If you are also a central employee, then this news is very useful for you. Before the implementation of the Eighth Pay Commission, the rules of pension commutation were again in the headlines. Will the pension of government employees be restored in 12 years instead of 15 years? Employee unions have been demanding this for a long time. Let us know what the government’s stand is on this issue and whether this Eighth Pay Commission can bring a big change.
What is pension commutation
Pension commutation simply means that at the time of retirement, central employees can take a part of their total pension as a lump sum. As per the current rules, this can be up to a maximum of 40 percent. Instead of taking a lump sum, their monthly pension is reduced in that proportion. However, this reduction is not forever. Under the current rules, this reduced pension is fully restored after 15 years of pension restoration.
Why are employees demanding 12 years
Employee unions have been demanding changes in the pension rules for a long time. They believe that the period of pension restoration should be reduced from 15 years to 12 years. This is not a new demand. The Fifth Pay Commission had also suggested restoration in 12 years, but at that time, the government did not accept it and continued with the 15 years. After this, the Sixth and Seventh Pay Commissions did not consider it necessary to change this rule. Employees argue that the 12-year period will give them quick financial relief.
What is the government’s stand on this issue
According to media reports, the government is firm on the 15-year pension commutation. The government says that this period has been decided keeping in mind the advice of experts and risk factors. Since the previous two pay commissions also did not consider any change in it necessary, the government is not ready to back down from the 15-year rule at the moment.
What progress has been made so far on the Eighth Pay Commission
The Eighth Pay Commission was announced by the Central Government earlier this year. However, the panel for it has not been formed yet. In such a situation, it is believed that the recommendations of this new pay commission will be implemented by the beginning of 2028. Employee unions are hoping that this time, the 8th Pay Commission will take their demand for pension restoration seriously and make a positive recommendation in this direction.