No change in pension due to ‘validation
Finance Minister Nirmala Sitharaman on Thursday said legislation regarding validation of the Central Civil Services (Pension) Rules, passed by Parliament as part of the Finance Bill, 2025, would not impact pensions of Central government employees — including defence personnel.
“The validation rules do not, in any way, change or alter the existing pensions so fixed of existing civil pensioners from the present stage. The validation rules also do not affect defence pensioners in any way as they are covered by separate rules,” she said in the Rajya Sabha.
The legislation regarding the Validation of the Central Civil Services (Pension) Rules and Principles for expenditure on Pension liabilities from the Consolidated Fund of India was passed by the Rajya Sabha on Thursday as part of the Finance Bill, 2025. The Bill was passed in Lok Sabha on Tuesday.
As per the new rules, the central government would have the authority to establish distinctions among pensioners as a general principle. They also give the government the authority to make a distinction amongst pensioners.
Nirmala Sitharaman
She clarified that the rules introduced as part of the Finance Bill were not an amendment to any pension rules or instructions but only a reaffirmation of the same with effect from June 1, 1972 — the date the CCS (Pension) Rules were promulgated.
The 6th Central Pay Commission made a distinction between those who retired before January 1, 2006, and those who retired after that.
The then Congress-led UPA government accepted the recommendations and decided that there would be a distinction between pensioners with reference to the cutoff date, the finance minister said.
The 7th Central Pay Commission brought in parity between pensioners. “This is only a validation of existing rules. This does not alter or change existing civil or defense pensions,” she said.
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