Pension related updates are published here to spread awareness and get the legitimate rights of the veterans and family members. A significant clarification issued by the Department of Pension & Pensioners’ Welfare (DoPPW), Government of India, has brought much-needed relief to pensioners’ families. As per Office Memorandum No. 42/15/2022-P&PW(D)/5 dated 25 October 2022, if a pensioner dies before the completion of the 15-year commutation recovery period, no deduction on account of commuted pension shall be made from the family pension.
This clarification settles a long-standing confusion regarding whether the balance commuted portion of pension would continue to be recovered from the family pension after the death of the pensioner.
What is Pension Commutation?
At the time of retirement, a government employee is allowed to commute (convert) up to 40% of their pension into a lump-sum payment. In return, a corresponding portion is deducted from the monthly pension.
Under the CCS (Commutation of Pension) Rules, 1981, this reduction continues for 15 years, after which the commuted portion of pension is restored.
The Issue Faced by Families
In many cases, pensioners pass away before the expiry of the 15-year commutation recovery period. This led to several questions:
- Will the remaining commuted amount continue to be recovered from the family pension?
- Will the family receive a reduced pension?
- Can the government recover the balance commuted amount from the family?
Various representations were submitted to the Government seeking clarification on this issue.
Government’s Clarification
The Department of Pension & Pensioners’ Welfare has now categorically clarified that:
Where a pensioner dies before the restoration of the commuted portion of pension, the monthly commuted amount is not required to be deducted from the family pension. Family pension shall be paid in full without any deduction on this account.
In simple terms:
No commutation deduction from family pension.
Family pension will be paid at the full admissible rate.
No recovery of the balance commuted amount from the family.
Family members will not bear any financial liability arising from the pensioner’s commutation.
Illustrative Example
Suppose a pensioner retired on 1 January 2020 and commuted 40% of his pension.
- The commutation recovery period would ordinarily continue until 31 December 2034.
- However, if the pensioner passes away in 2028, before completion of the 15-year period:
The family pension will be paid in full.
There will be: No deduction towards commutation. No recovery of the remaining commuted amount. Full family pension payable to the eligible family member.
Importance for Ex-Servicemen and Defence Pensioners
Although the clarification has been issued under the CCS (Commutation of Pension) Rules, 1981, the principle is highly relevant for Ex-Servicemen (ESM), Defence Pensioners, and Family Pensioners as well.
Wherever a bank, Pension Disbursing Authority (PDA), or pension sanctioning authority is continuing commutation-related deductions from family pension after the death of the pensioner, the affected family may seek review of the case by citing this Office Memorandum.
What Should Family Pensioners Do?
If:
- The pensioner died before completion of the 15-year commutation period; and
- Commutation deductions are still being made from family pension,
the family pensioner may submit a representation to the concerned bank or pension authority along with:
- Copy of the PPO.
- Death Certificate of the pensioner.
- Family Pension sanction documents.
- Copy of DoPPW O.M. No. 42/15/2022-P&PW(D)/5 dated 25.10.2022.
Conclusion
This clarification is a major welfare measure for pensioners’ families. The Government has clearly stated that family pension cannot be subjected to recovery of the commuted portion of pension after the death of the pensioner.
As a result, eligible family pensioners are entitled to receive full family pension without any deduction towards commutation, even if the pensioner passed away before completion of the 15-year commutation recovery period.
Key Takeaway
Big Relief for Pensioners’ Families!
If a pensioner dies before completion of the 15-year commutation recovery period:
No commutation deduction from family pension.
Full family pension will be paid.
No recovery of the balance commuted amount.
Financial security for widows, dependent parents, children, and other eligible family pensioners.
Share this important information with pensioners, ex-servicemen, family pensioners, and retired government employees so that no eligible family is deprived of its rightful pension benefits. 🇮🇳