8th Pay Commission: Employee organizations and pensioners say that the period of 15 years is too long and financially harmful. In today’s time, interest rates have come down considerably, while the formula for deduction is old.
8th Pay Commission: The central government is preparing to give a big relief to pensioners under the 8th Pay Commission. Now the demand to reduce the period of restoration of commuted pension from 15 years to 12 years has gained momentum. This demand is part of the Charter of Demand given to the government by the National Council (JCM), the representative body of employees. If this demand is accepted, then lakhs of retired employees will start getting full pension soon.
What is commuted pension?
When a government employee retires, he gets the option of taking a part of his pension as a lump sum. This is called commutation of pension. In return, a fixed amount is deducted from the monthly pension so that the government can compensate for that lump sum amount. Currently, this deduction is made for 15 years, i.e. the employee gets his full pension only after 15 years.
Why do you need reinstatement in 12 years?
Employee organizations and pensioners say that the 15-year period is too long and financially harmful. In today’s time, interest rates have become very low, while the deduction formula is old. Due to this, retired employees lose a large part of their own pension.
If this period is made 12 years, then retired people will be able to get full pension quickly. This will improve their financial condition, especially at a time when health, inflation and family responsibilities are increasing.
What does the Charter of Demand say?
The National Council (JCM) has recently submitted a list of the major demands of the employees to the Cabinet Secretary. The biggest demand in this is that the restoration period of commuted pension should be reduced from 15 years to 12 years. There have been indications from the government that this issue can be included in the ToR (Terms of Reference) of the 8th Pay Commission. This has further strengthened the hope that this change can actually be implemented.
The issue was also raised in the SCOVA meeting
This issue was also raised loudly in the 34th meeting of SCOVA (Standing Committee on Voluntary Agencies) held on 11 March 2025. This meeting was chaired by the Union Minister of State (Personnel, Pension and Public Grievances). Officials of the Finance Ministry also agreed that the existing system needs to be made more equitable and practical. After this it was decided that this demand would be included in the agenda of the Pay Commission.
What is the status of 8th Pay Commission?
At present, the government has not made any official announcement regarding the 8th Pay Commission. The tenure of the 7th Pay Commission is ending on 31 December 2025. According to tradition, the new pay commission should be implemented from 1 January 2026. But the names of the members of the commission and the ToR have not been decided yet. This indicates that there may be some delay in it. But the issue of restoration of commuted pension has now become a priority.
What will be the benefit if this rule is implemented?
If the government restores the commuted pension period to 12 years, it will be a sigh of relief for lakhs of pensioners. Even though the process of 8th Pay Commission is taking time, every step taken in this direction will be a symbol of respect and rights of those who have served the government. Apart from this, retiring employees will get full pension soon. It will help them in becoming financially independent. It will be easier to meet health, family expenses and social responsibilities and already retired pensioners can also get relief (if the rule is implemented retrospectively).
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