Provisions on Pension Disparity passed in the Finance Bill – Outcomes of the NC JCM Meeting with Secretary (Pension) held on 29/03/2025

As I understand that earlier always there had been separate notifications of the pre-revision and post revision pension. In the 7th pay commission, the revision of pension of pre-01-01-2016 was notified on 4th August,2016 by applying 2.57 factor on the existing pension as per 2nd formula for revision of pension and final notification was issued on 12-05-2017, as per the approval of the Central Cabinet. It was stated the in respect of pensioners who retired/ died prior to 01-01-2016 may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay scale/pay band and grade pay at which they retired/died. While fixing pay on notional basis, the pay fixation formulae approved by the Govt. and other relevant instructions on the subject in force at relevant time shall be followed notionally fixed from 1984 on the basis of of the revision of pay scales in the intervening period. And after arriving at the notional pay as on 01-01-2016, Therefore, I hope that the concern shown in the pre loaded comments will be addressed by the commission appointed for the purpose. I may tell that I had suggested to the 7th CPC that the revision of pension of pre-revision pensioner should be done on notionally fixing the pay and on notional pay arrived at the, the pension should be fixed/revised. I feel proud that CPC agreed and suggestion was incorporated in the recommendation and accepted/approved as formula 1st in the central cabinet, for that a high level committee was constituted, finally in the 7th meeting it was approved and the notification dated 1-05-2017 referred to above was issued. I am confident that the formula of notional fixation adopted in 7th CPC will will follow suit.

NATIONAL FEDERATION OF CENTRAL GOVERNMENT & ALLIED EMPLOYEES & WORKERS ORGANISATIONS (NFCGA-EWO)
(An Organisation of the Organisations of Central Government, Allied Departments, Casual, Contingent, Outsourced & Contract Employees & Workers)
Headquarters: New Delhi
Email: – nfcgeaeo[at]gmail.com
Central Office: Address for communication:
B-32, Udyog Bhawan, House No. H-3/108, TF (FS), Bengali Colony,
New Delhi- 110011 Mahavir Enclave Part-I, New Delhi -110001
Ghanshyam Chauhan V. Bhattacharjee
President Secretary General
Mob. 9891968372 Mob.9868520926

ON DISCRIMINATION TO PENSIONERS
The amendments introduced by the Government through the Finance Bill for retrospectively revising the Central Civil Services (Pension) Rules, 1972 have been passed in the Lok Sabha on 25.03.2025 in spite of opposition and protests. The opposition staged a walkout, objecting to the move to amend the rules. Irrespective of the fact that the Rajya Sabha also passes the Bill, the changes in the Pension Rules will be final and come into effect.
Amendments to the Pension Rules envisage that the benefits of revision of pension by the future Pay commissions will be given only to those pensioners retiring after the implementation of these rules. The date of retirement will determine eligibility for the benefit under the said rules. According to media reports, the amendments in the rules clarify that the pensioners retiring before the recommendations of the Central Pay Commission will no longer be eligible for the revised benefits. Only those retiring after the report of the Pay Commission will receive the revised benefits. The Government will now have the authority to determine when to implement the recommendations of the Pay Commission for the pensioners.
In fact, the amendment to the Pension Rules excludes the existing pensioners from the purview of the 8th Central Pay Commission altogether.
Needless to state that all existing pensioners/family pensioners and their families have been traumatized by the above decision of the Government as they have been scheduled to be pushed to half starved condition at the fag end of their life. The existing pensioners or the family pensioners despite rendering tireless and dedicated service to the Nation with total devotion for 35-40 years of their life are being pushed to larches.
Pensioners are already the worst hit as they do not even receive half of the last pay they had been getting and hence surviving with continuous struggle against the increase in the life expenses with the passage of time. While the pensioners/ family pensioners and particularly those pensioners who retired from service from comparatively lower level posts are already surviving with a hand to mouth condition with a paltry sum of pension they are receiving shall now be in the conditions of total financial disaster and denial of “right to live” with this decisions of the Government to stall the process of enhancement of the pension to the level of survival amount with reference to inflation in the market price as the pay commissions are the master instruments for the Government/employer through which minimum living wage is devised .
The Government should have considered the facts before amending the said rules that the quantum of pension amount does not increase with any allowance or annual increments etc. Amenities like rent free accommodation, LTC or subsidy in the form of concession from Railways and Bonus etc which are available for the serving employees do not apply to pensioners. Instead the pensioners are equally sharing the burden of Nation Building along with the rest of the citizens of the country by paying Income Tax against their pension as per the prevailing law/rules. They are also equally contributing to the economy of the country by paying various direct and indirect taxes, GST and all other forms of taxes in force. There is no exemption for pensioners to the cost of medicines which are half of the diet for the elderly and the costs of which have become fourfold higher in the last one and half decades.
On the basis of the observations given by the IV CPC, the Government had taken the conscious decision of revising the pension of old pensioners and the future pensioners on the basis of the fitment formula prescribed by the IVth CPC. The 5th and 6th Pay Commissions have specifically recommended the necessity to achieve parity between the post and future pensioners. The recommendations of the 6th Central Pay Commission to maintain the modified parity between the present and the future retirees to be given the same benefits was accepted by the Government and implemented. Similarly the 7th Central Pay Commission also recommended parity between those pensioners who retired prior to 01-01-2016 and those who retired after 01-01-2016, even though full parity was not extended and it was the pending demand of the pensioners. The issue was resolved to a larger extent by the government through the orders dated 12th May 2017 issued under the recommendation of the Committee headed by the Secretary, Department of Pension & Pensioners’ Welfare.
In addition to the above, the Hon’ble Supreme Court in its judgment in the Civil Appeal No.10857 of 2016 has specifically ruled that there is no valid justification to create 2 classes of pensioner’s viz. one who retired prior to 1996 and another who retired post 1996 for the purpose of revised pension. Such classification has no nexus with the object and purpose of grant of revised pension. All Pensioners form a one class who are entitled to pension as per pension rules. Article 14 of the Constitution of India ensures equality before law and equal protection of laws. A valid classification is truly a valid discrimination. Therefore whenever a cut-off date (as in the present controversy) is fixed to categorise one set of pensioners for favourable consideration over others, the twin test for valid classification or valid discrimination therefore must necessarily be satisfied . The Supreme Court also observed that the object and purpose for revising the pension is due to the increase in the cost of living. All the pensioners form a single class and therefore such a classification for the purpose of grant of revised pension is unreasonable , arbitrary, discriminatory and violative of Article 14 of the Constitution of India.
In its reply in LOK SABHA to the STARRED QUESTION No. *235, the Government has informed that the approximate number of Central Government civilian employees and pensioners/family pensioners is 36.57 lakh (as on 01.03.2025) and 33.91 lakh (as on 31 .12.2024) respectively. It is further replied that Defence Personnel and Pensioners will also be benefitted by the implementation of the report of the 8th Central Pay Commission.
This federation hopes that the government would kindly reconsider its stand and shall act as per the reply given to the Parliament Question.
This federation also hopes that all the pensioners and their organizations shall unite and stand as one cutting across their political and personal differences with one another and shall move together to protect the interests of the pensioners .
This federation being one of the major representatives of the Central Government and allied services employees shall strive its best for unity and struggle for the purpose unlike few who have jumped on the path of retaliation without exploring the possibility of negotiations and dialogue with our own Government machinery with full faith in the Constitutional safeguards available in democratic framework.
(Ghanshyam Chauhan) (V. Bhattacharjee)
President Secretary General &
Ex member, JCM (NC)