Pension System in Defence

Contents: Preface. 1. Pension: an introduction. 2. One Rank, one pension. 3. New Pension scheme for Armed Forces. 4. One Rank one Pension scheme important for the Indian Military. 5. Making Pension system credibility. 6. Indian ex-servicemen movement. 7. Pensionary benefits of civilian and Defence forces. 8. Pension plan. Bibliography. Index.

Pension plans provide financial security and stability during old age when people don’t have a regular source of income. Retirement plan ensures that people live with pride and without compromising on their standard of living during advancing years. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through annuity plan on retirement. One Rank One Pension (OROP), or “same pension, for same rank, for same length of service, irrespective of the date of retirement”, is a longstanding demand of the Indian armed forces and veterans. The new pension system would be based on defined contributions, which will use the existing network of bank branches and post offices etc. to collect contributions and interact with participants allowing transfer of the benefits in case of change of employment and offer a basket of pension choices. The Defence Pension is a pension fund of the three wings of the armed forces and the civilian employees working in Defence establishments, where the Government of India contributes on behalf of the employee with an aim of retirement planning of the Defence personnel.