Pensioners commutation recovery period: Voluntary Nature of Commutation

Voluntary Nature of Commutation: Pension commutation is optional, and retirees agree to the 15-year recovery period upon opting for it. Legal Grounds: No case has been made for the rule violating legislative competence or fundamental rights. As per Rule 10A of the CCS (Commutation of Pension) Rules, 1981, commuted portion of pension is restored after 15 years from the date of the receipt of the commuted value of the pension. (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. This interest rate on commuted value of pension is recoverable in 2.66 years. The Commuted Factor on the Next birthday after superannuation is 61 years, and the commutation value is 8.194 . Thus, total recovery period of the commuted amount is = 8.194 + 2.66 = 10.85 years. Even after full recovery, the pensioner keeps on paying for 15 years and thus he goes on to pay additionally for more than 4 years. (15 years minus 10.85 = 4.15 years). Thus, excess recovery is taking place for 4.15 years ...