FM Nirmala Sitharaman Clarifies Pension Validation Rules: No Change In Existing Benefits
FM Nirmala Sitharaman Clarifies Pension Validation Rules: No Change In Existing Benefits
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
There is no change in pension rules, says Sitharaman
ENS ECONOMIC BUREAU @ New Delhi
Finance Minister Nirmala Sitharaman, during her reply on the Finance Bill, 2025, and the Appropriation (No 3) Bill, 2025, in the Rajya Sabha, clarified that the recent amendments to pension rules are only a validation of existing policies and do not alter benefits for civil or defense pensioners.
She clarified that the 6th Central Pay Commission (CPC) had introduced a distinction between pensioners based on the January 1, 2006, cutoff, which was upheld by the Congress-led UPA government. However, the 7th CPC has since ensured parity between pre-2016 and post-2016 retirees. The upcoming 8th CPC, approved by Prime Minister Narendra Modi in January 2025, is expected to further revise salaries and benefits for government employees and pensioners.
She highlighted the government’s commitment to tax relief, saying that the new income tax threshold has been set at ₹12 lakh, ensuring that middle-class taxpayers benefit from reduced financial burdens. She credited the PM for prioritising tax reforms to honour the contributions of taxpayers.
Defending the success of Digital Public Infrastructure (DPI), the FM addressed concerns raised in 2017 about digital transactions being impractical in rural India. She said widespread digital adoption under Modi’s leadership has proven skeptics wrong, making financial transactions seamless even in remote areas.
To bring fiscal deficit below 4.5%
The finance minister assured that the government remained committed to bringing fiscal deficit below 4.5% in the coming year.
The FM said the government remained committed to bringing fiscal deficit below 4.5% in the coming year. She cited rise in state allocations, mainly for Kerala and Tamil Nadu, which have received 239% and 207% more funds, respectively, compared to the UPA era.
Reaffirming the government’s dedication to public welfare, she cited key schemes like PM Awas Yojana, Jal Jeevan Mission, and Ayushman Bharat, emphasising that “Achhe Din” (good days) have arrived for millions, except for those who associate governance with corruption.
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