The Union Cabinet, which is led by Prime Minister Narendra Modi, has approved a change to the pensions of Armed Forces Pensioners and family pensioners starting on July 1, 2019. (OROP). The pensions of people who retired in the past 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 change affects retired members of the Armed Forces until June 30, 2019, but not those who retired early (PMR) after July 1, 2014. More than 25.13 million Armed Forces retirees and family pensioners would be helped (including around 4.52 lakh new beneficiaries). People whose incomes are above average will be able to keep their pensions. Family pensioners, like war widows and disabled seniors, would also be able to get the payment.
Arrears will be paid off in four payments every six months. All family pensioners, including those who get the Special, Liberalized Family Pension and the Gallantry Award, will be paid in one lump sum.
At a rate of 31% Dearness Relief, the change is expected to cost about Rs 8,450 crore per year to carry out (DR). Based on DR of 17% from July 1, 2019, to June 30, 2021, and 31% from July 1, 2021, to December 31, 2021, the arrears from July 1, 2019, to December 31, 2021, are estimated to be more than Rs 19,316 crore. Based on the appropriate dearness relief, the amount of money owed between July 1, 2019, and June 30, 2022, is about Rs 23,638 crore. This cost is on top of what is already being spent on OROP.
On November 7, 2015, the government sent out a policy letter that put OROP into place for Defense Forces pensions and family pensions starting July 1, 2014. From what the policy document says, the pension would be recalculated every five years in the future. After OROP was put into place, money was spent at a rate of Rs 7,123 crore per year for eight years. This added up to about Rs 57,000 crore.
Estimated increase (in rupees) in service pension based on rank under OROP starting July 1, 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|
The Union Cabinet Committee approved the change to the pension that will be implemented under the One Rank One Pension (OROP) system for military personnel and family pensioners on December 23, 2022.
The second OROP adjustment for military retirees and family pensions was authorised by the Union Cabinet Committee on December 23, 2022, and will take effect on July 1, 2019.
Changes will be made to the base income for military pensioners and family pensioners retiring by June 30, 2019. (excluding pre-mature retired with effect from July 1, 2014). More than 25 lakh pensioners will benefit from OROP, according PIB data.
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 PIB news release dated 23.12.2022, arrears will be reimbursed in four half-yearly instalments. However, all family pensioners will get their back pay in a single instalment, including those receiving Special/Liberalized Family Pension and Gallantry Award Winners.
According to the PIB report, arrears would be calculated from July 1, 2019, to June 30, 2022. Dearness Relief of 17% from July 1, 2019 to June 30, 2021, and July 1, 2021 to December 31, 2021 31 percent of DR will be used to calculate arrears. Between January 1 to June 30, 2022, the DR rate will be 34%.
The PCDA and CGDA will soon release the rank-by-rank OROP pension revision tables for Defense pensioners and family pensioners! The PCDA and CGDA offices made the first OROP pension modification tables available to all ranks of Defense retirees on February 4, 2016. The OROP Circular No. 555 was supported by 101 OROP modified pension tables in total. OROP Table No. 7, for example, contains 22 columns containing revised pension amounts for the following ranks: Sepoy, 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. The PCDA or CGDA OROP pension adjustment tables will inform anyone receiving an armed services pension or their relatives of their exact revised pension amount.
What is Major's estimated OROP pension arrears?
A Major will earn Rs.3,05,000 as arrears under the OROP Scheme from July 2019 to June 2022, according to the most recent government estimates.
What is Sub Major's estimated OROP pension arrears?
A Sub Major will earn Rs.1,75,000 as arrears under the OROP Scheme from July 2019 to June 2022, according to the most recent government estimates.
What is Nb Subedar's estimated OROP pension arrears?
An Nb Subedar will earn Rs.1,08,000 as arrears under the OROP Scheme from July 2019 to June 2022, according to the most recent government estimates.