7th pay commission latest news today: In a relief to Central Government pensioners, the Department of Pension and Pensioners’ Welfare (DoPPW) today (October 25, 2022) issued a clarification on payment of Dearness Relief (DR) after the commutation of pension. The DoPPW has also clarified the amount of pension to be considered for commutation.
As per Rule 52 of CCS (Pension) Rules, 2021, Dearness Relief on pension and family pension against price rise is granted to pensioners including the persons drawing compassionate allowance under Rule 41 and family pensioners at such rates and subject to such conditions as the Central Government may specify from time to time.
Removing doubts over whether the Dearness Relief is available on basic pension or pension as reduced after commutation, the DoPPW said DR is payable on the original basic pension.
“It is clarified that dearness relief is payable on the original basic pension before commutation or such basic pension before commutation as revised on implementation of recommendations of Pay Commission etc. and not on the pension as reduced after deduction of commuted pension,” it said.
Which pension can be commuted
The DoPPW has also removed the doubts over which pension shall be allowed to be commuted. As per 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.
“Doubts have been raised as to which pension i.e pension authorized at the time of retirement or the pension revised subsequently and payable at the time of application for commutation shall be allowed to be commuted,” the DOPPW noted.
According to 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 the Government’s decision, 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 the difference, the applicant shall not be required to apply afresh.
Read More: Bank Strike: Banking services across India to get affected on November 19 amidst nationwide protests
“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. The cases where the additional pension after 7th CPC has already been commuted will not be re-opened,” the DoPPW said.
“In cases where the pension was authorized on retirement before 01.01.2016 and the pensioner applied for commutation on or after 01.01.2016, the pension which was originally sanctioned at the time of retirement only shall be allowed to be commuted,” it added.
