Grant of annual increment to pensioners and family pensioners.

ALL INDIA PENSIONERS ASSOCIATION OF CBIC

President: Secretary General:

A. K. Sharma Ravi Malik

Mob. 9815300006 Mob. 9868816290

Vice Presidents: A. Venkatesh, N. N. Lal, J. P. Sharma, Santanu Roy, Anand Kishore Joint Secretaries: S. 

Chandrasekar, Rajender Kumar, Atar Singh, Subrata Choudhury, B. C. Barthwal Finance Secretary: Raj 

Kumar Chief Advisor: Lokanath Mishra Advisors: Ramesh Babu, G. C. Roul Organising Secretary: C. 

Sastry Organising-cum-Office Secretary: V. K. Sharma

ADDRESS FOR COMMUNICATION: 240, Razapur, Ghaziabad-201002 (U.P.)

Email- ravimalik_sweet@yahoo.com

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REF No. 03/22 Dated 23.02.22

To,

Sh. V. Sriniwas,

Secretary, Department of Pension and Pensioners' Welfare, 

Lok Nayak Bhawan,, Khan Market New Delhi.

Sub: Grant of annual increment to pensioners and family pensioners.

Sir,

Kindly refer to your office letter issued vide F. No. 38/02(01)/2022-P&PW(A) (7691) Dt. 20.01.22 

addressed to various departments regarding additional quantum of pension on attaining the age of 65, 

70 and 75 years based on 110th report of Parliamentary Standing Committee to give due justice to 

pensioners and family pensioners.

2. It is submitted with due regards that it is really a welcoming step and was long needed for

the pensioners and family pensioners. But it seems that they need even a better deal because of their 

various needs being increased with age and also because of recovery of approximate double the 

commutation value in case of commutation of pension.

3. According to the present scheme, a consolidated amount reckoned at the commutation value 

of 8.194 years is disbursed to the pensioner at the time of retirement whereas recovery is affected for 

15 years, i.e, for approximately double the commutation value. As per a Note prepared by Ministry of 

Personnel, Public Grievances and Pensions, Department of Pension & Pensioners' Welfare {File 

F.No.42/8180/2011-P&PW (G)}, the rate of interest at which commuted value of pension is fully 

recovered is 20.7% per annum in the case of employees who retired at the age of 60 years after 

01.01.06. This is, in fact, gross injustice to the poor pensioners. It is also worth to submit that it is 

helplessness of the employees to get the pension commuted at the time of retirement due to their 

prevailing circumstances and need to meet various expenses after retirement. The fact is that they are 

forced to get the pension commuted to fulfil instant family obligations because of the fact that amount 

of pension is even less than the actual cash in hand as salary on account of no allowance except DA 

being granted to the pensioners and family pensioners. The family pension also becomes half of the 

pension on demise of the pensioner.

4. The pension structure gets seriously dis-aligned as 50% increase in living price takes place 

even in less than 5 years. This results in considerable erosion of the financial position of the pensioner 

and family pensioner. Dearness Relief does not adequately take care of the inflation at this level. 

Working employees are rightly getting automatic relief by way of 25% increase in their allowances with 

every 50% rise in Dearness Allowance alongwith annual increment in pay. As pensioners do not get 

any allowance or annual increment, they feel discriminated and helpless in the present scenario of high 

inflation, climatic changes including incidence of pesticides/chemicals & rising pollution. Old age 

disabilities/diseases also set in by the time an employee retires and go on manifesting very fast needing 

additional finances to take care of these disabilities and diseases. Senior citizens, during their 

advanced age, have also to bear additional financial burden due to social & family obligations.

5. In view of the above, it is requested that the government may also kindly consider to grant 

annual increment to the pensioners and family pensioners at a fair rate to be decided by the 

government itself in addition to the additional quantum of pension after every five years.

Thanking you, 

Yours sincerely,

 

(RAVI MALIK),

Secretary General.