The Union Cabinet, chaired by Prime Minister Narendra Modi, authorized pension modification for Armed Forces Pensioners and family pensioners under One Rank One Pension (OROP) from 1 July 2019. Past pensioners’ pensions will be recalculated based on the average minimum and maximum allowances of 2018 Defense Forces retirees with the same rank and period of service.
This adjustment covers retired Armed Forces personnel up to 30 June 2019 (excluding PMRs since 1 July 2014). More than 25.13 lakh Armed Forces Pensioners and family pensioners will benefit. Protect above-average pensions. Family pensioners, including war widows and disabled pensioners, would also be eligible.
Four half-yearly payments will clear arrears. All family pensioners, including Special, Liberalized Family Pension, and Gallantry Award Winners, shall be paid arrears in one installment.
Estimated annual implementation costs are Rs 8,450 crore at 31% Dearness Relief (DR). Arrears from 1 July 2019 to 31 December 2021 are above Rs 19,316 crore based on DR at 17% from 1 July 2019 to 30 June 2021 and 31% from 1 July 2021 to 31 December 2021. According to dearness relief, arrears from 1 July 2019 to 30 June 2022 are Rs 23,638 crore. This is in addition to OROP costs.
The government released a policy letter on 7 November 2015 to implement OROP for Defense Forces personnel and family pensions, effective 1 July 2014. The policy letter specified the retirement would be recalculated every 5 years. In eight years, OROP implementation cost Rs 57,000 crore, or Rs 7,123 crore a year.
Rank-wise expected to increase in service pension under OROP from 1 July 2019:
Rank-Wise OROP Pension Arrears Table 2022
OROP Arrears for Sepoy 2022
Rank | Sepoy |
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
Rank | Naik |
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
Rank | Havildar |
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
Rank | Nb Subedar |
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
Rank | Sub Major |
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
Rank | Major |
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
Rank | Lt. Colonel |
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
Rank | Colonel |
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
Rank | Brigadier |
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
Rank | Maj. Gen. |
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
Rank | Lt. Gen. |
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 |
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 |
On 23.12.2022, the Union Cabinet Committee approved the One Rank One Pension (OROP) scheme’s modification of pension for military personnel and family pensioners.
On December 23, 2022, under the leadership of Prime Minister Narendra Modi, the Union Cabinet Committee approved the second modification of OROP for armed services pensioners and family pensioners, effective July 1, 2019.
According to the most recent OROP statement, the basic pension for retired family pensioners and members of the armed forces up until June 30, 2019, will change (excluding pre-mature retired with effect from July 1, 2014). Over 25 lakh seniors will gain from the pension revision under One Rank One Pension (OROP), according the PIB research.
The OROP pension will be changed based on the average of the lowest and highest pensions for the same rank and length of service for all of 2018. On November 7, 2015, the Central Government sent out a letter about the OROP pension policy. The first OROP pension was changed on July 1, 2014, for Defense pensioners and family pensioners.
According to a press statement issued by PIB on December 23, 2022, arrears would be paid in four equal instalments every six months. However, arrears will be paid out to all family pensioners in a single instalment. This includes those who are already receiving a Special or Liberalized Family Pension as well as those who have won the Gallantry Award.
The PIB report says that arrears will be figured for the time period from July 1, 2019, to June 30, 2022. 17% Dearness Relief from July 1, 2019, until June 30, 2021, and from July 1, 2021, until the end of the year. For figuring out arrears, 31% of DR will be used. From January 1, 2022, to June 30, 2022, the rate of DR is 34%.
The PCDA and CGDA will soon release the detailed rank-by-rank OROP pension revision tables for Defense pensioners and family pensioners. On February 4, 2016, the PCDA and CGDA offices both put out the first OROP pension revision tables for all ranks of Defense retirees. The OROP Circular No. 555 came with a total of 101 pension tables that had been changed because of the OROP. 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, NCs(E), and equivalent ranks. All pensioners and family pensioners from the armed forces are waiting for the PCDA or CGDA OROP pension revision tables to find out how much their new pension will be.
What is the expected OROP pension arrears for Nb Subedar?
From July 2019 to June 2022, an Nb Subedar will receive Rs. 1,08,000 in arrears under the OROP Scheme, according to the most recent government calculations.
What is the expected OROP pension arrears for Sub Major?
From July 2019 to June 2022, a Sub Major will receive Rs. 1,75,000 in arrears under the OROP Scheme, according to the most recent government calculations.
What is the expected OROP pension arrears for Major?
From July 2019 to June 2022, a Major will receive Rs. 3,05,000 in arrears under the OROP Scheme, according to the most recent government calculations.