File photo of the ex-servicemen's contingent marching in the Republic Day Parade in New Delhi, on January 26, 2011.
File photo of the ex-servicemen's contingent marching in the Republic Day Parade in New Delhi, on January 26, 2011.

Cabinet approves revision of pension of Armed Forces pensioners under One Rank One Pension from July 1, 2019

New Delhi, December 23, 2022

The Union Cabinet today approved revision of pension of Armed Forces pensioners and family pensioners under One Rank One Pension (OROP) with effect 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, an official press release said.

The Armed Forces Personnel retired up to June 30, 2019 {excluding pre-mature (PMR) retired w.e.f. July 1, 2014} will be covered under the revision. More than 25.13 lakh Armed Forces Pensioners/family pensioners (including over 4.52 lakh new beneficiaries) will be benefitted, it said.

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.

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.

The release said the estimated annual expenditure for the implementation of the revision has been calculated as approximately Rs 8,450 crore @31% Dearness Relief (DR).

Arrears with effect from July 1, 2019 to December 31, 2021 have been calculated as over Rs 19,316 crore based on DR @ 17% for the period from July 1, 2019 to June 30, 2021 and @31% for the period from July 1, 2021 to December 31, 2021.

Arrears w.e.f. July 1, 2019 to June 30, 2022 have been calculated as approximately Rs 23,638 crore as per the applicable dearness relief.

This expenditure is over and above the ongoing expenditure on account of OROP, the release said.

The Government took the 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.

Approximately Rs 57,000 crore has been spent at the rate of Rs 7,123 crore per year in eight years in the implementation of OROP, the release added.

NNN

Related Stories

No stories found.

Latest Stories

No stories found.

Trending Stories

No stories found.
logo
NetIndian
www.netindian.in