Over the past few days, social media has been buzzing with claims that the Central Government has discontinued key retirement benefits for pensioners, including Dearness Allowance (DA) and the future benefits of upcoming Pay Commissions. Many of these claims suggest that the decision was made under the Finance Act 2025, leaving retirees and their families anxious and confused. But what is the real story behind these viral reports? Let’s break it down.
The controversy stems from a recent amendment to Rule 37(29)(c) of the Central Civil Services (Pension) Rules, 2021. According to the circulated information, this amendment has eliminated pensionary benefits like DA and Pay Commission hikes for retired government employees. However, these viral claims have distorted the actual intent and scope of the amendment.
The Central Government has not removed DA or Pay Commission benefits for all pensioners. The amendment only targets a very specific category of employees—those who were originally part of the Central Government but were later absorbed into Public Sector Undertakings (PSUs).
Under the revised rule, if such an employee is dismissed from the PSU due to misconduct or serious violations, the government now reserves the right to withhold their entire pension and retirement benefits, including those earned during their earlier tenure in government service.
Earlier: If a PSU-absorbed employee was dismissed, they still received pension benefits for their service in the Central Government.
Now: If dismissed for misconduct, the entire pension—including that from previous government service—can be forfeited.
Absolutely not. The amendment applies only to a narrow group of individuals who transitioned from government departments to PSUs and are later dismissed for disciplinary reasons.
Most retired government employees, especially those who remained in their original departments until retirement, will see no change in their pension, DA, or eligibility for future Pay Commission benefits. Moreover, this amendment has not been implemented yet. It still requires approval from the respective ministries, which are reviewing its implications.
The viral rumors about DA and the 8th Pay Commission being scrapped are entirely false. These claims gained momentum after the passage of the Finance Act 2025, which included some pension-related revisions.
However, Finance Minister Nirmala Sitharaman addressed this issue in Parliament, clarifying that no new rule has been introduced to discontinue DA or pension benefits. She emphasized that the amendment is merely a reiteration of policies already in place since June 1, 1972.
Adding further clarity, the Department of Pension & Pensioners’ Welfare (DoP&PW) confirmed that pension parity introduced under the 7th Pay Commission remains intact. The system ensuring equal pension for similar ranks across generations of retirees has not been scrapped or altered.
In conclusion, claims that the government has withdrawn DA or future Pay Commission benefits for pensioners are misleading and false. The recent amendment affects only a small group of PSU-absorbed employees, and even then, only in cases of serious misconduct.
Most government retirees can rest assured that their pensions, DA hikes, and Pay Commission-linked benefits are safe and unchanged. As always, it's important to verify such news from official sources and not fall for viral misinformation on social media.
