Effective 1 July 2019, the Union Cabinet, chaired by Prime Minister Narendra Modi, has authorized a pension change for Armed Forces Pensioners and family pensioners under One Rank One Pension (OROP). The pensions of past retirees would be recalculated using the average of the minimum and maximum pensions of Defence Forces retirees with the same rank and length of service in 2018.
This amendment applies to retired members of the Armed Forces up until 30 June 2019 (excluding premature (PMR) retirees as of 1 July 2014). More than 25.13 million retirees and family pensions from the Armed Forces would benefit (including around 4.52 lakh new beneficiaries). Pensions for persons with incomes above average will be protected. Family pensioners, such as war widows and older citizens with disabilities, would also be eligible for the payment.
In four semi-annual payments, arrears will be paid. All family pensioners, including those receiving the Special, Liberalised Family Pension and recipients of the Gallantry Award, will be paid in one lump sum.
The estimated annual cost to execute the change is approximately Rs 8,450 crore at a rate of 31% Dearness Relief (DR). On the basis of DR at 17% for the period 1st, July 2019 to 30th June 2021 and 31% for the period 1st July 2021 to 31st December 2021, arrears from 1st July 2019 to 31st December 2021 have been estimated to exceed Rs 19,316 crore. According to the appropriate dearness relief, the arrears between 1 July 2019 and 30 June 2022 amount to approximately Rs 23,638 crore. This cost is additional to the continuing OROP spending.
The government issued a policy letter on November 7, 2015, implementing OROP for Defense Forces employees and family pensions commencing July 1, 2014. In the future, the pension would be recalculated every five years, according to the policy document. In the eight years after the implementation of OROP, around Rs 57,000 crore had been spent annually at a rate of Rs 7,123 crore.
Estimated rank-based increase (in rupees) in service pension under OROP beginning 1 July 2019:
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 authorised a pension revision for armed services members and family pensioners under the One Rank One Pension (OROP) plan.
The Union Cabinet Committee, led by Prime Minister Narendra Modi, approved the second OROP adjustment for military retirees and family pensions on December 23, 2022. The adjustment would go into effect on July 1, 2019, and it was approved by the Union Cabinet Committee.
The most recent news on OROP is that the basic pension for armed forces pensioners and family pensioners who retired by June 30, 2019 would be altered (excluding pre-mature retired with effect from July 1, 2014). According to the PIB report, over 25 lakh pensioners will gain from the OROP pension modification.
Based on the average of the minimum and maximum pensions for personnel with the same rank and service period for the entire calendar year 2018, the OROP pension will be modified. On November 7, 2015, the Central Government published the OROP pension policy letter, and the first OROP pension for Defense pensioners and family pensioners was revised on July 1, 2014.
According to a press statement issued by PIB on December 23, 2022, arrears will be paid in four semi-annual instalments. However, all family pensioners, including those receiving a Special/Liberalized Family Pension and recipients of the Gallantry Award, shall be paid arrears in a single instalment.
Arrears will be determined for the time frame of July 1, 2019, to June 30, 2022, citing the PIB report. From July 1, 2019 to June 30, 2021, and from July 1, 2021 to December 31, 2021, there will be a 17% Dearness Relief. Arrears will be determined by using 31% of DR. For the time frame of January 1, 2022, to June 30, 2022, the DR rate is 34%.
The comprehensive rank-wise OROP pension modification Tables for Defense pensioners and family pensioners will be published by the PCDA and CGDA soon! For all ranks of Defense pensioners, the PCDA and CGDA offices published the first OROP pension revision tables on February 4, 2016. The OROP Circular No. 555 included 101 OROP amended pension tables in total. As an illustration, OROP Table No. 7 contains 22 columns of revised pension amounts for the following ranks: Sepoy, Hony Naik, Hony Naik, Hony Naik (TS), Hony Havildar, Havildar, Havildar Naib Sub, Artificer III-I (Navy), Naib Subedar, Subedar, Subedar Major, Hony Lieutenant, Hony Captain, and NCs(E) and equivalent ranks. To find out their exact new pension, all retirees from the armed forces and their families are awaiting the PCDA or CGDA OROP pension modification tables.
What is the approximate OROP pension arrears for Nb Subedar?
According to the latest government figures, A Nb Subedar will receive Rs.1,08,000 as arrears for the period from July 2019 to June 2022 under OROP Scheme.
What is the approximate OROP pension arrears for Sub Major?
According to the latest government figures, A Sub Major will receive Rs.1,75,000 as arrears for the period from July 2019 to June 2022 under OROP Scheme.
What is the approximate OROP pension arrears for Major?
According to the latest government figures, A Major will receive Rs.3,05,000 as arrears for the period from July 2019 to June 2022 under OROP Scheme.