{
  "id": 3496369,
  "title": "8th CPC: Why pensioners want pension rule change",
  "url": "https://urgent.news/2026/08/26/8th-cpc-why-pensioners-want-pension-rule-change",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-26T10:47:45.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/save/8th-pay-commission-calculator-why-central-govt-pensioners-seek-15-year-commuted-pension-rule-change/articleshow/133538115.cms"
  },
  "original_language": "en",
  "account": "Eighteenth Central Pay Commission (8th CPC) pensioners are urging the government to reduce the period for restoring commuted pension from 15 years to 11 to 12 years. Commutation allows pensioners to receive up to 40% of their basic pension as a lump sum amount at retirement, which is then deducted from their monthly pension and restored after a certain period. Currently, the commutation period is based on parameters from four decades ago, which many pensioner associations argue are outdated.\n\nThe National Council of the Joint Consultative Machinery (NC-JCM), the main central government employee body, contends that the current 15-year restoration period was set in 1986 based on financial and actuarial parameters from that era. They argue that significant changes in interest rates, life expectancy, mortality rate, death rate, and actuarial risk factors since then warrant a fresh assessment of the restoration period.\n\nFor instance, a pensioner drawing a basic pension of Rs 35,000 monthly, who commutes Rs 1,200/year of their pension, would receive only Rs 9,833 in lump sum after applying a commutation factor of 8.194. However, in 10 years, they would have deducted Rs 12,000 from their monthly pension, far exceeding the initial lump sum received. With a 15-year restoration period, they would forgo Rs 18,000, nearly double the lump sum value.\n\nThe NC-JCM and pensioner associations maintain that the restoration period should be reviewed to reflect current actuarial, demographic, and financial data. A reduced commutation period of 11 to 12 years would benefit pensioners by saving them a significant amount of money over time.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}