Union Cabinet Approves One Rank One Pension Revision

Central Government approved a pending pension revision on the 23rd of December, for pensioners from the armed forces and their families under the One Rank One Pension (OROP) scheme.

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One Rank One Pension

The Union Cabinet, headed by Prime Minister Shri Narendra Modi approved a pending pension revision on the 23rd of December, for pensioners from the armed forces and their families under the One Rank One Pension (OROP) scheme, which has been delayed since July 2019.

Union Cabinet Approves One Rank One Pension Revision

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.

Arrears will be paid from July 1, 2019 to June 30, 2022 which is approximately ₹23,638 crore as per the applicable dearness relief, the Defence Ministry said. 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 a 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**	Likely arrears from 01.07.2019 to 30.06.2022
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

More than 25.13 lakh people, including over 4.52 lakh new beneficiaries, armed forces pensioners and family pensioners will benefit, it said.

In the policy letter, it was mentioned that in future, the pension would be re-fixed every five years, which ended in 2019. So far, some ₹ 57,000 crore has been spent at ₹ 7,123 crore per year in eight years. The revised OROP would encourage young people to join the armed forces, the government said in a statement.

FAQs related to One Rank One Pension

Q1. What is OROP?
Ans. It stands for One Rank One Pension. OROP was a long-standing demand of the armed forces and implies that retired soldiers of the same rank, who have retired after serving for the same length of service, will receive the same pension, irrespective of the date and year of their retirement.

Q2. Who are the beneficiaries of One Rank One Pension?
Ans. Armed forces personnel who retired up to June 30, 2019, are to be covered under the revision.

Q3. Who gets parents’ pension after death?
Ans. Generally, pension plans allow for only the member or the member and their surviving spouse to receive benefit payments.

FAQs

Q1. What is OROP?

Ans. It stands for One Rank One Pension. OROP was a long-standing demand of the armed forces and implies that retired soldiers of the same rank, who have retired after serving for the same length of service, will receive the same pension, irrespective of the date and year of their retirement.