The Union Cabinet, headed by Prime Minister Narendra Modi has approved the revision of Armed Forces Pensioners and family pensioners under "One Rank One Pension" (OROP) from July 01, 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.
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 lahks (including over 4.52 lakh new beneficiaries) of 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 installments. However, all the family pensioners, including those in receipt of Special/Liberalised Family Pension and Gallantry Award Winners, shall be paid arrears in one installment.
Estimated annual expenditure for this step is Rs 8,450 crores
The estimated annual expenditure for the implementation of the revision has been calculated as approximately Rs 8,450 crore @31% Dearness Relief (DR).
Arrears with effect from 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 with effect from 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.
The Government took a historic decision to implement OROP for the Defence Forces Personnel/family pensioners. It issued a policy letter on November 07, 2015, for revision of pension with effect from July 01, 2014.
In the said policy letter it was mentioned that the pension would be re-fixed every five years in the future. Approximately Rs 57,000 crore has been spent @Rs 7,123 crores per year in eight years in the implementation of OROP.
