OROP Pensions Vis-a-Vis Pensions based On VI CPC Pay Band

It is nobody's case that making a hypothetical calculation based on the VI CPC pay-band, as applicable to a specific rank, would yield the "average of minimum and maximum pensions in calendar year 2013".

Nevertheless, an estimation can be made to the actual process that could have gone in to the making of the OROP tables.

Some interesting, as well as puzzling, observations also arise when the two sets of pensions are viewed graphically.

As an example, the rank of Lt Col can be examined. The graph covers the QS period from 13 18 years to 30 years, the pay-band being considered to have the starting point at a service of 13 years, when an Officer picks up the rank of Lt Col. {Edit: The graph has now been updated to include OROP for Col(TS) as well as an approximation of PB4 based 6 CPC Pension that could apply in case of Col(TS)}

The two sets of pensions for Lt Col do show convergence at the starting point of pensionable service, viz. 20 years. The convergence ends after a a QS of about 22 years when the OROP pension stays basically flat and begins to fall well short of the pension calculated on the basis of the VI CPC pay-band.

The gap is noticeably wide at a QS of 26 years onwards at which point, in fact, the pension ought to have parity with the pension of Col(TS). As things stand, the OROP pension remains well below even the pension calculated on basis of the VI CPC pay-band as applicable to the rank of Lt Col.

But, this has to be stated again. OROP pension was supposed to have been based on the minimum and maximum pensions for the same service of personnel retiring in Calendar year 2013. Whether or not that was the case is not clear. If OROP pensions are indeed the average, then it is possible in calendar year 2013 Lt Col retirees had not yet reached the increment stages of the VI CPC pay-band for their years of service due to initial VI CPC pay fixation.

Whatever the explanation be, this leads to yet another gap in information on lines of the ones mentioned in the previous blog-post.

 {Edit} Another interesting fact emerges. If pensions of Col retirees, based purely on PB-4, are compared with OROP pensions, then unlike in the case of Lt Col pensions, the OROP pensions are mostly higher than  closer to PB-4 based calculations. (The graph has now been updated). But as Col rank is a select one, this graph will need to be cross-checked even more thoroughly than the previous one applicable to the time-bound ranks of Lt Col and Col(TS). The same other riders as above also apply, of course:

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2 comments:

  1. bala01 March, 2016

    A fine presentation. Diffenciation is visible and clear.

    ReplyDelete
  2. Manohar17 March, 2016

    I only hope that L. Narasimha Reddy Commission will go through your blog before finalising his final report on OROP. Lots of anomalies can be corrected by him at every rank and file.

    ReplyDelete

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