1.    Short title and commencement -

    In excise of the powers conferred by the proviso to article 309 and clause (5) of article 148 of the Constitution and after consultation with Comptroller & Auditor General in relation of persons serving in Indian Audit and Accounts Department, the President hereby makes the following rules, namely : - 

(1)    These rules may be called the Central Civil Services (Commutation of Pension) Rules, 1981.

(2)    They shall come into force on the 1st July, 1981.

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2.    Application

   These rules shall apply to Government servants appointed on or before 31st day of December 2003 who may be entitled to or have been authorised any class of pension referred to in Chapter V of the Central Civil Services (Pension) Rules, 1972.

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3.    Definitions -

(1)    In these rules, unless the context otherwise requires : -

(2)    The words and expressions used in these rules but not defined shall have the meanings respectively assigned to them in the Pension Rules.

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4.    Restriction on commutation of pension -

No Government servant against whom departmental or judicial proceedings, as referred to in Rule 9 of the Pension Rules, have been instituted before the date of his retirement, or the pensioner against whom such proceedings are instituted after the date of his retirement, shall be eligible to commute a fraction of his provisional pension authorised under Rule 69 of the Pension Rules or the pension, as the case may be, during the pendency of such preceedings.

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5.    Limit on commutation of pension -

(1)    A Government servant shall be entitled to commute for a lump sum payment a fraction not exceeding  forty percent of   his pension.

(2)    In an application for commutation in Form 1 or Form 1-A or Form 2, as the case may be, an applicant shall indicate the fraction of pension which he desires to commute and may either indicate the maximum limit of forty percent of pension or such lower limit as he may desire to commute.

(3)    If fraction of pension to be commuted results in fraction of a rupee, such fraction of a rupee shall be ignored for the purpose of commutation.                                                                                                    

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5. GOVERNMENT OF INDIA'S DECISIONS

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(1)    Permissible limit of commutation when part of pension is withheld. - Under the Commutation Rules, a pensioner can commute one-third of the pension that has been granted under the rules. When a part of pension is withheld or withdrawn under Article 351, CSR [Rule 8, CCS (Pension) Rules, 1972], the residual amount is the amount that has been granted under the rules from the date of withholding or withdrawal of a part of the pension. As such, if commutation is applied for after this date, the admissible amount that can be commuted will have to be calculated with reference to the pension payable to the person after that date. Commutation rules do not state that the commutable amount is to be calculated with reference to the pension originally granted to the person.

[Auditor-General's U.O. No. 610-A/1/152-60, dated the 9th August, 1960, in File No. F.12(10)-E. V/60.]

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(2)    Commutation on invalid pension allowed only on original amount before enhancement.--According to Clause (c) of sub-rule(1) of Rule 49 of CCS(Pension) Rules, the amount of Invalid Pension shall not be less than the amount of Family Pension admissible under sub-rule(2) of Rule 54 ibid. It is clarified that where the amount of Invalid Pension calculated with reference to the qualifying service and the average emoluments is less than the Family Pension determined under sub-rule(2) of Rule 54,the Invalid Pension should be enhanced to the level of Family Pension. For the purpose of commutation of pension, the amount of original Invalid Pension will only be taken into account.

[ G.I. MF; OM No.F.19(38), E V.(A)/76. dated the 20th January, 1977.]

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6.    Commutation of pension to become absolute - 

(1)    The commutation of pension shall become absolute in the case of an applicant referred to -

(2)    In the case of an applicant referred to in Rule 9 or Rule 10, the commuted value is paid in two stages, the reduction in the amount of pension shall be made from the respective dates of the payments as laid down in Clause (a) or Clause (b) of the proviso to sub-rule (1).

(3)    The date on which the payment of the commuted value of pension was made to the applicant or the commuted value was credited to the applicant's account shall be entered in both halves of the Pension Payment Order by the disbursing authority under intimation to the Accounts Officer who authorized the payment of commuted value of pension.

Footnote : 1. Inserted by G.I., Dept. of P. & P.W., Notification No. 34/6/84-Pension Unit, dated the 1st May, 1985 and published as S.O. No. 2097 in the Gazette of India, dated the 18th May, 1985.

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GOVERNMENT OF INDIA'S DECISION

(1)    Commuted value of pension, based on the age next birthday with reference to date of medical examination in the case of absorption. - As per provision contained in Rule 6 (I) (ii) of CCS (Commutation of Pension) Rules, 1981, the commutation of pension becomes absolute in the case of absorption, on the date on which the medical authority signs the medical report in Part III of Form 4. In this process there may be a fall in the commuted value of pension due to age being up from say 46 years (at the time of resignation) to 47 years (with reference to date of medical examination). The individual concerned may thus suffer some financial loss on account of this.

