OROP-2 Pension Arrears Calculation 2023
Those eligible for the OROP-2 Revised Pension Arrears 2023 are those receiving a Defence pension from the 1st of July, 2019. The Armed Forces Pensioners discharged between 01-07-2014 and 01-07-2019 will have a separate corrigendum PPO issued to them in order to revise their pension and payment of their arrears. However, those discharged at their own request on or after 01-07-2014, under Pre-matured/VRS, are not eligible for the OROP revision of pension and will not receive arrears.
OROP-2 Pension Arrears Eligibility
Payment of arrears resulting from the OROP Scheme will be effective from July 1, 2019. Eligible pensioners will receive their arrears in four equal installments. Family pensioners and those who have won gallantry awards, however, will have their arrears paid in one installment. If a pensioner or family pensioner’s account has been migrated to SPARSH Allahabad, the payment should not be made by the bank. No arrears will be paid for the period before July 1, 2019. In the event of a pensioner’s death prior to receiving the OROP arrears, their next of kin will receive leave travel allowance. Arrears for the revision of pension under the OROP Scheme will be calculated from July 1, 2019 up until the date of calculation.
For example, from July 1, 2019 to December 31, 2022 (over a period of 42 months). Any overpayment of pension, if still outstanding, may be recovered from this arrears.
OROP Pension Arrears Calculation [Updated on 23.12.2022]
Supreme Court has asked the Centre to clear all arrears owed under OROP before March 15
In a major victory for India’s armed forces personnel, the Supreme Court has ordered the Centre to pay all arrears under One Rank-One Pension scheme before March 15. The bench led by Chief Justice of India DY Chandrachud directed that every eligible pensioner should get an equal and expeditious payment as prescribed in OROP – ensuring parity between two military retirees who served at equivalent ranks with same years of service.
Good News for Defence Pensioners on OROP Pension
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has approved a revision of pension for Armed Forces Pensioners/family pensioners under One Rank One Pension (OROP) as of July 1, 2019. Their pension will be re-calculated based on the average of the minimum and maximum pensions of Defence Forces retirees from the same rank with the same length of service in 2018.
The Armed Forces Personnel who retired on or before June 30, 2019, excluding those who retired prematurely on or after July 01, 2014, will be included in this revision. More than 25.13 lakh (including 4.52 lakh new beneficiaries) Armed Forces Pensioners/Family Pensioners will benefit from this. Pension amounts for those earning more than the average will not be impacted. Furthermore, the benefit will also be extended to Family Pensioners, such as war widows and disabled pensioners.
Arrears will be paid in four bi-annual installments. However, all family pensioners, including those receiving Special, Liberalised Family Pension and Gallantry Award recipients, shall receive their arrears in one payment.
The estimated annual expenditure for the implementation of the revision has been determined to be approximately Rs 8,450 crore with 31% Dearness Relief (DR). Calculations of arrears from July 1, 2019 to December 31, 2021 come to more than Rs. 19,316 crore and incorporate DR of 17% from July 1, 2019 to June 30, 2021, and 31% from July 1, 2021 to December 31, 2021.
Arrears shall be paid in four semi-annual installments. However, all family pensioners, including those receiving Special/Liberalized Family Pension and Gallantry Award Winners, shall receive arrears in one lump sum.
The estimated annual expenditure for the implementation of the revision has been calculated to be approximately Rs. 8,450 crore with 31% Dearness Relief (DR). The arrears from July 01, 2019 to December 31, 2021 have been calculated to be over Rs. 19,316 crore based on DR at 17% from July 01, 2019 to June 30, 2021 and 31% from July 01, 2021 to December 31, 2021.
As of July 1, 2019 through June 30, 2022, the arrears totaled approximately Rs. 23,638 crore, which includes the applicable dearness relief. This expenditure is in addition to that already being spent in regards to OROP. The Government took a landmark decision to implement OROP for Defence Forces Personnel/family pensioners and released a policy letter on November 7, 2015 for the revision of pensions effective from July 1, 2014. The policy letter noted that pension would be re-evaluated every five years from now on. Approximately Rs. 57,000 crore has been expended at Rs. 7,123 crore per annum over an eight-year period for the implementation of One Rank One Pension (OROP).
The following table outlines the estimated increase in service pension for each rank effective from 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|
OROP Pension Re-Fixed Every 5 Years
|First OROP||1st July 2014|
|Second OROP||1st July 2019|
One Rank One Pension” (OROP) for the Ex-Servicemen with effect from 1.07.2014. OROP implies that uniform pension be paid to the Defence Forces Personnel retiring in the same rank with the same length of service, regardless of their date of retirement, which, implies bridging the gap between the rates of pension of current and past pensioners at periodic intervals.
Salient features of the OROP are as follows:
- To begin with, pension of the past pensioners would be re-fixed on the basis of pension of retirees of calendar year 2013 and the benefit will be effective with effect from 1.7.2014.
- iPension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retired in 2013 in the same rank and with the same length of service.
- Pension for those drawing above the average shall be protected.
- Arrears will be paid in four equal half yearly instalments. However, all the family pensioners including those in receipt of Special/Liberalized family pension and Gallantry award winners shall be paid arrears in one instalment.
- In future, the pension would be re-fixed every 5 years.
OROP 2014 HIGHLIGHTS – OROP-1 CALCULATION
1. Applicable to all pre-1/7/2014 retirees.
2. Effective date : w.e.f. 1/7/2014
3. It is a direct executive order from MOD to PDAs(Banks) for payment without waiting for Draupadi’s circular of PCDA(pensions) . Means ,payment will be effected before 28 Feb 2016 (being the last pension/salary payment month in this fiscal year).
4. Family pensioners , gallantry award winners and special pension category will get their arrears in one instalment and hopefully with Feb pension.
5.Arrears for others would be in 4 Equal , six monthly instalments (could be in Feb , Aug this year and Feb 2017 and Aug 2017).
More specific details after detailed analyses.
OROP Arrear calculation Made simple
1. Take your basic from OROP table published to day by MOD. Let it be =X
2. Take your current basic (which is w.e.f. 24/12/2012).Let it be =Y
3. Take the difference of X- Y above and let it be =”Q”
4. Your Total arrears of OROP w.e.f. 1/7/2014 to 31/1/2016= Q x 40.58 (amount Q multiplied by 40.58). The result could be with a deviation of Less than Rs. 100/- in total due to certain approximations
Note : multiply with 40.58 , the difference of OROP table amount with what is your current basic .
You can calculate the OROP arrears also in the following way:
1. Find the Basic pension as per OROP chart- table, say for Example;
Hav and equal Ranks- Sgt- Group- X
As per Table no: 7 of OROP Tables It is = 8585
then as per Cir 501,table No.17…………..it is = 6374
Difference per month = 2211
Now the Effective Date is From 01-07-2014
Arrears from 1-7-2014 to 31-01-2016 will be:
Difference X a factor of 40.53
2211 X 40.53 = 89612
So, 89,612 IS THE ARREARS
This will be paid in 4 equal half yearly installments.
For family pensioners, in one installment. This the simple way of calculation.
How to calculate new pension under OROP?
Pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel.
When will get OROP pension arrears?
Arrears will be paid in four equal half yearly instalments. However, all the family pensioners, including those in receipt of Special, Liberalized family pensioners, and Gallantry award winners shall be paid arrears in one instalment.
Is it true the OROP-2 will implement next five years?
As per the Government policy on OROP, the pension would be re-fixed every 5 years.