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The Union Cabinet chaired by Prime Minister Narendra Modi on Friday the 23rd December 2022 approved revision of pension of armed forces pensioners/family pensioners under One Rank One Pension(OROP) scheme.

The revised pensions will be retroactively effective from July 1, 2019 onwards.

The decision was announced by Union Information and Broadcasting Minister Anurag Thakur during a press briefing in the evening.

“The government’s decision will benefit over 25 lakh ex-servicemen,” said Thakur.

The benefit would also be extended to family pensioners, including war widows and disabled pensioners.

The estimated annual expenditure for the implementation of the revision has been calculated as approximately Rs 8,450 crore at 31% Dearness Relief.

“More than 25.13 lakh veterans will be benefitted from this decision. My gratitude to the Prime Minister for fulfilling the commitment given to the Ex-servicemen of this country,” said Defence Minister Rajnath Singh in a tweet.

Arrears amounting to Rs 23,638.07 crore for July 2019 to June 2022 will also given to the retired defence personnel.

“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,” a Cabinet release stated.

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 benefitted.Pension for those drawing above the average shall be protected.The benefit would also be extended to family pensioners, including war widows anddisabled pensioners.

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.

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 Revised pension w.e.f. 01.07.2019 Revised pension w.e.f. 01.07.2021 Likely arrears from 01.07.2019 to 30.06.2022
Sepoy 17,699 19,726 20,394 87,000
Naik 18,427 21,101 21,930 1,14,000
Havildar 20,066 21,782 22,294 70,000
Nb Subedar 24,232 26,800 27,597 1,08,000
Sub Major 33,526 37,600 38,863 1,75,000
Major 61,205 68,550 70,827 3,05,000
Lt. Colonel 84,330 95,400 98,832 4,55,000
Colonel 92,855 1,03,700 1,07,062 4,42,000
Brigadier 96,555 1,08,800 1,12,596 5,05,000
Maj. Gen. 99,621 1,09,100 1,12,039 3,90,000
Lt. Gen. 1,01,515 1,12,050 1,15,316 4,32,000

Background

The Government took a historic decision to implement OROP for the Defence Forces Personnel/family pensioners and issued policy letter on November 07, 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. Approx. Rs 57,000 crore has been spent @Rs 7,123 crore per year in eight years in the implementation of OROP.