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COMMUTATION OF PENSION:- Maximum 43% of retiring pension/Invalid pension/service element of disability pension is commutable for the grant of commutation of pension. Individual has to apply on the prescribed form. The commuted portion of pension shall be restored after 15 years from the date of payment of commuted value of pension.

The portion of the pension (maximum 43% of the basic pension) may be commuted based on the findings of Released Medical Examination (RME) or Released Medical Board (RMB)/Invaliding Medical Board (IMB) given in the longevity certificate without undergoing a further medical examination provided it is applied for within one year of the date of retirement. Thereafter commutation is subject to being declared fit by a Commutation Medical Board and these findings will be taken into account for commutation purposes. 

            The reduction in the amount of the pension on commutation will become operative from the date of receipt of the commuted value by the pensioner or at the end of three months after issue of authority for payment, whichever is earlier. If the pension is drawn through bank, the reduction in pension becomes operative from the date of credit of the amount in the bank account. 

MODEL CALCULATION OF PENSION/COMMUTATION                  

1.

Name ,IC No. & Rank

:

Brig. XXXXX

2.

Date of Commissioned

:

30.06.63

3.

Date of Retirement

:

30.11.99

4.

Qualifying Service

:

36 Yrs. 5 Months

 

            Plus Weightage

:

05 Yrs.

 

Total

:

41 Yrs. 5 Months

5.

Average Pay of Last 10 Months

 

 

 

w.e.f. 01.02.99 to 31.11.99 @Rs. 18050 X 10

=

Rs. 180500.00/-

 

Stg. Pay w.e.f. 1.2.99 to 30.11.99  @Rs. 450 X 10

=

Rs. 4500.00/-

 

Rank Pay w.e.f. 1.2.99 to 30.11.99 @Rs. 2400 X 10

=

Rs. 24000.00/-

 

Total

=

Rs. 2,09,000.00/-

 

Average Pay (Rs. 2,09,000.00/-) / 10

=

Rs. 20,900.00/-

6.

Retiring Pension (20,900 X 50 %)

=

Rs. 10450.00/- p.m. w.e.f. 1.12.99

 

 

 

Plus Dearness Relief @37% w.e.f. 1.12.99

7.

Commutation  of Pension

 

 

 

I.

Date of Birth

05.10.44

 

II.

Age next birthday 05.10.2000

56 Yrs.

 

III.

Purchase value at the age of 56 Yrs.

Rs. 11.42/-

 

IV.

Amount commuted Rs. 10450.00 X 43%

Rs. 4493.00/-

 

V.

Capitalised Value (Rs. 4493 X 11.42 X 12)         =

Rs. 6,15,720.72/-

Say Rs. 6,15,721.00/-

8.

Residual Pension Rs.10450-Rs. 4493

=

Rs.5957.00/-

 

Note :  Dearness Relief is payable on full pension without commutation i.e. Rs. 10450/-