Interest on delayed payment of commuted value of pension – Clarification: DOPPW OM dated 31.10.2022
No. 42/15/2022-P&PW(D)/7
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners’ Welfare
3 Floor, Lok Nayak Bhawan,
Khan Market, New Delhi-1 10003
Date:- 31st Oct, 2022
OFFICE MEMORANDUM
Sub:- Interest on delayed payment of commuted value of pension-Clarification regarding
In accordance with Rule 5 of CCS (Commutation of Pension) Rules, 1981, a Government servant can commute for a lump-sum payment of an amount not exceeding 40 per cent of his pension. In cases where a Government servant has applied for commutation of pension before superannuation, the commuted value of pension is to be paid at the time of retirement. In other cases, the commuted value of pension should be paid as soon as possible after it has become absolute
2. References are received in this Department seeking clarification whether any interest is required to be paid to the retired Government servant in cases where there is a delay in payment of commuted value of pension after it has become absolute.
3. It is clarified that in accordance with Rule 6 of the CCS (Commutation of Pension) Rules, 1981, in cases where the commuted value of pension is paid after retirement, the reduction of the amount of commuted pension from the monthly pension becomes operative from the date on which the Commuted value of pension is paid. As per Rule 10A of CCS(Commutation of Pension) Rules, the commuted amount of the pension is restored on completion of fifteen years from the date the reduction of pension on account of commutation becomes operative in accordance with Rule 6. Since the pensioner continues to receive full pension till the date of payment of commuted value of pension, the question of payment of any interest on delayed payment of commutation of pension does not arise.
4. The above clarification may be brought to the notice of the personnel dealing with the pensionary benefits in the Ministry/Department and attached/subordinate offices thereunder, for strict implementation. The above provisions of the rules may also be suitably incorporated in the replies to be filed in the court cases on this issue.
(Charanjit Taneja)
Under Secretary
1. All Ministries/Departments of the Government of India
2. C&AG of India, UPSC, etc.
Source: Pensioners Portal
Commutation of pension on more than one occasion – Clarification: DOPPW OM dated 31.10.2022.
No. 42/15/2022-P&PW(D)/6
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi-1 10003
Date:- 31st Oct, 2022
OFFICE MEMORANDUM
Sub:- Commutation of pension on more than one occasion — Clarification regarding
In accordance with Rule 5 of CCS (Commutation of Pension) Rules, 1981, a Government servant can commute for a lump-sum payment of an amount not exceeding 40 per cent of his basic pension.
2. References/representations have been received in this Department seeking clarification whether it is permissible for a person, who has commuted a percentage of his basic pension which is less than 40% of his basic pension, to commute a percentage of basic pension on a second or subsequent occasion within the overall maximum limit of 40%.
3. As per Rule 10 of CCS (Commutation of Pension) Rules, 1981, an applicant who has commuted a percentage of his final pension and after commutation his pension has been revised and enhanced retrospectively as a result of Government’s decision, the applicant shall be paid the difference between the commuted value determined with reference to enhanced pension and the commuted value already authorized. For the payment of difference, the applicant shall not be required to apply afresh. This Department’s OM No. 42/14/2016-P&PW (G) dated 24.10.2016 provides that those pensioners who retired from 01.01.2016 till 04.08.2016, i.e. the date of issue of orders for revised pay/pension based on the recommendations of the 7th CPC, may be given an option, in relaxation of Rule 10 of CCS (Commutation of Pension), Rules, 1981, not to commute the pension which has become additionally commutable on revision of pay/pension on implementation of recommendations of the 7th CPC.
4. There is, however, no provision in the Central Civil Services (Commutation of Pension) Rules, 1981 for commutation of a percentage of basic pension on a second or subsequent occasion within the overall maximum limit of 40%, if the pensioner had originally commuted a percentage of his basic pension which was less than 40% of his basic pension.
5. The above clarification may be brought to the notice of the personnel dealing with the pensionary benefits in the Ministry/Department and attached/subordinate offices thereunder, for strict implementation.
(Charanjit Taneja)
Under Secretary
- All Ministries/Departments of the Government of India.
- C&AG of India, UPSC, etc.
Source: Pensioners Portal