Appeal to Members – 8th Central Pay Commission Questionnaire (Pensioners)

Appeal to Members – 8th Central Pay Commission Questionnaire (Pensioners)

All members are earnestly requested and urged to carefully study the following extremely important questionnaire issued by the 8th Central Pay Commission, particularly concerning existing pensioners, whose legitimate rights and dignified survival are directly at stake.

Keeping in view constitutional guarantees, binding judicial pronouncements, and decades of accumulated anomalies in pay and pension administration, model answers to the questions posed by the 8th CPC have been drafted and placed for comments, suggestions, and endorsement by members.

These responses reflect not merely demands, but constitutionally enforceable entitlements, repeatedly affirmed by the Hon’ble Supreme Court of India.

(Lokanath Mishra, Chief Adviser, All India Pensioners’ Association – CBIC)

Important Questions Raised by the 8th CPC
1. Guiding Philosophy: What should underpin the 8th CPC’s approach, considering the current state of the economy, inflation, and fiscal deficit?
2. Fitment Factor: What should the fitment factor in salary revision represent and aim to achieve?
3. Allowances & Pension: Rationalization of allowances and improvement of pension / retirement benefits.

MODEL ANSWERS

1. Guiding Philosophy of the 8th Central Pay Commission

The guiding philosophy of the 8th Central Pay Commission must be unambiguously anchored in the constitutional principles of equality, social justice, and dignity of labour, and not merely in narrow fiscal arithmetic.

It must be clearly recognized that pay and pension are not acts of charity or discretionary welfare, but earned, deferred compensation for lifelong public service, protected under the Constitution of India.

The Hon’ble Supreme Court has consistently and categorically held that pension is neither a bounty nor an ex-gratia payment, but a right flowing from service conditions.

In D.S. Nakara v. Union of India, the Supreme Court laid down the foundational principle that all pensioners constitute a single homogeneous class, and that any artificial or arbitrary classification leading to unequal pension violates Article 14. The Court further held that pension is a measure of socio-economic justice, intended to secure dignity in old age and freedom from want.

Accordingly, the 8th CPC must guarantee adequate pay and pension, ensure annual increments, and mandate strict six-monthly DA/DR revisions, so that inflation does not continuously erode real wages and pensions, pushing retirees into progressive impoverishment.

Key Principles

(a) Absolute Protection of Real Wages and Pensions

Inflation neutralization is not optional; it is a constitutional necessity.

In All India Reserve Bank Retired Officers Association v. Union of India, the Supreme Court held that pension must remain meaningful, realistic, and sufficient to meet the rising cost of living.

Any failure to fully neutralize inflation results in:
• Gradual erosion of purchasing power
• Loss of dignity in old age
• Violation of the welfare obligations of the State

A pension that cannot meet basic living and healthcare costs is constitutionally indefensible.

(b) Fiscal Prudence Cannot Override Constitutional Rights

While fiscal discipline is relevant, it cannot be used as a shield to deny legitimate entitlements.

In State of Punjab v. Justice S.S. Dewan, the Supreme Court categorically ruled that financial constraints are no defence once a legal or constitutional entitlement is established.

Fiscal prudence must therefore coexist with social obligation, not supersede it. Economic management cannot be achieved by transferring fiscal stress onto pensioners, who are among the most vulnerable sections of society.

(c) Equity and Parity – A Non-Negotiable Principle

Parity across pay levels, cadres, and pensioners is fundamental to equality before law.

No senior pensioner should ever receive less pension than their junior, as such an anomaly directly violates Articles 14 and 16 of the Constitution.

In Union of India v. SPS Vains, the Supreme Court made it unequivocally clear that stepping up of pension is mandatory wherever seniors are placed at a disadvantage due to pay revision distortions.

Parity is not a concession; it is a constitutional command.

(d) Attracting and Retaining Talent in Public Service

Successive Pay Commissions, including the 6th CPC, have acknowledged that uncompetitive and stagnating pay structures lead to talent drain, demoralization, and declining administrative efficiency.

A weak compensation framework ultimately weakens governance itself.

(e) Medical Security – Integral to Dignified Life

Healthcare is inseparable from the right to live with dignity.

In Shiv Kant Jha v. Union of India, the Supreme Court held that CGHS pensioners cannot be denied reimbursement for life-saving treatment on procedural or technical grounds.

