Details out, OROP to cost govt Rs 7,500 crore more

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Old 04-Feb-2016
Post Details out, OROP to cost govt Rs 7,500 crore more

The Union Government today issued instructions to allow enhanced pensions to ex-servicemen under the One Rank One Pension (OROP) scheme and also the release of arrears.
The enhanced pension will cost the government an additional Rs 7,500 core per year at current rates and will benefit 18 lakh retired soldiers and war widows.
(Click here for OROP tables on Department of Ex-Servicemen Welfare website)
The Ministry of Defence in its order appended a 204-page list of tables and calculations for each category of pensioners.
The orders on OROP were issued on November 7 last year and the calculations of tables for enhanced pensions were pending, which has been done under today’s instructions.
In case of people who took premature retirement (PMR), the OROP orders would apply only to those who took PMR on or before November 6, 2015, signifying that those who take PMR in future would not be eligible for OROP.
The arrears are for the period between July 1, 2014, and December 31, 2015, and that alone would cost Rs 10,900 crore. About 86 per cent of the total expenditure on account of OROP would benefit other ranks.
The 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 a single installment.
The total increase in the Defence Budget for pensions is estimated to go up from Rs 54,000 crore to around Rs 65,000 crore, thereby increasing the defence pension outlay by about 20 per cent.

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