Union Cabinet approves pending One-Rank-One-Pension revision for pensioners from the armed forces

Digital Desk: The Union Cabinet on Friday approved a pending pension revision for pensioners from the armed forces and their families under the One Rank One Pension (OROP) scheme, which has been delayed since July 2019. 

Reportedly, Arrears will be paid from July 1, 2019, to June 30, 2022, which is approximately ₹23,638 crore as per the applicable dearness relief, the Defence Ministry said.

"Pay of past pensioners would be resecured based on the average of minimum and maximum pension of defence forces retirees in the same rank with the same period of service in the calendar year 2018," a Defence Ministry statement said. It is estimated that over 25.13 lakh people will benefit, including over 4.52 lakh new beneficiaries, armed forces pensioners, and family pensioners. 

Armed forces employees with a retirement date of July 1, 2014, to June 30, 2019, excluding premature retirees, will be covered by this modification, according to the Ministry. 

Veterans have sought the legal path to pursue the adjustment in the face of delays. The case has been repeatedly postponed, with the government requesting additional time at the Supreme Court.

OROP entails a uniform pension for personnel based on rank and years of service, regardless of retirement date. 

Pensions for individuals earning more than the average would be maintained, and the benefit will be extended to family pensioners, including war widows and disabled seniors, according to the Ministry. 

Arrears will be paid in four semi-annual instalments. However, all family pensioners, including those receiving special, liberalised family pensions, and gallantry award winners, will be paid arrears in one instalment, and Annual expenditure will be paid in two instalments.

Annual budget : The projected average spending for implementing the modification is roughly 8,450 crores based on 31% Dearness Relief (DR). Arrears from July 1, 2019, to December 31, 2021, have been assessed to be above 19,316 crores based on DR at 17% from July 1, 2019, to June 30, 2021, and 31% from July 1, 2021, to December 31, 2021.