Accordingly, the following are imperative:
• Substantial expansion and strengthening of CGHS
• Government-funded health insurance for pensioners, with premiums borne by the Government, on the lines of Ayushman Bharat
• Enhanced Fixed Medical Allowance, payable not only to non-CGHS pensioners but also to CGHS beneficiaries to cover non-entitlement items

Medical protection cannot depend on geography, procedure, or paperwork.

(f) Simplicity, Transparency, and Rule of Law

Pay and pension systems must be simple, transparent, and litigation-free.

In Inder Pal Yadav v. Union of India, the Supreme Court ruled that judgments in service matters should ordinarily be implemented in rem, and not restricted only to litigating individuals.

All judicial decisions relating to pay fixation, MACP, pension parity, and notional benefits must be implemented uniformly, failing which repetitive litigation becomes inevitable and unjust.

Additional Fully Justified Measures
• Grant of LTC to pensioners
• Annual increment for pensioners, as denial causes perpetual stagnation
• Complete exemption of pension from income tax, since pension is deferred wages, not income from profit
• Universal CGHS coverage and insurance, with full government contribution, as pensioners have already funded the system during service

2. Fitment Factor in Salary Revision

The fitment factor must be a scientific, rational, and equitable mechanism, not a tokenistic multiplier designed to suppress legitimate wage revision.

In Secretary, Finance Department v. West Bengal Registration Service Association, the Supreme Court held that pay fixation must maintain rational relativity and cannot be arbitrary or illusory.

Objectives of the Fitment Factor
• Complete inflation neutralization since the 7th CPC
• Uniform application across all levels to preserve parity
• Real wage growth, reflecting increased workload, productivity, and responsibility
• Prevention of pay compression, which destroys hierarchy and morale
• Fiscal sustainability without injustice

Considering sustained inflation, stagnation of real wages, and loss of purchasing power, the fitment factor must not be less than 3.0. Any lower factor would amount to institutionalized erosion of earnings.

6. Allowances and Pension / Retirement Benefits

A. Allowances

Allowances must be rationalized on the basis of functional necessity, not fiscal convenience.

Key measures:
• Retention of genuine job-related allowances
• Merger of redundant or overlapping allowances into pay
• Automatic indexation of DA/DR and location-based allowances
• Extension of LTC to pensioners
• Enhanced Fixed Medical Allowance for both CGHS and non-CGHS pensioners

B. Pension and Retirement Benefits

Pension reforms must ensure dignity, adequacy, certainty, and predictability.

In Deokinandan Prasad v. State of Bihar, the Supreme Court declared pension to be a property right under Article 300A, which cannot be arbitrarily taken away or diluted.

Essential Reforms
• Automatic inflation-linked DR
• Full parity between past and future pensioners
• Periodic upward revision of minimum pension
• Restoration of commutation after 10 years
• Upward revision of gratuity ceilings
• Expansion of CGHS and insurance with government bearing full cost
• Simplified, time-bound, digital pension disbursement mechanisms

One Rank One Pension (OROP) & Option-1 of the 7th CPC

The principle of One Rank One Pension flows directly from Article 14.

Option-1 of the 7th CPC, which ensured parity based on last pay drawn, must be implemented retrospectively. Continued denial perpetuates systemic discrimination among identically placed pensioners, which is constitutionally impermissible.
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Below are concise but forceful model answers to the three questions of the 8th Central Pay Commission, each well within the 1200-word limit, legally justified, and suitable for formal submission / record.
Judicial authority and constitutional backing are retained, but language is tight, assertive, and CPC-appropriate.

1. Guiding Philosophy of the 8th Central Pay Commission

The guiding philosophy of the 8th Central Pay Commission (CPC) must be rooted in constitutional morality, social justice, and economic realism, ensuring fair compensation to serving employees and dignified subsistence to existing pensioners, while maintaining fiscal responsibility and administrative efficiency.

The starting point must be the settled legal position that pay and pension are not discretionary benefits or welfare doles, but earned and deferred components of remuneration. The Hon’ble Supreme Court in D.S. Nakara v. Union of India authoritatively held that pension is a measure of socio-economic justice and that all pensioners form one homogeneous class. Any arbitrary classification or differential treatment violates Article 14 of the Constitution.

Accordingly, the 8th CPC must ensure:
• Adequate pay and pension
• Annual increments
• Mandatory six-monthly DA/DR revisions

so that inflation does not continuously erode real income, particularly for pensioners who have no opportunity to supplement earnings.

