Military retirees and their families will see a change to their pensions under the One Rank One Pension program on July 1, 2019, after it was approved by the Union Cabinet, led by Prime Minister Narendra Modi (OROP). A weighted average of the minimum and maximum pensions of 2018 Defense Force retirees of the same rank and period of service would be used to compute pensions for previous retirees.
This change affects those who retired from the military between 1 July 2014 and 30 June 2019 (excluding those who retired as PMR). A total of 25.13 million military retirees and their families would gain from this (including around 4.52 lakh new beneficiaries). Those with above-average wages will not see a decrease in their pension benefits. Those receiving a pension as a family member, such as war widows or senior people with impairments, would be entitled to this payment as well.
Arrears will be paid over the course of four semiannual installments. There will be a unified lump sum payment to all family pensioners, including those who receive the Special, Liberalized Family Pension and the Gallantry Award.
At a rate of 31% Dearness Relief, the anticipated annual cost to implement the modification is around Rs 8,450 crore (DR). Arrears from 1 July 2019 to 31 December 2021 are projected to be in excess of Rs 19,316 crore, assuming a DR of 17% from 1 July 2019 to 30 June 2021 and 31% from 1 July 2021 to 31 December 2021. If adequate dearness relief is applied, the arrears from 1 July 2019 through 30 June 2022 total around Rs 23,638 crore. Expenditures for OROP already include the aforementioned categories, hence this is an added expense.
On July 1, 2014, the government released a policy letter implementing OROP for members of the Defense Forces and their families who receive pensions. According to the policy statement, the pension will be redetermined every five years going forward. Costs have averaged Rs 7,123 crore each year in the eight years following the introduction of OROP, for a total of approximately Rs 57,000 crore.
Increase in service pension depending on rank expected under OROP beginning 1 July 2019 (in Indian Rupees):
Rank-Wise OROP Pension Arrears Table 2022
OROP Arrears for Sepoy 2022
| Rank | Sepoy |
| Pension as on 01.01.2016 | 17,699 |
| Revised pension w.e.f. 01.07.2019 | 19,726 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 87,000 |
OROP Arrears for Naik 2022
| Rank | Naik |
| Pension as on 01.01.2016 | 18,427 |
| Revised pension w.e.f. 01.07.2019 | 21,101 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 1,14,000 |
OROP Arrears for Havildar 2022
| Rank | Havildar |
| Pension as on 01.01.2016 | 20,066 |
| Revised pension w.e.f. 01.07.2019 | 21,782 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 70,000 |
OROP Arrears for NB Subedar 2022
| Rank | Nb Subedar |
| Pension as on 01.01.2016 | 24,232 |
| Revised pension w.e.f. 01.07.2019 | 26,800 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 1,08,000 |
OROP Arrears for Sub Major 2022
| Rank | Sub Major |
| Pension as on 01.01.2016 | 33,526 |
| Revised pension w.e.f. 01.07.2019 | 37,600 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 1,75,000 |
OROP Arrears for Major 2022
| Rank | Major |
| Pension as on 01.01.2016 | 61,205 |
| Revised pension w.e.f. 01.07.2019 | 68,550 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 3,05,000 |
OROP Arrears for Lieutenant Colonel 2022
| Rank | Lt. Colonel |
| Pension as on 01.01.2016 | 84,330 |
| Revised pension w.e.f. 01.07.2019 | 95,400 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 4,55,000 |
OROP Arrears for Colonel 2022
| Rank | Colonel |
| Pension as on 01.01.2016 | 92,855 |
| Revised pension w.e.f. 01.07.2019 | 1,03,700 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 4,42,000 |
OROP Arrears for Brigadier 2022
| Rank | Brigadier |
| Pension as on 01.01.2016 | 96,555 |
| Revised pension w.e.f. 01.07.2019 | 1,08,800 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 5,05,000 |
