Every pensioner is eligible to commute a portion (maximum 1/3 of pension) of his monthly pension for a lump-sum payment, which is the commuted value of that portion of the pension. An employee or pensioner against whom departmental or judicial proceedings are pending is not eligible to commute a portion of his pension till completion of such proceedings. At the time of application for commutation, two passport size photographs will be submitted. One is to be attested & one without attestation.
1/3rd or 33.33% of basic pension.
Pensioner will get commuted value of pension without undergoing medical examination, if they apply within the expiry of one year reckoned from the date of retirement in the case of superannuation pension, Retiring pension, Compensation Pension (OM.NO.FMP.210/78/41, dated 26/08/80).
All pensioners applying for commutation after one year from the date of retirement can commute a portion of their pension only after they have been medically examined and declared fit by the appropriate medical authority.
The reduction in the amount of pension on commutation will become operative from the date of receipt of the commuted value by the pensioner or at the end of three months after issue of Commutation of Pension Payment Order, whichever is earlier. If the pension is drawn through bank, the reeducation in pension becomes operative from the date of credit of the amount in the bank account. A person who retire on superannuation and apply for commutation before the date of retirement, the commuted value becomes payable on the day following the date of retirement and reeducation in pension becomes operative from the same date. The commuted portion of pension is restored after 14years from the date of commutation.
Following the date of retirement in the case where the application for commutation of superannuation pension is received by the Head of Office on or before the date of superannuation.
|Flow Chart for Commutation of Pension||171.66 KB|
|Flow Chart For Commutation(Authority Copy Part)||406.51 KB|