8th Pay Commission: An old and very important demand of retired employees of the Central Government is once again in the news. Employee organisations have been demanding for years that the period for restoration of commuted pension be reduced from 15 years to 12 years. This demand was again raised in the 34th meeting of SCOVA (Standing Committee of Voluntary Agencies) held recently.
What is this issue?
When a government employee retires, he starts getting pension. But if he wants, he can take a part of the pension as a lump sum – this is called commuted pension. In return, his monthly pension is reduced for a few years.
According to the current system, this deduction continues for 15 years, only after which their full pension is restored.
Old pensioners and employee unions say that the 15-year recovery period now seems unjust in view of the interest rates being continuously reduced by the RBI. They argue that the money that the government used to get back in some time earlier, has now become less impressive due to the fall in interest rates.
The 5th Pay Commission and many state governments have already recommended limiting this period to 12 years. In such a situation, the same is expected from the central government.
What happened in the SCOVA meeting?
This subject was raised seriously in the SCOVA meeting held on March 11, 2025. In the meeting, the Finance Department informed that this issue can now be included in the Terms of Reference (ToR) of the 8th Pay Commission. That is, its formal decision will now be taken only through the recommendations of the 8th Pay Commission. With this clarification, the issue was removed from the agenda of the SCOVA meeting.
A long story of struggle
This is not the first time this demand has been raised. Shiv Gopal Mishra, Secretary, Staff Side, National Council (JCM) recently raised the issue in a letter to Prime Minister Narendra Modi. He listed 14 pending demands in his letter, of which this issue was the most important.
He says that this decision will not only ease the financial burden but will also help retired employees lead a dignified and worry-free life.
What next for central govt staff?
Now all the retired employees have their eyes set on the Central Government and the upcoming 8th Pay Commission. If this demand is accepted, it will be a relief for lakhs of pensioners – that too at a time when inflation and health expenses are rising day by day.
The demand to reduce the period of restoration of commuted pension is not just a policy change – it is a symbol of the need and hope of those who have given the best years of their lives in the service of the country. The government is expected to consider this demand seriously and give priority to the economic independence of elderly employees.