A doubt was, however, raised by one of the field offices as to how the pro rata gratuity and lumpsum amount in lieu of pension would be worked out with reference to the commutation tables applicable on the date of resignation in such cases.

The matter was referred to the Government of India, Ministry of Personnel, Public Grievance and Pensions (Department of Pension and Pensioners' Welfare), for clarification.

The Ministry have now clarified that the commuted value of pension is required to be calculated taking into account the date of medical examination, the age next birthday with reference to the date of medical examination and the factor applicable to such Government servant also with reference to age next birthday after the medical examination.

[C & AG of India, New Delhi, Lr. No. 707-Audit.I/20-90 (KW) (142), dated the 23rd October, 1990.]

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7.    ^1[Nominations -

(1)    An applicant shall make a nomination in Form 5 along with the application referred to in Rule 13 or Rule 19, as the case may be, conferring on one or more persons the right to receive the commuted value of pension in case the applicant dies without receiving the commuted value on or after the date on which commutation became absolute.

(2)    If there is no such nomination, or if the nomination made does not subsist, the commuted value shall be paid to the family in the manner indicated in sub-rule (1) (b) of Rule 51 of the Pension Rules.

(3)    If in any case the commuted value cannot be paid in the manner indicated in sub-rules (1) and (2), the same shall be paid to his/her heirs.]

Footnote : 1. Substituted by G.I., Dept. of P. & P.W., Notification No. 34 (5)/83-Pension Unit, dated the 17th April, 1985 and published as S.O. No. 1870 in the Gazette of India, dated the 4th May, 1985.

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8.    Calculation of commuted value of pension -

   The lump sum payable to an applicant shall be calculated in accordance with the Table of the values prescribed from time to time and applicable to the applicant on the date on which the commutation becomes absolute.

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GOVERNMENT OF INDIA'S DECISION

(1)    Commuted value of pension to be rounded off to the next higher rupee. - With a view to simplify the procedure for payment of death/retirement gratuity and the commuted value of pension, it has been decided that the amount of death/retirement gratuity and commuted value of pension as finally calculated should be rounded off to the next higher rupee.

[G.I., Dept. of P. & P.W., O.M. No. 7 (12)/85-P. & P.W., dated the 12th December, 1985.]

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9.    Commutation of provisional pension -

(1)    A Government servant to whom, pending assessment of final pension, provisional pension has been sanctioned under Rule 64 of the Pension Rules shall be eligible to commute a fraction of such provisional pension subject to the limit specified in  Rule 5.   

(2)    For the purpose of commutation of provisional pension, the provisions of Chapter III or Chapter IV, as the case may be, shall apply.

(3)    The provisions of this sub-rule shall apply to an applicant who for the purpose of commutation of provisioal pension is governed by Chapter IV of these rules :-

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10.    Retrospective revision of final pension -

   An applicant who has commuted a fraction of his final pension and after commutation his pension has been revised and enhanced retrospectively as a result of Government's decision, the applicant shall be paid the difference between the commuted value determined with reference to enhanced pension and the commuted value already authorized. For the payment of difference the applicant shall not be required to apply afresh :

    Provided that in the case of an applicant who has commuted a fraction of his original pension not exceeding rupees one hundred after being declared fit by a Civil Surgeon or a District Medical Officer and as a result of retrospective enhancement of pension, he becomes eligible to commute an amount exceeding one hundred rupees per mensem, he shall be allowed the difference between the commuted value of one hundred rupees per mensem and the commuted value of the fraction of the original pension without further medical examinaion. The commutation of any further amount beyond rupees one hundred per mensem shall be treated as fresh commutation and allowed subject to examination by a Medical Board.

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10. GOVERNMENT OF INDIA'S DECISIONS

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(1)    Effective date of reduced pension on account of upward revision of commutation. - A point has been raised in regard to the date from which reduction in pension on account of the upward revision of commutation of pension would be effective. Rule 6 provides that reduction in the amount of pension on account of commutation shall become operative from the date of receipt of commuted value of pension by the pensioner or three months after the date of the issue of the authority asking the pensioner to collect the commuted value of pension by the Accounts Officer, whichever is earlier. Accordingly, in such cases the reduction from pension will be made from the date of receipt of the revised commutation value of pension by the pensioner or three months after the issue of the authority by the Accounts Officer asking the pensioner to collect the revised commuted value of pension, whichever is earlier.

