The 8th Pay Commission has now entered its final stretch. It will soon complete 11 months since its constitution on 3 November 2025. The commission recently wrapped up its meetings in Chandigarh on 18 September and is now gearing up for key discussions in Bengaluru and Mumbai in October 2026.
These meetings provide a platform for eligible employee unions, associations and organisations to present their grievances and views on key issues such as the fitment factor, salaries, allowances, pension reforms and other related matters.
Against this backdrop, the Bharat Pensioners' Samaj (BPS), an organisation representing central government pensioners, has urged the Centre and the 8th Pay Commission to reconsider the existing 15-year restoration period for commuted pensions and reduce it to 11 years.
The demand was raised by BPS secretary general Avinash Rajput in a letter on 21 September 2026, to the chairperson of the 8th Pay Commission and the Department of Pension & Pensioners' Welfare.
The demand follows a 16 September judgment of the Himachal Pradesh High Court inBal Dev & Others v. State of Himachal Pradesh & Others. The court did not reduce the existing 15-year period but called for the issue to be examined rationally and objectively in light of changing actuarial and economic conditions.
Why do pensioners want the 15-year period reviewed
Under the existing rules, eligible central government pensioners covered by the Old Pension Scheme (OPS) can commute up to 40% of their basic pension as a lump-sum payment at retirement. The commuted portion is then deducted from their monthly pension and restored after 15 years.
BPS and other pensioner organisations argue that the actuarial assumptions underlying pension commutation date back several years. Furthermore, the current central government commutation table came into effect on 1 January 2006.
BPS has highlighted changes in commutation factors, interest and discount rates, as well as rising life expectancy and changing mortality patterns. It has been pointed out that the commutation factor at age 58 has fallen from the historical 10.46 to 8.194 for central government employees.
Changes proposed to the 8th Pay Commission by BPS
BPS has urged for a fresh actuarial review covering commutation factors, interest rates, discount rates, mortality data and the actual recovery period. It has requested a reconsideration of the 15-year restoration period and has proposed 11 years as an immediate measure, subject to actuarial assessment.
It has also highlighted the need for an expert committee comprising actuaries, government representatives, pensioner organisations, and the 8th pay commission in order to discuss and resolve these issues amicably.
Along with this, they have sought amendments to the CCS (Commutation of Pension) Rules, with a view to extending any revised provision to existing pensioners where legally and administratively feasible.
The issue will eventually depend on an evidence-based actuarial assessment and any subsequent decision by the government and the 8th Pay Commission panel.