Protection of Real Wages and Pensions

In All India Reserve Bank Retired Officers Association v. Union of India, the Supreme Court held that pension must remain meaningful and sufficient to meet the rising cost of living. Inadequate inflation neutralization results in progressive impoverishment, defeating the welfare obligations of the State.

Fiscal Prudence with Constitutional Responsibility

While fiscal discipline is relevant, it cannot override constitutional rights. In State of Punjab v. Justice S.S. Dewan, the Court held that financial constraints are no defence for denying lawful service benefits. Fiscal prudence must therefore coexist with social obligation, not replace it.

Equity and Parity

No senior employee or pensioner should receive less pay or pension than a junior. In Union of India v. SPS Vains, the Supreme Court mandated stepping-up of pension wherever anomalies arise. Parity is a constitutional mandate, not an administrative option.

Healthcare and Dignity

In Shiv Kant Jha v. Union of India, the Supreme Court ruled that CGHS pensioners cannot be denied reimbursement for life-saving treatment due to procedural lapses. Healthcare is inseparable from the right to live with dignity under Article 21.

Rule of Law and Simplicity

In Inder Pal Yadav v. Union of India, the Court held that service-related judgments should normally operate in rem, not only for litigants. Universal implementation of court orders is essential to reduce avoidable litigation.

In sum, the 8th CPC must balance economic sustainability with constitutional fairness, ensuring that lifelong public service does not culminate in insecurity, inequality, or indignity.

2. Fitment Factor in Salary Revision

The fitment factor must be conceived as a scientific, equitable, and constitutionally compliant instrument, not as a nominal multiplier aimed at cost containment.

The Supreme Court in Secretary, Finance Dept v. West Bengal Registration Service Association held that pay fixation must maintain rational relativity and cannot be arbitrary or illusory. A fitment factor that fails to restore real wages would violate this principle.

Objectives of the Fitment Factor
1. Full Inflation Neutralization
It must compensate for cumulative inflation since the implementation of the 7th CPC, restoring real purchasing power lost over the years.
2. Uniform Application
A common fitment factor across all pay levels is essential to preserve horizontal and vertical parity and prevent discrimination.
3. Real Wage Improvement
The factor must go beyond inflation adjustment to provide modest real wage growth, acknowledging increased workload, responsibility, productivity, and skill requirements.
4. Avoidance of Pay Compression
Adequate differentials between pay levels must be maintained to reflect hierarchy, accountability, and experience.
5. Fiscal Sustainability without Injustice
Fiscal viability is important, but it cannot be achieved by systematically suppressing wages and pensions, particularly when inflation has already eroded real income.

Given sustained inflation, rising cost of living, and stagnation of real wages, the fitment factor must not be less than 3.0. Any lower factor would amount to institutionalized erosion of earnings, defeating both economic logic and constitutional fairness.

Thus, the fitment factor should act as a bridge between economic reality and legitimate employee expectations, ensuring stability, equity, and morale within public service.

6. Allowances and Pension / Retirement Benefits

A. Allowances

Allowances must be rationalized on the basis of functional necessity, not fiscal expediency. Successive CPCs have recognized that unnecessary proliferation of allowances complicates administration and fuels litigation.

Key principles should include:
• Retention of allowances linked to specific duties or difficult conditions
• Merger of redundant or overlapping allowances into pay
• Automatic indexation of DA/DR and location-based allowances
• Extension of LTC benefits to pensioners
• Enhanced Fixed Medical Allowance (FMA) payable to both CGHS and non-CGHS pensioners to cover non-entitlement medical expenses

B. Pension and Retirement Benefits

Pension reforms must ensure dignity, adequacy, and predictability.

In Deokinandan Prasad v. State of Bihar, the Supreme Court held that pension is a property right protected under Article 300A, and cannot be arbitrarily curtailed.

Essential Reforms
• Automatic inflation-linked DR
• Full parity between past and future pensioners (Nakara principle)
• Periodic upward revision of minimum pension
• Restoration of commutation after 10 years
• Upward revision of gratuity ceilings
• Expansion of CGHS and government-funded health insurance for pensioners
• Simplified, time-bound, digital pension processing

One Rank One Pension & Option-1 of the 7th CPC

The principle of One Rank One Pension flows directly from Article 14. Option-1 of the 7th CPC, based on last pay drawn, must be implemented retrospectively, as continued denial perpetuates unconstitutional inequality among identically placed pensioners.

⸻

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