Presentation to the 8th Central Pay Commission by Bharat Pensioner’s Samaj: Briefly highlighted Key Demands and expectations

BHARAT PENSIONER’S SAMAJ
(All India Federation of Pensioner’s Associations)

PRESENTATION TO THE 8TH CENTRAL PAY COMMISSION

Respected Chairperson and Hon’ble Members of the 8th Central Pay Commission, Good Afternoon.

Bharat Pensioners Samaj (BPS), established in 1955 by Justice (Retd.) Shankar Saran, Shri N.P. Srivastava, IAS (Retd.), and Shri M. Ruthnaswamy, is recognised by DoP&PW and NITI Aayog and represented on SCOVA. With 245 affiliated associations, BPS represents nearly one million pensioners across the country.

We sincerely thank the Commission for this opportunity. As our detailed Memorandum and presentation are already before you, I shall briefly highlight our key submissions and expectations from the 8th CPC.

1. Minimum Wage, Pension and Family-Unit Formula

The conventional three-unit family formula no longer adequately reflects present-day family responsibilities. The Seventh CPC counted the employee as one unit, spouse as 0.8 unit and two children as 0.6 unit each.

BPS proposes a family formula of 5.2 weighted units: employee 1.0, spouse 1.0 without gender discrimination, two children at 0.8 each and two dependent parents at 0.8 each. The wage formula should recognise the continuing financial responsibility towards children as well as dependent ageing parents.

Based on the calculations detailed in our Memorandum, BPS proposes minimum basic pay of ₹69,000, fitment factor of 3.83 and minimum pension of ₹45,000.

We further seek pension at 67% of Last Pay Drawn and family pension at 50% of Last Pay Drawn, together with appropriate HRA and LTC benefits for pensioners.

Pay and pension should also be revised every five years instead of making pensioners wait for a decade.

2. Pension Parity and DA/DR Reform

There should be no discrimination between similarly placed pensioners merely on the basis of their date of retirement. We, therefore, request equitable revision and parity between pre-01.01.2026 and post-01.01.2026 pensioners.

Inflation affects employees and pensioners continuously. BPS requests revision of DA/DR every three months, based on a three-month average with point-to-point compensation.

We have also requested examination of the merger of DR with basic pension once DR exceeds 25%.

3. Autonomous/Statutory Bodies and BSNL Pensioners

The benefits of the Eighth CPC should be extended simultaneously to eligible employees and pensioners of Central Autonomous and Statutory Bodies, without requiring them to wait for separate decisions for prolonged periods.

The pension parity and healthcare concerns of BSNL pensioners should also be appropriately addressed, including a simpler direct-payment mechanism for those opting for CGHS.

4. Healthcare and Medical Security

For a pensioner, health security is as important as financial security.

We request substantial strengthening and expansion of CGHS, with adequate doctors, specialists, medicines and infrastructure, together with wider cashless treatment.

BPS seeks enhancement of Fixed Medical Allowance (FMA) to ₹5,000 per month and suitable cashless/CGHS-equivalent medical protection for pensioners and family pensioners residing in rural and non-CGHS areas.

Appropriate CGHS-equivalent/cashless arrangements should also be provided to eligible Autonomous Body and ESIC beneficiaries, including removal of avoidable barriers affecting hospital empanelment.

5. Restoration of Commuted Pension

This is a major issue affecting existing pensioners.

The present 15-year restoration period is based on parameters that have changed substantially since 1986, particularly interest rates, mortality and life expectancy. Our detailed calculations show that recovery of the commuted amount takes place much earlier.

BPS therefore requests restoration of the commuted portion after completion of 11 years or on attaining the age of 71 years, whichever is earlier, in cases of superannuation at age 60. The commutation table and its underlying parameters should also be reviewed.

6. Additional Pension from Age 65

A pensioner retiring at 60 presently has to wait until age 80 for age-related additional pension, although medical expenses and age-related vulnerabilities begin much earlier.

BPS therefore seeks phased enhancement beginning at age 65.

