DA ORDERS FOR PENSIONERS ISSUED

DA ORDERS FOR PENSIONERS ISSUED. PLEASE CLICK HERE FOR COPY

DA/DR hike of 10% is Approved by Cabinet w.e.f.1.7.2010 to Employees and Pensioners

Release of additional instalment of dearness allowance to Central Government employees and dearness relief to Pensioners due from 1.7.2010
The Union Cabinet today decided to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2010 representing an increase of 10% over the existing rate of 35% of the Basic Pay/Pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

COMMUTATION OF PENSION FOR SECOND TIME AFTER RESTORATION OF EARLIER COMMUTATION

ALL THE VETERAN BROTHERS ARE REQUESTED GO THROUGH THE HAND BOOK ON PENSIONS WHERE IT IS CLEARLY STATED THAT THE PENSION CAN BE COMMUTED MORE THAN ONCE PROVIDED THE TOTAL COMMUTATION PORTION DOES NOT EXCEED 50% OF THE PENSION.

THE EXTRACT OF THE SAID HAND BOOK IS REPRODUCED BELOW

COMMUTATION OF PENSION (PAGE 13 OF HAND BOOK)
14. Following are the salient aspects of the Commutation of pension: -
(a) Personnel can commute a portion of their service pension not exceeding 50% of their
pension. Relief with pension is not commutable.
(b) Pension may be commuted at any time after retirement/ release/ Invalidment. It can
also be commuted more than once provided the overall commuted pension is within the
maximum limits of 50%.
(c) Individuals who apply for commutation of pension within one year of date of discharge
are exempted from civil medical examination and the medical certificate issued at the time of
release medical examination is accepted by the Pension Sanctioning Authority.
(d) Age of pensioner for commutation purpose is taken as the age he will attain on the next
birthday following the date on which the commutation becomes absulute. Commutation
table is attached as Appendix-‘B’.
Note 1: The individual is paid residual pension after the commutation. However, he is
entitled for DR on full Basic Pension (including the commuted amount).
Note 2: Commuted portion of pension will be restored by Pension Disbursing Office (PDO) on
completion of 15 years from the date of actual commuted value of pension paid/deduction of commuted
portion of pension. PDOs are to restore the commuted portion of pension automatically in terms of
PCDA(P) circular No 28/GI/C/4/Vol-IX/Tech dated 13 Jun 2002. However, it is prudent on the part of
the pensioner to remind his PDO in writing to restore the commuted value of pension. A format of
application for restoration of commuted portion of pension after 15 years is attached as Appendix-‘C’.

The required application is attached at right side of this page.

SUGGESTION: IT IS REQUESTED THAT ONLY THOSE EX-SERVICEMEN WHO ARE REALLY IN NEED OF MONEY MAY APPLY FOR THIS SECOND COMMUTATION AS 50% OF YOUR PENSION IS REDUCED FOR ANOTHER 15 YEARS AFTER YOU GET THIS LUMP-SUM AMOUNT.THE LATEST COMMUTATION TABLE DRASTICALLY REDUCED THE PURCHASE VALUE OF COMMUTATION.THE EARLIER COMMUTATION TABLE WHICH WAS BASED ON 4.75% IN 1971 INTEREST RATE IS NOW REVISED TO AROUND 8%.