Govt’s Pension Rules in Finance Bill Face Strong Opposition from NC JCM [READ REPRESENTATION]

“New Rules Could Create Pension Disparity Among Retirees,” says National Council 9Staff Side Joint Consultative Machinery For Central Government Employees (NC JCM).

The Government of India’s Finance Bill 2025 has sparked widespread opposition due to its provisions on pension disparity. The bill introduces changes to pension rules that could create inequality among pensioners based on their date of retirement and the implementation of Central Pay Commission (CPC) recommendations.

The Staff Side Members of the National Council Joint Consultative Machinery (NC JCM) and Pensioners’ Associations have strongly protested these changes, arguing that they violate Supreme Court judgments and disrupt the pension parity established by the 7th CPC.

Key Concerns Raised by Pensioners and Unions

The Finance Bill includes provisions allowing the government to distinguish pension benefits among retirees. The key concerns include:

• Loss of Pension Parity – The bill overrides the 7th CPC, which ensured uniform pension benefits for all retirees.
• Legal Violation – The move contradicts Supreme Court rulings that upheld pension equality.
• Unfair Discrimination – Pensioners retiring before and after January 1, 2026 could receive different benefits, leading to inequality.

Meeting Between NC JCM and Secretary (Pension)

In response to growing opposition, the Secretary (Pension), Department of Pension & Pensioners’ Welfare (DOP&PW) held a video conference meeting with Staff Side Members and representatives from Pensioners’ Associations.

The NC JCM Staff Side delegation included:

• Shiva Gopal Mishra
• Guman Singh
• C Srikumar
• Bhosle
• Shankar Rao
• Roopak Sarkar

During the meeting, the Staff Side strongly opposed the Finance Bill’s pension provisions and demanded that the government:

• Withdraw discriminatory rules that differentiate between pensioners.
• Issue a clarification to remove doubts and fears among retirees.
• Ensure the 8th CPC continues pension parity as established by the 7th CPC.

Government’s Response

The Secretary (Pension) defended the bill, stating that past CPCs (5th and 6th) had also created distinctions among pensioners. However, he assured that:

• The 8th CPC will maintain pension parity.
• A clarification will be issued to address concerns.
• The issue of restoring commuted pensions after 12 years will be referred to the 8th CPC.

What’s Next for Pensioners?

Despite assurances, pensioners remain worried about future disparities. Many are calling for a policy review or Supreme Court intervention to prevent long-term pension inequality.

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Mariya Paliwala

Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

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