New Delhi: Defence Minister Manohar Parrikar today announced the 'One Rank One Pension' (OROP) scheme, ending a 42 years long wait of the ex-servicemen.
The following are the highlights of the OROP as announced by the government on Saturday:
1) The benefit will be given with effect from July 1, 2014. The government said it assumed office on May 26, 2014 and therefore, it was decided to make the scheme effective from a date immediately after. OROP would be fixed on the basis of calendar year 2013.
2) Estimated expenditure is Rs.8,000-Rs.10,000 crore. Arrears are expected to be around Rs.12,000 crore.
3) Arrears will be paid in four half-yearly instalments. All widows, including war widows, will be paid arrears in one instalment. Veterans above 60 years of age will also get arrears in one go.
4) Pension will be re-fixed for all pensioners retiring in the same rank and with the same length of service as the average of minimum and maximum pension in 2013. Those drawing pensions above the average will be protected.
5) In future, the pension would be re-fixed every five years.
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