Restoration of Commuted Portion of Pension after 12 years instead of 15 years: RSCWS writes to Dr. Jitendra Singh

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Restoration of Commuted Portion of Pension after 12 years instead of 15 years: RSCWS writes to Dr. Jitendra Singh

Restoration of Commuted Portion of Pension to Central Government Pensioners after 12 years of Commutation instead of 15 years as at present

RAILWAY SENIOR CITIZENS WELFARE SOCIETY
(Estd. 1991, Regd. No. 1881 – Under Registration of Societies Act),
IDENTIFIED BY DOP&PW GOVT. OF INDIA – UNDER PENSIONERS’ PORTAL
MEMBER, SCOVA (STANDING COMMITTEE FOR VOLUNTARY AGENCIES)

No. RSCWS/HO/CHD/ Memo MOS P&PW/2022-25

Dated: 12-12-2022

Dr. Jitendra Singh,
Minister of State, Government of India,
Deptts. Of Personnel, Public Grievances & Pension,
North Block, New Delhi – 110001.

Respected Sir,

Sub: Restoration of Commuted Portion of Pension to Central Government Pensioners after 12 years of Commutation instead of 15 years as at present.

1) We draw kind attention of the Government and seek your benign intervention towards the injustice being done to the Central Government Pensioners in respect of Restoration of Commuted portion of Pension, being done after 15 years of the Commutation.

2. The 5th CPC, in para 136.10 recommended that the commutation value in respect of employees superannuating at the age of 60 years and commuting a portion of pension within a period of one year, would be equal to 9.81 years’ (purchase). After adding thereto a further period of two years for recovery of interest, it would be reasonable to restore the commuted portion of the pension after 12 years, instead of 15 years as at present.

3. These recommendations of the 5th Pay Commission were not implemented by the Government even though the rates of Interest have been drastically reduced over the years.

4. Life Expectancy: Average life expectancy between the period 2002-06 and 2013-17 increased by 5.7 years.

Year Life Expectancy
2002-06 64.7 years
2003-07 65.0 years
2004-08 65.4 years
2005-09 65.7 years
2006-10 67.7 years
2007-11 66.5 years
2008-12 67.0 years
2009-13 67.5 years
2010-14 67.9 years
2011-15 68.3 years
2012-16 68.7 years
2013-17 70.4 years
2014-18 69.4 years

5. The interest on commuted value of pension is recoverable in 2.66 years. Take an Example ,of a 60 years retiree; Age Next birthday is 61 years, then the commutation value is 8.194. Thus, total recovery period of the commuted amount is = 8.194 + 2.66 = 10.85 years. Even after full recovery, the pensioner keeps on paying for 15 – 10.85 = 4.15 years. Thus, excess recovery is taking place for 4.15 years. This is very unfair as the recovery of the commuted value of Pension is Completed in 10.85 years.

6. It is, therefore, requested that considering the sweeping changes in the interest rates, and increase in life expectancy, Commuted Portion of Pension may please be restored to the Pensioners after 12 years of Commutation thereof.

Yours’ truly,

(Harchandan Singh)
Secretary General, RSCWS

Copy for information & favourable consideration to:

1) Secretary Department of Personnel, PG & Pension, North Block, New Delhi – 110 001
2) Special Secretary, Department of Expenditure, Room No.39A, North Block, New Delhi – 110001

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COMMENTS

WORDPRESS: 2
  • Spitchai 1 week ago

    The requisition letter already sent to central govt and is kept pending for 4 months in finance ministry. . If it is approved central govt employees will get commuted preponenment to 12 years
    The same rule will also apply to banking industry also and bank pensioners benefitted

  • Ravi Krishnamurthy 2 weeks ago

    As per ru the rules in existence commutation period is 15 years while it is recovered within 10.85 years this is very unfortunate by the government to extract money from the pensioners for more for more 4 years this should be stopped . The government should simpatically considered not to accept the pensioners money for the rest of the 4 years which is most unfair and unjustified and the part of government what should be stopped by take the interest of the pensioners