Restoration of commuted portion of Pension to 12 years from the present 15 years
Government of India Initiates Restoration of Commuted Portion of Pension. Download Restoration of commuted portion of Pension to 12 years from the present 15 years in PDF.
In a recent development, the Ministry of Personnel, PG & Pensions has directed attention to the restoration of the commuted portion of pension, reducing the period from 15 years to 12 years. This decision follows deliberations prompted by a communication received from Shri C. Srikumar, General Secretary of the All India Defence Employees’ Federation, as conveyed in their letter dated 22nd April 2024 (Ref: 04/1004/Min./AIDEF/24).
Background and Rationale
The initiative aims to address concerns related to pension benefits, seeking to streamline and enhance pensioners' entitlements under government service rules. Currently, pensioners typically opt to commute a portion of their pension, thereby receiving a lump sum in exchange for reduced monthly payments over a specified period. The reduction period, previously set at 15 years, is now proposed to be shortened to 12 years.
Administrative Procedure
The Department of Personnel & Training has instructed concerned authorities to take necessary actions to implement this policy adjustment. All further developments and actions taken in response to this directive are to be promptly communicated to the originating applicant, ensuring transparency and effective execution.
Conclusion
This move underscores the government's commitment to revising policies that impact the welfare of retired personnel, ensuring that pension benefits remain robust and responsive to evolving needs. It is expected that this adjustment will provide greater financial flexibility and security to pensioners, aligning with broader efforts to enhance public sector employee welfare.
For further inquiries or updates on this matter, concerned parties are encouraged to contact the appropriate administrative channels specified in the memorandum.
This article summarizes the recent memorandum issued by the Government of India regarding the restoration of the commuted portion of pension. The decision to reduce the period from 15 years to 12 years aims to enhance pension benefits for retired personnel, reflecting ongoing efforts to improve public sector employee welfare.
