Summary of this article
Pensioners seek age-linked pension increases.
Proposed pension reaches 100% at age 90.
8th Pay Commission has not approved proposals.
The 8th Central Pay Commission is examining several proposals that concern pension revisions; this includes demands for a higher minimum pension and better benefits for other older pensioners. One proposal seeks to link the pension levels to the age of the retiree, with the pension potentially rising to 100 per cent of the last pay drawn (LPD) for those who are older than 90 years of age. The 8th Pay Commission is currently in its consultation phase and is holding discussions with employee and pensioner organisations, unions, and other stakeholders. Its recommendations are expected to affect around 50 lakh central government employees and nearly 65 lakh pensioners. This includes defence and railway personnel.
What is the proposed age-based pension formula?
Among the proposals submitted to the commission is a progressive pension structure under which the pension percentage would increase with the age of the pensioners. Under the proposal, a pensioner aged 65 could receive a pension equivalent to 70 per cent of the last pay drawn. This would increase with age, as follows;
65 years: 70 per cent of last pay drawn
70 years: 75 per cent of the last pay drawn
75 years: 80 per cent of the last pay drawn
80 years: 85 per cent of the last pay drawn
85 years: 90 per cent of the last pay drawn
90 years and above: 100 per cent of the last pay drawn
This proposal is aimed at providing greater financial support to elderly pensioners, as their healthcare and other living expenses may rise with their age. However, it is vital to note that this is just a proposal for now and has neither been accepted by the 8th Pay Commission nor has it been approved by the government.
Pensioner organisations have put forth several other proposals for leaving the minimum pensions. One demand is to raise the minimum pension to at least 67 per cent of the last pay drawn. Another proposal seeks to calculate the pension based on the average emoluments received during the last 10 months of service. Organisations, including the National Council-Joint Consultative Machinery (NC-JCM), Maharashtra Old Pension Organisation and All India Defence Employees Federation, have also submitted proposals seeking a broader pension reconstruction with added benefits and greater equality among the pensioners.
As of now, pensioners will have to wait for the commission's final recommendations and the decisions which are finalised upon for implementation.
