The Union Cabinet on Friday approved a revision in the pensions paid to retired defence personnel and their families under One Rank One Pension (OROP) at an annual additional expenditure of Rs.8,450 crore and arrears of Rs.23,638 crore.
At a meeting chaired by Prime Minister Narendra Modi, the Cabinet approved the increase that would be applicable from July 1, 2019.
“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,” a government statement said.
Cabinet approves next revision of pension of Defence Forces Personnel/family pensioner under One Rank One Pension (OROP)
The benefit of this will be extended to family pensioners including war widows & disabled pensioners: Union Minister @ianuragthakur #CabinetDecisions pic.twitter.com/61xGWGsiwd
— PIB India (@PIB_India) December 23, 2022
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. The government said the revision would benefit over 25.13 lakh pensioners, including 4.52 lakh more recent retirees, and their families.
“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,” the statement read.
The arrears would be paid in four half-yearly instalments, except for those who receive special, liberalised family pension and gallantry award winners, who will get it in one instalment.
The total arrears from July 1, 2019 to June 30, 2022 amounted to Rs.23,638 crore and this expenditure was “over and above the ongoing expenditure on account of OROP”, the statement said.
“The government took a historic decision to implement OROP for the defence forces personnel/family pensioners and issued policy letter on November 07, 2015 for revision of pension w.e.f.July 01, 2014. In the said policy letter, it was mentioned that in future, the pension would be re-fixed every 5 years. Approx. Rs 57,000 crore has been spent @Rs 7,123 crore per year in eight years in the implementation of OROP,” the statement read.