Centre might reduce commuted pension restoration period to 12 yrs: Report
The Staff Side of the National Council (JCM), a representative organisation for central government employees, has been demanding a reduction in the period of restoration of commuted pension from 15 to 12 years. According to a recent report, this demand is likely to be included in the Terms of Reference (ToR) of the 8th Central Pay Commission. If implemented, this move is expected to bring some relief to pensioners who have opted for commuted pension.
For the uninitiated, commuted pension refers to the option available to government employees to receive a lump sum amount instead of a monthly pension. This option was introduced to provide employees with a one-time payment that could be used for various purposes, such as buying a house, financing a child’s education, or simply enjoying a comfortable retirement. However, the catch is that the employee’s pension is reduced by the amount of lump sum received.
Currently, the period of restoration of commuted pension is set at 15 years, which means that if an employee receives a lump sum amount, they will not be eligible for full pension until they have completed 15 years of service. This has led to a significant number of employees opting for commuted pension, as it provides them with immediate financial relief. However, this has also resulted in many employees not being able to receive their full pension, which can be a significant blow to their retirement plans.
The Staff Side of the National Council (JCM) has been advocating for a reduction in the period of restoration of commuted pension from 15 to 12 years. This move is expected to benefit thousands of pensioners who have opted for commuted pension and are still waiting to receive their full pension. By reducing the period of restoration, the government will be providing relief to these pensioners, who have already made significant sacrifices by opting for commuted pension.
The demand for reducing the period of restoration of commuted pension has been made by the Staff Side of the National Council (JCM) for several years now. In 2016, the JCM had submitted a memorandum to the then Finance Minister, Arun Jaitley, demanding a reduction in the period of restoration of commuted pension from 15 to 12 years. However, the government did not consider this demand at that time.
Now, with the 8th Central Pay Commission set to be implemented, the JCM has once again reiterated its demand for reducing the period of restoration of commuted pension. According to a report, the ToR of the 8th Central Pay Commission will include this demand, which means that the commission will have to consider this issue while drafting its recommendations.
The 8th Central Pay Commission was established in January 2016 to review the salaries and pensions of government employees. The commission was tasked with submitting its report by December 2017, but it missed the deadline and submitted its report in November 2017. The government is yet to implement the recommendations of the 8th Central Pay Commission, which include a hike in salaries and pensions for government employees.
The reduction in the period of restoration of commuted pension is expected to bring some relief to pensioners who have opted for commuted pension. With the reduced period, these pensioners will be able to receive their full pension sooner, which can be a significant financial boost in their retirement. Additionally, the reduction in the period of restoration will also provide relief to those pensioners who are still waiting to receive their full pension, as they will not have to wait for as long as they would have had to under the current system.
In conclusion, the Centre’s move to reduce the period of restoration of commuted pension from 15 to 12 years is a positive step towards providing relief to pensioners. The JCM’s demand for reducing the period of restoration has been pending for several years, and it is heartening to see that the government is finally considering this issue. The move is expected to bring some relief to pensioners who have opted for commuted pension, and it will also provide relief to those who are still waiting to receive their full pension.
