The Union Cabinet approved a change to the One Rank One Pension (OROP) payments made to retired military members and their families on Friday, at a cost of an additional Rs 8,450 crore annually and Rs 23,638 crore in arrears.
The increase will be effective starting on July 1, 2019, according to a decision made by the Cabinet at a meeting presided over by Prime Minister Narendra Modi.
According to a government announcement, the pensions of previous retirees “would be re-fixed on the basis of the average of the minimum and maximum pension of defense forces retirees of the calendar year 2018 in the same rank with the same period of service.”
The revision would be applicable to all retired defence personnel up to June 30, 2019, but not including those who took pre-mature retirement till July 1, 2014. The government said the revision would benefit over 25.13 lakh pensioners, including 4.52 lakh more recent retirees, and their families.
“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,” the statement read.
The arrears would be paid in four half-yearly installments, except for those who receive special, liberalised family pension and gallantry award winners, who will get it in one installment.
According to the announcement, the arrears from July 1, 2019, to June 30, 2022 were Rs. 23,638 crore and were “over and beyond the existing expenditure on account of OROP.”