8th CPC ToR: BPS Demands Removal Of The Term ‘Unfunded Cost Of Non-Contributory Pension Schemes’ And Other Changes

Just weeks after the Ministry of Finance announced the initial terms of reference (ToR) for the 8th central pay commission (CPC), beginning this month, the Bharat Pensioners’ Samaj (BPS) raised some concerns demanding changes in the ToR, relating to pension revisions, objectionable terminology, and restoration of the old pension scheme (OPS).

BPS, established in 1955, is a representative body for approximately 69 lakh central government pensioners and family pensioners, to formally raise their issues with the government. In the recent letter dated November 17, 2025, BPS highlighted several ‘vital aspects’ in the ToR, which need reconsideration.

Change Pension Terminology

One of the major concerns BPS raised in the letter is the use of certain terminology. It pointed out the term “unfunded cost of non-contributory pension schemes” in Para (e)(ii) of the ToR, which, according to it, failed to acknowledge the rights of pensioners and equates their entitlement with mere fiscal liabilities.

To support its demand to change the terminology, BPS quoted Supreme Court judgements, where pension is held as a constitutional right of retired employees. BPS highlighted that such terminology has never been used for the non-contributory pension of the members of parliament (MPs), judges, and other constitutional functionaries.

In the letter, it urged to delete the term “unfunded cost” and replace it with the term ‘revision of pension, irrespective of the date of retirement’ to make the ToR clearer.

Demands For OPS And Immediate Relief

Further, it sought inclusion of a mandate for the 8th CPC to evaluate the existing pension schemes, including the National Pension Scheme (NPS) and the Unified Pension Scheme (UPS), and address the demand for restoration of the OPS. It is because the employees are not satisfied with the current schemes.

In addition to this, it also demanded an immediate grant of 20 per cent as interim relief, to meet employees’ financial needs and offset the loss of income due to the delay in the commission’s implementation.  

Include Implementation Date In The ToR

BPS highlighted that the date of implementation is not included in the ToR, and it shouldn’t be ignored. It requested a formal inclusion of the effective date (01.01.2026) for the 8th CPC recommendations, considering that CPCs have historically been implemented every 10 years. The 4th CPC was implemented on January 1, 1986, and the recommendations of the 5th, 6th, and 7th CPC were implemented, respectively, effective January 1, 1996, January 1, 2006, and January 1, 2016.

Pension Revision Parity

It also asked for ensuring pension revision parity for pensioners and family pensioners who have retired on or before January 1, 2026.

Extension Of 8th CPC Benefits

Another demand is to extend 8th CPC benefits to the centrally funded autonomous and statutory bodies and the Gramin Dak Sevak (GDS).

Health Schemes

BPS also recommended changes to the Central Government Health Scheme (CGHS). It asked for extending the coverage to all employees in autonomous and statutory bodies and opening more CGHS wellness centres for cashless and hassle-free medical treatment.

Enhanced Retirement Benefits

The last demand is to change the restoration of the pension commutation period. BPS demanded restoration of the commuted value of pension after 11 years and grant of additional quantum of pension or family pension once every five years from retirement, as recommended by the Parliamentary Standing Committee.

Note that the government has officially notified the formation of the 8th CPC through a gazette notification dated November 3, 2025, with no date of its implementation in it, a crucial information that BPS has pointed out for inclusion in the ToR through this letter.