The Union Cabinet approved the revised One Rank-One Pension (OROP) scheme for armed forces pensioners and families pensioners on December 23.
As per the latest revision, the pension of the past pensioners would be re-fixed on the basis of average of minimum and maximum pension of Defence Forces retirees of the calendar year 2018 in the same rank with the same length of service. Armed forces personnel retired up to June 30, 2019, excluding pre-mature (PMR) retired effective July 01, 2014, will be covered under this revision.
More than 25.13 lakh, including over 4.52 lakh new beneficiaries, of armed forces pensioners and family pensioners will benefit from the move. Pension for those drawing above the average shall be protected. The benefit would also be extended to family pensioners, including war widows and disabled pensioners.
Arrears will be paid in four half-yearly instalments. However, all the family pensioners, including those already receiving Special or Liberalised Family Pension and Gallantry Award Winners, shall be paid arrears in one instalment.
Revised OROP pension table
OROP pension expenditure
The estimated annual expenditure for the implementation of the revision has been calculated as Rs 8,450 crore with 31% Dearness Relief (DR). Arrears will be effective July 01, 2019, to December 31, 2021, have been calculated as over Rs 19,316 crore based on DR at 17% for the period from July 01, 2019, to June 30, 2021, and at 31% for the period from July 01, 2021 to December 31, 2021.
Arrears with effect from July 1, 2019, to June 30, 2022, have been calculated at Rs 23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.
The Central government decided to implement OROP for the defence forces personnel and family pensioners and issued policy letter on November 7, 2015 for revision of pension with effect from July 1, 2014. As perpolicy, the pension would be re-fixed every 5 years. Approximately Rs 57,000 crore has been spent at Rs 7,123 crore per year in eight years in the implementation of OROP.
