NEW DELHI, Dec 23: The Union Cabinet on Friday approved revision of One-Rank-One-Pension (OROP) scheme for retired defence personnel/officers benefitting some 25 lakh military pensioners who retired after July 1, 2014, (when it was first made applicable).
The government said the revised OROP would give benefits to family pensioners including war widows and differently abled pensioners. OROP aims at pension uniformity for armed forces personnel retiring at the same rank with the same length of service. The revised OROP would encourage young people to join the armed forces, the government said in a statement.
Now, those who retired till June 30, 2019, will get the same average pension as that of those who retired in 2018 on same rank and after the same service period. This revision will be applicable from July 1, 2019. Those who have received more than the average pension, will continue to get the same. Arrear will be paid in four half-yearly instalments.
Before July 1, 2014, there were 20,60,220 pensioners. Over ₹ 23,600 crore will be paid as arrears from July 2019 to June 2022. The government has calculated the estimated additional annual spending on the revised OROP at ₹ 8,450 crore, including 31 per cent dearness relief.
The arrears will be paid in four half-yearly instalments. However, all family pensioners including those who get special or liberalised family pension and gallantry award winners will be paid arrears in one instalment. Those who took voluntary retirement after July 1, 2014, will not get the benefit of the revision.
The government had taken a historic decision to implement OROP in November 2015 for revision of pension from July 1, 2014. The government had said it would rework the pension every five years. So far, some ₹ 57,000 crore has been spent at ₹ 7,123 crore per year in eight years.
(Manas Dasgupta)