8th Pay Commission: Big demand from pensioners; Commuted pension should be restored in 11 years instead of 15, if the rules are changed then the employees will get huge benefit.

8th Pay Commission: Every central employee and pensioners are waiting for the implementation of the Eighth Pay Commission. Almost 10 months have passed since the Term of Reference was issued. Employees and pensioners are eagerly waiting for the report of the commission. However, the current status is that the opinions of the organizations are being taken by the Commission and their views are being heard.

Before the implementation of the 8th Pay Commission, central employees have intensified their demand for changing the 15-year Commuted Pension Rule. Central employees and pensioners organizations have demanded to reduce the restoration period of commuted pension.

Many people are confused about what pension commutation is. If seen, central government employees can commute a maximum of 40 percent of their basic pension at the time of retirement. This portion is later encashed, that is, a lump sum amount is given to them in return.

An amount equal to the commuted portion is deducted from their pension every month. Under the current rules, this deduction continues for 15 years. When 15 years are completed, this commuted portion is added to the pension. Now the employees are demanding to increase this period to 11 years.

Some central employees are considering this 15 year period as a loss-making deal for commute. According to the organization, for every Rs 100 of monthly pension commuted at a commutation factor of 8.194, a lump sum amount of around Rs 9833 is received. At the same time, when Rs 100 is deducted from the pension every month, it becomes a total of Rs 12000 in 10 years.

This deduction increases to Rs 18000 in 15 years. The organization argues that recovery of commuted amount is completed in about 10 years, hence restoration should be done in 11 years. There is a difference of some money between the period of 11 and 15 years, due to which this demand is arising. If seen, if the rules are changed, employees can get benefits worth lakhs of rupees.