Monday, 23 June 2025

Case for Pension Parity Between Past and Present Pensioners

 Case for Pension Parity Between Past and Present Pensioners

1. Constitutional Foundation: Article 14 – Equality Before Law

Article 14 of the Constitution guarantees that the State shall not deny to any person equality before the law or equal protection of the laws. This principle has been consistently held applicable to pensioners, who, despite retirement, continue to belong to a homogenous class.

D.S. Nakara v. Union of India (1983) 1 SCC 305:
The Hon’ble Supreme Court held that arbitrary classification among pensioners based on date of retirement violates Article 14. Pensioners constitute a homogeneous class, and the State cannot create micro-classes among them unless backed by a rational and objective classification.

2. The Limited Rollback in Later Judgments: Distinction, Not Discarding

While Krishan Kumar (1990) and Indian Ex-Services League (1991) restricted the applicability of Nakara, these rulings did not overrule it. They merely held that Nakara does not automatically apply to entirely new pension schemes (e.g., CPF vs. defined pension schemes).

Yet, subsequent rulings have revived and reaffirmed the Nakara doctrine:

Dhanraj & Ors. v. State of J&K (1994) and
Union of India v. SPS Vains (2008)
both reiterated that discrimination in pension based solely on date of retirement is arbitrary and violates Article 14.

These affirmations prove that Nakara remains a binding precedent in situations where:

  • The nature of service and retirement is the same,
  • The difference in pension arises solely due to the date of retirement.

3. Principle of Liberalization Must Apply Equally

The Finance CommissionsPay Commissions, and government circulars show a progressive trend in improving the pension regime, including:

  • Additional pension with advancing age (VI CPC),
  • Rationalization of pension computation (VII CPC),
  • De-linking of pension from 33 years of service.

However, the benefits are often made available only prospectively, leaving earlier retirees disadvantaged.

This defeats the purpose of a "welfare State" as envisaged in Part IV (Directive Principles) of the Constitution.

4. Parity Promotes Dignity and Economic Security

It is unacceptable that two retirees of the same post and rank should receive disproportionate pensions merely because of a difference in retirement dates. This results in:

  • Economic hardship for older pensioners,
  • Loss of dignity,
  • Social inequality within the same class of citizens.

As shown in the examples quoted in the 6th CPC Report (Para 10.1.64), past pensioners—even after several CPC revisions—still draw much lower pensions than recent retirees for the same post.

5. Judicial Observations on Rational Classification

In State of Punjab v. Amar Nath Goyal (2005) and State of Punjab v. G.L. Gupta (2003), the Apex Court permitted classification only if based on intelligible differentia having rational nexus with the object sought to be achieved.

A classification solely based on the date of retirement does not meet this test—unless it can be proven that retirees before a date are fundamentally different in responsibilities, service nature, or benefits accrued—which is rarely the case.

6. Moral and Administrative Equity

Even administratively, it is easier to:

  • Ensure equity by linking pension to last held post and applying uniform multipliers or fitment factors.
  • Eliminate litigation and reduce administrative burden from repeated court cases.

A uniform formula will also reduce anomalies and simplify audit/compliance.


Conclusion and Demand

Given the above facts, judicial precedents, and principles of equality and dignity enshrined in the Constitution, pension parity must be established for all pensioners holding equivalent posts and retiring under similar service rules, irrespective of the date of retirement.

This parity:

  • Is not a privilege, but a right under Article 14,
  • Is supported by a long line of judicial reasoning,
  • Reflects the moral and welfare obligation of the State.

Suggested Prayer (for Legal or Policy Representation):

We respectfully urge the Hon’ble Government/Commission to:

1.    Implement pension parity for similarly placed pensioners, without arbitrary cut-off dates.

2.    Apply uniform revision formulas retroactively to ensure fairness.

3.    Constitute a Pension Equity Committee to review past anomalies in light of constitutional principles and recent jurisprudence.

