GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(DEPARTMENT OF PENSION & PENSIONERS’ WELFARE)
RAJYA SABHA UNSTARRED QUESTION NO. 430
(TO BE ANSWERED ON 22.07.2021)
CALCULATION OF COMMUTED PENSION
430 SHRI NEERAJ DANGI:
Will the PRIME MINISTER be pleased to state:
(a) the formula for calculating the commuted pension for employees of Union Government while deciding the recovery period of commuted pension for employees;
(b) the rate of interest for FD, when 14 year was decided as the recovery period for commuted pension of employees;
(c) whether this recovery period is justified in the present scenario when the rate of interest for FD is 5-6 per cent only, if so, the details thereof; and
(d) whether Government is willing to revise this period of recovery of commuted pension, if so, by when and if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE (DR. JITENDRA SINGH)
(a) to (d): The lump sum commuted value of pension payable to a pensioner, who applies for such commutation, is calculated in accordance with the Table of the values appended to the Central Civil Services (Commutation of Pension) Rules, 1981. A copy of the Table, presently applicable for calculating the commuted value of pension, is at Annexure. The commuted amount of pension is restored on completion of 15 years from the date the reduction of pension becomes operative.
The existing Table of the values for calculation of lump sum commuted value of pension was incorporated in the Central Civil Services (Commutation of Pension) Rules, 1981 in implementation of the recommendations of the Sixth Central Pay Commission vide Department of Pension & Pensioners’ Welfare O.M. No. 38/37/08-P&PW(A) dated 2nd September, 2008 . This Table is based on LIC (94-96) Ultimate Tables and rate of interest of 8%. While recommending the aforesaid Table, the Sixth Central Pay Commission did not recommend any change in the period of 15 years for restoration of commuted pension. The Seventh Central Pay Commission also did not recommend any change in the said period for restoration of commuted pension.
Hon’ble High Court of Delhi, vide order dated 17.01.2019, dismissed a Writ Petition No. 1222/2015 seeking reduction in the period for restoration of commuted pension. An SLP(C) No. 8852/2019 filed against the said order of Hon’ble High Court of Delhi was also dismissed by Hon’ble Supreme Court on 15th April 2019.
At present, in view of the above, there is no proposal to revise the period of restoration of commuted pension.
ANNEXURE REFERED TO IN PARA 1 OF ANSWER TO RAJYA SABHA UNSTARRED QUESTION NO 430 DATED 22.07.2021
COMMUTATION VALUE FOR A PENSION OF Re.1 PER ANNUM
|Age next Birth day||Commutation value expressed as number of year’s purchase||Age next Birth day||Commutation value expressed as number of year’s purchase||Age next Birth day||Commutation value expressed as number of year’s purchase|
[Basis: LIC (94-96) Ultimate Tables and 8.00% interest]
Related to Your Search:
- Implementation of the recommendation of the 7th CPC : Option regarding commutation of additional amount of pension
- Implementation of the recommendation of the 7th CPC – option regarding commutation of additional amount of pension
- No proposal for restoration of old pension scheme in respect of Central Government employees recruited on or after 01.01.2004
- Notification regarding Indian administrative Service (Commutation of Pensions) Amendment Regulations, 2013
- Restoration of full pension of absorbee pensioners in view of the order dated 01.09.2016 of Hon’ble Supreme Court in Civil Appeal No. 6048/2010 and Civil Appeal No. 6371/2010
- Pension Revision Who are absorbed in Central Public Sector Undertakings – Confederation
- Employees Pension Scheme – Important amendments made in EPS-95
- Government proposes to increase the minimum pension for EPF pensioners?
- Retired Central Employees Win War in Supreme Court – Alas! Stalled by the Government : Pension News