A post is currently going viral on social media platforms and WhatsApp, claiming that central government employees who retire under the new Finance Act 2025 will lose their pension and DA benefits. The PIB has fact-checked this and has termed the news as misleading and false.

A message circulating on WhatsApp claims that the central government has withdrawn post-retirement benefits, such as DA increases and Pay Commission revisions, for retired employees under the Finance Act 2025. This is completely false and misleading. The government has not made any such move. However, some pension-related rules have been amended, which some people are using as a pretext to spread fake news.

Pension will not be available in such a situation.
In its fact-check, the PIB stated that Rule 37 of the CCS Pension Rules 2021 has been amended. If a PSU employee joins a government service and is later dismissed for wrongdoing, their pension and all retirement benefits will be permanently lost. This was not the case previously; now the punishment has become more stringent. This encourages employees to work honestly.

Under previous rules, the retirement benefits of employees dismissed or removed from service in public sector undertakings could not be terminated. Such employees continued to receive these benefits. However, the government has now completely abolished this provision. In the future, no employee will receive retirement benefits after dismissal. The new rules also state that provisions for granting pension, family pension, or compassionate allowance based on good conduct will no longer apply to dismissed or discharged employees.

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