Pensioners Sore Over Centre Directing 8th CPC To Review 'Unfunded Cost Of Non-Contributory Pension'

A comparative review of the ToR of the 8th CPC and the 7th CPC reveals that the government has suggested that the new panel should also keep in view the “unfunded cost of non-contributory pension scheme” while finalising its recommendations to the government.

While finalising the ToR for the 7th CPC, led by Justice Ashok Kumar Mathur, the government had asked the panel to examine, review, evolve, and recommend changes with regard to the principles that should govern the emoluments structure, including pay, allowances, and other facilities/benefits, besides the specialised needs of various departments, agencies and services, in respect to the six counts. 

This pertained to Central government employees - industrial and non-industrial, personnel belonging to the All India Services, personnel of the Union Territories, officers and employees of the Indian Audit and Accounts Department, members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament, and officers and employees of the Supreme Court.

Unfunded Cost Of Non-Contributory Pension

Notably, the government, at that time, did not make a mention of the "unfunded cost of non-contributory pension", which has now found a place in the ToR for the 8th CPC, which is headed by Justice Ranjana Prakash Desai.

The 8th CPC has its ToR on five counts, which include the economic conditions in the country and the need for fiscal prudence, the need to ensure that adequate resources are available for developmental expenditure and welfare measures, the unfunded cost of non-contributory pension schemes, the likely impact of the recommendations on the finances of the State governments, which usually adopt the recommendations with some modifications, and the prevailing emolument structure, benefits, and working conditions available to the employees of the Central Public Sector Undertakings (CPSUs) and the private sector.

Keeping the ToR in view, many in the government and also pensioners feel that this time, the government’s focus, while giving directions to the pay panel, is not on employees but the overall fiscal health of the country; and this appears not so encouraging.

Asking the Justice Desai-led panel to assess the impact of the "unfunded cost of non-contributory pension" is “ominous"   and “all of us who are getting pension need to keep a watch on this clause”, said a retired IAS officer.