How to Restore Commuted Pension (Step-by-Step Guide)

Many pensioners are unsure about when and how their commuted pension gets restored. Some even think they need to apply separately. The good news is: restoration of commuted pension is automatic in most cases.

Let’s break it down, calmly and clearly.

What Is Restoration of Commuted Pension?

When a government employee retires, they are allowed to commute (take a lump sum of) a portion of their pension. Because of this, their monthly pension is reduced.

Restoration of commuted pension means:

The full pension amount is restored after a fixed period, without any repayment.

---

When Is Commuted Pension Restored?

The commuted portion of pension is restored after 15 years from the date of commutation.

Important points to note:

• The 15-year period is counted from the date the commuted pension was paid, not from the date of retirement.
• Restoration happens automatically on completion of 15 years.
• No interest is charged, and no recovery is made from the pensioner.

---

Do You Need to Apply for Restoration?

In most cases: No application is required

• Pension disbursing authorities (banks / treasury) restore the pension automatically.
• The full pension reflects in the monthly pension after completion of 15 years.

However, in practice, delays or omissions do occur. In such cases, an application may be required.

---

How to Restore Commuted Pension (If Not Done Automatically)

If your pension has not been restored even after 15 years, follow these steps.

Step 1: Check the Date of Commutation

Verify:

• Date on which commuted value of pension was paid
• Pension Payment Order (PPO) details

This information is available in:

• PPO copy
• Pension bank records
• Pension papers at the time of retirement

Step 2: Contact Your Pension Disbursing Authority

Approach:

• Your pension-paying bank branch, or
• Treasury / PAO / CPPC (depending on your case)

Ask them to verify whether the 15-year period has been completed.

---

Step 3: Submit a Simple Request (If Needed)

If required, submit a written request mentioning:

• PPO number
• Date of commutation
• Date on which 15 years were completed
• Request for restoration of commuted pension

Attach:

• Copy of PPO
• Proof of identity
• Bank passbook copy (if asked)

---

Step 4: Follow Up and Confirmation

Once processed:

• The full pension amount will be credited
• Arrears (if any) from the due date will also be paid

---

Is Medical Examination Required for Restoration?

No.
Medical examination is required only at the time of commutation, not for restoration.

Common Misconceptions About Restoration of Pension

• ❌ “I have to repay the commuted amount”
  ✔️ No repayment is required.
• ❌ “Restoration starts after age 70/75”
  ✔️ Restoration is strictly after 15 years from commutation, regardless of age.
• ❌ “I must apply in advance”
  ✔️ Restoration is automatic; apply only if delayed.

---

What If the Pensioner Has Passed Away?

If the pensioner passes away before completion of 15 years, restoration does not arise, since reduced pension continues only during the pensioner’s lifetime.

Family pension is governed by separate rules.

---

Quick Checklist for Pensioners

• ✔️ Note the date of commutation
• ✔️ Calculate completion of 15 years
• ✔️ Check pension amount after that month
• ✔️ Contact bank if restoration is missing

---

Final Word

Restoration of commuted pension is a right, not a favour.
In most cases, it happens smoothly and automatically—but staying informed ensures nothing is missed.

If you’re nearing the 15-year mark, it’s wise to keep your PPO details handy and monitor your pension credits.