The All India NPS Employees Federation has submitted a memorandum to the 8th Central Pay Commission seeking a guaranteed pension mechanism for lakhs of government employees covered under the National Pension System. According to the federation's proposal, pensioners should receive 50% of their final salary plus Dearness Allowance to ensure financial security in an increasingly volatile market environment. This demand comes as many NPS subscribers approach retirement with concerns about post-retirement income stability, particularly for lower-income workers and those with shorter service durations.
The demand addresses the fundamental difference between the Old Pension Scheme and the market-linked NPS. As reported by the federation, unlike the assured monthly pension under OPS, NPS returns depend heavily on investment performance, making retirement corpus growth vulnerable to market volatility. The federation argues that ongoing market fluctuations have impacted the growth of retirement corpus for several employees, with returns struggling to keep pace with inflation. According to AINPSEF, market-linked pension returns under the existing system have become increasingly uncertain due to fluctuations in financial markets and rising inflation, raising concerns about the future financial security of retirees.
The existing NPS contribution framework shows employees contributing 10% of their basic salary and DA to their NPS Tier-I accounts, while the government contributes 14%. According to the federation's proposal, the government should continue retaining its contribution share while also committing to a fixed minimum pension for retirees. The federation has recommended that the government continue contributing its share under the NPS while also guaranteeing a fixed minimum pension after retirement. This structure would help shield retired employees from market fluctuations and ensure stable post-retirement income.
Beyond retirement income security, the federation's memorandum includes comprehensive support for dependents. The proposal suggests family pension benefits equivalent to around 60% of the pension amount after the death of the pensioner, aimed at strengthening social security and providing financial sustainability for families. The federation has also raised concerns about employees in lower pay grades and those with shorter service durations, noting that some pensions remain as low as ₹300 to ₹3,000 per month. The organisation highlighted that employees in lower pay grades often retire with very limited pension support, particularly those who spent years in contractual, work-charge or daily wage roles before regularisation.
The 8th Pay Commission has initiated consultations with employees, pensioners and stakeholders through questionnaires and meetings focused on salary structure, minimum pay, pension benefits, annual increments and service conditions. Officials said the consultation process is intended to gather detailed feedback before recommendations are finalised for central government employees and pensioners. The discussions are expected to play a key role in shaping future salary and pension reforms under the 8th Pay Commission framework. The Commission has circulated a structured questionnaire seeking suggestions on key issues such as minimum pay, basic salary, annual increments, pension structure and pay levels, with inputs collected expected to shape recommendations for central government employees and pensioners.
