Pension Scheme: Big relief for pensioners. The central government has provided significant relief to millions of central government employees and pensioners. The government has clarified that pensions or family pensions, once determined, cannot be reduced unless a clear clerical or calculation error is found. This order was issued on October 30, 2025, by the Department of Pension and Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances and Pensions.
Approval from DoPPW will be required
As per the new guidelines, if any errors in a pension or family pension are identified after a period exceeding two years, it will be essential to secure approval from the Department of Pension and Pensioners’ Welfare (DoPPW) prior to any reductions. The office memorandum from DoPPW mentions, “Once a pension or family pension has been conclusively authorized or revised under Rule 66(1) of the CCS (Pension) Rules, 2021, it cannot be altered to the detriment of the pensioner unless a clerical error is identified.”
The department further explained, “If such an error is found two years after the pension has been fixed or revised, no reductions in pension or family pension will occur without the DoPPW’s approval.” This is a notable change because previously, the department frequently reduced pensions or issued recovery notices citing “erroneous calculation” even many years post-retirement. This practice will now be halted.
What if you receive more pension by mistake?
The DoPPW also made it clear that if a pensioner has received an incorrect overpayment, and it is not due to any error or misinformation, the relevant ministry will need to determine whether to refund or waive the amount. For this decision, the ministry must consult with the Department of Expenditure. If a refund is decided upon, the pensioner will receive a two-month notice to return the amount. Should the pensioner fail to comply, the amount may be recovered in installments from future pension payments.
The office memorandum states, “If, after the pension or family pension has been revised, it is discovered that the pensioner has received an excess payment, and it is not due to any incorrect information, the relevant ministry will need to decide, in consultation with the Department of Expenditure, whether to recover or waive the amount.”
Why is this decision important?
In many cases, it was observed that even years after retirement, the department would reduce pensions or initiate recovery proceedings citing an “error of overpayment,” causing financial hardship for elderly pensioners. Now, with this new government order, pensions can only be revised if a genuine clerical error is found, and that too within a limited period (two years). This decision will not only bring transparency but also increase trust in the government pension system.