No Change in Age Limit for Additional Pension Benefits: Centre

The Government of India has reaffirmed that the eligibility age for additional pension benefits for Central Government pensioners will remain at 80 years, despite earlier suggestions by a Parliamentary panel to reduce it to 65. This clarification came in a written response by Dr. Jitendra Singh, Minister of State for Personnel, Public Grievances and Pensions, in the Lok Sabha on March 19.

Why 80 Years? Government Explains Rationale

Responding to Unstarred Question No. 2991, raised by MPs Shri Manickam Tagore B and Shri Vijayakumar alias Vijay Vasanth, the Minister stated that the existing age slab for additional pension was based on recommendations by the 6th Central Pay Commission (CPC). The logic, according to the government, is that “older pensioners require a better deal because their needs, especially those relating to health, increase with age.”

Currently, the structure of additional pension benefits for Central Government pensioners is as follows:

80 years: Additional 20% of basic pension
85 years: Additional 30%
90 years: Additional 40%
95 years: Additional 50%
100 years: Additional 100%

Parliamentary Panel’s Recommendation Examined and Set Aside

In its 110th report dated December 10, 2021, the Parliamentary Standing Committee on Pensioners’ Grievances had recommended reducing the threshold age to 65 years, noting the increasing life expectancy and financial needs of older citizens.

However, the government responded with an Action Taken Report submitted on June 6, 2022, and the Committee, in its 120th report (dated December 8, 2022), acknowledged the government’s stand and decided not to pursue the matter further at this time.

No Plans to Extend to State Pensioners

On the question of whether the scheme would be extended to State Government pensioners or other categories of retirees, the government gave no indication of such plans or a timeline for any such expansion.

Timely and Transparent Disbursement Ensured

The Minister also assured that additional pension is disbursed automatically by banks and pension disbursing authorities once a pensioner reaches the eligible age. Existing instructions and guidelines, issued periodically, are aimed at ensuring timely and transparent payments without delays or discrepancies.

Addressing Inflation: Dearness Relief Also Applies to Additional Pension

To counter concerns about rising living costs and inflation eroding pension value, the government emphasized that Dearness Relief (DR)—equivalent to the Dearness Allowance (DA) paid to serving employees—is also applicable on the additional pension amount. This mechanism helps index pension benefits to inflation, thereby offering some financial relief to elderly pensioners.

See original PQ: