8th Pay Commission: Major Pension Reform Demand Gains Momentum
The 8th Pay Commission is still in its early stages, but employee demands are growing louder. One of the key requests is to reduce the commuted pension restoration period from 15 years to 12 years. Government employees and pensioners are urging the authorities to address this matter along with other essential reforms. While the government has yet to respond officially, the issue is gaining traction among employee unions and organizations.
When a government employee retires, they receive a monthly pension based on their years of service and salary structure. However, under the commuted pension scheme, retirees can withdraw a portion of their pension (up to 40%) as a lump sum in exchange for a reduced monthly pension for a fixed period—currently 15 years. Once this period ends, the pension amount is restored to its original level.
Government employees argue that reducing this period to 12 years would offer significant financial relief. Given rising living costs, many retirees struggle to manage expenses, making a shorter restoration period a crucial demand.
Organizations such as the Confederation of Central Government Employees & Workers have been actively demanding pension-related reforms. They believe that the current system is unfair to retirees who contributed their entire careers to public service. Key reasons behind their push for change include:
Rising Living Expenses – Inflation and increased medical costs make it difficult for pensioners to sustain their standard of living.
Financial Security – A shorter restoration period ensures better financial stability for senior citizens.
Fair Compensation – Employees argue that since they contribute a portion of their salary towards pension funds, they deserve a quicker return on their investment.
These demands have led to a series of protests and discussions, urging the government to consider immediate action.
Apart from the commuted pension restoration period, government employees have listed six major demands that they expect to be addressed in the 8th Pay Commission:
Early Formation of the 8th Pay Commission – Employees are urging the government to establish the commission promptly and ensure it includes their concerns.
Abolition of the New Pension Scheme (NPS) – Workers demand the return of the Old Pension Scheme (OPS), which they believe provides better financial security.
Immediate Restoration of Dearness Allowance (DA) – The government had frozen DA hikes during the COVID-19 pandemic, and employees want it reinstated without delay.
Reduction in Commuted Pension Period – The request to restore full pension after 12 years instead of 15 years remains a top priority.
Removal of Restrictions on Compassionate Appointments – Employees want more relaxed rules for appointments on compassionate grounds.
Filling of Vacant Government Positions – Many posts remain unfilled, increasing the workload for existing employees. Workers demand urgent hiring to ease the burden.
The government has not yet officially commented on these demands. However, given the pressure from employee organizations and the rising discontent among government workers, authorities may soon have to address the issue.
The 8th Pay Commission is expected to play a significant role in shaping future salary structures and pension policies. If the government considers the demands, millions of employees and pensioners could benefit from better financial security and improved retirement benefits.
For now, employee unions continue to protest and negotiate, hoping that the government will listen and implement the necessary changes. As discussions progress, a clearer picture will emerge regarding the fate of these demands and whether government workers can expect a better pension structure in the future.
