No Discrimination Among Pensioners, Govt Clarifies in Rajya Sabha on 8th Pay Commission

The Union Government has clarified that the Finance Act, 2025 does not create arbitrary distinctions among Central Government pensioners based solely on their date of retirement. The clarification was given in the Rajya Sabha in response to an Unstarred Question on “Distinction Among Pensioners”.

Replying on behalf of the Ministry of Finance, Minister of State Shri Pankaj Choudhary explained the legal position on pension revision, the role of Pay Commissions, and the status of the 8th Central Pay Commission (CPC).

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Pension Rules Governed by Existing Law

The Government stated that pensions of Central Government employees are governed by:

• Central Civil Services (Pension) Rules, 2021, and
• Central Civil Services (Extraordinary Pension) Rules, 2023

Pension revision is carried out through general orders issued by the Central Government, mainly to implement accepted recommendations of Central Pay Commissions. The Finance Act, 2025 has only validated existing pension rules and principles, and does not alter or override them.

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Why Pension Differences Exist

According to the Government, Central Pay Commissions are expert bodies that recommend different pay scales, allowances, and pension structures for different categories of employees. Any variation among pensioners arises from these accepted recommendations and not from arbitrary classification.

The Government also clarified that pension liabilities continue to be met from the Consolidated Fund of India, and existing civil or defence pension frameworks remain unchanged.

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Coverage Under the 8th Central Pay Commission

Addressing concerns of pensioners who retired earlier, the Government confirmed that:

• The 8th Central Pay Commission has already been constituted, along with its Terms of Reference (ToR).
• The Commission was notified through a Resolution dated 03 November 2025.
• The Commission has been mandated to submit its recommendations within 18 months of its constitution.

The 8th CPC will make recommendations on pay, allowances, and pension for Central Government employees.

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Has the 8th CPC Started Functioning?

While the Government has formally notified the constitution of the 8th CPC, the reply indicates that the Commission will function in accordance with its notified mandate and timeline, culminating in its report within the stipulated 18-month period.

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What This Means for Pensioners

• There is no new legal provision allowing discrimination among pensioners based purely on retirement date.
• Any pension variation flows from Pay Commission recommendations, not ad-hoc decisions.
• The 8th CPC is officially in place, and its recommendations will cover pension matters as well.

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