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DOPT Order:

Order is regarding Payment of Commutation value of additional amount of pension in respect of employees who retired on/after 01.01.2006 but before 02.09.2008 and expired before exercising option for commutation of additional amount of pension.

 

F.No. 38/79/09-P&PW(G)

Government of India

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners’ Welfare

 

3rd Floor, Lok Nayak Bhavan

Khan Market, New Delhi- 110003

Date 27th October, 2010

 

OFFICE MEMORANDUM

Commuted-Pension-CG-Employees Subject: Payment of Commutation value of additional amount of pension in respect of employees who retired on/after 01.01.2006 but before 02.09.2008 and expired before exercising option for commutation of additional amount of pension.

 

As per the provisions contained in para 9.3 of this Department’s OM No. 38/37/08-P&PW(A) dated 2nd September, 2008 , the revised table of commutaion value for pension will be used for all commutations of pensioners in whose case commutation of pension became absolute on or after 01.01.2006 but before the issue of this OM, the pre-revised Table of Commutation value for pension will be used for payment of commutation of pension based on pre revised pay/pension. Such pensioners shall have an option to commute the amount of pension that has become additionally commutable on account of retrospective central pay commission. On exercising such an option by the pensioner , the revised table of commutation value for pension will be used for the commutation of the additional amount of pension that has become commutable on account of retirement/ commutation of pension is on or after 02.09.2008, the revised table of Commutation value for pension will be used for commutation of entire pension.

 

2. References have been received from various Departments seeking clarification from this Department whether the commutation value of additional pension in respect of such employees who had retired during the period between 01.1.2006 and 2.9.2008 and died before exercising option is payable to the eligible member of family or not.

 

The issue has been examined in consultation with Ministry of Finance, Department of Expenditure who has observed that the pay Commission’s intention was that the pensioner should exercise a conscious choice in view of the fact that the commutation table has changed w.e.f 01.01.2006. As such, in these cased, the Rule 10 of CSS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications. The intention was not to deny the higher capitalized value on account of revision of pension.

 

3. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their, UO NO. 456/EV/2010 dated 18.10.210.

 

V.K Wadhwa

Under secretary to the Government of India

 

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2 Responses to Pension Commutation to employees who retired on/after 01.01.2006 & before 02.09.2008

  1. S.D.Kahaley Says:
  2. The author of this article is a ex.Central Govt Employee.During my service period I had opportunity to be in close association of pensioners.I being Pay and Accounts officer for long 19 years and having served in various Ministries.Out of my enquisity I have also peeped in to the history of pension etc.Succinctly,except family pension, which is a welfare measure all other Pensions are portion apportioned from salary during service period
    Govt. of India, by extending Medical facility to pensioners has minimised the pennyless pang of old age to a large extend.There are many pensioners who are hand-to-mouth and Celebrations are more or less a part of history for them.
    It is a fact that Govt. of India is paying some amount to the Govt. Servents particularly in socalled Non-productive Departments just before the two major festivals viz.Pooja(Dassera)and Deepawali.Obviously,inter-alia, this payment is keeping in view the unability of Govt. servents to celebrate festivals out of their 12 months salary.
    On the same anology can we not put up a praposal to GOI.to consider payment of ex-gratia to pensioners too? This will enable the low paid pensioners also to celebrate festivals along with the society. This may look like demanding more but the ground reality deserves it.After all it is ex-gratia and the financial condition does not improve after being rendered jobless as against the primary needs which remains unchanged rather it worsens afterwards.

    There is another view I would suggest. The superannuation is link with age only.There are many pensioners who are fit physically,mentally and financially too and are ready to serve the Nation free of cost. Their wisdom which is acquired during service period is not of much use out side Govt.and is simply going waste. Can we not propose Govt. to device some methology to tap the otherwise being wasted wisdom free of cost? This will be SERVICE TO NATION.

    May be the delinetated views are appreciated and new era of resiprocal aid begins.




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