Rajasthan Pensioners Demand End to Excess Commutation Recovery and Age-Based Pension Increments

Jaipur- The Rajasthan Shikshak Sangh (Siyaram) has urged the Rajasthan government to implement the Supreme Court and Central Administrative Tribunal (CAT), Mumbai’s rulings regarding commutation recovery for pensioners. The organization seeks to end deductions for commutation recovery after 11 years and six months and demands an age-based increment in pensions post-retirement.

Arun Vyas, the State Educational Cell Co-Secretary of the organization, highlighted that several judicial bodies, including the CAT Mumbai and the Supreme Court, have deemed deductions for commutation recovery beyond 11 years and six months as unlawful.

However, the Rajasthan government continues these deductions for up to 15 years, resulting in an additional financial burden on pensioners for three years and six months. Vyas argued that the government lacks the authority to extend these recoveries beyond the legally stipulated period and emphasized the need to align Rajasthan’s practices with the judicial directives.

The organization also appealed to the Rajasthan government to establish a committee to recommend incremental pension benefits for senior citizens, similar to measures taken by the Uttarakhand government. Under Uttarakhand’s model, pension increments of 5% at age 65, 10% at age 70, and 15% at age 75, as well as enhanced family pension provisions, have been proposed. The Rajasthan Shikshak Sangh Siyarama has urged the Rajasthan government to adopt a similar approach and submit a report within one month.

Supreme Court Upholds High Court Order on Commutation Recovery

On October 25, 2024, the Supreme Court dismissed a Special Leave Petition (SLP) filed by Punjab National Bank (PNB) challenging the Punjab and Haryana High Court’s July 18, 2024, judgment. The High Court had ruled that commutation recovery should be completed within 11 years and six months, ordering a halt to any further deductions. While PNB sought to explore alternative legal options, the dismissal of the SLP has upheld the High Court’s decision, providing significant relief to pensioners.

The CAT Mumbai’s recent ruling on October 11, also barred commutation recovery for pensioners beyond 12 years. This, combined with the Supreme Court’s decision, strengthens the case for uniform implementation of these guidelines across India, including Rajasthan.

Despite these favorable judicial decisions, no comprehensive government circular has been issued to ensure automatic relief for pensioners. As a result, the burden falls on pensioner organizations to approach courts for implementation. Vyas called for a collective Public Interest Litigation (PIL) to enable uniform benefits for all pensioners and to avoid the financial and procedural challenges associated with filing individual petitions.

The Supreme Court’s judgment has bolstered pensioners’ rights, but coordinated legal and administrative efforts are required to ensure they reap the benefits without unnecessary litigation.