8th CPC Terms of Reference – BPS writes to include Pension Revision, OPS and Health Schemes and to delete ‘Unfunded Cost’ Terminology non-contributory pension schemes
BHARAT PENSIONERS’ SAMAJ
(All India Federation of Pensioner’s Association)
2/13-A – LGF Backside, Jangpura – ‘A’, New Delhi – 110 014
Ref. No. BPS/8thCPC(ToR)/2025/02
Date: 17th November, 2025
To,
Shri Narendra Modi Ji,
Hon’ble Prime Minister of India,
Prime Minister’s Office,
South Block, Raisina Hill,
New Delhi – 110 011
Smt. Nirmala Sitharaman ji
Hon’ble Finance Minister
Government of India
New Delhi
Sub: Request for amendment in the Terms of Reference (ToR) of the 8th Central Pay Commission, particularly regarding the inclusion of pension revision for Pensioners and Family Pensioners and the deletion of the term “unfunded cost of non-contributory pension schemes.”
Respected Sir,
On behalf of the Bharat Pensioners Samaj (BPS), a unified, non-profit, non-political, and secular organization established in 1955, we respectfully address you today. As the apex and widely recognized representative body for Central Government pensioners, the BPS is registered with key Government of India institutions, including the DoP&PW and Niti Ayog, and is affiliated with the International Federation on Ageing. For nearly seven decades, the BPS has tirelessly advocated for the rights and welfare of Central Government pensioners and senior citizens, representing the collective voice and concerns of lakhs of individuals. We function as an extended arm of the Department of Pension & Pensioners’ Welfare (DoP&PW), actively resolving grievances through platforms like CPENGRAMS and Pension Adalats. Our work, representing about 8 lakh Central Government employees from over 130 departments, is often referenced in parliamentary debates.
We extend our profound respect and heartfelt gratitude for the Constitution of the 8th Central Pay Commission (CPC) and its initial Terms of Reference (ToR), published by the Ministry of Finance vide its notification dated 03.11.2025.
We wish to bring to your kind notice certain vital aspects of the said ToR that merit reconsideration and suitable amendment in the larger interest of both serving employees and pensioners. We earnestly request the inclusion of the following issues within the scope of the 8th CPC.
1. Inclusion of the Date of Effect for 8th CPC Recommendations
It is now an established norm that the revision of Central Government employees’ wages, allowances, and pensionary benefits takes place once every ten years, with a consistent implementation date.
Previous Implementation Dates:
| Pay Commission | Implementation Date |
|---|---|
| 4th CPC | 01.01.1986 |
| 5th CPC | 01.01.1996 |
| 6th CPC | 01.01.2006 |
| 7th CPC | 01.01.2016 |
In view of this established precedent, it is both automatic and justified that the 8th CPC recommendations should be implemented w.e.f. 01.01.2026. We request that this date be formally included in the Terms of Reference of the 8th CPC.
2. Revision of Pension and Deletion of Objectionable Terminology
A. Revision and Parity in Pensionary Benefits
The existing ToR lacks clarity on the revision of pension, parity, and other pensionary benefits for the current 69 lakh pensioners and family pensioners covered under the Old Pension Scheme (OPS), Unified Pension Scheme (UPS), and National Pension Scheme (NPS).
We request the Government to kindly include the following comprehensive term in the ToR:
“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension, parity in pension in the case of employees who have retired on any date (i.e., those who retired before 01.01.2026 or after 01.01.2026).”
B. Deletion of the Term “Unfunded Cost of Non-Contributory Pension Schemes”
Our gravest concern arises from the use of the phrase “unfunded cost of non-contributory pension schemes” in Para (e)(ii) of the ToR. This terminology fails to acknowledge the rights and interests of pensioners within the Commission’s scope and inappropriately equates constitutionally and judicially protected pension entitlements with mere fiscal liabilities.
Judicial Precedence: The Hon’ble Supreme Court of India has repeatedly affirmed the nature of pension, ruling that:
Pension is not a bounty but a right.
In the D.S. Nakara Judgment, the Court stated that “pension is a social welfare measure rendering socio-economic justice to those who in the heyday of their life ceaselessly toiled for the employer.”
In Vijay Kumar v. Central Bank of India, the Court ruled that pension is a constitutional right under Article 300A.
Discrimination and Inconsistency: It is pertinent to note that no such terminology has ever been used in reference to the pensions of MPs, Judges of the Supreme Court or High Courts, or other constitutional functionaries, whose pensions are also non-contributory and drawn from the Consolidated Fund of India.
Model Employer Obligation: The Government of India, as a model employer, has a moral and legal obligation to uphold the dignity and welfare of its retired employees. The omission of the word “Pensioners” is inconsistent with the Law and the directions of the Apex Court.
Therefore, we appeal for the deletion of the words “unfunded cost of non-contributory pension schemes” and their replacement with the following term:
“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension, irrespective of the date of retirement.”
The 8th CPC should also be mandated to review and recommend changes to other retirement benefits, such as the restoration of the commuted value of pension after 11 years and the grant of additional quantum of pension/family pension once every 5 years from the date of retirement, as recommended by the Parliamentary Standing Committee.
3. Restoration of the Old Pension Scheme
The approximately 26 lakh employees recruited after 01.04.2004, covered under the National Pension Scheme (NPS) or Unified Pension Scheme (UPS), are fervently demanding the restoration of the Old Pension Scheme (OPS) under CCS Pension Rules, 1972 (now 2021). Dissatisfaction with the UPS/NPS remains high, with the vast majority preferring the OPS.
We appeal for the inclusion of a mandate in the ToR for the 8th CPC to examine the existing pension schemes and recommend the beneficial one, specifically addressing the demand for the restoration of the Old Pension Scheme.
4. Extension of 8th CPC Benefits
The benefits of the 8th Central Pay Commission must be extended to centrally funded Autonomous and Statutory Bodies of the Government of India, as well as to the Gramin Dak Sevak (GDS), who serve as the backbone of the Postal Department. We request the inclusion of this extension within the ToR.
5. Interim Relief
We request the immediate grant of 20% as Interim Relief. This is necessary to offset losses due to the delay in the constitution and implementation of the 8th CPC recommendations, mitigate the effects of inflation, and boost the morale of the approximately 1.2 crores of Central Government employees who are vital to the functioning of the government machinery.
6. Comprehensive Health Schemes
The Commission should be mandated to review and recommend changes to the existing health scheme for Central Government employees and pensioners, including:
Extension of coverage to all employees working in Autonomous and Statutory Bodies of the Government of India.
The opening of more CGHS Wellness Centres across District Headquarters.
Ensuring cashless and hassle-free medical treatment to employees and pensioners.
Examining and suggesting changes to the CGHS scheme based on the recommendations of the Standing Committee of Parliament.
Sir, we are confident that the above proposals will be considered in their true perspective. We earnestly request your kind goodself to arrange for the issuance of appropriate amendments to the Terms of Reference (ToR) of the 8th CPC, ensuring the inclusion of all the aforementioned aspects.
With profound regards and gratitude,
Yours sincerely,
Sd/-
Avinash Rajput
Secretary General ,Bharat Pensioners Samaj
Copy to-:
Dr. Jitendra Singh ji, Hon’ble Minister of State (PP), PMO India, The Secretary (DoP&PW), Govtof India.
The Secretary, Department of Expenditure, Ministry of Finance, Govt of India.
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