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AFT strikes down policy denying OROP benefits to post-2015 pre-mature retirees

The AFT bench in their January 31 order observed that persons who opt for pre-mature retirement form a homogeneous class therefore, differentiating within this class based on retirement date is unconstitutional
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The Armed Forces Tribunal (AFT) has struck down a government order denying One Rank One Pension (OROP) benefits to armed forces personnel who opted for pre-mature retirement after November 7, 2015. AFT deemed the denial unconstitutional and discriminatory.

Armed forces personnel who took pre-mature retirement are categorised into three categories — those who retired before July 1, 2014 and have been granted OROP benefits, retirees between July 1, 2014 and November 7, 2015, and those who retired after November 15, 2015 and were affected by the government’s decision.

A group of 114 personnel from all three services moved AFT against their exclusion from the OROP benefits. Maj SS Pandey (retd), counsel for some of the petitioners, stated that the government’s actions were “illegal, arbitrary, unreasonable, and against the existing policy instructions”.

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The AFT bench, comprising Justice Rajendra Menon and Rear Admiral Dhiren Vig, in their January 31 order, observed that persons who opt for pre-mature retirement form a homogeneous class therefore, differentiating within this class based on retirement date is unconstitutional.

“Differentiating within the same category without any just cause or reason and without establishing any nexus, we have no hesitation in holding that this amounts to violating the rights available to pre-mature retirement personnel under Articles 14 and 16 of the Constitution,” the bench said.

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The action of the government was also contrary to the principles of law laid down by the Supreme Court in the matter of fixing the cut-off date and creating differentiation in a homogeneous class, and the law consistently laid down thereafter, the bench held.

The bench ruled that the government’s order was unsustainable in law and directed that pre-mature retirees be treated uniformly, granting them OROP benefits without discrimination.

Prior to 1973, armed forces personnel with the same length of service received equal pensions, regardless of retirement date. However, this parity was discontinued in 1973 after the Third Pay Commission’s implementation. The agitation for OROP gained momentum, leading to public protests and ex-servicemen returning their medals.

After much debate, the government decided to implement OROP prospectively from 2014-2015, notifying it in February 2014. However, a May 2014 policy letter excluded some pre-mature retirees from its ambit.

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