No cut in pension of central govt employees, says Finance Minister Nirmala Sitharaman

The finance ministry on Sunday said there will be no cut in pensions to central government employees. The ministry clarified its position after reports that the government is planning to cut pensions.

New Delhi: The finance ministry on Sunday said there will be no cut in pensions to central government employees. The ministry clarified its position after reports which claimed that the government is planning to cut pensions.

"It is being reported that a 20 percent cut in central government pensions is being planned. This news is false. There will be no cut in pension disbursements. It is clarified that salaries and pensions will not be affected by government cash management instructions," the ministry said in a tweet.

The ministry's tweet was soon shared by Finance Minister Nirmala Sitharaman.

It is being reported that a 20% cut in Central Government Pensions is being planned.This news is FALSE. There will be no cut in pension disbursements. It is clarified that salaries and pensions will not be affected by Government Cash Management instructions.@PIBFactCheck https://t.co/hlZpnbxnJx — Ministry of Finance #StayHome #StaySafe (@FinMinIndia) April 19, 2020

The Centre further asserted that the Department of Pensions and Pensioners' Welfare (DoPPW) has noted that, in the wake of the current pandemic COVID-19 and the ensuing economic scenario, many rumors are afloat that the government is contemplating a reduction or stoppage of pension which has become a source of worry for the pensioners and stressed that no such rumor-mongering should be believed.

"As clarified earlier, it is being reiterated that there is no such proposal for reduction of pension and no action is contemplated by the government in this respect. Instead, the government is committed to the welfare and well being of the pensioners," the communique issued by the DoPPW said.

There are 65.26 lakh central government pensioners.