Staff Side Proposes Major Pension Reforms Under 8th Pay Commission
The Staff Side of the National Council-Joint Consultative Machinery (NC-JCM) has proposed significant changes to the pension system for retired central government employees as part of its recommendations to the 8th Central Pay Commission (CPC).
Among the key demands is the introduction of an age-based pension structure that would gradually increase pension benefits as retirees grow older, ultimately reaching 100% of the last pay drawn at the age of 90.
Pension Could Rise With Age
According to the memorandum submitted to the 8th Pay Commission, pensioners should receive enhanced benefits at different age milestones to help them maintain a dignified standard of living after retirement.
Proposed Pension Structure
| Age | Proposed Pension |
|---|---|
| 65 Years | 70% of Last Pay Drawn |
| 70 Years | 75% of Last Pay Drawn |
| 75 Years | 80% of Last Pay Drawn |
| 80 Years | 85% of Last Pay Drawn |
| 85 Years | 90% of Last Pay Drawn |
| 90 Years | 100% of Last Pay Drawn |
The proposal is based on earlier recommendations made by a Parliamentary Standing Committee, which suggested additional pension benefits for senior citizens after retirement.
Demand for Higher Base Pension
The Staff Side has also recommended increasing the standard pension from the current 50% of the last pay drawn to 67%.
According to the memorandum, this change would help retirees maintain a decent and dignified lifestyle while supporting a minimum two-member family after retirement.
Family Pension May Also Increase
Another major proposal relates to family pension benefits.
The Staff Side has demanded that family pension be increased from the existing 30% to 50% of the last pay drawn. It has also suggested extending the period of enhanced family pension benefits up to the age of 70.
Pensioners Should Not Be Excluded
The memorandum strongly objected to the exclusion of existing pensioners from the Terms of Reference of the 8th Pay Commission.
The Staff Side argued that pension is a legal right and not a discretionary benefit, citing landmark Supreme Court rulings, including the famous Nakara Judgment.
Equal Benefits for Existing Pensioners Sought
The employee representatives have urged the Commission to ensure that all pension-related recommendations are implemented not only for future retirees but also for those who retired before January 1, 2026.
They maintain that denying similar benefits to existing pensioners could amount to discrimination and would be contrary to constitutional principles of equality.
