10% Cut down on OROP Arrears 2nd Installment – Know the Reality

The 2nd installment of OROP Arrears have been paid to all eligible defence pensioners who have already received their 1st Installment during the Jan-Feb 2023.

You might have noticed that your OROP Arrears 1st installment was paid earlier at the begining of the year which was more than the amount you got credited in your bank account this week.

Most of the pensioners are searching here and there about why 2nd installment of OROP arrears amount is less than the 1st installment ? It is very astonised that SPARSH has not issed any notification in this regard till date. However, after a detailed scrutiny of the matter it has been found that the amount is 10% less than the previous installment.

Now the question is what may be the reason for cut down of OROP arrears 2nd ionstallment without any intimation ? Naturally in the instances, when the decision was made to pay the arrears of OROP, the entire amount in 4 installment, it must be four equal amount. But till date, the PCDA , authority for disbursement of pension through SPARSH , has not issued any detailed calculation in this regard till date. Total amount of OROP arrears has not been published or intimated to the pensioner concerned till date.

At a preliminary assumption, it may be stated that, since the amount of 2nd installment of OROP arrears is exactly 10% less than the previous (1st installment), TDS may be deducted. SPARSH is now administering the income tax matter also.

In SPARSH portal, there is an option to go through New regim or old regim of Income Tax. Those who have opted to go with the New regim and whose pension amount including arrears is less than 5 Lakh, TDS should not be deducted from their pension. You may now visit the SPARSH Portal and opt the best fit option applicable to you.

Now come to the point applicable to the pensioner who are stioll getting pension from Bank CPPC (other than SPARSH). A dlarge number of pensioners are still not covered by the SPARSH pension. As a result, their pension is being paid directly by the Bank CPPC through the paying branch.

In such cases, their OROP 2nd installment of arrears will be paid directly by the Bank CPPC and treatment of income tax deduction will be based on the record available with the bank/ option exercised by the pensioners. Their OROP arrears (2nd installment) may be paid at full amount as per 1st installment.

According to PCDA, SPARSH all pensioners will be migrated in phased manner but still a large number of pensioners approximate 40% pensioners are still left out and they are still drawing their pension through Bank. To know your migration status to SPARSH portal, ypou may check the status at the sparsh portal using simple technique.