Cabinet revises pension for Armed Forces under One Rank One Pension

NEW DELHI: In a significant step the Union Cabinet of Friday approved the revision of the 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 the average minimum and maximum pension of defence forces retirees for the calendar year 2018 in the same rank with the same length of service.

The decision will benefit 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.

The estimated annual expenditure for the implementation of the revision has been calculated as approx. Rs 8,450 crore at the rate of 31 per cent 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 at 17 per cent for the period from July 01, 2019, to June 30, 2021, and at 31 per cent for the period from July 01, 2021, to December 31, 2021.

Arrears w.e.f. July 01, 2019, to June 30, 2022, has been calculated as approximately Rs23, 638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.

Rank wise a likely estimated increase (in rupees) in service pension under OROP w.e.f. July 01, 2019:

The Government took a historic decision to implement OROP for the Defence Forces Personnel/family pensioners and issued a 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 at the rate of Rs 7,123 crore per year in eight years in the implementation of OROP.

The Union Cabinet also has approved the provision of free food grain under the National Food Security Act for a period of one year. In view of the decision, the central government would bear the entire cost of the food subsidy to the tune of Rs 2 lakh crore.

The decision comes a week before the expiry of the PM Garib Kalyan Anna Yojana free foodgrain scheme, which is set to end on December 31.

NEW DELHI: In a significant step the Union Cabinet of Friday approved the revision of the 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 the average minimum and maximum pension of defence forces retirees for the calendar year 2018 in the same rank with the same length of service. The decision will benefit 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. The estimated annual expenditure for the implementation of the revision has been calculated as approx. Rs 8,450 crore at the rate of 31 per cent 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 at 17 per cent for the period from July 01, 2019, to June 30, 2021, and at 31 per cent for the period from July 01, 2021, to December 31, 2021. Arrears w.e.f. July 01, 2019, to June 30, 2022, has been calculated as approximately Rs23, 638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP. Rank wise a likely estimated increase (in rupees) in service pension under OROP w.e.f. July 01, 2019: The Government took a historic decision to implement OROP for the Defence Forces Personnel/family pensioners and issued a 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 at the rate of Rs 7,123 crore per year in eight years in the implementation of OROP. The Union Cabinet also has approved the provision of free food grain under the National Food Security Act for a period of one year. In view of the decision, the central government would bear the entire cost of the food subsidy to the tune of Rs 2 lakh crore. The decision comes a week before the expiry of the PM Garib Kalyan Anna Yojana free foodgrain scheme, which is set to end on December 31.