Commuted Pension- Big news for pensioners. The long-standing demand for restoration of commuted pension is once again in discussion. Currently, this pension is restored after 15 years, but the employee organizations want the government to reduce this commutation period to 12 years. After the announcement of the 8th Pay Commission, the employees are hopeful that the government may consider their demand this time.

What is commuted pension?

When a government employee retires, he is given the option to take a lump sum amount from his monthly pension which is called commuted pension. For example, if a person commutes one-third of his pension, he gets that amount in one go, but in return he does not get the full pension for the next 15 years, rather some part keeps getting deducted.

What are the rules at present and what do the employees want?

According to the current rules, the government deducts the pension of retired employees for 15 years. That is, the lump sum amount is compensated monthly for 15 years. Employees want that this 15-year period be reduced to 12 years, so that retired government employees can get full pension soon. They say that a 15-year deduction is not right in view of rising inflation and expenses.

Employees already pay taxes and deductions during their service. If the government accepts this demand, then lakhs of retired employees will get a lot of relief.

What will be the benefit of restoration in 12 years?

If the government approves this proposal and the pension restoration period is reduced from 15 years to 12 years, then retired employees will start receiving their full pension three years earlier. This means that they will get more money every month and their financial condition will be better than before. It is being told that the proposal related to this change has reached the government and now the central government is considering it. However, till now no official statement has been issued by the government on pension commutation and restoration period.