Our proposal, as detailed in the Memorandum, is pension equivalent to 70% of Last Pay Drawn at age 65, 75% at 70, 80% at 75, 85% at 80, 90% at 85 and 100% at age 90.

We request the Commission to examine this sympathetically in the light of the medical, financial and social realities of ageing.

7. Effective Date and Group Insurance

BPS respectfully requests that all recommendations of the Eighth CPC relating to pay, pension and allowances be made effective from 1 January 2026.

We also seek substantial enhancement of the Central Government Employees Group Insurance Scheme, including a minimum insurance cover of ₹15 lakh for the lowest cadre, with appropriate enhancement for higher levels.

8. Restoration of Old Pension Scheme

BPS has urged restoration of the Old Pension Scheme.

Our fundamental submission is that post-retirement social security should provide certainty, dignity and assured income and should protect employees from financial and market-related uncertainty.

The detailed justification is contained in our Memorandum.

Madam Chairperson and Hon’ble Members, pension is not a bounty; it represents social security and dignity after an employee has devoted the productive years of his or her life to public service.

We, therefore, respectfully request the Commission to consider the BPS Memorandum in its entirety, particularly the demands highlighted today.

I shall stop here so that the remaining time may be available for your observations or questions. We shall be grateful to provide any further clarification, calculations or supporting material that the Commission may require.

Thank you very much.

Avinash Rajput,
Secretary General, Bharat Pensioners Samaj

KEY DEMANDS AT A GLANCE

5.2 Weighted Family-Unit Formula: Replace the existing three-unit formula with 5.2 weighted units—employee 1.0, spouse 1.0, two children 0.8 each and two dependent parents 0.8 each—ensuring equal weightage to employee and spouse without gender discrimination.
Minimum Pay, Pension & Family Pension: Minimum basic pay ₹69,000 with fitment factor 3.83; minimum pension ₹45,000; pension at 67% of Last Pay Drawn (LPD) and family pension at 50% of LPD.
Pension Parity, Five-Yearly Revision & Effective Date: Ensure equitable revision/parity for pre and post-01.01.2026 pensioners; revise pay and pension every five years; and implement 8th CPC recommendations on pay, pension and allowances from 01.01.2026.
DA/DR Reform: Revise DA/DR every three months based on a three-month average with pointto-point compensation and examine merger of DR with basic pension once it exceeds 25%.
HRA & LTC for Pensioners: Extend appropriate House Rent Allowance (HRA) and Leave Travel Concession (LTC) benefits to pensioners.
Autonomous/Statutory Bodies & BSNL Pensioners: Extend 8th CPC benefits simultaneously to eligible Central Autonomous/ Statutory Body pensioners and address pension parity and CGHS/ direct-payment issues of BSNL pensioners.
CGHS, Cashless Healthcare & FMA: Strengthen and expand CGHS infrastructure and staffing; widen cashless treatment; provide CGHS-equivalent medical protection in rural/non-CGHS areas; and enhance Fixed Medical Allowance to ₹5,000 per month for eligible pensioners/family pensioners.
ESIC/Other Eligible Beneficiaries: Provide CGHS-equivalent/cashless treatment at CGHSempanelled hospitals and review Bank Guarantee requirements affecting hospital empanelment.
Restoration of Commuted Pension: Restore the commuted portion after 11 years or at age 71, whichever is earlier, for employees retiring at age 60, and review the outdated commutation table and underlying parameters.
Additional Pension from Age 65: Provide age-related pension based on LPD—70% at 65, 75% at 70, 80% at 75, 85% at 80, 90% at 85 and 100% at age 90.
CGEGIS Enhancement: Substantially enhance the Central Government Employees Group Insurance Scheme, with minimum insurance cover of ₹15 lakh for the lowest cadre and suitable enhancement for higher levels.
Restoration of OPS: Restore the Old Pension Scheme for Central Government employees to ensure assured, secure and dignified post-retirement social security.
Overall Pensioners’ Welfare: Ensure that the 8th CPC framework gives due recognition to pensioners’ financial security, healthcare, dignity and social protection as integral components of post-retirement welfare.