Commuted Portion of Pension Not Restored after 15 Years – What to Do ?

You have Completed 15 years from date of retirement/pension.  Your commuted portion of pension has not been restored till date. What should I do ?

To know more about this you must the basic concept of Commutation.  Commutation of pension refers to the lump sum payment of a portion of the pension in lieu of a monthly pension. In India, government employees, including Central Civil Services and Military pensioners, have the option to commute a portion of their pension at the time of retirement.  Defence pensioners are allowed to commute maximum 50% of their pension whereas the civilian employees are allowed only 40%.

Restoration of Commuted Pension.  The commuted portion of the pension is usually restored after a certain number of years. In India, the restoration period for the commuted pension is typically 15 years. This means that after 15 years from the date of commutation, the commuted portion of the pension is restored, and the pensioner starts receiving the full pension amount again.

It’s important to note that the restoration is automatic, and pensioners do not need to take any specific action to have their commuted pension restored after the completion of the restoration period i.e 15 years.

The commuted portion of pension is required to be restored 15 years from the date of payment of capitalized value of pension. This restoration is required to be done by the PDA/SPARSH automatically without any application from  the pensioner or authorization from any Govt Dept/ PCDA.

Action to be taken if my commuted portion not restored even after 15 years.

If your commuted portion of pension has NOT been restored even after 15 years, please write to your  Bank branch , if not migrated to SPARSH.  Once your pension system is transferred to SPARSH, you should contact to PCDA team SPARSH.

You might have noticed that, date of termination of deduction on account of commutation is mentioned on your Pension Slip provided by the SPARSH.  But this date may not be real.  So, you should take appropriate steps well in advance through SPARSH Grievance mechanism or PG Portal.  To know more about Grievance lodge on SPARSH and PG Portal is available in our website.