New Delhi : The Central government’s recently notified Terms of Reference (ToR) for the 8th Pay Commission (8th CPC) has triggered sharp criticism from defence employee unions and retiree bodies, led by the All India Defence Employees’ Federation (AIDEF). Their core grievance: 69 lakh existing pensioners and family pensioners have been left out of the Commission’s mandate.
In a letter to Finance Minister Nirmala Sitharaman—also marked to Defence Minister Rajnath Singh—the federation has demanded a revised ToR that restores pension revision rights, reinstates the Old Pension Scheme (OPS), and aligns the 8th CPC’s scope with that of the 7th Pay Commission.
Why Pensioners Say the 8th CPC ToR Is Incomplete
AIDEF argues that while the 7th CPC explicitly included pensioners and addressed expectations of stakeholders, the 8th CPC ToR ignores critical sections of the workforce who have already served for decades.
Key objections raised:
1. No mandate for revising pensions of 69 lakh retirees
AIDEF says existing pensioners have been “kept out of the purview” of the 8th CPC despite their right to fair revision.
The 7th CPC had a clear clause:
“To examine the principles governing pension structure and revision for employees retired prior to the date of effect.”
2. No reference to the Old Pension Scheme (OPS)
- Over 26 lakh Central government employees have been demanding restoration of OPS in place of the contributory NPS.
- Despite the scale of this demand, the 8th CPC ToR does not mention OPS at all.
- AIDEF wants OPS restoration explicitly included, arguing that pension security cannot be left out of a
- comprehensive pay commission review.
3. Employees’ expectations missing from the ToR
A notable contrast highlighted by AIDEF is how the ToR of the 7th CPC addressed employee expectations, governance challenges, and modern administration needs.
8th CPC ToR on emoluments:
“Work out an emolument structure conducive to attracting talent… promoting efficiency, accountability and responsibility.”
7th CPC ToR on emoluments:
Included broader goals such as enhancing governance systems, responding to rapid economic and technological changes, and addressing stakeholder expectations.
AIDEF’s position:
The 8th CPC ToR appears narrower and should be redrafted to match the earlier scope.
4. No clarity on date of effect
The 7th CPC clearly specified the Commission must recommend the date of implementation of its decisions.
In contrast, the 8th CPC does not mention this, raising fears that the government may decide the effective date unilaterally.
5. Additional demands by pensioners
- AIDEF has also requested amendments to include:
- Pension revision for all who retired before 1 January 2026
- Restoration of commuted pension value after 11 years
- 5% enhanced pension every 5 years after retirement (as recommended earlier by the Parliamentary Standing Committee)
Why the Exclusion Matters
- AIDEF argues that many of the 69 lakh pensioners are in the “fag end of their lives,” and denying them revision at this stage is unjustified.
- They underline that pension is a right, not a concession, and exclusion from the 8th CPC directly impacts financial dignity.
- The federation hopes the government will amend the ToR to align it with historical precedent and include pensioners’ rights. The Finance Ministry has not yet issued a response.
- If updated, the 8th CPC could once again take a holistic view of both employees and pensioners — a move retiree bodies say is essential for fairness and parity.
