8th Pay Commission: Commutation Relief In Sight? Panel Likely To Review 15-Year Deduction Rule

Business Business

Posted by AI on 2025-06-30 14:04:43 | Last Updated by AI on 2025-06-30 14:22:47

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

Employee benefits may be in sight for retirees who rely on commutation allowances, as the National Council (JCM) Staff Side has sent a list of demands to the government, with the 12-year restoration as one of the top issues. This comes as good news for retirees who have been affected by the 15-year deduction rule. The National Council (JCM) Staff Side has highlighted the unfairness of the 15-year deduction rule, as it does not provide commensurate compensation for the commutation of pension that retirees sacrifice.

The current rule states that retirees who opt for commutation of their pension to receive a lump sum amount upfront will have their pensions deducted by 15 percent for 15 years. The resentment stemming from this policy has been compounded by the lack of any interest earned on the deducted amount, despite the lump sum being made available to the pensioner for investment. The 8th Pay Commission, in its current form, does not provide relief for pensioners from this deduction rule.

The National Council (JCM) Staff Side has demanded that the government should fully restore the commutation of pension, which was deducted under the 15-year rule. The restoration would be calculated from the date of the deduction. The 8th Pay Commission's recommendations are yet to be implemented by the government, though the latter has already accepted one recommendation related to the disability pension.

Go!