Cabinet revises OROP for defence personnel, family pensioners

NE NEWS SERVICE
NEW DELHI, DEC 23

The Union cabinet, headed by Prime Minister Narendra Modi, on Friday, approved revision of the ‘One Rank One Pension’ scheme for defence personnel and family pensioners with effect from July 1, 2019, Information and Broadcasting Minister Anurag Thakur said.

Pension of the past pensioners would be re-fixed on the basis of average of minimum and maximum pension of Defence Forces retirees of calendar year 2018 in the same rank with the same length of service. It will lead to enhanced pension according to the OROP proposal, he said.

  • Armed Forces Personnel retired up to June 30, 2019 to be covered; Over 25.13 lakh to be benefitted
  • Rs 23,638 crore to be paid as arrears from July 2019 to June 2022
  • Estimated additional annual expenditure for implementation of the revision calculated as approx. Rs 8,450 crore @31% Dearness Relief

The benefit would also be extended to family pensioners, including war widows and disabled pensioners, the government’s official spokesperson tweeted after Thakur announced the Cabinet decision at a press conference.

The Armed Forces Personnel retired up to June 30, 2019 {excluding pre-mature (PMR) retired w.e.f. July 01, 2014} will be covered under this revision. More than 25.13 lakh (including over 4.52 lakh new beneficiaries) Armed Forces Pensioners/family pensioners will be benefitted. 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 in receipt of Special/Liberalised Family Pension and Gallantry Award Winners, shall be paid arrears in one instalment.

The estimated annual expenditure for the implementation of the revision has been calculated as approx. Rs 8,450 crore @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 @ 17% for the period from July 01, 2019 to June 30, 2021 and @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 approx. Rs 23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.

Rank wise likely estimated increase (in rupees) pension under OROP w.e.f. July 01, 2019:

Rank Pension as on 01.01.2016 Revised pension w.e.f. 01.07.2019 Likely arrears from 01.07.2019 to 30.06.2022
Sepoy 17,699 19,726 87,000
Naik 18,427 21,101 1,14,000
Havildar 20,066 21,782 70,000
Nb Subedar 24,232 26,800 1,08,000
Sub Major 33,526 37,600 1,75,000
Major 61,205 68,550 3,05,000
Lt. Colonel 84,330 95,400 4,55,000
Colonel 92,855 1,03,700 4,42,000
Brigadier 96,555 1,08,800 5,05,000
Maj. Gen. 99,621 1,09,100 3,90,000
Lt. Gen. 1,01,515 1,12,050 4,32,000