One Rank One Pension (OROP) pension modification for veterans of the armed forces and family pensioners has been authorized by the Union Cabinet, which is led by Prime Minister Shri Narendra Modi, and will take effect on July 1st, 2019. The former pensioners’ pensions will be recalculated using the average of the minimum and maximum allowances received by Defense Forces retirees in the same rank with the same amount of service during the calendar year 2018.
Armed Forces personnel who have retired as of June 30, 2019, except those who have prematurely (PMR) retired as of July 1, 2014, are included in this revision. Armed Forces Pensioners and family pensioners would get benefits totaling over 25.13 lahks (including over 4.52 lakh new claimants). Pension benefits for people drawing more than the norm must be safeguarded. Family pensioners, such as war widows and disabled pensioners, would also be eligible for the income.
Four half-yearly payments will be made to settle any arrears. Arrears will be paid in one lump sum to all family pensioners, including those receiving the Special, Liberalized Family Pension, and Gallantry Award Winners.
At a rate of 31% Dearness Relief, the projected yearly cost to execute the modification has been determined to be around Rs 8,450 crore (DR). Based on DR at a rate of 17% for the period from 1 July 2019 to 30 June 2021 and at a rate of 31% for the period from 1 July 2021 to 31 December 2021, arrears with effect from 1 July 2019 to 31 December 2021 have been estimated to be over Rs 19,316 crore. According to the applicable dearness relief, the arrears with effect from July 1st, 2019, to June 30, 2022, have been projected to be almost Rs 23,638 crore. Beyond what is already being spent on OROP, this expense is made.
The Government released a policy letter on November 7, 2015, for the revision of pension with effect from July 1, 2014, after making the historic decision to introduce OROP for Defense Forces Personnel and family pensioners. The aforementioned policy document said that going forward, the pension would be re-fixed every five years. In eight years, at a cost of Rs 7,123 crore year, the OROP has been implemented to the tune of about Rs 57,000 crore.
With effect from July 1st, 2019, the service pension under OROP is projected to increase by the following amount, rank-wise:
Rank-Wise OROP Pension Arrears Table 2022
OROP Arrears for Sepoy 2022
|Pension as on 01.01.2016||17,699|
|Revised pension w.e.f. 01.07.2019||19,726|
|Likely arrears from 01.07.2019 to 30.06.2022||87,000|
OROP Arrears for Naik 2022
|Pension as on 01.01.2016||18,427|
|Revised pension w.e.f. 01.07.2019||21,101|
|Likely arrears from 01.07.2019 to 30.06.2022||1,14,000|
OROP Arrears for Havildar 2022
|Pension as on 01.01.2016||20,066|
|Revised pension w.e.f. 01.07.2019||21,782|
|Likely arrears from 01.07.2019 to 30.06.2022||70,000|
OROP Arrears for NB Subedar 2022
|Pension as on 01.01.2016||24,232|
|Revised pension w.e.f. 01.07.2019||26,800|
|Likely arrears from 01.07.2019 to 30.06.2022||1,08,000|
OROP Arrears for Sub Major 2022
|Pension as on 01.01.2016||33,526|
|Revised pension w.e.f. 01.07.2019||37,600|
|Likely arrears from 01.07.2019 to 30.06.2022||1,75,000|
OROP Arrears for Major 2022
|Pension as on 01.01.2016||61,205|
|Revised pension w.e.f. 01.07.2019||68,550|
|Likely arrears from 01.07.2019 to 30.06.2022||3,05,000|
OROP Arrears for Lieutenant Colonel 2022
|Pension as on 01.01.2016||84,330|
|Revised pension w.e.f. 01.07.2019||95,400|
|Likely arrears from 01.07.2019 to 30.06.2022||4,55,000|
OROP Arrears for Colonel 2022
|Pension as on 01.01.2016||92,855|
|Revised pension w.e.f. 01.07.2019||1,03,700|
|Likely arrears from 01.07.2019 to 30.06.2022||4,42,000|
OROP Arrears for Brigadier 2022
|Pension as on 01.01.2016||96,555|
|Revised pension w.e.f. 01.07.2019||1,08,800|
|Likely arrears from 01.07.2019 to 30.06.2022||5,05,000|
OROP Arrears for Major General 2022
|Pension as on 01.01.2016||99,621|
|Revised pension w.e.f. 01.07.2019||1,09,100|
|Likely arrears from 01.07.2019 to 30.06.2022||3,90,000|
OROP Arrears for Lieutenant General 2022
|Pension as on 01.01.2016||1,01,515|
|Revised pension w.e.f. 01.07.2019||1,12,050|
|Likely arrears from 01.07.2019 to 30.06.2022||4,32,000|
Inputs from PIB News
|Rank||Pension as on Jan 2016||Revised Pension from Jul 2019||Revised Pension from Jul 2021||Arrears from Jul 2019 to Jun 2022|
On December 23, 2022, the Union Cabinet Committee approved a change to the pensions of armed forces members and their family pensioners under the One Rank One Pension (OROP) scheme.
The Union Cabinet Committee, chaired by Prime Minister Narendra Modi, authorised the second adjustment of OROP for military retirees and family pensioners on December 23, 2022, and it will take effect on July 1, 2019.
The baseline income for armed services pensioners and family pensioners retiring by June 30, 2019 will be changed (excluding pre-mature retired with effect from July 1, 2014). According to the PIB data, over 25 lakh pensioners will profit from OROP.
The OROP pension will be modified based on the average of the minimum and maximum pensions for people with the same rank and length of service for the entire year of 2018. The Central Government issued the OROP pension policy letter on November 7, 2015, and the first OROP pension modification for Defense pensioners and family pensioners took effect on July 1, 2014.
According to a press release from PIB on December 23, 2022, arrears will be paid in four equal payments every six months. But all family pensioners, including those who get a Special/Liberalized Family Pension and those who won a Gallantry Award, will get their back pay in one lump sum.
According to the PIB report, arrears will be assessed from July 1, 2019 through June 30, 2022. 17% Dearness Relief from 01 July 2019 to 30 June 2021 and 01 July 2021 to 31 December 2021. For the calculation of arrears, 31% of DR will be used. The DR rate from January 1, 2022 through June 30, 2022 is 34%.
The PCDA and CGDA will publish the comprehensive rank-by-rank OROP pension revision tables for Defense and family pensioners in the near future! On February 4, 2016, the PCDA and CGDA offices announced the first OROP pension revision tables for all Defense retirees. OROP Circular No. 555 was accompanied by a total of 101 updated pension tables. The OROP Table No. 7 has 22 columns of updated pension amounts for Sepoy, Hony Naik, Naik, Naik (TS), Hony Havildar, Havildar, Havildar Naib Sub, Artificer III-I (Navy), Naib Subedar, Subedar, Subedar Major, Hony Lieutenant, Hony Captain, NCs(E), and corresponding positions. All pensioners and family pensioners of the armed forces are awaiting the PCDA or CGDA OROP pension adjustment tables to determine their exact new pension!