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Friday, October 29, 2010

Higher (additional) commuted value for families of those deceased employees who had retired between 01 Jan 2006 and 02 Sept 2008 before opting

The Department of Pensions and Pensioners’ Welfare, in another pro-pensioner move, has ordained that families of those employees who retired between 01-01-2006 and 02-09-2008 and who died before exercising the option of claiming higher capitalised value, would remain eligible for the additional commuted amount.

The entire OM can be accessed by clicking here. The operative part is reproduced below :

"As per the provisions contained in para 9.3 of this Department’s OM No. 38/37/08-P&PW(A) dated 2nd September, 2008, the revised table of commutation value for pension will be used for all commutations of pension which become absolute after the date of issue of this OM. In the case of those pensioners, in whose case commutation of pension became absolute on or after 1.1.2006 but before the issue of this OM, the pre-revised Table of Commutation value for pension will be used for payment of commutation of pension based on pre revised pay/pension. Such pensioners shall have an option to commute the amount of pension that has become additionally commutable on account of retrospective revision of pay/pension on implementation of the recommendations of the Sixth Central Pay Commission. On exercising such an option by the pensioner, the revised Table of Commutation Value for pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension. In all cases where the date of retirement/commutation of pension is on or after 2.9.2008, the revised Table of Commutation Value for pension will be used for commutation of entire pension.

References have been received from various Departments seeking clarification from this Department whether the commutation value of additional pension in respect of such employees who had retired during the period between 1.1.2006 and 2.9.2008 and died before exercising option is payable to the eligible member of family or not. The issue has been examined in consultation with Ministry of Finance, Department of Expenditure who has observed that the Pay Commission’s intention was that the pensioner should exercise a conscious choice in view of the fact that the commutation table has changed w.e.f. 1.1.2006. As such, in these cases, the Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications. The intention was not to deny the higher capitalized value on account of revision of pension."

1 comment:

s.kanthiah said...

A very good point to debate. You have rightly said that the option given by the pensioner should hold good for the susequent revision also. Thank your for carifying such a valuable point Sir.

Exweltrust, Tirunelveli-Dist, Tamil Nadu.