Meaning of Commutation of Pension:-Commutation is capitalization of a fraction of monthly pension. It is a lump sum payment of the commuted value of fraction of pension as per value given in Commutation Table.
Limits –(Rule-5) A Government Servant shall be entitled to commute for a lump sum payment, a fraction not exceeding one third *of his/her monthly pension. A pensioner against whom departmental or judicial proceedings are pending is, however, not eligible to commute a portion of his/her pension till completion of such proceedings. Family Pension can not be commuted.
Commutation without Medical Examination:- A pensioner can get his pension upto one third of his/her pension without medical examination if he/she applies for commutation before the expiry of one year from the date of retirement. In other cases it is on the basis of medical examination. In case of Departmental Enquiries, one year’s limit is reckoned from the date of issuance of final orders on completion of departmental/judicial proceeding Under Chapter IIIrd of Rajasthan Civil Services ( Commutation of Pension) Rules, 1996.
Note:–
1. Pensioner belonging to All India Services can get commuted a fraction up to 40% of his pension.
2. Pensioner belonging to Judicial Services, can get commuted a fraction up to 50% of his pension..
When commutation becomes absolute-
A. Following the date of retirement in the case where the application for commutation of pension is received by the Head of Office on or before the date of superannuation.
B. On the date the Head of the Office receive the application after retirement for commutation of pension without medical examination before the expiry of one year.
C. On the date on which the Medical Authority signs the medical report for commutation.
Calculation of Commutation Amount
Commuted value of pension =Amount to be commuted X 12 X Commutation Factor.
The commutation factor-It is taken for the commutation as relevant to age on next birthday or will, reference to indication of age of the pensioner recorded by the Medical Authority.
In the table given below, commutation factor is given as ‘number of years of purchase’. The amount to be commuted is to be multiplied by the ‘number of years of purchase’.
Commutation factor table
Commutation values, for a pension of Re.1 per mensem.
Commuted Value for a Pension of Re. 1/- per annum effective from 2nd Sep 2008
| Age next Birthday | Commutation value expressed as number of year’s purchase | Age next Birthday | Commutation value Expressed as number Of year’s purchase | Age next Birthday | Commutation value expressed as number of year’s 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 |
To see old Commutation Value for Pension from 1st March, 1971 click here.
NOTE:-
1. This Table is based on a rate of interest of 8.00 per cent per annum.
2. Commuted Value (CVP) = 0.4(Maximum) x P x CF x 12
where P = Pension Ordered CF = Commutation Factor
Reduction of Pension on commutation: –
An employee who applies for commutation on or before retirement, the commuted value becomes payable on the date following, the date of retirement and the pension is also reduced from the 1st of the month after payment of it or after three months of issue of Authority.
8 Restoration of commuted portion :-
Original Pension is restored after 14 years (15 years in case of retired Officers of AIS and Higher Judicial Services) from the date of Payment of Commutation. It is payable from the Ist of the following month .