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8th Central Pay Commission to reduce Commutation Period to 12 Years for Pensioners

 8th Central Pay Commission to reduce Commutation Period to 12 Years for Pensioners.

Issue of Restoration of Commutation from 15 to 12 Years is to be included in Terms of Reference of 8th Central Pay Commission.

Good news for retired government employees! The upcoming 8th Central Pay Commission (CPC) will look into a major change that could help many pensioners. They plan to include the reduction of the pension commutation period from 15 years to 12 years in their Terms of Reference (ToR). This decision follows discussions held during the 34th meeting of the Standing Committee on Voluntary Agencies (SCOVA) on March 11, 2025.

What is Commutation?

Commutation allows retired workers to receive a lump sum amount by giving up part of their monthly pension. Right now, the recovery of this amount happens over 15 years. However, with interest rates decreasing recently, many people believe that this long recovery time takes too much money from pensioners’ monthly payments, making it hard for them to manage their finances.

Discussions at the SCOVA Meeting

During the SCOVA meeting, the Hon’ble Minister of State for Personnel, Public Grievances, and Pensions led the discussion. Officials from the Department of Expenditure shared their views on why this change is necessary. They argued that reducing the recovery period to 12 years would make things fairer and provide immediate financial help to retirees who rely on their pensions for daily living expenses.

Important Outcome

A key result of the meeting is that the issue of shortening the commutation period will be included in the Terms of Reference for the 8th Central Pay Commission. This is an important step towards making real changes that could benefit retired workers.

How Will This Help Pensioners?

If the commutation period is reduced, pensioners will be able to access more of their money sooner. This change is expected to relieve some financial pressure on them, especially as costs of living continue to rise.

The decision to include the change in the commutation period in the ToR of the 8th Central Pay Commission is a positive move for retired government employees. As the economy changes, it is important for pension rules to also adapt to ensure fairness and support for those who have served the country.

Pensioners and stakeholders will be watching closely as the 8th CPC prepares to address this important issue, hoping that these reforms will lead to better financial security and an improved quality of life for retirees.

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Extension of migration from NPS to UPS by 3 months.

 Extension of migration from NPS to UPS by 3 months.

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Launch email campaign- Request to Email Honourable Prime Minister and Cabinet Secretary Regarding Delay in Constitution of 8th CPC and Circulation of Terms of Reference (ToR)





























































Launch email campaign- Request to Email Honourable Prime Minister and Cabinet Secretary Regarding Delay in Constitution of 8th CPC and Circulation of Terms of Reference (ToR)









 

 

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Saturday, 21 June 2025

Fixed Medical Allowance set to increase from 01.01.2026 by inclusion in the 8th Pay Commission Terms of Reference: Latest updates from 34th SCOVA meeting

 Fixed Medical Allowance set to increase from 01.01.2026 by inclusion in the 8th Pay Commission Terms of Reference: Latest updates from 34th SCOVA meeting

Increase in Fixed Medical Allowance: Inclusion in the 8th Pay Commission Terms of Reference

The 34th meeting of the Standing Committee of Voluntary Agencies (SCOVA) took place on March 11, 2025, under the chairmanship of the Hon’ble Minister of State for Personnel, Public Grievances, and Pensions (MOS(PP)) at Vigyan Bhawan, New Delhi. Among the significant issues discussed was the increase in the Fixed Medical Allowance (FMA), which is crucial for pensioners facing rising healthcare costs.

Background on Fixed Medical Allowance

Fixed Medical Allowance is an essential component of the financial support provided to pensioners, aimed at helping them cover medical expenses. As healthcare costs continue to escalate, the adequacy of this allowance has come under scrutiny. Currently, the FMA is set at a rate that many stakeholders believe is insufficient to meet the rising demands of medical care.

