Pension of armed forces/family pensioners revised under OROP: Check rank-wise hike in monthly pensions, arrears

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The Union Cabinet, headed by Prime Minister Narendra Modi, approved the revision of the pension of armed forces pensioners and family pensioners under One Rank One Pension (OROP). the revision will benefit over 25 lakh pensioners. Take a look at how this revision will benefit pensioners of the armed forces.What is the latest announcement?
Union Cabinet revised the 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 the average of minimum and maximum pension of Defence Forces retirees of the calendar year 2018 in the same rank with the same length of service,” the Ministry of Defence said in a release on December 23, 2022.

Who will benefit?

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, the ministry said. More than 25.13 lakh (including over 4.52 lakh new beneficiaries) armed forces pensioners or family pensioners will be benefitted, it added.

“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,” the Ministry of Defence added.

Rank-wise likely estimated increase (in rupees) in service pension under OROP w.e.f. July 01,2019:

Rank Pension as on 01.01.2016
(in Rs)
Revised pension w.e.f. 01.07.2019
(in Rs)
Likely arrears from 01.07.2019 to 30.06.2022
(in Rs)
Sepoy 17,699 19,726 87,000
Naik 18,427 21,101 1,14,000
Havildar 20,066 21,782 70,000
Nb Subedar 24,232 26,800 1,08,000
Sub Major 33,526 37,600 1,75,000
Major 61,205 68,550 3,05,000
Lt. Colonel 84,330 95,400 4,55,000
Colonel 92,855 1,03,700 4,42,000
Brigadier 96,555 1,08,800 5,05,000
Maj. Gen. 99,621 1,09,100 3,90,000
Lt. Gen. 1,01,515 1,12,050 4,32,000

Source: Ministry of DefencePayment of arrears to armed forces pensioners and family pensioners
The Union Cabinet decided to pay arrears in four half-yearly instalments. However, all the family pensioners, including those in receipt of special or liberalised family pension and gallantry award winners, shall be paid arrears in one instalment, the ministry added.

The central government implemented One Rank One Pension for the defence forces personnel/family pensioners and issued a policy letter on November 07, 2015, for revision of pension w.e.f. July 01, 2014. The pension would be re-fixed every 5 years, the central government said earlier. The Centre has spent around Rs 57,000 crore (Rs 7,123 crore per year) in eight years for the implementation of OROP.


Total expenditure

The OROP policy is aimed at giving uniform pensions to retired soldiers, irrespective of the date they left service.”The estimated annual expenditure for the implementation of the revision has been calculated as approx. Rs 8,450 crore @31 per cent Dearness Relief (DR). Arrears w.e.f. July 01, 2019, to December 31, 2021, have been calculated as over Rs 19,316 crore based on DR at 17 per cent for the period from July 01, 2019, to June 30, 2021, and at 31 per cent for the period from July 01, 2021, to December 31, 2021. Arrears w.e.f. July 01, 2019, to June 30, 2022, have been calculated as approx. Rs 23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP,” the ministry said.

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