Restoration of commuted portion of pension after 12 years
Fifth CPC recommended reduction of the period from 15 to 12 years.
• It was not accepted by the Central Govt. whereas state Govts like Kerala, MP, Odisha and Punjab caused orders for restoration after 12 years.
• Interest charged for various advances like HBA is simple interest and not compound. As such there is no justification to recover more what it was advanced to retirees.
• The principal amount is fully recovered in 8.194 years. If it is 8% simple interest the interest for the commutation amount can be recovered within 2.66 years.
• The entire amount plus interest will be recovered within 10.85 years.
• Even after full recovery, the pensioners keep on paying for another 4.15 years.
• Risk factor for 4 years is exorbitant
• The death rate of India has witnessed significant decline. It was declined from 14.9 during 1971 to 6.0 during 2020. It is till reduced to 6.4 in rural and 5.1 in urban.
• From the Statistics, about 6% of the pensioners who are in the age group of 60 years to 70 years only have died. The risk factor is very less now.
• The life expectancy has raised to 69.7 years as per the report of the census commissioner. The Govt servant’s life expectancy as per WHO statistics is 77 years.
• Restoration of commuted portion after 12 years is ideal.
• The issue was discussed in the Standing Committee Meeting on 15.12.2023. The Govt side took a stand that Staff Side should wait till next pay commission and the demand is pre matured which was seriously protested.
• The Staff side emphasized that the DOP&PW has already recommended for restoration of Commuted pension after 12 years and the issue needs to be settled.
• DOP&PW and DOE will hold a meeting with Staff side to resolve the issue and if not resolved the same can be raised in the National Council JCM.

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Restoration of commutaion
Commuted pension
Pension