OROP Pension Revision for Armed Forces Pensioners Approval
Union Cabinet approves revision of pension of Armed Forces Pensioners and family pensioners under One Rank One Pension with effect from 1st July 2019
Armed Forces Personnel retired up to June 30, 2019 to be covered; Over 25.13 lakh to be benefitted
Rs 23,638 crore to be paid as arrears from July 2019 to June 2022
Estimated additional annual expenditure for implementation of the revision calculated as approx. Rs 8,450 crore @31% Dearness Relief
The Union Cabinet, headed by Prime Minister Shri Narendra Modi, has approved revision of pension of Armed Forces Pensioners/family pensioners under One Rank One Pension (OROP) w.e.f. July 01, 2019. Pension of the past pensioners would be re-fixed on the basis of average of minimum and maximum pension of Defence Forces retirees of calendar year 2018 in the same rank with the same length of service.
Beneficiaries
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 and disabled 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.
Expenditure
The estimated annual expenditure for the implementation of the revision has been calculated as approx. Rs 8,450 crore @ 31% Dearness Relief (DR). Arrears w.e.f. July 01, 2019 to December 31, 2021 have been calculated as over Rs 19,316 crore based on DR @ 17% for the period from July 01, 2019 to June 30, 2021 and @31% for the period from July 01, 2021 to December 31, 2021. Arrears w.e.f. July 01, 2019 to June 30, 2022 have been calculated as approx. Rs 23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.
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 | 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 |
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.
Source: PIB
Rank-Wise OROP Revised Pension from 2016, 2019 and 2021 with Arrears Table
Rank | Pension as on Jan 2016 | Revised Pension from Jul 2019 | Revised Pension from Jul 2021 | Arrears from Jul 2019 to Jun 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 |
OROP-2 Approved
The Union Cabinet Committee approved the revision of pension for armed forces personnel and family pensioners under the scheme of One Rank One Pension (OROP) on 23.12.2022.
What is the latest announcement of OROP?
The Union Cabinet Committee headed by Prime Minister Narendra Modi on 23rd December 2022, approved the second revision of OROP for armed forces pensioners and family pensioners with effect from July 1, 2019.
Who will benefit from the latest OROP announcement?
The latest announcement on OROP is the basic pension will be revised for armed forces pensioners and family pensioners retired up to June 30, 2019 (excluding pre-mature retired with effect from July 1, 2014). As per the PIB report, the One Rank One Pension (OROP) pension revision will benefit over 25 lakh pensioners.
How to fix OROP pension for armed forces pensioners?
The OROP pension will be re-fixed on the basis of the average of minimum and maximum pension of the calendar year 2018 in the same rank with the same length of service of the personnel. The OROP pension policy letter was issued on 7th November 2015 by the Central Government and the first OROP pension was revised from 1st July 2014 for Defence pensioners and family pensioners.
When will release the OROP 2 arrears?
As per the press release of PIB dated 23.12.2022, arrears will be paid in four 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.
How to calculate DA in OROP pension revision?
According to the PIB report, arrears will be calculated for the period from July 01, 2019 to June 30, 2022. 17% Dearness Relief for the period from July 01, 2019 to June 30, 2021, and for the period from July 01, 2021 to December 31, 2021 31 per cent of DR will be taken for calculating arrears. The rate of DR is 34% for the period from Jan 01, 2022 to June 30, 2022.
OROP Pension Table PDF Download
The PCDA and CGDA will publish the detailed rank-wise OROP pension revision Tables for Defence pensioners and family pensioners soon! Both PCDA and CGDA offices released the first OROP pension revision tables on February 4, 2016 for all ranks of Defence pensioners. The total of 101 OROP revised pension tables was attached with the OROP Circular No. 555. For example, the OROP Table No 7 has 22 columns of revised 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 and NCs(E) and equivalent ranks. All armed forces pensioners and family pensioners are waiting for the PCDA or CGDA OROP pension revision tables to know the exact new pension!
Supreme Court has instructed the Central Government to hand out OROP arrears by 15th March, 2023
In a decision that will benefit 25 lakh retired Armed Forces personnel, the Supreme Court directed the Central Government to pay back arrears as per their One-Rank-One Pension (OROP) scheme by March 15, 2023. Chief Justice DY Chandrachud and Justice PS Narasimha emphasized this directive which was backed further by R Venkatramani – Attorney General for India who assured of his close involvement with the case at hand. It is time now to honor our country’s troops with long overdue financial benefits they truly deserve!
Rampal Singh Tomar says
RANK OF SUBEDAR IS MISSING IN THE OROP TABLE
Haridasan Maviloth says
Dear sir, can u please clear me the doubt latest pay revision of OROP published in Dec 23 is in rank wise .can u you please clear me whether it is belong to X or Y group .
best regards
Thakur Lakhan singh chouhan says
OROP for the rank of Hony NB/sub , Hony Lt , and Hony capt has not published in the table . Pl clarify the same..
Hony Capt Dhan Singh (Retd) says
As per press release OROP 2, Sub Maj will get more pension than Hony Lieut after excluding MSP. Now Sub Maj BP 36263 MSP 2600, Total 38863) and Hony Lieut (BP 33602 MSP 7750, Total 41352). Thus Hony Lieut will get less Rs 2661 BP than Sub Maj in recent announced OROP 2 . Fantastic grant of OROP.