Defence Pension & OROP Rules Explained
Defence service pension rules differ from civilian central government pensions. Key differences include:
- Emoluments Base: Pension is calculated on (Last Basic Pay + MSP + Group X Pay).
- Commutation Ceiling: Defence personnel are allowed to commute up to 50% of their basic pension (compared to 40% for civilians).
- Commutation Factor: Calculated using the standard age factor table (8.194 for age 50).
- One Rank One Pension (OROP): Ensures uniform pension for defence personnel retiring in the same rank with the same length of service, regardless of their retirement date.