The annual recurring financial implication of OROP at the current rate will be approximately Rs 7,500 crore, the government said today as it issued detailed instructions for the scheme.
The government also issued OROP Tables which said that the arrears from July 1, 2014 to December 31, 2015 would be approximately Rs 10,900 crore.
About 86 per cent of the total expenditure on account of OROP will benefit the Junior Commissioner Officers and other ranks.
The total increase in the defence budget for pensions is estimated to go up from Rs 54,000 crore (BE 2015-16) to around Rs 65,000 crore (proposed BE 2016-17), thereby increasing the defence pension outlay by about 20 per cent.
The government order said that the payment of arrears and revision of pension under OROP is to be made by the Pension Disbursing Authorities in four instalments, except for family pensioners and pensioners in receipt of gallantry awards who will be paid arrears in one instalment.
The government had in November last year taken the historic decision to implement OROP, "fulfilling" the long standing demand of defence personnel after 42 years.
The move that will benefit over 18 lakh ex-servicemen and war widows had been rejected by a section of the veterans who are still protesting saying there are a number of "lacunae" in the scheme.
(With PTI inputs)