OROP scheme will provide ex-serviceman of the same rank and same length of service uniform pension regardless of date of retirement. It will benefit over 25 lakh veterans and war widows from all three services- Army, Navy and Air Force.
Pension would be re-fixed every five years and future enhancements in rates of pension would be automatically passed to the past pensioners. It would be re-fixed on the basis of the average of minimum and maximum pension of personnel retiring in 2013 in the same rank and with the same length of service.
In case of past pensioners, it will be re-fixed on the basis of pension of retirees of 2013 and the benefit will be from 1st July 2014. All arrears will be paid in four half-yearly instalments and all widows will be paid arrears in one instalment.
However, all the family pensioners including those in receipt of Special and Liberalized family pensioners and Gallantry award winners will be paid arrears in one instalment.
Personnel who retire voluntarily would be not covered under OROP scheme. However, it will be applicable to personnel who have already retired prematurely. Estimated cost to implement OROP scheme would be around 8000-10,000 crore rupee.