7th Pay Commission Pension Latest News: The Department of Pension and Pensioners’ Welfare (DoPPW) has clarified that there is no provision in the Central Civil Services (Commutation of Pension) Rules, 1981 for the commutation of a percentage of basic pension on a second or subsequent occasion.
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 basic pension.
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The DoPPW has issued the clarification after receiving references/representations seeking clarification on 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%.
In an Office Memorandum (OM) dated 31st October 2022, the DoPPW explained the following rules:
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 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.
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The DoPPW’s OM dated 24.10.2016 provided 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 Pay Commission, 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.
“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,” the DoPPW said.
