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Stakeholder mapping: what do Central Government employees think about pension and their future?

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A pension is not just a retirement plan, it’s a promise to yourself and your future to ensure peace of mind and security when you no longer work for a living

– Unknown

How much money would the government have saved by excluding old pensioners from the benefits of the new pay commission? Would it have been worth antognising a large vote bank of central government pensioners and their families.

The issue of parity among past and future pensioners has been a longstanding demand of Central Government employees.

Historically, pay commissions have dealt with disparities in pensions among pensioners. The 5th Pay Commission introduced the principle of modified parity, and recommended that the pension of all pre-1986 retirees be upgraded by a notional fixation of their pay as on January 1, 1986. The 6th CPC’s recommendations resulted in significant increases in salaries and pensions for Central Government employees – more in line with the private sector. The 6th CPC recommended the revision of pensions to ensure parity among pre-2006 pensioners – bringing them in line with the revised pay scales. The 7th Pay Commission also addressed the issue, recommending two formulas for deciding revised pension for those under the Old Pension Scheme

Also Read: Central Civil Services (Pension) Rules: Backdoor legislation or behind the scene game of hide and seek?

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Here are a few comments from pensioners who gave the best part of their lives for different Central Government services:

J.K. Khanna, IPS (1974-batch), Former DGP Bihar & Secretary, Forum of Retired IPS Officers (FORIPSO)

The Amendment Bill passed by the Lok Sabha on 26.3.25 seeks to create classes within the pensioners based upon their date of retirement. It is apparent from its perusal that the trigger was the Contempt Case filed by FORIPSO (Forum of Retired IPS Officers) in Delhi High Court in May, 2024 for non-implementation of the HC Judgement dated 20.3.24 which was validated by the Supreme Court on 4.10.24. As a consequence, hefty arrears accrue to the members of FORIPSO and S-30 Pensioners’ Association. The bill seems to negate this judgement. The Government has not yet filed any reply to our contempt case whose next date is 16th May, 2025. It is clear that the contemnors were waiting for this legislation to be passed before submitting their response. It is clear from the following clause extracted from the amendment bill:-

“AND WHEREAS the judgment of the Supreme Court in SLP (Civil) No. 29124 of 2024 in the case of the Union of India and Ors. Vs All India S-30 Pensioners Association and Ors. has obliterated such distinction and proceeded on the premise that the Government lacks authority for providing for such distinction of the Central Government pensioners based on their date of retirement”
“AND WHEREAS the judgment of the Supreme Court in SLP (Civil) No. 29124 of 2024 in the case of the Union of India and Ors. Vs All India S-30 Pensioners Association and Ors. has obliterated such distinction and proceeded on the premise that the Government lacks authority for providing for such distinction of the Central Government pensioners based on their date of retirement”;

The bill seeks to assert Government’s authority to distinguish between Pensioners on the basis of date of retirement. The Supreme Court had previously ruled (D.S. Nakara Vs. UOI, and reiterated in later cases) that differentiating pensioners solely on the basis of retirement date is discriminatory. The amendment is designed to legislatively overturn or neutralise the Court’s interpretation. By stating explicitly that Pay Commission benefits apply only to future retirees, the Government has sought to restore its discretion. Applying revised Pay Commission benefits retrospectively to all existing pensioners (especially those who retired decades ago) could involve massive arrears and recurring pension liabilities. By limiting the benefits to new retirees, the amendment seeks to control Govt expenditure and to ensure budget predictability in managing pensions.

In effect, this is a legislative response to undo/ bypass the consequences of an adverse court judgment. It seeks to retroactively validate the government’s practice of using retirement dates as cutoffs for pension revisions and to prevent future litigation by putting the rule explicitly in the statute.

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Ravi Malik, Secretary General, All India Pensioners Association of Central Board of Indirect Tax & Customs (CBIC)

It is not understood why the pensioners should be differentiated based on the date of retirement. Why there should be a division between pre-pay commission and post-pay commission pensioners? Both categories deserve and should be given equal treatment without any discrimination based on any date or year of retirement. No one can expect such discrimination in the biggest democracy of the world, which we are. We should not forget that we are a welfare state.

