One Rank One Pension Updates - Indian Economy (Government of India Scheme)

One rank one pension
(OROP) Scheme

The Indian Union Cabinet has approved a pension revision for their Armed Forces Pensioners/Family Pensioners under One Rank One Pension, effective July 1, 2019.

The government made a historic decision to implement OROP for Defense Forces Personnel/Family Pensioners on November 7, 2015, and issued a policy letter on November 7, 2015, for pension revision beginning July 1, 2014.

The policy letter stated that going forward, the pension would be re-fixed every five years. Approximately Rs 57,000 crore, or Rs 7,123 crore per year, has been spent in the eight years since OROP was implemented.

One Rank One Pension (OROP) pension revision for members of the armed forces and their families has been approved by the Union Cabinet, which is led by Prime Minister Shri Narendra Modi, and will take effect on July 1st, 2019.

The past pensioners' pensions will be recalculated using the average of the minimum and maximum pensions received by Defense Forces retirees in the same rank with the same amount of service during the calendar year 2018.

One Rank One Pension Scheme Updates
OROP Updates

This revision will apply to retired members of the armed forces who were discharged prior to June 30, 2019, excluding pre-mature (PMR) retirees who were discharged as of July 1, 2014. Armed Forces Pensioners and Family Pensioners will receive benefits totaling more than 25.13 lakh (including over 4.52 lakh new beneficiaries).

Pension benefits for those drawing more than the average must be safeguarded. Family pensioners, such as war widows and disabled pensioners, would also be eligible for the benefit.

Four half-yearly payments will be made to cover any arrears. All family pensioners, including those receiving Special/Liberalized Family Pension and Gallantry Award Winners, will, however, receive their back pay in a single installment.

Rank-wise likely estimated increase in service pension under OROP starting today (in rupees)
Rank Pension as on 01-01-2016 Revised pension w.e.f. 01-07-2019 Likely arrears from 01-07-2019 to 30-06-2022
Sepoy 17,699 19,726 87,000
Naik 18,427 21,101 1,14,000
Havildar 20,066 21,782 70,000
Nb Subedar 24,232 26,800 1,08,000
Sub Major 33,526 37,600 1,75,000
Major 61,205 68,550 3,05,000
Lt. Colonel 84,330 95,400 4,55,000
Colonel 92,855 1,03,700 4,42,000
Brigadier 96,555 1,08,800 5,05,000
Maj. Gen. 99,621 1,09,100 3,90,000
Lt. Gen. 1,01,515 1,12,050 4,32,000
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