Ministry approves revision of pension of AFPs/family pensioners

The Union Cabinet, headed by Prime Minister Shri Narendra Modi, has approved revision of pension of Armed Forces Pensioners/family pensioners under One Rank One Pension (OROP) w.e.f. July 01, 2019.

Revision of pension of Armed Forces Pensioners/family pensioners under OROP

Ministry of Defence

Union Cabinet approves revision of pension of Armed Forces Pensioners/family pensioners under One Rank One Pension w.e.f. July 01, 2019

Armed Forces Personnel retired up to June 30, 2019 to be covered; Over 25.13 lakh to be benefitted

Rs 23,638 crore to be paid as arrears from July 2019 to June 2022

Estimated additional annual expenditure for implementation of the revision calculated as approx. Rs 8,450 crore @31% Dearness Relief

23 DEC 2022

The Union Cabinet, headed by Prime Minister Shri Narendra Modi, has approved revision of pension of Armed Forces Pensioners/family pensioners under One Rank One Pension (OROP) w.e.f. July 01, 2019. Pension of the past pensioners would be re-fixed on the basis of average of minimum and maximum pension of Defence Forces retirees of calendar year 2018 in the same rank with the same length of service.

Beneficiaries

The Armed Forces Personnel retired up to June 30, 2019{excluding pre-mature (PMR) retired w.e.f. July 01, 2014} will be covered under this revision. More than 25.13 lakh (including over 4.52 lakh new beneficiaries) Armed Forces Pensioners/family pensioners will be benefitted. Pension for those drawing above the average shall be protected. The benefit would also be extended to family pensioners, including war widows and disabled pensioners.

Arrears will be paid in four half-yearly instalments. However, all the family pensioners, including those in receipt of Special/Liberalised Family Pension and Gallantry Award Winners, shall be paid arrears in one instalment.

Expenditure

The estimated annual expenditure for the implementation of the revision has been calculated as approx. Rs 8,450 crore @31% Dearness Relief (DR). Arrears w.e.f. July 01, 2019 to December 31, 2021 have been calculated as over Rs 19,316 crore based on DR @ 17% for the period from July 01, 2019 to June 30, 2021 and @31% for the period from July 01, 2021 to December 31, 2021. Arrears w.e.f. July 01, 2019 to June 30, 2022 have been calculated as approx. Rs 23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.

Rank wise likely estimated increase (in rupees) in service pension under OROP w.e.f. July 01, 2019:

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

Background

The Government took a historic decision to implement OROP for the Defence Forces Personnel/family pensioners and issued policy letter on November 07, 2015 for revision of pension w.e.f. July 01, 2014. In the said policy letter, it was mentioned that in future, the pension would be re-fixed every 5 years. Approx. Rs 57,000 crore has been spent @Rs 7,123 crore per year in eight years in the implementation of OROP.

PIB