The Government of India had taken the historic decision to implement OROP in November, 2015. This fulfilled the long standing demand of the Defence Forces personnel after 42 years and benefited over 18 lakh ex-servicemen and war widows.
In pursuance of the order issued on 07/11/2015, detailed instructions alongwith OROP Tables have been issued today.
• The annual recurring financial implication on account of implementation of OROP at the current rate will be approximately Rs. 7500 crore.
• The arrears from 01/07/2014 to 31/12/2015 would be approximately Rs. 10,900 crore.
• 86 percent of the total expenditure on account of OROP will benefit the JCOs/ORs.
• 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 percent.