Union Cabinet approves revision of pension under OROP

The Union government approved the revision of pensions under One Rank One Pension (OROP) on December 23, an important step that will benefit lakhs of retired armed forces personnel.

PM Narendra Modi approved the revision of the pension of Armed Forces Pensioners/family pensioners under OROP, which will be in effect from July 1 July 2019.

All the Armed Forces Personnel retired up to June 30, 2019, will be covered under this revision, the government said. Over 25.13 lakh armed forces pensioners and family pensioners will benefit from the decision.

“The pension for those drawing above the average will be protected and be extended to family pensioners, including war widows and disabled pensioners. Arrears will also be paid in four half-yearly installments, according to the government.

All family pensioners, including those receiving special or liberalised family pensions and Gallantry Award winners, will, however, be paid in one instalment.

The estimated annual expenditure for implementing the revision is approximately ₹8,450 crores at a 31 per cent Dearness Relief (DR).

As per the calculation, the arrears with effect from 1 July 2019 – 31 December 2021 have been calculated at over ₹19,316 crores based on DR of 17 per cent for the period from 1 July 2019 to 30 June 2021 and of 31 per cent for the period from 1 July 2021 to 31 December 2021.

Also arrears w.e.f. 1 July 2019 to 30 June 2022 have been calculated at approximately ₹23,638 crore as per the applicable DR.

“The government took a historic decision to implement OROP for the defence forces personnel and family pensioners and issued a policy letter on November 7, 2015, for the revision of pensions w.e.f. July 01, 2014,” the government stated.

“In the said policy letter, it was mentioned that in the future, the pension would be re-fixed every 5 years. Approx. Rs 57,000 crore has been spent @Rs 7,123 crores per year in eight years on the implementation of OROP,” the statement from the government read.

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