Cabinet revises OROP for Armed Forces with arrears at additional annual cost of Rs 8,450 cr

New Delhi, Dec 23: The Union Cabinet, headed by Prime Minister Narendra Modi, has approved revision of pension of Armed Forces Pensioners/family pensioners under One Rank One Pension (OROP). 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.

Information and Broadcasting Minister Anurag Thakur said it will lead to enhanced pension according to the OROP proposal. 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.

Beneficiaries

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 anddisabled 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.

Expenditure

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 appox. Rs23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.