OROP: Enhanced payments to over 25 lakh beneficiaries by Jan 2016

New Delhi: The enhanced pension under the One Rank, One Pension (OROP) scheme would be paid to the over 25 lakh ex-servicemen and war widows by January next year, defence sources said here on Tuesday.

Also, the first instalment of the arrears would be received by the pensioners in the first week of March, they added. The payment of enhanced pensions will cost the exchequer around Rs 8,000 crore.

The government will also bring in a formal order on OROP this month which will see a clarification on the OROP rule that those taking retirement from now on will not get OROP benefits.

"The calculation and charts are being prepared right now. The enhanced pension would be received by ex-servicemen and war widows by January. Moreover, the first instalment of the arrears would be received by them in the first week of March," the sources said.

The government may bring in a new set of guidelines and requirements for those wanting to leave the service after their minimum stipulated period for being eligible for pension, the sources said.

About 80 per cent of officers and personnel leave the forces when they fail to make the next rank, they said. Thus, a colonel who leaves the army before completing his tenure because he did not make it to the next level -- brigadier -- will not be entitled to OROP.

"There has been some confusion about the interpretation of the notification. The formal order which will be issued this month will explain this," the sources said.