Calculation of commuted pension for employees of Union Government: Rajya Sabha QA
Calculation of commuted pension for employees of Union Government and proposal to revise the period of restoration: Rajya Sabha QA
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(DEPARTMENT OF PENSION & PENSIONERSโ 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 employeesอพ
(b) the rate of interest for FD, when 14 year was decided as the recovery period for commuted pension of employeesอพ
(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 thereofอพ 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?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTERโS 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 & Pensionersโ 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.
Honโble 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 Honโble High Court of Delhi was also dismissed by Honโble 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.
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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
Ageย nextย Birthday | Commutationย value expressed as number of yearโs purchase | Ageย nextย Birthday | Commutationย value expressed as number of yearโs purchase | Ageย nextย Birthday | Commutationย value expressed as number of yearโs purchase |
20 | 9.188 | 41 | 9.075 | 62 | 8.093 |
21 | 9.187 | 42 | 9.059 | 63 | 7.982 |
22 | 9.186 | 43 | 9.040 | 64 | 7.862 |
23 | 9.185 | 44 | 9.019 | 65 | 7.731 |
24 | 9.184 | 45 | 8.996 | 66 | 7.591 |
25 | 9.183 | 46 | 8.971 | 67 | 7.431 |
26 | 9.182 | 47 | 8.943 | 68 | 7.262 |
27 | 9.180 | 48 | 8.913 | 69 | 7.083 |
28 | 9.178 | 49 | 8.881 | 70 | 6.897 |
29 | 9.176 | 50 | 8.846 | 71 | 6.703 |
30 | 9.173 | 51 | 8.808 | 72 | 6.502 |
31 | 9.169 | 52 | 8.768 | 73 | 6.296 |
32 | 9.164 | 53 | 8.724 | 74 | 6.085 |
33 | 9.159 | 54 | 8.678 | 75 | 5.872 |
34 | 9.152 | 55 | 8.627 | 76 | 5.657 |
35 | 9.145 | 56 | 8.572 | 77 | 5.443 |
36 | 9.136 | 57 | 8.512 | 78 | 5.229 |
37 | 9.126 | 58 | 8.446 | 79 | 5.018 |
38 | 9.116 | 59 | 8.371 | 80 | 4.812 |
39 | 9.103 | 60 | 8.287 | 81 | 4.611 |
40 | 9.090 | 61 | 8.194 |
ย [Basis: LIC (94-96) Ultimate Tables and 8.00% interest]
Source: Rajya Sabha