Govt issues details of OROP scheme; to cost 7500 crores annually at current rate

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

The arrears from July 1, 2014 to December 31, 2015 would be approximately costing Rs. 10,900 crore. Over 86 % of the total expenditure on account of OROP will benefit the JCOs/ORs.

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


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