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Business News/ News / India/  Union Cabinet approves OROP revision for soldiers

Union Cabinet approves OROP revision for soldiers

  • As per details, PM Narendra Modi approved revision of pension of Armed Forces Pensioners/family pensioners under OROP, that will be in effect from 1 July, 2019.

Representative image. Photo: PTI

A week after Centre moved to the Supreme Court seeking extension of time till March 15, 2023 for payment of arrears of One Rank-One Pension (OROP) scheme, the Union Cabinet on 23 December approved the OROP revision for the soldiers.

As per details, PM Narendra Modi approved revision of pension of Armed Forces Pensioners/family pensioners under OROP, that will be in effect from 1 July, 2019.

What will beneficiaries get?

All the Armed Forces Personnel retired up to June 30, 2019, will be covered under this revision, said the government. Over 25.13 lakh Armed Forces pensioners/family pensioners will be benefitted.

ALSO READ: Centre moves Supreme Court for 3 more months extension to clear OROP arrears

The government said that the pension for those drawing above the average will be protected and be extended to family pensioners, including war widows and disabled pensioners. Also, 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.

How much govt will expend?

The estimated annual expenditure for the implementation of the revision has been calculated as approximately 8,450 crore at 31 per cent Dearness Relief (DR).

As per calculation, the arrears with effect from 1 July, 2019 - 31 December, 2021, have been calculated as over 19,316 crore based on DR at 17 per cent for the period from 1 July, 2019 to 30 June, 2021 and at 31 per cent for the period from 1 July, 2021 to 31 December, 2021.

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

Earlier on 7 November, 2015, the government issued policy letter for revision of OROP pension with effect from 1 July, 2014. In the letter, it was mentioned that in future the pension would be re-fixed every 5 years. Approximately 57,000 crore has been spent at 7,123 crore per year in eight years in the implementation of OROP.

The government has in December moved the Supreme Court for the second time and sought extension to pay the arrears after it had first moved the top court in June and sought three months to compute and make payment.

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