DESW & DOP&PW has issued suitable instruction regarding deduction of commutation of pension. This letter is issued by Department of Pension and Pensioners Welfare regarding clarification on deduction of commutation amount from family pensioner after death of service pensioner.
In this letter clearly mentioned that deduction of comuted amount not required to continue after death of service pensioner.it should be stoped and not deducted from family pensioners after death of service pensioner. It is very good information for pensioners. All service pensioners and family pensioners are required to refer this letter and keep it in your record for future references.
The rules and regulations regarding the deduction of commutation from family pension after the expiry of a pensioner in Central Government services may vary based on specific policies and guidelines issued by the government. However, I can provide you with general information on this topic.
- Commutation of Pension: Commutation refers to the partial conversion of a portion of the pension into a lump sum payment. The pensioner may opt for commutation at the time of retirement, which results in a reduction in the monthly pension amount.
- Family Pension: Family pension is a monthly payment provided to the eligible dependents of a deceased government employee/pensioner. It is payable after the death of the pensioner.
- Deduction of Commutation from Family Pension: After the expiry of a pensioner who had opted for commutation, the family pension payable to the spouse or eligible family members is calculated based on the reduced pension amount. The commuted portion of the pension does not form a part of the family pension.
- Calculation of Family Pension: The family pension is generally calculated as a percentage of the original pension amount, as specified by the relevant government rules. The commuted portion, which was converted into a lump sum payment, is not included in this calculation.
- Restoration of Commuted Portion: In some cases, the commuted portion of the pension may be restored after a certain period, usually 15 years from the date of commutation. Upon restoration, the original pension amount is re-established, and the family pension would be calculated based on the restored pension amount.
It is important to note that the specific rules and regulations regarding commutation and family pension deductions in Defence pensioners are reguklated by the orders of Oct 2022 which is available below. To obtain accurate and up-to-date information regarding your specific situation, it is recommended to consult the concerned authorities, such as the Department of Pension and Pensioners’ Welfare or the Pension Disbursing Agency in the Central Government/ Defence Pension.
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan.
Khan Market, New Delhi-110003
Date:- 25th Oct, 2022
Sub:- Clarification regarding whether deductions towards commutation are required to he made from family pension for the remaining period in cases ss here the pensioner dies before the restoration of commuted pension-reg
In accordance with Rule 5 of CCS (Commutation of Pension) Rules, 1981, a Government servant can commute for a lump-sum payment of an amount not exceeding 40 per cent of his pension. Further, in accordance with Rule 10-A of CCS (Commutation of Pension) Rules, 1981 the commuted amount of the pension shall be restored on completion of fifteen years from the date of reduction of pension on account of commutation becomes operative in accordance with Rule 6.
- References/representations have been received in this Department seeking clarification whether deduction towards commutation are required to be made from family pension for the remaining period in cases where the pensioner dies before the restoration of commuted pension.
- It is clarified that in such cases monthly commuted amount of pension is not required to be deducted from family pension and family pension shall he paid in full without any deduction in this regard.
(Charanjit Taneja) Under Secretary
- All Ministries/Departments of the Government of India (as per standard distribution list).
- C&AG of India, UPSC, etc. as per standard endorsement list.