The said legislation validates that the Central Government has the authority to establish distinctions among pensioners, which may emanate from the accepted recommendations of the Central Pay Commissions, and in particular the distinction may be made on the basis of the date of retirement. The legislation has been made effective from 1.6.1972, thereby validating all Rules made under Article 309 of the Constitution for CCS (Pension) Rules, 1972, CCS (Pension) Rules, 2021, CCS (Extraordinary Pension) Rules, 2023 including all instructions issued thereunder as amended from time to time.

The bill is being passed despite of the fact that the Supreme Court had already ruled (notably in D.S. Nakara Vs. UOI and reiterated in later cases) that differentiating pensioners solely on the basis of retirement date is discriminatory. By stating explicitly that Pay Commission benefits apply only to future retirees, the government has sought to restore its discretion in the discriminatory manner instead of removing disparities in pension.

It is not understood why the Finance Bill included the Validation of Pension Rules. What forced the government to pass such bill? The government should think to give some privileged treatment to these senior citizens instead of passing such discriminatory bill. These senior citizens need some graceful treatment to lead their life with due respect and comfort. Their role in Nation building by serving the government with full dedication for long years should not be forgotten.  

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Lt. Gen. (Dr.) N. B. Singh, PVSM, AVSM, VSM, ADC, founding member of the Armed Forces Tribunal, Jabalpur

Gen NB Singh
Gen NB Singh

One has to accept the assurances given by Secy Pensions that there will be no distinction between pre and post retirees of 8th CPC as in the case of 7th CPC.

Validation of pension rules may be a procedural need. One will have to read the fine print to arrive at some conclusion as to why it is needed.

Supreme Court and High Courts have ofter ruled that pension is a right and not bounty.

I think with full pension revision every 10 years ( 5 years for military) and provision of DR adjustments every 6 months any concerns at this juncture may be premature…

In any case if a disparity is created between pre and post 8th CPC retirees judicial review can be sought.

Lt. Gen. K K Aggarwal, AVSM, SM, VSM – former Director General, Corps of Electronics and Mechanical Engineers (EME)

Lt Gen K K Aggarwal, AVSM, SM, VSM (Retd.)

7th CPC had removed the distinction between past and current pensioners by applying a uniform multiple of 2.57 to the old pensions, thus doing away with fitment table formulae of earlier pay commission.

The latest Govt move to pass legislation reaffirming CCS (Pension) Rules 1972 appears to be an attempt to reclaim the authority to diffrentiate between past and future pensioners.

M Nageswara Rao, former, Director, Central Bureau of Investigation (CBI) 

The BJP has consistently shown an anti-employee and anti-working-class stance. During Vajpayee’s tenure as head of the central government, they abolished the old pension scheme for employees who joined on or after January 1, 2004. Currently, under Modi’s leadership, the central government is withholding new pay commission benefits from pensioners, resulting in considerable unfairness to pensioners who are in the twilight of their lives. If the government cannot honour elders and improve the living standards of its former employees, it should at least avoid adding to their difficulties, particularly given the steep drop in the rupee’s purchasing power. I urge the central government to reconsider its position and reverse these anti-pensioner policies.

M.G. Devasahayam, former IAS officer (1968 batch) he was originally Commissioned in the Army in 1964. He participated in 1965 war, and Counter-Insurgency operations in Nagaland (1967-68)

Government’s argument that Pay Commissions’ benefits apply prospectively not retrospectively is untenable. It applies only to the salary increase of serving employees. Pension benefits should apply retrospectively for all pensioners. Treating pensioners in separate categories would be unconstitutional.

Nirmala Sitharaman’s clarification does not clear the doubt. Finance Ministry must come out with a clear statement that there will be no distinction in the determination of basic pay while calculating the pension due and that existing and new pensioners would be treated on equal footing.

Dr Arun Kumar Rath, IAS (Retd), former Union Secretary Ministry of HRD and Adjunct Professor, IIM Nagpur

Senior Pensioners are the heritage of the nation as repository of knowledge and wisdom of society and deserve care and respect of the government. They deserve support and equality in matters of compensation by the State for their longer years of service to nation which continues even today as the beacon lights of society.

