8th Central Pay Commission to reduce Commutation Period to 12 Years for Pensioners.
Issue of Restoration of Commutation from 15 to 12 Years is to be included in Terms of Reference of 8th Central Pay Commission.
Good news for retired government employees! The upcoming 8th Central Pay Commission (CPC) will look into a major change that could help many pensioners. They plan to include the reduction of the pension commutation period from 15 years to 12 years in their Terms of Reference (ToR). This decision follows discussions held during the 34th meeting of the Standing Committee on Voluntary Agencies (SCOVA) on March 11, 2025.
What is Commutation?
Commutation allows retired workers to receive a lump sum amount by giving up part of their monthly pension. Right now, the recovery of this amount happens over 15 years. However, with interest rates decreasing recently, many people believe that this long recovery time takes too much money from pensionersโ monthly payments, making it hard for them to manage their finances.
Discussions at the SCOVA Meeting
During the SCOVA meeting, the Hon’ble Minister of State for Personnel, Public Grievances, and Pensions led the discussion. Officials from the Department of Expenditure shared their views on why this change is necessary. They argued that reducing the recovery period to 12 years would make things fairer and provide immediate financial help to retirees who rely on their pensions for daily living expenses.
Important Outcome
A key result of the meeting is that the issue of shortening the commutation period will be included in the Terms of Reference for the 8th Central Pay Commission. This is an important step towards making real changes that could benefit retired workers.
How Will This Help Pensioners?
If the commutation period is reduced, pensioners will be able to access more of their money sooner. This change is expected to relieve some financial pressure on them, especially as costs of living continue to rise.
The decision to include the change in the commutation period in the ToR of the 8th Central Pay Commission is a positive move for retired government employees. As the economy changes, it is important for pension rules to also adapt to ensure fairness and support for those who have served the country.
Pensioners and stakeholders will be watching closely as the 8th CPC prepares to address this important issue, hoping that these reforms will lead to better financial security and an improved quality of life for retirees.
COMMENTS
Above 70 years of dependent age no income proof should be asked, declaration by employee is enough; when govt has announced above 70 automatically comes under cashless treatment..
Kindly upload Copy of Supreme Court Judgement on Commutation of Pension for Retired Govt. Employee.
CGHS for civilian employees those who are posted in such areas where there is no empanelled hospitals are not available should be made cash less in near by private hospitals.
No. You can avail in nearest GOVERNMENT HOSPITAL under the permission with your office letter.