The Union cabinet headed by PM Narendra Modi on Friday approved the payment of arrears of the One Rank-One Pension (OROP) scheme to all eligible pensioners of the armed forces with effect from July 2019.
"Pension of the past pensioners would be re-fixed on the basis of the 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," said an official of the Defence Ministry.
Who will benefit from this revision?
The Armed Forces Personnel who retired up to June 30, 2019, (excluding pre-mature retired w.e.f. July 01, 2014) will be covered under this revision. Other than this more than 25.13 lakh (including over 4.52 lakh new beneficiaries) Armed Forces Pensioners/family pensioners will also benefit from the revised plan.
Meanwhile, those who draw pensions 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 in receipt of Special/Liberalised Family Pension and Gallantry Award Winners, shall be paid arrears in one instalment.
What is the expected expenditure on the OROP?
The estimated annual expenditure for the implementation of the revision has been calculated as approximately Rs 8,450 crore at 31% Dearness Relief (DR). Arrears w.e.f. 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 w.e.f. July 01, 2019 to June 30, 2022 have been calculated as approximately Rs 23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.
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