ONE RANK ONE PENSION

  • The Union Cabinet on Friday approved a pension revision for retirees from the armed forces and their families under the One Rank One Pension (OROP) scheme, which has been delayed since July 2019. Arrears will be paid from July 01, 2019, to June 30, 2022, which is approximately ₹23,638 crore as per the applicable dearness relief, the Defence Ministry said.
  • “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,” a Defence Ministry statement said.
  • More than 25.13 lakh people, including over 4.52 lakh new beneficiaries, armed forces pensioners and family pensioners will benefit, it said.
  • Armed forces personnel with a retirement date up to June 30, 2019, excluding premature retirees with effect from July 1, 2014, will be covered under this revision, the Ministry said.
  • Against the backdrop of delays, veterans had taken the legal route to pursue the revision. The case has been repeatedly delayed with the Government asking for more time in the Supreme Court.
  • One Rank One Pension implies uniform pension to personnel based on rank and length of service, and irrespective of the date of retirement.
  • Pension for those drawing above the average shall be protected and the benefit would also be extended to family pensioners, including war widows and disabled pensioners, the Ministry said.
  • Arrears will be paid in four half-yearly instalments. However, all the family pensioners, including those in receipt of special, liberalised family pensions, and gallantry award winners, shall be paid arrears in one instalment.
  • The estimated annual expenditure for the implementation of the revision has been calculated as approximately ₹8,450 crore based on 31% Dearness Relief (DR).
  • Arrears from July 1, 2019, to December 31, 2021, have been calculated as over ₹19,316 crore based on DR at 17% for the period from July 1, 2019, to June 30, 2021, and at 31% for the period from July 1, 2021, to December 31, 2021.
  • Arrears from July 1, 2019, to June 30, 2022, have been calculated as approximately ₹23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP, the statement added.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

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