Apart from the increase in fitment factor and dearness allowance (DA), this time the new pension system for retired central employees has also emerged as a big issue in the discussions of the 8th Pay Commission. Many important suggestions are being given regarding financial security after retirement.
Pension may increase according to age
The National Council-Joint Consultative Machinery (NC-JCM) in its memorandum to the 8th Pay Commission has said that to live a dignified life after retirement and support a family of at least two members, the full pension should be 67% of the last drawn salary or the average salary of the last 10 months. At present it is 50%.
The organization has also cited the recommendation of a standing committee of Parliament, in which it was suggested to give an additional 5% increase in pension every five years. According to this, the proposed structure could be something like this
- At the age of 65 years: 70% of last salary
- At age 70: 75%
- At age 75: 80%
- At age 80: 85%
- At age 85: 90%
- At age 90: 100% pension
- You can get the option to choose between OPS, NPS and UPS.
According to reports, employee organizations have also raised the demand for more flexibility in the pension system. It is proposed that employees be given the option to choose the pension plan as per their need.
What are the three pension schemes?
Old Pension Scheme (OPS): In OPS, after retirement, a fixed pension is given on the basis of last salary and dearness allowance. The government bears its entire expense and the employees do not have to make any contribution during their service.
National Pension System (NPS): NPS is a contribution based scheme. Both employees and government invest in this. The pension received at the time of retirement depends on the accumulated funds and returns from the market.
Unified Pension Scheme (UPS): UPS has been introduced to create a balance between OPS and NPS. In this, there is contribution like NPS, but there is also a provision for fixed pension.
Pension should not depend on the market
Many employee organizations say that the benefits received after retirement should not depend on stock market or other market fluctuations. He believes that elderly employees should get fixed and secure income.
More than 1.1 crore people will be affected
The 8th Pay Commission is also considered important because its decisions will impact more than 1.1 crore central employees, pensioners and their families. So far seven pay commissions have been implemented in India. The first pay commission was constituted in January 1946. Usually a new pay commission is made every 10 years. The 8th Pay Commission was constituted on 3 November 2025.
Leave a Reply