Government Policy on Additional Pension for Senior Pensioners
The government, following the recommendations of the 6th Central Pay Commission (CPC), has instituted an additional pension scheme aimed at supporting older pensioners. This additional pension is structured incrementally based on age, with specific percentages allocated as follows:
- 20% additional pension upon reaching the age of 80 years
- 30% upon reaching 85 years
- 40% upon reaching 90 years
- 50% upon reaching 95 years
- 100% upon reaching 100 years
The rationale behind this tiered approach is to provide older pensioners with enhanced financial support to meet their increasing health and living needs as they age.
In response to recommendations made by the Parliamentary Standing Committee regarding potential amendments to the additional pension, the government reviewed these suggestions as outlined in the committee’s 110th report dated December 10, 2021. Following this review, an action taken report was submitted on June 6, 2022. The subsequent 120th report from the committee, dated December 8, 2022, acknowledged the government’s actions but indicated that the committee would not pursue further changes at this time.
The additional pension is automatically disbursed by Pension Disbursing Authorities or banks when it becomes due, ensuring that pensioners receive their benefits without delay. The government has established guidelines to facilitate the timely payment of this additional pension, which is exclusively age-based.
To further assist pensioners amidst rising inflation and living costs, the government also provides Dearness Relief, equivalent to the Dearness Allowance, which is applicable to both the base pension and the additional pension. This measure aims to alleviate the financial burden on pensioners, ensuring they can maintain a reasonable standard of living as economic conditions change.
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(DEPARTMENT OF PENSION & PENSIONERS’ WELFARE)
LOK SABHA UNSTARRED QUESTION NO. 2991
(ANSWERED ON 19.03.2025)
ELIGIBILITY AGE FOR ADDITIONAL PENSION BENEFITS
Will the PRIME MINISTER be pleased to state:
(a) the rationale behind setting the eligibility age for additional pension benefits at 80;
(b) whether the Government is considering to reduce this age threshold to 65 years as recommended by the Parliamentary Standing Committee on Pensioner’s grievances and if so, the details thereof;
(c) the number of Central Government pensioners expected to benefit from the additional pension scheme and the estimated annual expenditure likely to be incurred under this scheme;
(d) the measures taken/being taken by the Government to ensure that pensioners receive their additional pension benefits in a timely and transparent manner and there are no delays or discrepancies in the payment process;
(e) whether the Government is considering to extend the additional pension benefits to State Government pensioners and other categories of retirees and if so, the timeline for implementing this extension; and
(f) the steps taken/being taken by the Government to address the concerns that the additional pension benefits may not keep pace with inflation and the mechanisms put in place to ensure that the benefits are indexed to rising living costs?
ANSWER
(a) to (f): Government has on the recommendation of the 6th CPC approved the quantum of additional pension of 20% on attaining the age of 80 years, 30% on attaining the age of 85 years, 40% on attaining the age of 90 years, 50% on attaining the age of 95 years and 100% on attaining the age of 100 years, on the rationale that the older pensioners require a better deal because their needs, especially those relating to health, increase with age. The recommendation of the Parliamentary Standing Committee for amendments in additional pension in its 110th report dated 10.12.2021 have been duly examined in the Government and an action taken report was submitted on 06.06.2022.The Parliamentary Standing Committee in its 120th report dated 08.12.2022 noted the action taken report and observed that the Committee do not wish to pursue this matter for now. The additional pension is automatically paid to the pensioner/family pensioner by the Pension Disbursing Authorities/Banks as soon as it becomes due. The instructions/guidelines, as issued by the Government from time to time, are there in place ensuring scrupulous and timely payment of additional pension. The grant of additional pension is age based only. To address the concern regarding inflation and rising living costs, Dearness Relief equivalent to Dearness Allowance is payable to the pensioners/family pensioners at such rate as Central Government may specify from time to time. The dearness relief is applicable on additional pension also.
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