MEMORANDUM TO THE 8TH CENTRAL PAY COMMISSION
Submitted by: All India Pensioners Association of CBIC
(On the basis of applicable questionnaires prescribed by the Hon’ble 8th CPC)
To
The Chairman
8th Central Pay Commission
Sir,
Subject: Comprehensive Memorandum in response to applicable questionnaires relating to Pension and Welfare Measures for Pensioners – for consideration and recommendations by the Commission.
The All India Pensioners Association of the Central Board of Indirect Taxes and Customs (CBIC) respectfully submits this memorandum for the kind, urgent, and sympathetic consideration of the Hon’ble Commission.
At the outset, it is submitted with utmost seriousness that the existing pay and pension structure has failed to keep pace with the unprecedented rise in the cost of living, continuous erosion of real income, and the legitimate expectations of Central Government pensioners who have rendered long, unblemished, and dedicated service to the nation.
While earlier Pay Commissions have made limited improvements, they have not adequately addressed structural inequities or ensured parity, dignity, and financial security, particularly for pensioners. This memorandum, therefore, presents a set of well-reasoned and justified demands based on constitutional principles, judicial pronouncements, and prevailing socio-economic realities, in response to the applicable questionnaires prescribed by the 8th Central Pay Commission.
Preliminary Submissions
1. All benefits arising from the recommendations of the 8th Central Pay Commission must be implemented uniformly with effect from 01.01.2026, without exception. Any deviation would result in serious financial injustice.
2. Complete parity between past and future pensioners must be ensured, in line with the judgment of the Hon’ble Supreme Court in D.S. Nakara vs. Union of India (1983), which held that pensioners constitute a homogeneous class and cannot be subjected to arbitrary discrimination.
3. Pension, being a deferred wage, has been consistently recognized as such by the Hon’ble Supreme Court and is also treated as “salary” under the Income Tax Act. Accordingly, pension should be considered under the category of salary while addressing Question No. 1.
Responses to the Questionnaire
- Question No. 1 – Pay Matters
(a) Basic Pension (Deferred Salary):
Basic pension should be revised by applying a fitment factor of 3.86, taking into account present economic conditions and thereafter granting notional increments from 01.01.2016 (date of implementation of the 7th CPC recommendations).
The demand for a uniform fitment factor of 3.86 for all present and future pensioners is justified due to:
• Sustained and steep inflation over successive decades,
• Continuous erosion of real wages and pensions,
• Inadequacy of previous fitment formulas,
• The need to ensure a dignified post-retirement life under Article 21 of the Constitution.
(b) Annual Increment:
An annual increment of 6% must be granted to pensioners as a matter of right, as they are presently deprived of any progression mechanism unlike serving employees.
- Question No. 2 – Dearness Relief (DR)
• DR must be linked to actual retail price indices, reflecting rural consumption patterns and covering all essential items.
• DR should be revised automatically every six months without administrative delay.
• DR should be merged with basic pension upon crossing 25% of the basic pension.
These measures are essential to preserve purchasing power and prevent progressive impoverishment.
- Question No. 4 – Facilities
(a) Leave Travel Concession (LTC)
• LTC should be extended to pensioners in every two-year block.
• Pensioners should be allowed:
• Encashment equivalent to 30 days’ pension,
• Reimbursement of air/rail fare in entitled class.
(b) Comprehensive Reform of CGHS
A time-bound and comprehensive overhaul of CGHS is essential:
• Establish wellness centres in every district,
• Universal empanelment of private hospitals with cashless treatment without referral,
• Mandatory annual health check-ups,
• Fully functional pharmacies ensuring supply of medicines (including indented medicines within one day of prescription),
• Uninterrupted supply of prescribed medicines without substitution,
• Coverage of all medical expenses under a government-funded comprehensive insurance scheme,
• Insurance coverage for treatment abroad during foreign visits,
• Full coverage (without ceilings) for treatment of dental, eye, cardiac, renal, and ENT conditions.
(c) Fixed Medical Allowance (FMA):
FMA should be enhanced to ₹5,000 per month.
Access to healthcare is integral to the right to life and dignity and must be ensured comprehensively.
- Question No. 9 – Retirement Benefits
(a) Pension Structure
• Pension should be fixed at 75% of the last pay drawn,
• Family pension should be fixed at 60% of the last pay drawn,
• Existing pensions should be revised on a notional basis with due increments to remove anomalies.
(b) Additional Entitlements
• Annual increment of 6% for pensioners,
• House Rent Allowance (HRA) for pensioners,
• LTC for pensioners,
• Caretaker/Nursing allowance,
• Railway concessions,
• Reservation facilities in departmental holiday homes and guest houses.
(c) Fitment and Revision
• Fitment factor should not be less than 3.86,
• Basic pension should be revised w.e.f. 01.01.2026 after granting notional increments from 01.01.2016,
• DR should be merged with pension upon crossing 25%.
(d) Commutation
The commuted portion of pension should be restored after 10 years instead of 15 years, with retrospective effect from 01.01.1996.
(e) One Rank One Pension (OROP)
OROP should be extended to uniformed executive cadres, particularly officers of CBIC, where duties involve risk, accountability, and disciplined hierarchy.
Equal rank and equal length of service must ensure equal pension, irrespective of the date of retirement.
(f) Old Pension Scheme (OPS)
The Old Pension Scheme must be restored for employees recruited on or after 01.01.2004.
(g) Implementation of Judicial Pronouncements
All judicial pronouncements relating to pay and pension must be implemented in rem, without compelling individual pensioners to seek repeated litigation.
This will:
• Uphold the rule of law,
• Reduce avoidable litigation,
• Ensure uniform justice.
(h) Income Tax Exemption
• Pension income should be fully exempt from income tax,
• Interest income of pensioners should also be exempt.
Pension, being deferred wages, should not be taxed as regular income, as this imposes an unjust burden on a vulnerable section.
Conclusion
The demands set forth herein are not concessions but legitimate, just, and constitutionally supported entitlements. Pensioners have devoted the most productive years of their lives in service to the nation, and it is the solemn obligation of the State to ensure their financial security, dignity, and well-being.
The Association strongly urges the Hon’ble 8th Central Pay Commission to accept these demands in full and recommend their time-bound implementation without dilution. Any partial or deferred approach will perpetuate systemic inequities and deepen the hardships faced by pensioners.
It is earnestly hoped that the Commission will act with fairness, foresight, and a deep sense of responsibility in shaping a humane and transformative framework.
With respectful regards,
Yours faithfully,
(Lokanath Mishra)
Chief Adviser
All India Pensioners Association of CBIC