SC seeks reply of Centre, states on plea for restoring full pension of judicial officers

New Delhi: The Supreme Court on Friday sought the stand of the Centre and states on a plea for restoring the full pension of retired judicial officers, immediately after the recovery of the commuted pension amount, and not after the prevailing period of 15 years.

A bench comprising Chief Justice B R Gavai and Justices K Vinod Chandran and N V Anjaria took note of the submissions of advocate Gopal Jha, appearing for All India Retired Judges Association (AIRJA).

Jha said former judicial officers were at a disadvantageous condition due to the existing policy.

“Issue notice to the Centre and all the states,” the CJI said.

The AIRJA, representing state-level retired judicial officers’ associations across India, moved the apex court in a pending case of 2015 filed by the All India Judges Association concerning service conditions and pensionary benefits of judicial officers.

The AIRJA, represented by its Chairman, former Justice N Sukumaran, said pensioners, who opt for commutation receive a lump sum amount at the time of retirement to meet urgent needs such as housing, children’s education, or marriage expenses.

This amount is subsequently recovered by the government in installments through deductions from the pension, in a manner comparable to repayment of a loan through EMIs.

According to the rules, the commuted pension is deducted for a period of 15 years before full pension is restored.

However, AIRJA has contended that the entire principal amount along with interest at 8 per cent per annum stands fully recovered in less than 11 years.

The continuation of deductions beyond this period, the association submitted, was "arbitrary and unfair", and effectively penalised pensioners for money they never owed.

The plea, therefore, urged the bench to “consider the issue regarding restoration period of communication amount".

“Direct the respondents (Centre and states) to restore the full pension once the computation amount along with interest element, thereon recovered from the retired judicial officer(s) by quashing GOs, Memorandums, Circulars, Rules contrary to it,” it prayed.

Illustrating its point with calculations, the plea said that a judicial officer retiring at level J7 who commutes part of the pension receives approximately Rs 51.94 lakh as a lump sum.

With 8 per cent annual interest, the total repayment liability comes to about Rs 69.13 lakh and yet, over the 15-year deduction period, nearly Rs 95.08 lakh is recovered from the officer, an excess of nearly Rs 26 lakh, it added.

“By this method, the government continues to deduct pension for about five years even after recovering the entire principal and interest. In other words, pensioners end up repaying money which they never actually received,” the plea said.

It also cited the recommendations of the Second Judicial Pay Commission, which had observed that the commuted amount with interest was generally recovered within 11 years and suggested that continuation of recovery beyond 12 years was unreasonable.