OROP Pension Revision Latest News: Ahead of the New Year 2023, the Central Government has approved the revision of the pension of Armed Forces Pensioners/family pensioners under the One Rank One Pension (OROP). Here’s a look at how the pension revision will work and who will benefit.
What’s new
As per the Union Cabinet’s decision, the pension of the past pensioners would be re-fixed basis 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.
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Cut-off date
The pension of Armed Forces/family pensioners has been revised with effect from July 1, 2019.
Who will benefit?
The revision of pension under the OROP scheme would benefit the Armed Forces Personnel who retired up to June 30, 2019. The revision, however, has excluded pre-mature retirees with effect from July 1, 2014.
The revision will benefit over 25.13 lakh Armed Forces pensioners and family pensioners. This also includes over 4.52 lakh new beneficiaries.
The Cabinet also decided that the pension for those drawing above the average will be protected and the benefit will be extended to family pensioners, including war widows and disabled pensioners.
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Payment of arrears
The Cabinet has decided that the arrears will be paid in four half-yearly instalments. However, arrears of all family pensioners, including those in receipt of Special/Liberalised Family Pension and Gallantry Award Winners will be paid in one instalment.
Rank-wise increase in service pension w.e.f July 1, 2019
Total Expenditure
The break-up of the total annual expenditure incurred for the implementation of the revision is following:
- Rs 8450 crore at the rate of 31% Dearness Relief (DR)
- Rs 19,316 crore in arrears w.e.f July 1, 2019 to December 31, 2021 based on DR at the rate of 17% and at the rate of 31% DR for the period between July 1, 2021 to December 31, 2021.
- Rs 23,638 crore for arrears w.e.f July 1, 20219 to June 30, 2022.
The Central Government implemented the OROP scheme for Defence Forces Personnel/family pensioners through a letter dated November 7, 2017. The letter mentioned that the pension would be revised every 5 years. In the last 8 years, the Government has spent Rs 7123 crore per year for the implementation of OROP, according to an official statement of the Union Cabinet.
