MEMORANDUM TO THE 8TH CENTRAL PAY COMMISSION

MEMORANDUM TO THE 8TH CENTRAL PAY COMMISSION
Submitted by: Central Government Pensioners Coordination Committee, Puri, Odisha
(On the basis of applicable questionnaires prescribed by the Hon’ble 8th CPC)

To
The Chairman
8th Central Pay Commission

Sir,

Subject: Submission of Comprehensive Memorandum in response to applicable questionnaires relating to Pension and Welfare Measures for Pensioners – for kind consideration and recommendations by the Commission.

The Central Government Pensioners Coordination Committee, Puri, most respectfully submits this memorandum for the kind, urgent, and sympathetic consideration of the Hon’ble Commission.

At the outset, we submit with utmost concern that the existing pay and pension structure has not kept pace with the unprecedented rise in the cost of living, the continuous erosion of real income, and the legitimate expectations of Central Government pensioners who have rendered long, dedicated, and unblemished service to the nation.

While earlier Pay Commissions have introduced certain 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 Hon’ble 8th Central Pay Commission.

Preliminary Submissions

1. All benefits arising from the recommendations of the 8th Central Pay Commission should be implemented uniformly with effect from 01.01.2026, without exception. Any deviation may result in serious financial injustice.
2. Complete parity between past and future pensioners should 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 may kindly be considered under the category of salary while addressing Question No. 1.

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Responses to the Questionnaire

1. Question No. 1 – Pay Matters

(a) Basic Pension (Deferred Salary):
Basic pension should be revised by applying a fitment factor of 4.0, taking into account present economic conditions, followed by granting notional increments from 01.01.2016 (date of implementation of the 7th CPC recommendations).

The demand for a uniform fitment factor of 4.0 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.

Further, due to ongoing geopolitical tensions in the Middle East, the prices of essential commodities have increased significantly, making it difficult for pensioners to sustain themselves unless pensions are suitably enhanced.

(b) Annual Increment:
An annual increment of 6% may kindly be granted to pensioners as a matter of right, as they are presently deprived of any progression mechanism unlike serving employees.

1. Question No. 2 – Dearness Relief (DR)

• DR should 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 20% of the basic pension.

These measures are essential to preserve purchasing power, prevent progressive financial hardship, and ensure the well-being of pensioners and family pensioners.

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1. Question No. 4 – Facilities

(a) Leave Travel Concession (LTC):

• LTC may kindly be extended to pensioners in every two-year block.
• Pensioners may be allowed:
  • Encashment equivalent to 30 days’ pension,
  • Reimbursement of air/rail fare in the entitled class.

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(b) Comprehensive Reform of CGHS:
A time-bound and comprehensive overhaul of CGHS is essential:

• Establish wellness centres in important tourist destinations. Places such as Puri witness a large number of visiting Central Government employees and pensioners every month; therefore, a CGHS wellness centre is required at such locations.
• Universal empanelment of private hospitals with cashless treatment without referral for pensioners.
• 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, in addition to CGHS coverage, including emergency treatment in non-empanelled private hospitals.
• Insurance coverage for treatment abroad during foreign visits.
• Full coverage (without ceilings) for treatment relating to dental, eye, cardiac, renal, and ENT conditions.

(c) Fixed Medical Allowance (FMA):
FMA should be enhanced to ₹5,000 per month, and all pensioners receiving FMA should be covered under a government-aided insurance scheme.
The pensioners of Autonomous Educational Institutions are to be provided cash less treatment facilities and other benefits at par with the pensioners of other central government departments.

Access to healthcare is integral to the right to life and dignity and must be ensured comprehensively.

1. 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 since 01.01.2016 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 4.0,
• 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 20%.

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(d) Commutation:
The commuted portion of pension should be restored after 10 years instead of 15 years, with retrospective effect from 01.01.1996.

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(e) One Rank One Pension (OROP):
OROP may kindly be extended to autonomous educational institutions, employees of AG, Postal Department, and uniformed executive cadres of CBIC, considering the accountability, discipline, and hierarchical nature of duties in these services.

Equal rank and equal length of service should ensure equal pension, irrespective of the date of retirement.

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(f) Old Pension Scheme (OPS):
The Old Pension Scheme may kindly be restored for employees recruited on or after 01.01.2004.

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(g) Implementation of Judicial Pronouncements:
All judicial pronouncements relating to pay and pension should be implemented in rem, without requiring individual pensioners to seek repeated litigation.

This will:

• Uphold the rule of law,
• Reduce avoidable litigation,
• Ensure uniform justice.

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(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 places an undue 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 earnestly urges the Hon’ble 8th Central Pay Commission to consider and recommend these demands in full and ensure their time-bound implementation without dilution. Any partial or deferred approach may perpetuate systemic inequities and further hardship for pensioners.

It is sincerely hoped that the Commission will act with fairness, foresight, and a deep sense of responsibility in shaping a humane and progressive framework.

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With respectful regards,

Yours faithfully,

(Gobinda Chandra Sarangi)
General Secretary
Central Government Pensioners Coordination Committee, Puri (752002) Odisha :

E-MAIL ID: cgpapuriodisha@gmail.com. Mobile: 7751996591