Government Announces Major Relief for Central Employees and Pensioners: No Arbitrary Pension Cuts Allowed Now

New Delhi (The Uttam Hindu): In a big relief to crores of central government employees and pensioners, the Centre has clarified that once a pension or family pension is finally authorized, it cannot be reduced arbitrarily unless a clear clerical or calculation error is proven. The directive has been issued by the Department of Pension and Pensioners’ Welfare (DoPPW) under the Ministry of Personnel, Public Grievances and Pensions.

According to the new order, if any error is detected in a pension or family pension after more than two years, prior approval from the DoPPW will be mandatory before making any reduction. The office memorandum stated:

"Once the pension or family pension has been finally authorized or revised under Rule 66(1) of the CCS (Pension) Rules, 2021, it shall not be revised to the disadvantage of the pensioner unless a clerical error is found."

The department further said, "If such an error is detected after two years from the date of pension authorization or revision, no downward adjustment shall be made without the consent of the DoPPW."

This move is significant as several cases had emerged where pension amounts were reduced or recovery notices were issued years after retirement, citing "erroneous calculations." With this new directive, such practices will now come to an end.

What if excess pension is paid by mistake?

The DoPPW has also clarified that if a pensioner receives excess payment due to an administrative mistake and not because of any false information provided by the pensioner, the concerned ministry will decide whether to recover or waive off the amount.

Before recovery, the ministry must consult the Department of Expenditure. If recovery is approved, the pensioner will be given a two-month notice to return the excess amount voluntarily. If the pensioner fails to do so, the amount can be recovered in installments from future pension payments.

The DoPPW memorandum stated:

"If, after revision of pension or family pension, it is found that excess payment has been made not due to any misrepresentation by the pensioner, the concerned ministry must consult the Department of Expenditure to decide whether recovery is necessary or may be waived."

The Pension Department has directed all ministries and departments to ensure strict compliance with this order and to circulate it across all branches and pension sections to avoid unnecessary inconvenience to retirees in the future.

This decision aims to bring greater transparency and restore trust in the pension system, ensuring that senior citizens are not subjected to arbitrary deductions years after retirement.