The latest amendment to the Central Service Pension Rules, introduced through the Finance Act 2025, comes amid two long-running legal battles that have kept the government entangled in courtrooms since 2008-09. These cases-escalating from the Central Administrative Tribunal (CAT) to the High Courts and Supreme Court-have raised serious concerns over pension liabilities amounting to several thousand crores.
At the center of the dispute are the All India S-30 Pensioners Association and FORIPSO (Forum of Retired IPS Officers), both representing pre-2006 retirees affected by pension disparities. The issue originated from a 01.09.2008 Office Memorandum (OM) issued by the Department of Pension and Pensioners’ Welfare (DPPW), which allegedly created an unfair pension gap between pre-2006 and post-2006 retirees.
S-30 TO FORIPSO
All India S-30 Pensioners Association represents those who superannuated from service prior to January 1, 2006 and were placed in the S-30 pay scale or pre-2006 pay scale. After the recommendations of the 6th Pay Commission, the 2008-09 OM was issued by DPPW, allegedly bringing ‘disparity’ between the pension payable to pre-2006 and post-2006 pensioners.
It was alleged that many of the pre 2006 pensioners were now drawing lesser pension than the post-2006 pensioners who were in the lower pay scale of S-29 or S-28.
The FORIPSO contention was similar. It also challenged the OM alleging that this creates discrimination against the pre-2006 retiree IPS officers of DG rank officials by arbitrarily fixing their revised pension at the minimum level of the replacement pay scale irrespective of the number of increments earned by such a retired officer while in service and at a revised pension less than the retiree DG rank officers of junior batches who retired after January 1, 2006.
The two cases ultimately coalesced as well but it is the ongoing FORIPSO matter which has kept the Centre on its toes over the last few months.
While FORIPSO moved CAT on the matter in 2012, it won a judgment in its favour on January 15, 2015 where the government was asked to restore and revise the pension scale.
On non-implementation of the CAT order by the Centre, FORIPSO, moved a contempt case in 02.07.2015
The 2024 HC order
It is only last year- on 20.03.2024- that the HC ruled in favour of FORIPSO, ordering that benefit of revised pension and arrears be paid within three months and with effect from 01.01.2006 to several hundred pensioners.
The Financial Burden: A ₹25,000 Crore Dilemma
Beyond legal debates, financial implications are a major factor. FORIPSO estimates that each affected pensioner is owed arrears between Rs 14.5 lakh – Rs 16.5 lakh. With over 300 retired officials impacted, rough estimates suggest the Centre could face a pension bill of Rs 25,000 crore or more if the Delhi HC order is implemented.
