Restoration Of Commuted Pension: Government Reiterates Policy Based On Supreme Court Judgements

Background

The Department of Pension & Pensioners’ Welfare has issued an official memorandum dated 23rd July 2025, in response to representations regarding the reduction of the commutation period of pension from 15 years to 12 years.

Subject of Representation

Many pensioners have been requesting that the commuted portion of their pension be restored after 12 years instead of the existing 15 years, citing financial hardship and previous precedents.

Government’s Clarification

Policy Authority:
- The Department of Pension & Pensioners’ Welfare is the nodal department for policies related to pensions and retirement benefits of Central Government civil employees under the Central Civil Services (Pension) Rules, 2021.
- Implementation of these rules is done by the respective Ministries/Departments/Organisations.
Legal Position on Commutation:
- The law regarding the commutation period has already been well settled by the Hon’ble Supreme Court in the case:
  - Writ Petition Nos. 3958-61 of 1983, “Common Cause Society & Others vs Union of India” (1987 (1) SSC 142).
  - The court considered all relevant factors such as interest rate, mortality rate, and the commutation table of 1986, and ruled that 15 years is an appropriate commutation period.
Delhi High Court Judgement:
- In WP(C) No.1222/2015 filed by the Forum of Retired IPS Officers (Foripso), the Delhi High Court on 17.01.2019 upheld that: “Pension, commutation of pension, etc., are policy matters decided based on Pay Commission recommendations.”
Supreme Court Dismissal of SLP:
- The Supreme Court in SLP No. 8852/2019 (arising from the Delhi HC judgement) dismissed the appeal on 15.04.2019, stating: “We have no reason to entertain this petition.”
Punjab and Haryana High Court Order:
- In CWP No. 9426 of 2023 (O&M) dated 27.11.2024, the Punjab and Haryana High Court also declined to restore commuted pensions after 12 years, impacting 808 writ petitions, and ordered recovery of pensions already released under interim orders.

Conclusion: Government’s Stand

The Government has concluded that: “In view of the above judgements/orders of Hon’ble SC, it has been settled that the matter regarding restoration period of commuted pension is to be decided by the Government.”
Therefore, the restoration period of commuted pension remains 15 years, unless a future government decision alters it.

Recipient of the Memorandum

The memorandum was addressed to:

Shri R. Krishnamoorthy,
General Secretary,
National Front of Postal and RMS Pensioners,
Tamil Nadu Circle,
98 East Street, Andarkottaram, PO Madurai – 625020