One Rank One Pension: The Centre has revised the One Rank One Pension (OROP) scheme for the third time and ensured payment of arrears to beneficiaries, as confirmed by the Ministry of Defence in response to questions posed in the Lok Sabha by parliamentarian Chamala Kiran Kumar Reddy on December 6, 2024.
OROP: All demands addressed
Responding to whether all demands from veterans regarding periodic revisions and arrears have been met, the minister stated: “The Government has made provisions for revision of OROP vide their letter dated 07.11.2015. Accordingly, the third revision of OROP has been carried out with effect from 01.07.2024, vide Ministry’s letter dated 10.07.2024. Arrears on account of these revisions have been paid.”
Financial implications and beneficiaries
The Defence Ministry highlighted the financial scale of the latest revision, stating that the annual cost of the OROP revision starting July 1, 2024, is estimated at Rs 6,703.24 crore. This will benefit nearly 19.65 lakh retired armed forces personnel.
Also read: One Rank One Pension: Pensions revised for Army, Navy, Air Force personnel under OROP
No challenges in disbursement
When asked if challenges had been faced in disbursing the arrears and pensions, the minister replied, “No challenges have been faced in the disbursement of arrears and pension under the scheme.”
Fiscal sustainability of OROP
Questions were also raised regarding the sustainability of the growing fiscal burden due to OROP. The Defence Ministry assured that sufficient budgetary provisions have been made to meet the requirements under the scheme.
While no specific challenges or delays have been reported in the implementation of the latest revision, the Centre’s commitment to ensuring the scheme’s viability and its consultations with stakeholders remain crucial for its continued success.
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