The scheme promises equal pension to military personnel retiring in the same rank with the same length of service, regardless of the date of retirement.

The scheme is effective July 1, 2014, with 2013 as the base year.

Only those who retired before the plan kicked in would be entitled to OROP.

The estimated cost to exchequer is expected to be Rs.8,000 to 10,000 crore and will increase in future.

The government has proposed a review every five years.