The arrears will be paid in four half-yearly instalments. However, all family pensioners, including those getting special or liberalised family pension, and Gallantry Award winners will get their arrears in one instalment

Union Cabinet approves One Rank One Pension revision; 25.13 L to benefit

The Federal
24 Dec 2022 1:21 PM GMT

The Union Cabinet on Friday approved the revision of the One Rank One Pension (OROP) scheme for retired armed forces personnel and their families, with effect from July 1, 2019. The move came a week after the Centre moved Supreme Court for the second time, seeking time till March 15, 2023, for the payment of arrears.

According to the government, the revision will cover all armed forces personnel who retired up to June 30, 2019. “More than 25.13 lakh veterans will be benefitted from this decision,” defence minister Rajnath Singh tweeted.

The Union Cabinet chaired by Prime Minister Shri @narendramodi today approved the revision of pension of Armed Forces Pensioners/family pensioners under the One Rank One Pension w.e.f.July 01, 2019. pic.twitter.com/SgY98ob2re

— Rajnath Singh (@rajnathsingh) December 23, 2022

The cost of revision

The estimated annual expenditure for the implementation of the revision will be around Rs 8,450 crore at 31% Dearness Relief (DR). The arrears from July 1, 2019 to June 30, 2022 have been calculated at around Rs 23,638 crore. These calculations are based on DR at 17% for July 1, 2019 to 30 June, 2021, and at 31% from July 1, 2021 to December 31, 2021.

These arrears will be paid in four half-yearly instalments. However, all family pensioners, including those getting special or liberalised family pension, and Gallantry Award winners will get their arrears in one instalment. The government said the pension for those drawing above the average will be protected and be extended to family pensioners and disabled pensioners.

Also read: Supreme Court upholds Centre’s formula on One Rank, One Pension

Fraught with delays

“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,” read a statement from the Defence Ministry.

Armed forces personnel with a retirement date up to June 30, 2019, excluding premature retirees with effect from July 1, 2014, will be covered under this revision, the ministry said.

On November 7, 2015, the government issued a policy letter for the revision of OROP scheme with effect from July 1, 2014. The letter mentioned that in future, the pension would be re-fixed every five years. Around Rs 57,000 crore has been spent in eight years for the implementation of OROP.

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With repeated delays, veterans took the legal route to pursue the revision. But the Centre kept asking for more time in the Supreme Court.

(With agency inputs)