Memorandum on Pensioners’ Demands for Consideration by the 8th Central Pay Commission

To
The Chairman
8th Central Pay Commission
Government of India
New Delhi

Sub –Memorandum on Pensioners’ Demands for Consideration by the 8th Central Pay Commission

Respected Sir,

On behalf of the All India Pensioners Association of CBIC, this memorandum is respectfully submitted for kind consideration of the 8th Central Pay Commission. The Association represents a large body of retired personnel who have rendered decades of service to the nation and now depend on pension as their primary source of livelihood.

In the present economic environment—characterized by rising inflation, increasing healthcare costs, and global uncertainties including geopolitical conflicts—the financial security of pensioners has become a matter of urgent national concern. The existing pension framework requires structural reforms to ensure adequacy, parity, and justice.

1. Revision of Pension through Enhanced Fitment Factor

Demand

Adoption of a fitment factor in the range of 3.30–3.50.

Justification
• The 7th CPC fitment factor (2.57) has proven inadequate in neutralizing inflation.
• Pensioners lack promotional avenues and income progression.
• Rising costs of essential commodities and services have eroded real income.

2. Periodic Pension Enhancement

Demand

Automatic 15% increase in pension every five years.

Justification
• Increased life expectancy and dependency ratios.
• Continuous rise in healthcare and housing costs.

3. Reform of Dearness Allowance (DA)

Demand

Revision of DA calculation methodology.

Proposals
• Use of actual retail market prices instead of subsidized rates.
• Periodic revision of consumption basket.

Justification

Current AICPI-IW index does not reflect real expenditure patterns.

4. One Rank One Pension (OROP)-like Parity

Demand

Extension of OROP principles to:
• Central Police Organisations
• Pensioners of CBIC

Justification

Ensures equal pension for equal service and eliminates disparities among retirees.

5. Notional Increment and Pension Re-fixation

Demand

Grant of notional increment for pension fixation.

Justification
• Supported by judicial pronouncements.
• Corrects anomalies in last drawn pay.

6. Minimum Pension

Demand

Fixation of minimum pension at ₹40,000 per month.

Justification
• Rising cost of living and healthcare expenses.
• International benchmarks support adequate replacement income.
• Inflationary pressures, including those arising from global conflicts, disproportionately affect pensioners.

7. Parity Between Pre- and Post-1.1.2026 Pensioners

Demand

Full parity irrespective of date of retirement.

Justification
• Arbitrary cut-off dates violate Article 14.
• Supported by Supreme Court judgment in D.S. Nakara vs Union of India (1983).

8. Universal Applicability of CPC Recommendations

Demand

All recommendations of the 8th CPC should apply uniformly to:
• Existing pensioners
• Future retirees

Justification
• Pension is a continuing entitlement.
• Supported by judicial precedents (D.S. Nakara, V. Kasturi, All India RBI Retired Officers Association).

9. Uniform Application of Judicial Decisions (In Rem)

Demand

All service-related judgments should be implemented universally.

Justification
• Prevents multiplicity of litigation.
• Ensures equality and administrative fairness.

10. Tax Relief on Pension

Demand
• Full exemption of pension income.
• Exemption of interest on retirement benefits.

Justification

Pension is deferred wage; senior citizens face higher medical expenses.

11. Restoration of Commuted Pension

Demand
• Restoration after 10 years instead of 15 years.
• Retrospective implementation from 1996 (5th CPC).

Justification

Recovery of commuted value occurs earlier, and delay causes financial hardship.

12. LTC and Allowance Reforms

Demand

Reimbursement of LTC on actual expenditure basis.

Justification

Existing ceilings are unrealistic and do not reflect actual travel costs.

13. Healthcare Reforms

13.1 Strengthening of CGHS
• Mandatory empanelment of private hospitals
• Universal cashless treatment
• Wellness centres in every district
• No substitution of prescribed medicines
• Establishment of in-house pharmacies

13.2 Review of Paripoorna Mediclaim Ayush Bima (2026)
• The scheme should not remain purely voluntary.
• Premium burden should be subsidized or fully borne by the Government.
• Coverage should be comprehensive and integrated with CGHS.

13.3 International Healthcare Coverage

Demand

Provision of government-supported health insurance covering medical emergencies abroad during foreign travel.

Justification
• Increasing number of pensioners travel abroad for tourism or family visits.
• Medical treatment abroad is prohibitively expensive.
• Lack of coverage exposes pensioners to severe financial risk.

Proposal
• Introduction of global medical insurance coverage for pensioners.
• Cashless emergency treatment facilities abroad.
• Integration with CGHS or a national insurance framework.

14. Additional Key Demands
    • Continuation/restoration of Old Pension Scheme principles ensuring guaranteed income.
    • Grant of annual increments in pension (notional basis).
    • Exemption from income tax on retirement corpus and interest income.
15. Conclusion

The above demands are not merely financial in nature but are rooted in constitutional principles of equality, social justice, and dignity. Pensioners, having devoted their productive years to public service, are entitled to a secure and dignified post-retirement life.

The 8th Central Pay Commission is urged to adopt a holistic, equitable, and forward-looking approach to pension reform, ensuring that no pensioner is left behind.

Your’s faithfully,

(Secretary General)
All India Pensioners Association of CBIC

Date: __
Place: