Centre to implement One Rank One Pension (OROP) Scheme, issues implementation table

One Rank One Pension (OROP) scheme will be implemented by the Centre beginning next financial year. The Union Government on Wednesday issued the tables for implementation of the One Rank One Pension (OROP) scheme, thereby fulfilling the long-standing demand of the defence personnel after 42 year. Although, a section of veterans is still protesting against the provisions of the pension scheme, Centre seems firm on going ahead with the version rolled out before them in September.

The annual recurring financial implication on account of implementation of OROP at the current rate will be approximately Rs. 7500 crore.

Although, the ex-servicemen had demanded the base date to kept at April 1, 2014, Government has decided to keep it at July 1, 2014. The arrears from July 1 to December 31 will be Rs 10,900 crore. Annual recurring financial implication on account of OROP implementation at pension scale of 2013 would cost a recurring amount of Rs 7,500 crore until the next revision.

Centre to implement One Rank One Pension (OROP)
Centre to implement One Rank One Pension (OROP)

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 one installment.

The amount of pension will be revised once in five years. Ex-servicemen had strongly objected to the clause, calling it ‘Five rank, one pension’. Instead, they had demanded the revision of pension at every one or two years. However, incorporating the populist demand of the army veterans would further increase the burden on the economy.

The total increase in the Defence Budget for pensions is estimated to go up from Rs. 54,000 crore (BE 2015-16) to around Rs. 65,000 crore (proposed BE 2016-17), thereby increasing the Defence Pension outlay by about 20 percent.

The OROP scheme is set to benefit over 18 lakh ex-servicemen and war widows.

Source india.com & aninews

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