 15,000.

This represents an increase of 16 percent and 14 percent respectively. While the equalisation was to take place once every five years the tables show the same as having been carried out July 1 2019 and July 1 2021 which means that the equalisation is being carried out once in two years which is extremely beneficial to the pensioners.

There is no doubt that this announcement by the government is a very welcome step and has resolved one of the most contentious issues pertaining to the OROP that is the fixation of pay and is a huge relief particularly for those pensioners who felt that they had not been adequately equated. The author is an Indian Army Veteran.

Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.

Can you collect more than 1 pension?

Can I Have More Than One Pension? Laura Suter: So yes, you can have more than one pension. Most people will have the state pension which is paid out by the government. But on top of that you can have pensions from your employer. Or you can set up a self-invested personal pension or a SIPP as it’s also known as, which is your own personal pension.

1. One of the issues that people can end up with is they end up with too many pension pots, which is quite hard to manage.
2. So while you can’t take that money out, you can transfer it into another pension.
3. And so that means that quite often people might do that if they change employer and they might transfer that old pension pot into their new employer pension pot, or people might decide to open a SIPP and transfer all of their old pensions into that SIPP.

One thing that you need to make sure, is that you’re not losing any valuable guarantees when you transfer. So check that out before you transfer your pensions. SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk The information contained within is for educational and informational purposes ONLY.

It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation.

The information contained within should not be a person’s sole basis for making an investment decision. Please contact your financial professional before making an investment decision. : Can I Have More Than One Pension?

Can you have more than 1 pension?

If you have more than one job, each of your employers will check whether you qualify to automatically join their workplace pension scheme. They will base their decision on the level of your earnings with that employer, rather than your overall earnings with other employers.

• If you qualify, this means you’re classed as an ‘eligible jobholder’.
• You’ll then be automatically enrolled into that employer’s workplace pension scheme.
• But you can then decide to opt out.
• You can belong to more than one employer’s workplace pension scheme.
• You might not qualify to be automatically enrolled in a workplace pension scheme with one or more of your employers.

This means you’re either a ‘non-eligible jobholder’ or an ‘entitled worker’. However, you can ask to join that employer’s workplace pension scheme and if you are a ‘non-eligible worker’, your employer must contribute. However, if you are an ‘entitled worker’, your employer does not have to contribute to your pension (although they might choose to do so anyway).

You might be asked to pay contributions, based on your pay from that employment, to each of the schemes you join. What you get from each scheme when you retire might differ. This will depend on whether the scheme is defined benefit or defined contribution. But the important thing is that you’ll be building up a pension that can give you an income in retirement.

If you leave an employer, or as you get close to the date when you can begin taking an income from your pensions, it might be possible to start bringing your pensions together. There’s no restriction on the number of different pension schemes that you can belong to.

How do I check my Sparsh status?

Go to url https://sparsh.defencepension.gov.in 2. Login by entering your PPO No. and suffix 01 to it (self pensioner) otherwise suffix 02 or 03 or 04 and so on (in case of family pensioner suffix no. is as per serial no. of family member mentioned in PPO).

What happens if you have 2 pensions?

3. Save on fees – Combining your pensions could save you money on charges. If you have got multiple plans, you will be paying for the administration of each one which makes it difficult to keep track of the overall cost. It’s also not very cost-effective, especially if some of the providers are expensive.

If the pension plan levied charges of 1.5% your pot would be worth £278,098 But if you chose to switch to a provider charging annual fees of less than 0.5%, your pot would be worth £357,094 instead

Find out who we rate as the best ready made personal pension in our independent ratings.

Can you take 25% of all your pensions?

Most personal pensions set an age when you can start taking money from them. It’s not normally before 55. Contact your pension provider if you’re not sure when you can take your pension. You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum.

• This is limited to a maximum of 25% of your available lifetime allowance.
• For most individuals, the standard lifetime allowance applies.
• This is currently £1,073,100.
• You’ll then have 6 months to start taking the remaining 75%, which you’ll usually pay tax on.
• If you hold lifetime allowance protection, this may increase the amount of tax-free lump sum you can take from your pensions.

The options you have for taking the rest of your pension pot include:

taking all or some of it as cash buying a product that gives you a guaranteed income (sometimes known as an ‘annuity’) for life investing it to get a regular, adjustable income (sometimes known as ‘flexi-access drawdown’)

Ask your pension provider which options they offer (they may not offer all of them). If you do not want to take any of their options, you can transfer your pension pot to a different provider.

Is it better to take a lump sum or monthly pension?

Lifetime Monthly Payment vs. Lump Sum: Which One Is Better? – In most cases, the lump-sum option is clearly the way to go. The main difference between a lump-sum and a monthly payment is that with a lump-sum option, you get to have control over how your money is invested and what happens to it once you’re gone.

If that’s the case, then the lump-sum option is your best bet. Let’s look at Mr. Simmons situation one last time. Let’s say he decided to wait and take the monthly benefit payments once he retires at age 65. If he lives for another 20 years, receiving $2,500 every single month during his retirement, he’d end up receiving a total of $600,000 from his pension plan.

But what if he took the $100,000 early lump-sum buyout offer at age 45? And what if he rolled that lump sum into a traditional IRA and invested in good growth stock mutual funds? Even if he didn’t put another penny into the IRA, he could have close to $900,000 by the time he retires at age 65—that’s about $300,000 more than his pension payments would be worth.

And just for kicks: If Mr. Simmons just invested $200 every month into the IRA during those 20 years, it’s very possible that he would wind up with more than $1 million in his nest egg at retirement. That’s right: Mr. Simmons could become a millionaire if he plays his cards right—and so could you! And if he passes away, whatever money is left can go to his wife and kids.

If he stuck with his pension, his wife might be able to receive some form of monthly benefit from the pension, but then it dies with her. The choice is pretty clear, don’t you think?

Is it better to take a higher lump sum or pension UK?

The advantages of taking a lump sum –

More flexibility: The biggest draw here is the flexibility that a lump sum provides you with. You’re not tied to an Annuity or an investment strategy that’s defined by your scheme. If you have a clear idea of how you’d like to use your pension, it can be a big draw. Invest how you want: If you want to continue growing the value of your pension, taking a lump sum gives you more freedom to invest in a way that suits you. This approach could yield higher returns, but, of course, there’s always the chance that your pension will decrease in value at points too. Support early years of retirement: The early years of retirement are often more active than the later ones. Perhaps you want to travel or take up a new hobby. Taking a lump sum from your pension can give you the cash injection needed to support your aspirations. Alternatively, you may still have debts, such as a mortgage, that you want to clear as you enter retirement. A lump sum may be one of the easiest ways to do this.

Can I put all my pensions in one?

Pension consolidation is the process of combining different retirement pots into a single plan. Consolidating pension pots may sound like financial jargon at first, but the goal is straightforward: to streamline the various personal and workplace pensions you’ve collected over the years, making them easier to manage.