Govt gifts 25 lakh defence staffers pension cheer

The cabinet on Monday approved a Rs. 2,300-crore proposal to raise the pensions of ex-servicemen, their wives and physically challenged children, in what is being described as “near-implementation” of the longstanding demand for one rank, one pension. HT reports. For soldiers

The government has finally loosened its purse strings for former soldiers. The cabinet on Monday approved a Rs 2,300-crore proposal to raise the pensions of ex-servicemen, their wives and physically challenged children, in what is being described as “near-implementation” of the longstanding demand for one rank, one pension (OROP).
The windfall, which is expected to benefit close to 25 lakh ex-servicemen, comes at time when some reform measures such as the hike in fuel prices and rationing of liquefied petroleum gas (LPG) cylinders are expected to hit household budgets.

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The government also softened the hike blow for its employees and pensioners as it increased the dearness allowance (DA) of central employees by 7%, effective July 1.

Around five million employees and three million pensioners will benefit from the move.

"These are expected to largely meet the demands of the defence pensioners on one rank one pension," an official said.

The cabinet has also increased family pension, dual family pension and financial benefits for mentally/physically challenged children of armed forces personnel. This is the third time that the UPA government has taken steps to narrow the gap between the pensioners, particularly those belonging to the other ranks.