To have some immediate and medium-term effect on State finances, a few parametric changes in the current pension scheme for both the existing employees and pensioners become inevitable.
These include immediate withdrawal of fixing of pensions on the basis of only last one month’s pay, wherever applicable, eliminating wage indexation, wherever applicable; and maximum permissible commutation amount to be brought down from 40 per cent of Basic Pension to 33 1/3 per cent (1/3rd).