Supreme Court to Scrutinize Pension Payment Method Amid Concerns of Financial Dignity

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Published on: November 24, 2023 at 01:50 IST

The Supreme Court is set to examine whether the payment of pensions to judicial officers based solely on a contributory pension scheme aligns with the standards of financial dignity.

The court, consisting of CJI DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra, addressed this matter during proceedings related to All India Judges Association v. Union of India.

In this case, the Supreme Court had established a timeline for the Center and the States to disburse pensions to retired judicial officers in accordance with the enhanced pay scale recommended by the Second National Judicial Pay Commission (SNJPC).

During the hearing, the issue of whether the payment of pensions solely through a contribution pension scheme complies with financial dignity norms was raised. The intervenor’s counsel argued that judges receiving pensions as low as Rs 15,000 to Rs 20,000 upon retirement could discourage talented individuals from considering a career in the judiciary.

The court acknowledged the significance of this issue and stated: “Notice has already been issued to all States and UTs.”

The matter is scheduled for further discussion in the third week of January 2024. In a related development, the Supreme Court provided a “final chance” to the Chief Secretaries of defaulting States and Union Territories to comply with its May 19 order.

The order, issued on May 19, 2023, mandated all States and UTs to submit a compliance affidavit confirming adherence to previous directives by July 30, 2023.

Previous orders emphasized the revision of the pay structure for judicial officers, urging the implementation of the enhanced pay scale from January 1, 2016.

The court directed the payment of arrears in three installments: 25% in three months, another 25% in the next three months, and the remaining balance by June 30, 2023.

As per the May 19 order, the revised rate of pensions approved by the Supreme Court was set to be payable by July 1, 2023.

Additional pension arrears, gratuity, and other retirement benefits were to be paid in installments—25% by August 31, 2023, another 25% by October 1, 2023, and the remaining percentage by December 31, 2023.

Case Title: All India Judges Association v. Union of India

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