The Department of Pension & Pensioners’ Welfare under the Ministry of Personnel, P.G and Pensions has recently issued a clarification memo in reply to various representations/references received in regard to commutation value of pension for servants whose date of birth is on the first day of a month and retires on the last day of the preceding month.
The Department was dealing with the issue as to which commutation value will be applicable in the above mentioned scenario.
Central Government servants have an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to undergo medical examination by the specified competent authority.
The actual value of commutation of pension would depend on the date of retirement. It was clarified by the Department Under Secretary Charanjit Taneja that, according to Rule 6(1)(i-a) of the CCS(Commutation of Pension) Rules, in case of Government Servants who retire on attaining the age of 60 years, the age on next birthday will be 61 years, including in cases where the date of birth is the first of a month and the government servant retires on the afternoon of the last day of the preceding month.
Thus, the commutation value of 61 years (age on next birthday) was held to be applicable in this case.
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