Cabinet gives ex post facto clearance to OROP

The union cabinet chaired by Prime Minister Narendra Modi on Wednesday gave ex post facto approval for the implementation of the 'One Rank One Pension' (OROP) scheme.

The defence ministry has said that pensions under the OROP have already been disbursed to most beneficiaries. The scheme has been brought into effect from July 1, 2014.

A total of 15.91 lakh pensioners have been given the first instalment under the OROP till March 31, totalling Rs.2,861 crore.

As per the scheme, pension will be re-fixed for those retiring in the same rank and with the same length of service as the average of the minimum and maximum pension drawn by retirees in 2013. Those drawing pensions above the average will be protected.

The benefit would also be extended to family pensioners, including war widows and disabled pensioners.

Detailed OROP tables were released by the department of ex-servicemen welfare on February 3.

The 101 tables in these implementation orders contain revised pensions of different ranks and categories.

In future, the pension would be re-fixed every five years.

The scheme will cost the exchequer around Rs.10,925.11 crore for payment of arrears apart from additional annual financial implication of Rs.7,488.7 crore.