Additional Pension Age Remains 80: Why Parliamentary Standing Committee changed its earlier Proposal to Lower it to 65 Years ?

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 of Lowering Age to 65 Years for Additional Pension

Additional Pension Age Remains 80 – No Change

The Government of India has addressed concerns regarding the eligibility age for additional pension benefits, currently set at 80 years. A Parliamentary Standing Committee previously recommended lowering this threshold to 65 years to provide earlier financial support to pensioners. However, after review, the government has decided to maintain the existing structure, which grants incremental pension increases starting from 80 years.

Key points from the government’s response on Additional Pension Age :

• Existing Pension Structure: Pensioners receive additional benefits starting at 80 years, increasing in percentage at higher age brackets, with 100% additional pension granted at 100 years.
• Review of Lowering Age Threshold: The proposal to reduce the eligibility age to 65 was examined, but the Parliamentary Standing Committee ultimately decided not to pursue the matter further.
• Timely Payments & Transparency: The government ensures automatic disbursement of additional pensions through banks and pension-disbursing authorities.
• Inflation Adjustment: Pensioners receive Dearness Relief (DR) linked to inflation, applied to both base pensions and additional pension amounts.

While no immediate changes are planned, the issue remains under observation, particularly concerning inflation and rising living costs.

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

2991. SHRI MANICKAM TAGORE B:
      SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:
      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
MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE (DR. JITENDRA SINGH)

(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.

View the Lok Sabha Q & A reg Additional Pension Age