The Union Cabinet on Friday approved revision of the 'One Rank One Pension' scheme for defence personnel and family pensioners, Information and Broadcasting Minister Anurag Thakur said. It will lead to enhanced pension according to the OROP proposal, he said. Some 25 lakh military pensioners will benefit under the revised One Rank One Pension (OROP), programme which the government approved today. 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. OROP is short for "One Rank One Pension", which 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. The OROP revision is applicable from the backdate July 1, 2019. Armed forces personnel retired up to June 30, 2019 will be covered, the government said in a statement.
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.
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.
The guard service said that annuity of "past retired people would be re-fixed based on normal of least and greatest annuity of Safeguard Powers retired folks of schedule year 2018 in a similar position with a similar length of administration".
Military Faculty resigned up to June 30, 2019 (barring pre-mature resigned with impact from July 1, 2014) will be canvassed under this amendment in OROP.
An expected Rs 23,638 crore will be paid as unfulfilled obligations from July 2019 to June 2022. Unfulfilled obligations will be paid in four half-yearly portions. Notwithstanding, all the family retired people, remembering those for receipt of Exceptional/Changed Family Annuity and Bravery Grant Victors, will be paid unpaid debts in a single portion.
Extra yearly use for execution of the modification has been determined at around Rs 8,450 crore at 31% Dearness Alleviation.
Annuity for those drawing over the normal will be secured. The advantage would likewise be stretched out to family retired people, including war widows and handicapped retired people.
The OROP conspire was sent off in November 2015 and the strategy expressed that annuities would be re-fixed like clockwork. Generally Rs 57,000 crore has been spent on the plan since execution.
At a meeting chaired by Prime Minister Narendra Modi, the Cabinet approved the increase that would be applicable from July 1, 2019.
The revision would be applicable to all retired defence personnel up to June 30, 2019, but not including those who too pre-mature retirement till July 1, 2014.
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