Restoration of full pension after commutation - Govt. of Kerala

Government of Kerala

PENSION

CHAPTER VIII

COMMUTATION:

8.1.28

The permissible Commutation of Pension at present is 33 1/3 %  of the pension to be restored on completion of 12 years of retirement, as against 15 years of retirement applicable to central government pensioners. Representations were received from organizations and associations seeking changes in these rules as detailed below. 

a. There is need to increase the percentage of pension to be commuted.    

b. The restoration of full pension  after commutation should be effected at an earlier stage than 12 years. 

c. On the event of death of pensioner when family  pension is sanctioned commutation as is prevalent at the time of  retirement of Government Employee should also be granted to  family pensioner proportionate to the family pension. 

8.1.30

There is no justifiable reason to revise downward  the period of 12 years for restoration of full pension after commutation. The pensioners of Kerala  are beneficiaries to the  extent of 3 years as against Central Government employees and those of many other States in  securing restoration of  full pension. The benefit on account of  commutation also loses its significance  if this period is further reduced as the amount  that  becomes available in lump sums at the time of retirement will diminish.  The longer  period of restoration is better for the employee as  the  risk involving death  during the intervening period is taken care of   by drawing commutation pension in advance. 

LIC PENSIONERS CHRONICLE Tues., July 14, 2015 :

"....After the Supreme Court's Judgment in 1986(9th December, 1986, in Writ Petition Nos. 3958-61 of 1983 ), the deduction was restricted to 15years from the date of commutation...." --- M.Perumal

(Coutesy: P.Ramanathan)