OROP implemented: Key points to note

New Delhi: The NDA government announced on Saturday that it will implement the One Rank One Pension (OROP) scheme for veterans. The announcement was made by Defence Minister Manohar Parrikar.

Here are the key points you should know:

• The OROP scheme will be implemented with effect from July 1, 2014.
• OROP will be fixed on the basis of calendar year 2013.
• Pension will be refixed for all pensioners on the same rank and with the same length of service as the average of minimum and maximum pension in 2013.
• The pension would be refixed every five years.
• Arrears will be paid in four half-yearly instalments.
• Widows and war widows will be the first to receive arrears and that too in one instalment.
• Personnel who opt for premature retirement will not be covered under OROP.
• Over 25 lakh veterans would benefit from OROP.
• According to Parrikar, the cost to the exchequer will be Rs 8,000 crores to Rs 10,000 crores.
• Those drawing pensions above the average will be protected, said the minister.