Govt Plans Major Pension Rule Changes: Relief Expected for Central Employees and Pensioners

At the 34th SCOVA (Standing Committee of Voluntary Agencies) meeting held on March 11, 2025, in Delhi, retired central government employees raised several issues about pension delays, the SPARSH portal, and the One Rank One Pension (OROP) scheme. The meeting was chaired by the Union Minister of State for Personnel.

Problems with SPARSH Portal Raised

Pensioners, especially older ones with incomplete records, are facing issues after being shifted to the SPARSH (System for Pension Administration – Raksha) portal. Many are struggling with delays in receiving additional pension, pension restoration, and commutation benefits.

SPARSH was launched in October 2020 by the Ministry of Defence to streamline pension processing. Earlier, pensions were managed through multiple agencies, causing delays and errors. SPARSH has moved the entire process online, directly transferring pensions to bank accounts. But challenges remain, especially for pensioners living abroad who face difficulties submitting Digital Life Certificates. To help resolve these issues, the government has asked the Ministry of Defence to release an FAQ guide soon.

Issues with Family Pension

Families of deceased pensioners often struggle to start receiving the family pension due to a lack of clear procedures. The Pensioners’ Association has requested the government to introduce a simple and uniform Standard Operating Procedure (SOP) to make the process quicker and easier.

Commutation Period May Be Reduced

Currently, those who take a lump sum advance of their pension (commutation) have the amount deducted over 15 years. Pensioners have now demanded that this recovery period be reduced to 12 years, citing lower RBI interest rates.

OROP Policy Discussion

Concerns regarding One Rank One Pension (OROP) were also raised. The government said the issue would be discussed with the Department of Expenditure to explore further steps.

Read More: EPFO 2025: Your EPS Pension Won’t Start Automatically — Here's What to Do!

Conclusion

The government has acknowledged the problems faced by pensioners and promised action. If the discussed changes—especially related to SPARSH, family pension procedures, and commutation periods—are implemented, they could significantly ease the lives of lakhs of retired central government employees and defence personnel. All eyes are now on how soon these reforms will be rolled out.

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