The Finance Division has reversed its recent policy on pension entitlements during re-employment, withdrawing with immediate effect the notifications issued earlier this year that regulated how retired officials could receive salary and pension concurrently.
In an Office Memorandum, the Finance Division announced the withdrawal of two earlier memoranda dated April 22, 2025 and June 19, 2025, which had laid down new rules governing pension payments for re-employed government retirees.
The April 2025 notification, issued on the recommendations of the Pay and Pension Commission 2020, had required officials re-employed after the age of 60 to opt for either a pension or a salary during their re-employment period, disallowing the receipt of both benefits at the same time.
Following objections raised by various stakeholders, the Finance Division had subsequently issued a revised notification in June 2025, partially relaxing the restriction. Under that arrangement, pensioners were allowed to continue drawing their pension during re-employment, provided their salary was reduced by an amount equal to the gross pension. This framework applied to re-employment under BPS, MP Scale, project pay scales, SPPS, and standard pay structures of autonomous and statutory bodies.
With the latest decision, both amendments have now been annulled, effectively restoring the position that prevailed before April 2025. The Finance Division has not specified whether fresh instructions will be issued or whether earlier long-standing rules will automatically apply.
