Background: What is Pension Commutation?
Under the Central Civil Services (Commutation of Pension) Rules, 1981, a government servant (including defence civilian pensioners and similar categories) is allowed to commute up to 40% of his pension.
- This means the pensioner receives a one-time lump sum amount in advance.
- In return, a reduced pension is paid every month.
- As per Rule 10-A, the deducted (commuted) portion of pension is automatically restored after 15 years from the date of reduction.
This system is widely used by pensioners, including many Ex-Servicemen (ESM), to meet post-retirement financial needs such as housing, medical expenses, education of children, or debt repayment.
The Practical Problem Faced by Families
A serious issue arose in cases where:
- A pensioner had commuted a portion of pension, and
- Unfortunately, the pensioner passed away before completion of 15 years, i.e., before restoration of the commuted portion.
The Key Question
👉 Should the remaining commuted amount continue to be deducted from the family pension payable to the widow / family?
Different pension disbursing authorities were following different practices, leading to:
- Confusion
- Unnecessary deductions
- Financial hardship to widows and dependents
- Repeated representations by families and ESM organisations
Government of India Clarification (Office Memorandum dated 25 October 2022)
The Department of Pension & Pensioners’ Welfare (DoPPW), Ministry of Personnel, PG & Pensions, Government of India, issued a clear and final clarification through an Office Memorandum No. 42/15/2022-P&PW(D)/5 dated 25.10.2022.
What the OM Clearly States
If a pensioner dies before restoration of commuted pension, no deduction towards commutation shall be made from the family pension.
In Simple Terms
- The monthly commuted portion stops with the death of the pensioner
- Family pension must be paid in full
- No recovery or continuation of commutation deduction is permitted
- This applies irrespective of how many years of commutation were remaining
Legal & Rule Position Explained Simply
- Commutation is a personal option exercised by the pensioner.
- The recovery of commuted value is linked only to the pensioner’s life.
- Family pension is a separate statutory benefit, not a continuation of reduced pension.
- Therefore, once the pensioner is no more:
- The Government cannot recover the balance commuted amount
- The family cannot be penalised for an event beyond their control
This clarification is fully in line with:
- Principles of pension law
- Welfare intent of family pension
- Judicial reasoning followed by courts in similar cases
Why This Clarification is Extremely Important for ESM Families
Many Ex-Servicemen and defence pensioners:
- Opted for commutation at retirement
- Passed away early due to illness, injury, or service-related health conditions
- Left behind widows and dependents who already face emotional and financial stress
This OM ensures that:
- Widows receive full entitled family pension
- No illegal or arbitrary deductions are made
- Financial dignity of ESM families is protected
Common Issues Still Being Faced on Ground
Despite this clear order, some families still face:
- Continued deduction by banks or DPDOs
- Lack of awareness at lower administrative levels
- Delay in correction and refund of wrongly deducted amounts
- Demand of unnecessary documents
This is where professional guidance and representation becomes crucial.
Support & Assistance by ESM Infoclub
ESM Infoclub provides dedicated support to Ex-Servicemen and their families in pension-related matters.
Our Services Include:
- ✅ Family pension correction & restoration cases
- ✅ Stopping illegal commutation deductions
- ✅ Representation to Bank / DPDO / PCDA
- ✅ Interpretation of pension rules, OROP, disability pension
- ✅ Legal guidance in pension & welfare matters
- ✅ Support for widows, dependents & disabled soldiers
- ✅ Education & employment guidance for ESM dependents
Who Can Contact Us?
- Widows of Ex-Servicemen
- Family pensioners facing deductions
- ESM families confused about pension rules
- Pensioners requiring official clarification support
Conclusion
The Government of India has unequivocally clarified that:
Family pension must be paid in full and without any deduction towards commutation if the pensioner dies before restoration period.
Any deduction in such cases is against rules and must be immediately stopped.
If you or any ESM family member is facing such an issue, do not struggle alone.
ESM Infoclub stands committed to protecting the rights, dignity, and financial security of Ex-Servicemen families.
📌 For guidance and support, reach out to ESM Infoclub through the official support channels www.support.esminfoclub.com
Authority for the same can be downloaded here – DOWNLOAD
