Many pensioners as well as the serving persons emailed me about the method of finding the Restoration Date of Commuted Portion of Pension. At my request, Mr. Amir Agha again sends the full detail of the same about which I was also not aware. The detail is as under:
Find the Restoration Date of Commuted Portion of Pension
Restoration of the commuted pension depends upon the age at the time of retirement. If the age on retirement was 60 years, then commuted part is restored after 15 years but for the employees who retired prior to 01-12-2001. For the employees who retired at the age of 60 years after 01-12-2001 the restoration of commuted portion of pension 12 years.
For those employees who retire at a younger age than 60, the restoration period increases. Restoration period is given are given as under against each age from 51 to 59. This table applies to pensioners retiring before 1.12.2001.
|Age Next Birthday||Number of Years Purchased|
Full Commutation Table 1986
Commutation Table 1986 is as under:
Full Commutation Table wef 01-12-2001
Full Commutation Table wef 01-12-2001 to onwards is as under
Commutation Table for the employees retired after 01-12-2001 is different from that table which issued on 01-07-1986. According to this table, the employees retired at the age of 60 years will get their commuted portion restored after 12 years i.e at the age of 72 years.
Let us say that the pensioner receives 12.3719 years pension in advance by surrendering the commuted pension. On the expiry of 12 (rounded off) years, that advance is adjusted, and the commuted part is restored. Since the advance amount involves financial benefit as an interest-free lump sum, hence the more years purchase is more beneficial to the pensioner.