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Thursday, 2 September 2010

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%.

3 comments:

Ajaya said...

To my understanding the provision has been wrongly interpreted. What I understand is "If anyone has not opted for 50% of commutation, he can get the balance portion commuted in one or more parts"

KaladharPenumudi said...

i think if my pension is Rs 10000PM , with second commutation after 15 yrs ,I will be eligible for 50%i.e.5000*12*15 = 900000 as second commutation amount.
Is Correct ? can some one larify
P KaladharEx SGT 639121-G

Uma Shanker said...

commutation is paid on the basis og age of the pensioner not on the basis of period of commutation.As I understand a pensioner of 60 years will get commutation for 10.61 years.against 15 years.In case 15years commutation the amount will be 5000*12*10.61
UMA SHANKER AGARWAL
613934 CLK/ACCTS
3-10-2012

Salary hike to MPs, One Rank, One Pension

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