OROP Arrears for Major General 2022
| Rank | Maj. Gen. |
| Pension as on 01.01.2016 | 99,621 |
| Revised pension w.e.f. 01.07.2019 | 1,09,100 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 3,90,000 |
OROP Arrears for Lieutenant General 2022
| Rank | Lt. Gen. |
| Pension as on 01.01.2016 | 1,01,515 |
| Revised pension w.e.f. 01.07.2019 | 1,12,050 |
| Likely arrears from 01.07.2019 to 30.06.2022 | 4,32,000 |
Inputs from PIB News
| Rank | Pension as on Jan 2016 | Revised Pension from Jul 2019 | Revised Pension from Jul 2021 | Arrears from Jul 2019 to Jun 2022 |
| Sepoy | 17,699 | 19,726 | 20,394 | 87,000 |
| Naik | 18,427 | 21,101 | 21,930 | 1,14,000 |
| Havildar | 20,066 | 21,782 | 22,294 | 70,000 |
| Nb Subedar | 24,232 | 26,800 | 27,597 | 1,08,000 |
| Sub Major | 33,526 | 37,600 | 38,863 | 1,75,000 |
| Major | 61,205 | 68,550 | 70,827 | 3,05,000 |
| Lt. Colonel | 84,330 | 95,400 | 98,832 | 4,55,000 |
| Colonel | 92,855 | 1,03,700 | 1,07,062 | 4,42,000 |
| Brigadier | 96,555 | 1,08,800 | 1,12,596 | 5,05,000 |
| Maj. Gen. | 99,621 | 1,09,100 | 1,12,039 | 3,90,000 |
| Lt. Gen. | 1,01,515 | 1,12,050 | 1,15,316 | 4,32,000 |
On 23.12.2022, the Union Cabinet Committee approved the One Rank One Pension (OROP) pension revision for armed forces members and family pensioners.
The Union Cabinet Committee, chaired by Prime Minister Narendra Modi, authorised the second revision of OROP for armed services pensioners and family pensioners on December 23, 2022, with effect from July 1, 2019.
The latest news about OROP is that the basic pension for armed forces pensioners and family pensioners who retired before June 30, 2019 will be changed (excluding pre-mature retired with effect from July 1, 2014). According to the PIB report, more than 25 lakh pensioners will benefit from the One Rank One Pension (OROP) pension revision.
For the full calendar year 2018, the OROP pension will be modified based on the average of the minimum and maximum pensions for people of the same rank and service period. On November 7, 2015, the Central Government issued the OROP pension policy letter, and the first OROP pension was revised on July 1, 2014, for Defense pensioners and family pensioners.
Arrears will be assessed from July 1, 2019 to June 30, 2022, according to the PIB report. Dearness Relief of 17% from July 1, 2019 to June 30, 2021 and again from July 1, 2021 to December 31, 2021 Arrears will be calculated using 31 percent of DR. For the period January 1, 2022 to June 30, 2022, the DR rate is 34%.
The PCDA and CGDA will soon publish full rank-based OROP pension revision tables for Defense and family pensioners! On February 4, 2016, the PCDA and CGDA offices announced the first OROP pension revision tables for all ranks of Defense pensioners. The OROP Circular No. 555 was accompanied by 101 OROP amended pension tables. For example, in OROP Table No. 7, there are 22 columns of updated pension amounts for Sepoy, Hony Naik, Naik, Naik (TS), Hony Havildar, Havildar, Havildar Naib Sub, Artificer III-I (Navy), Naib Subedar, Subedar, Subedar Major, Hony Lieutenant, Hony Captain, NCs(E), and corresponding positions. All military forces pensioners and family pensioners are eagerly awaiting the PCDA or CGDA OROP pension adjustment tables in order to determine their exact new pension!
What is Major's anticipated OROP pension arrears?
According to the most recent government computations, a Major will receive Rs.3,05,000 in arrears under the OROP Scheme between July 2019 and June 2022.
What is Sub Major's anticipated OROP pension arrears?
According to the most recent government computations, a Sub Major will receive Rs.1,75,000 in arrears under the OROP Scheme between July 2019 and June 2022.
What is Nb Subedar's anticipated OROP pension arrears?
According to the most recent government computations, an Nb Subedar will receive Rs.1,08,000 in arrears under the OROP Scheme between July 2019 and June 2022.