8th Pay Commission– In the 8th Pay Commission, a big old demand related to the pension of employees can be fulfilled. The government has assured that the period of commutation process after the retirement of the employee can be considered to be reduced from 15 to 12 years. This can be included in the Terms of Reference (ToR) of the 8th Pay Commission.
In the commutation process, when an employee retires, he gets the option of taking a part of his pension as a lump sum amount, which is called commuted pension. Then the government recovers the pension by deducting 40 percent of the pension in a period of 15 years. There has been a demand to reduce this period from 15 to 12 years.
Recommendation was made in 5th pay commission
In the 34th meeting of the Standing Committee of Voluntary Agencies (SCOVA), Union Minister of State Dr. Jitendra Singh assured the employees that the 8th Pay Commission can consider their demand on commutation pension. The 5th Pay Commission and many state governments had recommended reducing the recovery period of commutation pension from 15 to 12 years.
Harishankar Tiwari, former president of AG Office Brotherhood, said that commutation pension is that part which the government recovers. Recovery is done of the amount which the employee gets in lump sum at the time of retirement and the pension is determined on the rest. After that, when the pension amount is decided, the government deducts 40 percent of it for recovery.
You will have to wait for 12 years for full pension
Tiwari said that this recovery of the government is being completed within 11 to 12 years with interest. The employees were demanding that instead of 15 years, they should be made to wait for 12 years to start the full pension of the employee. Because recovery is already being done. It seems that the government is now considering this demand of the employees and it can be reduced. By doing this, the recovery period will become 12 years and after this much time, the full pension will start being received.