FM Nirmala Sitharaman Clarifies Pension Validation Rules: No Change In Existing Benefits

 FM Nirmala Sitharaman Clarifies Pension Validation Rules: No Change In Existing Benefits

Last Updated:March 28, 2025, 13:50 IST

Speaking in Rajya Sabha, the Finance Minister said all Central government pensioners who had retired before January 1, 2016 are receiving pension at par with employees who retired after January 1, 2016

Finance Minister Nirmala Sitharaman on Thursday clarified that there will be no change in pension for defence as well as central government pensioners due to the validation of existing rules. On pension parity, she said all central government pensioners who had retired before January 1, 2016, are receiving pension at par with employees who retired after January 1, 2016.

The legislation regarding the Validation of the Central Pay Commission (Pension) Rules and Principles for expenditure on Pension liabilities from the Consolidated Fund of India was passed in Lok Sabha on Tuesday as part of the Finance Bill, 2025. The legislation led to an apprehension among the government employees that their pension amount might get affected. 

“The validation rules DO NOT, in any way, change or alter the existing pensions so fixed of existing Civil Pensioners from the present stage. The validation rules also DO NOT affect Defense Pensioners in any way as they are covered by separate rules," the finance minister said while speaking in the Rajya Sabha on Thursday.

She said all Central government pensioners who had retired before January 1, 2016 are receiving pension at par with employees who retired after January 1, 2016.

The finance minister further added that validation of existing rules was done in view of the recommendations made by the 6th Central Pay Commission (CPC) to ensure a distinction among pensioners.

She said that it is not an amendment to any pension Rules or instructions but only a reaffirmation of the same with effect from June 1, 1972, i.e. the date the CCS (Pension) Rules were promulgated.

“The 6th Central Pay Commission made a distinction between the retirees of pre-1.1.2006 and those of post-1.1.2006 periods. The then-Government (Congress-led UPA) had accepted the recommendations of 6th Central Pay Commission and decided that there will be a distinction between pensioners with reference to the cut-off date of 1.1.2006. The 7th Central Pay Commission has brought in parity between pre 1.1.2016 and post 1.1.2016 Pensioners. I again reiterate that this is only a Validation of existing rules. This DOES NOT alter or change existing civil or defense pension," she said.

Mar 28, 2025 2:58 pm The INDIAN EXPRESS