8th Central Pay Commission: Pensioners’ Body Seeks Key Amendments in ToR, Calls for Pension Revision, OPS Restoration and Removal of ‘Unfunded Cost’ Term

8th Central Pay Commission: Pensioners’ Body Seeks Key Amendments in ToR, Calls for Pension Revision, OPS Restoration and Removal of ‘Unfunded Cost’ Term

Bharat Pensioners’ Samaj (BPS), one of India’s oldest and largest pensioners’ associations, has written to Prime Minister Shri Narendra Modi and Finance Minister Nirmala Sitharaman seeking major changes in the Terms of Reference (ToR) of the 8th Central Pay Commission (CPC).

BPS has urged the government to explicitly include pension revision, restore the Old Pension Scheme (OPS), improve health benefits, and remove terminology that it says undermines pensioners’ rights.

The detailed representation, dated 17 November 2025, highlights concerns of nearly 69 lakh Central Government pensioners and family pensioners, along with 26 lakh employees under NPS/UPS, and over 1.2 crore employees and pensioners who will be impacted by the next pay commission.

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The BPS noted its long-standing role as a representative body registered with DoP&PW and NITI Aayog, and reminded the government of its decades-long work handling pension grievances and participating in policy discussions. It expressed gratitude for the formation of the 8th CPC but flagged several gaps in the ToR that require immediate correction.

The association said the date of implementation should follow past practice—1 January 2026—as has been the norm since the 4th CPC. It urged the government to formally add this effective date in the ToR.

One of the key demands is the inclusion of pension revision and parity. BPS noted that the current ToR does not mention pensioners at all, despite their large numbers. It asked the government to direct the 8th CPC to review pension structures for all categories, including OPS, UPS and NPS beneficiaries, regardless of retirement date.

The organisation also protested against the use of the phrase “unfunded cost of non-contributory pension schemes”, calling it discriminatory and legally incorrect.

Citing Supreme Court judgments, including the landmark D.S. Nakara ruling, BPS reiterated that pension is a constitutional right and not a financial burden. It also pointed out that similar terminology has never been used for the pensions of MPs, judges, or constitutional authorities.

BPS requested the removal of the controversial phrase and proposed replacing it with a description recognising pension as a right and requiring review of all retirement benefits, including commutation restoration after 11 years and additional pension every five years, as recommended by parliamentary panels.

A strong appeal was also made for the restoration of the Old Pension Scheme (OPS), noting that employees under NPS/UPS remain dissatisfied and overwhelmingly favour OPS for security and predictability.

The letter further demanded that the benefits of the 8th CPC be extended to autonomous bodies, statutory bodies, and Gramin Dak Sevaks (GDS), who are not automatically covered under CPC recommendations but form a crucial part of government services.

BPS also sought 20% interim relief to counter inflation and delays in wage revision, calling it essential for maintaining morale among government employees.

Finally, the association urged the government to mandate the 8th CPC to strengthen health schemes, expand CGHS wellness centres to district levels, ensure cashless treatment, and include employees of autonomous bodies under the same umbrella.

The representation has also been forwarded to Minister of State Dr. Jitendra Singh, the DoP&PW Secretary, and the Expenditure Secretary. BPS expressed confidence that the government would positively consider these amendments to ensure fairness, clarity, and inclusiveness in the 8th CPC process.