Presenting the Budget proposals for the year 2009-10 in Lok Sabha, Mukherjee said that it was based on the recommendation of the Committee headed by the Cabinet Secretary on One Rank One Pension (OROP).
The Minister further said that these decisions will be implemented from July 1, 2009 and will cost the exchequer more than Rs. 2100 crore annually.
Full Budget Speech 2009-10
"These measures will benefit more than 12 lakh Jawans and JCOs. Certain pension benefits being extended to war wounded and other disabled pensioners are also being liberalized," he added.
Under the one-rank one-pension scheme, a retired defence personnel of a particular rank would be entitled to same amount of pension irrespective of the year of retirement.