Very good news is coming for lakhs of Central Government Employees and Pensioners! Although this is just a matter of discussion right now, if the government takes a positive decision on this, then central employees are going to get huge benefits after retirement. This news is related to the ‘commuted pension’ received by the employees after retirement, which can make their future more financially secure.
It is not yet decided when the Eighth Pay Commission will be effective and when the employees will get their salary accordingly, but in the meantime, an old demand for retired central employees has come into discussion again. This demand is to reduce the period of deduction in commuted pension from 15 years to 12 years. If this demand is accepted, it will prove to be a great boon for the employees.
Demand for relief on commuted pension
Employee organizations have been demanding for a long time that the restoration time of commuted pensions be reduced from 15 years to 12 years. They argue that this will provide relief to retired employees from the current inflation and they will be able to meet their increasing needs better.
Recently, the 34th Meeting of SCOVA (Standing Committee of Voluntary Agencies) was held, in this demand was also discussed prominently among other discussions. In this meeting, it was emphasized that commuted pensioners need more help in the current economic conditions.
What is a commuted pension
When a central government employee retires, he starts getting a monthly pension. The government gives him a facility where if he wants, he can take a large part of his pension immediately in the form of a lump sum amount. This is called commuted pension.
It is important to note here that the monthly pension of the employee who takes the lump sum amount is reduced for a few years. According to the currently applicable rules, this reduction continues for 15 years, after which the employee’s full pension is restored, that is, he starts getting the full monthly pension again.
Why is 15 years unfair
Employee unions and employees taking pensions under the Commuted Pension Scheme argue that interest rates are being continuously reduced by the Reserve Bank of India. Given this situation, the period of 15 years now seems unfair. They say that:
The Fifth Pay Commission had already recommended limiting this period to 12 years.
Many state governments have also already increased this period to 12 years, benefiting their pensioners.
In such a situation, it is also expected from the central government that it should take this important decision in the interest of the employees. If this demand is accepted, it will give real economic benefit to millions of retired employees, especially when they are in the latter part of their lives and their needs increase.