Can Your Pension Be Reduced After Retirement? Centre Issues Key Clarification | Business News

Centre issues new guidelines on pension and family pension correction

The Centre has clarified that a pension or family pension can’t be reduced to the disadvantage of the pensioner once it has been authorised or revised under the Central Civil Services (Pension) Rules, 2021, unless a clerical error is detected later.

According to the department of Pension and Pensioners’ Welfare (DoPPW) latest office memorandum (OM), any such revision to the detriment of a pensioner or family pensioner can only be made if the error identified is clerical in nature. Even in such cases, if the mistake is found more than two years after the pension was authorised or revised, it cannot be corrected without the concurrence of the Department of Pension and Pensioners’ Welfare.

The OM further stated that concerned ministry and department have the discretion to decide whether a revision of pension or family pension is necessary, given the clerical error.

What Happens In Case Of Excess Payment?

The OM also elaborated that in case the revision results in excess payment of pension or family pension, then it’s up to the Department of Expenditure to determine whether recovery of the excess amount can be waived.

However, in case of overpayment happens due to misrepresentation of facts by the pensioner or family pensioner, the concerned department can take further investigation or action.

Pensioners have to refund the amount within two months if the decision is made not to waive the excess payment. If pensioners fail to submit the due amount in time, the excess amount will be deducted from future pension payments, either in one or more instalments.