Cabinet approves OROP revision with arrears at additional annual cost of Rs 8,450 cr

Dec 23,2022:The Union Cabinet, headed by Prime Minister Narendra Modi, on Friday has approved the revision of the pension of armed forces pensioners/family pensioners under One Rank One Pension (OROP) from July 1,2019 at additional cost of Rs 8,450 crore,.
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.
“The Armed Forces Personnel retired up to June 30, 2019 (excluding pre-mature (PMR) retired w.e.f.July 01, 2014) will be covered under this revision. More than 25.13 lakh (including over 4.52 lakh new beneficiaries) Armed Forces Pensioners/family pensioners will be benefited. 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,” said Cabinet in a statement.
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.
Modi government took a decision to implement OROP for the Defence Forces Personnel/family pensioners and issued policy letter on November 7, 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 Rs 7,123 crore per year in eight years since the implementation of OROP.