The Union Cabinet on Friday announced revision of pension for defence personnel under the provisions of “One Rank One Pension”.
The decision, which was taken in the meeting of the Union Cabinet held earlier on Friday, will entail an annual burden of Rs 8,450 crore on the government and will benefit 25,13,002 defence pensioners.
An amount of Rs 23,638 crore would be paid as arrears from July 2019 to June 2022, Minister for Information and Broadcasting Anurag Thakur told mediapersons in a press conference.
Pension of the past pensioners would be re-fixed on the basis of average of minimum and maximum pension of defence forces retirees of calendar year 2018 in the same rank with the same length of service.
Armed forces personnel who retired up to June 30, 2019 (excluding pre-mature retirees with effect from July 1, 2014) will be covered under this revision.
Pension for those drawing above the average shall be protected.
The benefit would also be extended to family pensioners, including war widows and disabled pensioners, an official statement said.
Arrears will be paid in four half-yearly instalments.
However, all the family pensioners, including those receiving special or liberalised family pension and gallantry award winners, shall be paid arrears in one instalment.