Provide increased rate of pension on attainment of 70 years of age.

Taking into account, the increased financial requirement of a pensioner, the earlier Pay Commission had recommended to raise the pension by 20% on attainment of age of 80.  This recommendation was implemented.  Many of the pensioners are compelled to spend huge sums of money on health related problems and other debilities once they attain the age of 70.  

AIDTOA, CCGGOO, the Pensioners Associations and others had represented before the 7^th CPC to increase the pension by 20% on attaining the age of 70 and a periodic rise to reach 100% on attaining the age of 90. The  CPC however, on obtaining the opinion from the Defence Ministry turned down this request, even though the Pension welfare department had suggested to increase the pension on attainment of the age of 75.  

 On such a crucial issue, it was unfortunate that the Pay Commission instead of arriving at an independent decision relied upon the opinion of the Defence Ministry.  We are not aware of the circumstances under which the Defence Ministry came to such an unhelpful conclusion. Over the years, as your goodself  is aware, the Government had been reducing the rate of interest on fixed term deposits, which had adversely affected the Pensioner community as most of the Pensioners have chosen to invest their retirement benefits on these instruments.

 While the  constant reduction of interest rate by the RBI and consequently by the Financial institutions may be  in consonance of the  sound macroeconomic  policy matters,  there is no way the pensioners could compensate for their reduction in monthly income. They face a piquant situation in as much as they face reduction of their income and an increase in their financial requirement simultaneously. 

 At the advance age, there is no cushion for them to absorb the unanticipated expenditure.  Having recognised the fact that the advanced age poses problems it would be in the fitness of things, that the pensioner is granted a small increase in their pension income.  We, therefore, request that the suggestion put forth by the Pensioner Community to increase the pension as suggested above.