New Delhi, Aug. 27 -- Central government pensioners and employee organisations are seeking a reduction in the 15-year period for restoration of commuted pension. Several associations have urged the 8th Pay Commission to recommend restoration after 10 to 12 years, arguing that the existing rule is based on financial and actuarial assumptions that are several decades old.

Central government employees can commute up to 40% of their basic pension at retirement and receive the commuted amount as a lump sum. In return, the commuted portion is deducted from their monthly pension. Under the existing rules, the deducted pension is restored after 15 years.

Employee and pensioner organisations argue that this 15-year restoration period needs to be...