Key Points from the SCOVA Meeting

During the meeting, it was highlighted that the current FMA is inadequate. The Department of Pension & Pensioners’ Welfare (DoP&PW) referenced recommendations from the Parliamentary Standing Committee, which advocated for an increase in the FMA to address the financial burden faced by pensioners.

Decision on FMA Increase:

  • The committee decided to increase the Fixed Medical Allowance to Rs. 3000 per month. This increase reflects an understanding of the financial pressures exerted by escalating medical expenses on retired personnel.
  • The Department of Expenditure indicated that this enhancement would be integrated into the Terms of Reference (TOR) of the 8th Pay Commission, ensuring that it gains formal recognition and consideration in future pay structures.

Implications of the Increase

The decision to increase the FMA has several implications:

  1. Financial Relief for Pensioners: The hike to Rs. 3000 per month will provide much-needed financial relief to pensioners, enabling them to manage their medical expenses more effectively.

  2. Recognition of Healthcare Costs: This decision acknowledges the rising cost of healthcare and the need for pension allowances to keep pace with inflation and increased medical service rates.

  3. Future Considerations in the 8th Pay Commission: By including this issue in the TOR for the 8th Pay Commission, there is a commitment to evaluate and potentially adjust pension and medical allowances in a systematic manner, ensuring that pensioners are not left behind as costs continue to rise.

The inclusion of the increase in Fixed Medical Allowance in the Terms of Reference for the 8th Pay Commission marks a significant step towards addressing the financial challenges faced by pensioners in India. With the new allowance set to take effect from January 1, 2026, it reflects a proactive approach by the government to safeguard the welfare of its retired personnel amidst growing healthcare demands. The decision is expected to positively impact the lives of many retirees, ensuring they receive the necessary support for their medical needs.

***

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Allocation of Cadre and Division/Unit to the candidates nominated for appointment to the posts of Postal Assistant/Sorting Assistant by Staff Selection Commission on the basis of Combined Graduate Level Examination, 2024

 Allocation of Cadre and Division/Unit to the candidates nominated for appointment to the posts of Postal Assistant/Sorting Assistant by Staff Selection Commission on the basis of Combined Graduate Level Examination, 2024

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Thursday, 19 June 2025

Double your savings, Secure your family’s future! .. Start investing in Kisan Vikas Patra

 Double your savings, Secure your family’s future! .. Start investing in Kisan Vikas Patra 


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A proud moment for Team India Post Payments Bank!

 A proud moment for Team India Post Payments Bank!


A proud moment for Team India Post Payments Bank! 🏆
We are honoured to receive the Digital Payments Award from the Hon’ble Finance Minister under the Payments Bank category.
This milestone reflects IPPB’s unwavering commitment to driving inclusive and accessible digital banking.

Congratulations to all IPPBians on this remarkable achievement!

इंडिया पोस्‍ट पेमेंट्स बैंक के लिए गर्व का क्षण ! 🏆
हमें यह बताते हुए अत्‍यंत प्रसन्‍नता हो रही है कि माननीय वित्‍त मंत्री द्वारा पेमेंट्स बैंक श्रेणी में डिजिटल पेमेंट्स अवार्ड से हमारे बैंक को सम्‍मानित किया गया है। 
यह उपलब्धि समावेशी और सुलभ डिजिटल बैंकिंग को बढ़ावा देने के प्रति आईपीपीबी की अटूट प्रतिबद्धता का प्रमाण है। 
इस अद्वितीय उपलब्धि के लिए सभी आईपीपीबी परिवारजनों को हार्दिक बधाई एवं शुभकामनाएं!

#Aapkabankaapkedwaar #Bankingatlastmile
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Options to avail benefits under old pension scheme on death of Government servant during service or his discharge from Government service on account of invalidation or disability for Central Government servants covered under Unified Pension Scheme – reg.

 Options to avail benefits under old pension scheme on death of Government servant during service or his discharge from Government service on account of invalidation or disability for Central Government servants covered under Unified Pension Scheme – reg.

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