Pension Restoration: JCM Urges PM to Slash ‘Unfair’ 15-Year Wait to 12 Years in 8th CPC
By News Desk | New Delhi | Updated: Dec 31, 2025, 08:30 IST
In what could be a massive win for nearly 70 lakh central government pensioners, a high-stakes battle is brewing over the restoration of commuted pension. As the 8th Pay Commission (CPC) begins its deliberations, the National Council (Staff Side) of the Joint Consultative Machinery (JCM) has formally moved a proposal to reduce the recovery period from 15 years to 12 years.
The timing is critical. With the 7th CPC era officially ending tonight, the focus has shifted to the “financial logic” of pension recovery. Employee unions argue that the current 15-year rule is a relic of high-interest eras and no longer reflects the economic reality of 2026.
The Actuarial Argument: Why 15 Years is Overdue for a Change
Under the existing 1981 rules, an employee can “sell” up to 40% of their monthly pension for a lump-sum amount at retirement. However, the government takes 15 years to restore that deduction. The JCM, in its latest memorandum to the Prime Minister, pointed out that the government actually recovers the entire commuted amount—along with interest—in approximately 10 to 11 years.
“Continuing the deduction for 15 years essentially means the government is making a profit off its own retired workforce,” a senior member of the JCM told our correspondent. The push is now to align the restoration with actual recovery costs, ideally at the 12-year mark, or even 11 years as demanded by some radical federations.
Fact-Check: Viral Claims vs. Ground Reality
Over the last week, social media has been flooded with claims that the Supreme Court has already ordered a reduction to 10 years and 8 months. However, retirees must tread carefully. As of December 31, 2025, no such judicial order exists. The 15-year rule remains the law of the land until the 8th Pay Commission’s recommendations are officially notified and accepted by the Cabinet.
The 8th CPC Roadmap: What to Expect?
| Key Demand | Status Quo | 8th CPC Target |
|---|---|---|
| Restoration Period | 15 Years | 12 Years |
| Commutation Factor | Based on 2008 Table | Revised for 2026 Life Expectancy |
| Benefit Start Date | Immediate | Retrospective from 01.01.2026 |
The Arrears Opportunity
If the 8th Pay Commission includes this revision in its final report, it is highly likely that pensioners who have already completed 12 years of retirement will receive immediate restoration and potentially arrears for the “excess” years of deduction. This would provide a massive financial cushion for those aged 72 and above.