Pension can be cut only to fix clerical errors, says govt notification
New Delhi, Nov 13, 2025
Benefits cannot be reduced after a department has approved them, it says
The government has said that a pension or family pension sanctioned under the Central Civil Services (Pension) Rules, 2021, cannot be reduced to the disadvantage of the pensioner. The Department of Pension and Pensioners’ Welfare (DoPPW), through a recent Office Memorandum (OM), clarified that only clerical mistakes can justify any downward revision and even those require prior approval if detected after two years.
Pension cuts only in case of clerical error
According to the DoPPW, no ministry or department can arbitrarily revise or reduce an already authorised pension or family pension. If a clerical or factual mistake is discovered, for example, a miscalculation in basic pay or qualifying service, the department concerned may correct it. However, if the error surfaces more than two years after the pension was first sanctioned or revised, the change can only be made with the department’s approval.
Overpayment and recovery rules clarified
The memorandum also addresses situations involving overpayment of pension. If excess payment arises from a genuine clerical mistake, the Department of Expenditure will decide whether the excess amount can be waived.
However, if overpayment occurs due to misrepresentation or false information by the pensioner or family pensioner, the department has the right to recover the excess. In such cases:
The pensioner may be asked to refund the amount within two months.
If not refunded, the excess will be recovered from future pension instalments, either in one go or through phased deductions.
Fairness in pension calculation
The DoPPW also reiterated that pension should be calculated based on the rules applicable on the employee’s last working day, regardless of whether the employee retires, resigns, is discharged, or dies in service. This clarification ensures consistency across all ministries and departments and removes ambiguity around the applicable rules for employees leaving service under different circumstances.
Employees on sanctioned leave, under suspension, or absent at the time of retirement or death will continue to have those periods counted as part of their qualifying service. This means such employees or their families will not lose pension eligibility due to administrative or disciplinary circumstances.
Protecting pensioners’ rights
The clarification underlines the government’s intent to safeguard the rights of pensioners and their families, prevent arbitrary deductions, and ensure uniform pension administration. By setting clear timelines and approval procedures, the DoPPW aims to maintain transparency and protect retirees from financial uncertainty.
[The Business Standard]