To discriminate against the senior pensioners by not extending the equal pensionary benefits to them will be against the principles of civilised society. With rising prices and lower value of rupee the pensioners will find it impossible to live in dignity and respect. To add to their misery, there has been breakdown of the joint family system.

The children no longer support the elderly parents resulting in untold miseries to the senior citizens. The new policy of the government is unfair and against all rules of civilised treatment of the senior citizens. The new system is going to be unethical and amounts to cruelty to the elderly people.

Government of India must be just and fair and extend equal benefits to the senior pensioners who retired earlier without any discrimination. This is the minimum courtesy the government should extend to the senior pensioners who continue to guide society.

Lt Gen K J Singh, PVSM (BAR), former Army Commander Western Command

As per informed opinion, the recent amendment in Pension Regulations is to empower government and is driven by ongoing litigation affecting small group of officers. FM has clarified that the scope is limited & it is not likely to be sweeping in application. This is also supported by other court mandated rulings on OROP. As a concept, laws related to HR should be prospective and not retrospective. I hope the government will be large hearted and frame as also apply laws with a benign approach.

Air Marshal Jasjit Singh (Cherry) Kler, former Commandant National Defence Academy

“To every man death comes sooner or later and how can a man die better ….facing fearful odds for the ashes of his ancestors and temple’s of his Gods?”

Being a soldier is the most trusted profession in the world. Being a soldier means a total commitment to a higher calling & devotion to duty.

Maj Gen Rajan Kochhar, VSM retired as Major General Ordnance Corps, Central Command, after 37 years of meritorious service 

Maj. Gen. Dr. Rajan Kochhar
Maj. Gen. Dr. Rajan Kochhar

The recent announcement of Smt Seetharaman Finance Minister has caused a huge controversy and possibly an adverse publicity amongst defence pensioners. Some of the experts have voiced an opinion that this will not cause a disparity amongst defence pensioners. However let us analyse this issue a bit deeply

6th CPC had introduced a distinction between pensioners based on the Jan 1, 2026 cut off, which was upheld by the Congress led UPA Govt. However, the 7th CPC has since ensured parity between pre 2016 and post 2016 retirees.

Some experts have opined that calculations proved her statement to be correct for Central Govt Civilian Pensioners. But for Defence Services pensioner who avail OROP due to different MSP in the two pay commissions, those who retired on or after Jan 2016 got higher pension than those retired prior to Jan 2016. However for the same rank and same length of service the parity in pensions has been re-established.

The policy letter on OROP dated 07 Dec 2015 clearly mentions the past pensioners shall get any future benefits given to present pensioners. Therefore, those enjoying OROP need not be scared of any newspaper reports misinforming that benefits of 8th CPC will be given only to those who retire on or after implementation of 8th CPC.

However what the blue print of 8th CPC states about defence pensioners is not known as of now.. The Govt has said that it will follow what 8 CPC would recommend. What happens if the pay commission recommends a differentiation. What does the Govt do then. Also why was this validation brought about now just when the 8 CPC was finalised. Intention????There is therefore a catch 22 situation here. There remains a slip between the cup and the lip. It would be prudent if this lack of clarity is settled by the Govt to assuage the feeling of the defence veterans who gave their youth for the nation.

C.Srikumar, General Secretary, All India Defence Employees Federation (AIDEF) & Dy General Secretary World Federation of Trade Unions (WFTU)

Parity between Pensioners who retired Prior to the implementation date of Pay Commission and who retires after the implementation date of Pay Commission is an outstanding demand of Central Govt Pensioners.

An employee or an Officer who served in a particular post for say 8 years and retired prior to the date of implementation of Pay Commission recommendations and another employee or Officer after rendering 8 years in the same post should not have any disparity in Pension. Otherwise the Senior person will be getting pension less than the junior of the same post.

Such disparity was quashed by the Supreme Court on the ground that such disparity will be a clear violation of Article 14 & 16 of the Constitution.

In this backdrop what Government has done through Finance Bill was unwanted and unwarranted

After announcing the 8th Central Pay Commission, Govt should not have gone with these amendments in the CCS Pension Rules keeping the power to decide parity or no parity between past/ existing Pensioners and future Pensioners after the date of implementation and also to decide about the date of implementation of future Pay Commission recommendations to the past/ existing Pensioners.

