Cabinet Clears One Rank, One Pension Revision
This will come into effect retrospectively from July 1, 2019. Retirees from July 1, 2014, onwards will also be covered.
The central government on Friday announced the revision of pension for armed forces personnel and their family pensioners under the One Rank, One Pension scheme.
This will come into effect from July 1, 2019. The armed forces personnel who retired up to June 30, 2019—with the exception of premature voluntary retirees—from July 1, 2014, onwards will also be covered.
"The 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," a press release on the subject said.
The revision will cater to over 25.13 lakh persons and the impact of the revision on government coffers is estimated at Rs 8,450 crore annually.
The OROP scheme was implemented in 2015 for the defence forces personnel/family pensioners, and was made retrospectively effective from July 1, 2014.
Upon implementation, it was mentioned that the pension would be re-fixed every five years. A release on the subject said that in the last eight years of the scheme, a total of Rs 57,000 crore (approx.) has been spent, averaging at Rs 7,123 crore per year.
Information and Broadcasting Minister Anurag Thakur, who spoke at the cabinet briefing where the announcement was made, also said that arrears for the period from July 2019 to June 2022 will be paid, and this is expected to cost the government Rs 23,638 crore.
It is important to note this is over and above the ongoing expenditure on account of OROP.
The arrears will be paid in four half-yearly installments. However, all the family pensioners, including those in receipt of Special/Liberalised Family Pension and Gallantry Award Winners, shall be paid arrears in one installment, the release said.