Finance Minister may consider granting of Automatic Pension Revision

Finance Minister may consider granting of Automatic Pension Revision

A news Item posted in Business Standard regarding granting of Automatic Pension Revision every five years as follows

This would obviate the time consuming process – two to four years – of constituting a Central Pay Commission and the approval of its recommendations by the government once every 10 years

Finance Minister Arun Jaitley in his Finance Bill not only increased the salary, pension and allowances of the members of Parliament (MPs) from April 1, 2018, but also provided for automatic revision of their salary, pension and allowances every five years commencing April 1, 2023, based on the cost inflation index.

The finance minister may consider extending this kind of automatic revision of pay, pension and allowance every five years to the Central government employees and pensioners based on the All India consumer price index for industrial workers, with some weightage. This would obviate the time consuming process — two to four years — of constituting a Central Pay Commission and the approval of its recommendations by the government once every 10 years.

Similarly, Jaitley may consider granting of automatic pension revision every five years to the pensioners of financial institutions, who have been till date denied pension revision. The pensioners of financial institutions must be granted revision retrospectively from the date granted to government servants.

Source : BS