This is an attack on the rights of the Pensioners.The Finance Bill has given unchecked authority to the Govt to meddle with the CCS Pension Rules.This move is unjust, unfair and totally inhuman.Therefore this needs to be challenged and Govt instead of harassing the Pensioners who are at the fag end of their life and who served nation and people for 3 to 4 decades should withdraw the decisions taken to amend the CCS Pension Rules and allow the Senior Citizens to have a peaceful and tension free retired life.

Infact we will demand to the 8th CPC with all justifications to recommend parity in Pension between post Pay Commission retirees and pre Pay Commission retirees. Already we are fighting against the draconian NPS & UPS and for Restoration of Non Contributory old Pension Scheme, now we have to fight for Pension Parity

K. Ragavendran, Secretary General, National Coordination Committee of Pensioners Associations (NCCPA) 

NCCPA calls to protest against the sinister move of the Government to deny the Pensioners their genuine rights!

The Government had passed a bill along with the Finance Bill 2025 on 25.03.2025 to declare any Pensioner retired in the past as a separate entity and the right of the Government to declare that the past pensioners cannot claim any benefits allowed to Pensioners retiring afresh from the Government service.

In short, the move of the Government is against the spirit of the landmark judgment of Supreme Court that the Government cannot divide the Pensioners of same class to artificial cut-off dates which is violative of Article 14 of the Constitution of India.

The Government is trying to establish that the Pensioners of same class can be divided by different cut-off dates and no Pensioner can claim the benefit extended to new Pensioners.

This amendment will deny any benefit to the past pensioners to treat them with the future pensioners. The move of the Government to not to move the bill to bring separately but as part of the Finance Bill 2025 surreptitiously and passing the bill despite the protests by the Opposition is condemnable.

NCCPA calls upon all affiliates and the Pensioners Community to stand firm on the face of this new onslaught by the Union Government and protest vehemently.

NCCPA calls all its affiliates to demonstrate before any Central Government Office of all Districts and voice our clear opposition to the move of the Government. The Peasants’ struggle is an example and if all Pensioners can unite and demonstrate at Delhi the passed bill can be made withdrawn.

As a first step, we the NCCPA can hold protest demonstrations before Central Government Office in all Districts on 3.4.2025 and send the reports with photos to the headquarters of NCCPA. NCCPA will discuss with the Affiliates and take a view on this important issue and act.

There are confusion among our comrades after Finance Minister spoke.

What about after 8th CPC? Will there be past and future pensioners treated on par? Then what is the need for sinister move to club the bill along with Finance bill and approve? Will Honourable FM directly answer?

We could see there are confusions in our midst after the bill in Parliament was passed. The finance Minister spoke that there will be no change in the existing pension! ok but she did not say that after 8th CPC there will be no distinction between the past and future pensioners like the 7th CPC. Please do not get confused and stand firm with the NCCPA decision. The Government is trying to dilute our solid opposition to the bill that aims to create the past pensioners separate entity as per their retiring time. After announcement of 8th CPC this move is diabolical to the past pensioners!

The NCCPA stand is correct. It is agitating on solid grounds. There are other Pensioners Associations which are not affiliated to NCCPA and they also contacted and desired joint action. NCCPA affiliates in Kerala are already agitating over the bill. The bill will create the existing pensioners do not be equal to future pensioners which was undone by previous Pay Commissions and also by the Supreme Court’s landmark judgment on 17.12.1982 in the famous Nakara Case where the constitution bench had ruled that dividing the same class of Pensioners artificially on cut-off dates is violative of Article 14. The present bill is aimed at undoing that stand. Please understand this sinister game of the Government and follow NCCPA. If you have any opinion then please contact me personally and do not use the social media to air your individual views based on the Finance Minister’s averment, which is not agreeable to NCCPA

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Neeraj Mahajan with Ajit Ujjainkar
Neeraj Mahajan with Ajit Ujjainkar
Neeraj Mahajan (Editor-in-Chief Taazakhabar News), and Ajit Ujjainkar (ex Gfiles) are professional journalists with experience in print, electronic and web media. The views expressed are their own.

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