NEW DELHI: Defence Minister Manohar Parrikar announced the One Rank One Pension today.
Here are the important highlights:
The One Rank One Pension Scheme will be effective from July 1, 2014.
Defence personnel who voluntarily retire will not be covered under the One Rank One Pension (OROP) scheme. However, the new pension structure will apply to personnel who have already retired prematurely.
Arrears will be paid in four half-yearly installments. All widows, including war widows, will be paid arrears in one installment.
The pension would be re-fixed every five years.
The estimated cost of OROP implementation to the exchequer would be Rs. 8,000 to Rs. 10,000 crore. Expenditure on arrears would be between Rs. 10,000 to Rs. 12,000 crore.