The government has informed that issues related to delayed restoration of commuted pension for thousands of defence pensioners due to missing or mismatched records on the SPARSH pension portal are being addressed, and the matter has now been treated as resolved.
The update came during the 35th meeting of the Standing Committee of Voluntary Agencies (SCOVA), chaired by Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh on March 10, 2026.
What is pension commutation?
At the time of retirement, government employees can choose to commute a portion of their pension. This means they receive a lump-sum amount upfront in exchange for giving up a part of their monthly pension for a specified period.
Under existing rules, the commuted portion of pension is restored after 15 years from the date commutation becomes effective. Once restored, the pensioner starts receiving the full pension again.
Over the years, pensioners’ associations have also been demanding restoration of the commuted portion after 12 years instead of 15 years, arguing that the government recovers the lump-sum amount along with interest much earlier. However, no such change has been approved so far, and the restoration period continues to remain 15 years.
What was the issue?
The issue discussed in SCOVA was not about reducing the restoration period from 15 years to 12 years. Instead, it related to cases where restoration itself was getting delayed because of missing historical data or mismatches in records available on the SPARSH portal.
SPARSH is the defence pension administration system used for processing and managing pensions of defence pensioners.
According to the minutes of the meeting, restoration dates in some cases could not be accurately determined because old records from banks were either incomplete or unavailable. As a result, some pensioners continued to face deductions towards commutation recovery even after becoming eligible for restoration.
Around 12,000 cases had missing restoration dates
The Controller General of Defence Accounts (CGDA) informed SCOVA that after obtaining details from banks regarding the actual date of payment of commuted value of pension (CVP) and the date from which recovery started, both the recovery schedule and restoration dates were updated on the SPARSH portal.
The government said pensioners can raise grievances if they believe the restoration date recorded in SPARSH is incorrect. After verification, the date is corrected and any excess recovery made from the pensioner is refunded.
However, the minutes reveal that there were approximately 12,000 cases where restoration dates were not available.
In situations where banks were unable to provide historical records relating to the manual pension processing period, authorities have decided to determine restoration dates based on provisions contained in government orders issued in 1980 and 1990 governing pension commutation.
SCOVA closes the agenda item
After reviewing the action taken, the CGDA informed the committee that a mechanism has been put in place to resolve such cases.
Since pensioners have been provided a grievance redressal facility and restoration dates are being updated after verification, the department recommended that the issue be treated as closed.
The committee accepted the position and the agenda item was closed during the 35th SCOVA meeting.
What else happened in the SCOVA meeting?
SCOVA serves as a platform where pensioners’ welfare associations raise issues directly with government departments and ministries.
During the meeting, the Department of Pension and Pensioners’ Welfare highlighted several initiatives undertaken for pensioners, including:
-Comprehensive guidelines issued in September 2025 for timely payment of retirement benefits and issue of Pension Payment Orders (PPOs).
-Appointment of “Pension Mitras” to assist retirees in pension-related matters.
-National Pension Adalats, where more than 74% of grievances have reportedly been resolved on the spot across the last 15 Adalats.
-Reforms in the Central Government Health Scheme (CGHS), including revised package rates and easier access to consultations in empanelled hospitals.
In his concluding remarks, Jitendra Singh said SCOVA continues to play an important role in bringing pensioners’ concerns before the government and helping shape reforms aimed at improving ease of living for retirees.
Disclaimer: This article is based on the minutes of the 35th SCOVA meeting and official communications issued by the Department of Pension & Pensioners’ Welfare (DoPPW). Pensioners facing issues related to commutation restoration should verify their records on the SPARSH portal and contact the concerned authorities for case-specific resolution.