The Government on Wednesday issued the implementation table of “One Rank, One Pension (OROP)” for fixation of pension of various ranks that will benefit more than 25 lakh veterans and six lakh widows. The table came after the Government decided to implement OROP in November last year.
The salient features of the table include the annual recurring financial implication on account of implementation of OROP at the current rate will be approximately Rs 7,500 crore. Moreover, the arrears from August 1, 2014 to December 31, 2015 would be approximately Rs 10,900 crore.
More than 86 per cent of the total expenditure on account of OROP will benefit the Junior Commissioned Officers (JCO) and soldiers known as other ranks (OR).
Officials said payment of arrears and revision of pension under OROP is to be made by the Pension Disbursing Authorities in four installments, except for family pensioners and pensioners in receipt of gallantry awards who will be paid arrears in one installment.
The total increase in the Defence Budget for pensions is estimated to go up from Rs 54,000 crore (2015-16) to around Rs 65,000 crore (proposed 2016-17), thereby increasing the Defence Pension Outlay by about 20 per cent.