[G.I., Dept. of Personnel & A.R., O.M No. F. 34 (3)-PU/80, dated the 10th July, 1980.]

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(2)    Commuted portion of pension will be restored after fifteen years from the date of retirement. - 1.    Under the Civil Pensions (Commutation) Rules, 1925, later codified as Central Civil Services (Commutation of Pension) Rules, 1981 and corresponding rules applicable to the Armed Forces Personnel (including officers), All India Service Officers and Railway Pensioners, etc., the pensioners are allowed the optional facility of converting a portion of their pension into a lumpsum amount. At present the pensioner receives only the balance amount (full pension minus the commuted portion) for the rest of his life.

2.    It has been held by the Supreme Court of India in its judgment, dated the 9th December, 1986, in Writ Petition Nos. 3958-61 of 1983 that all Central Government pensioners governed by Central Civil Services (Commutation of Pension) Rules, 1981 and corresponding rules for Armed Forces personnel and officers, All India Service Officers and Railway Pensioners and who have commuted the admissible portion of their pension are entitled to have the commuted portion restored on the expiry of fifteen years from the date of retirement.

3.    The question regarding implementation of the Supreme Court judgment has been under consideration of the Government. After careful examination of the above judgment, it has been decided that only such Central Government pensioners who have commuted a portion of their pension and on 1-4-1985 or thereafter have completed or will complete fifteen years from their respective dates of retirement will have their commuted portion of pension restored.

4.   Deleted Vide Para. 3 of GID(4) .

5.    Each pensioner who is eligible as in paragraph 3 above is required to apply in the enclosed  prescribed form duly completed, to the Pension Disbursing Authority/Bank/Post Office who will restore the commuted portion of pension if the commuted amount has been mentioned in the Pension Payment Order and will also pay the arrears, if any.

5.1    In cases where the pensioner had completed fifteen years from the date of retirement^* on 1-4-1985 or thereafter and had died subsequently, his/her legal heir(s) is/are also entitled to receive arrears with effect from 1-4-1985 (or from the date of completion of fifteen years from the date of retirement whichever is later), till the date of the pensioner's death. For this purpose, legal heir(s) may also apply to the Pension Disbursing Authority, etc.

5.2    In cases where the PPO does not contain information regarding commuted portion, Pension Disbursing Offices will obtain information from Accounts Offices which issued the Pension Payment Order.

5.3    The Pension Disbursing Authorities/Banks/Post Offices, etc., will intimate to the Accounts Office which had issued the Pension Payment Order the full particulars of each pension case along with the amount of pension restored for verifying the correctness.

[G.I., Dept. of P. & P.W., O.M. No. 34/2/86-P. & P.W., dated the 5th March, 1987.]

Clarifications. - 1.    The above OM, dated 5-3-1987, is applicable to all categories of pensioners as indicated in para. 2 thereof and no separate orders will be issued in the case of All India Service Officers.

2.    The OM is applicable to all pensioners irrespective of their date of retirement provided they have commuted a portion of pension and have completed/will complete fifteen years of retirement before, on or after 1-4-1985, i.e., the date from which restoration has been allowed.

3.    Date from which commuted pension is to be restored where period of fifteen years of retirement is already over before 1-4-1985, will be 1-4-1985.

4.    Date from which commuted pension will be restored where fifteen years' period after retirement is over on or after 31-3-1985, will be 1-4-1985 or thereafter as and when due after completion of fifteen years from the respective date (s) of retirement.

[G.I., Dept. of P. & P.W., O.M. No. 34/2/86-P. & P.W., dated the 23rd June, 1987.]

Footnote : * This Decision holds good only in cases where commuted value is paid during the first month of retirement. In other cases the period of 15 years is to be reckoned from the date of commutation.

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(3)   How to reckon the period of fifteen years for restoration of commuted portion of pension. - 1.     Decision (2) above provides that such Central Government pensioners who have commuted a portion of their pension and on 1-4-1985 or thereafter have completed or will complete 15 years from their respective dates of retirement will have their commuted portion of pension restored. This is based on the assumption that the reduction in pension on account of commutation which takes place only after the payment of the lumpsum commuted amount, may be discontinued after the commuted amount paid in lumpsum together with notional interest on the amount got, by and large, fully adjusted by that portion of pension which was not actually paid monthly in view of commutation. It is, therefore, not correct to reckon the 15 years period for restoration from the date of retirement, except in cases where commutation of pension has been simultaneous with retirement.

2.    It has also come to the notice of the Government that with the intention of getting an unintended advantage some pensioners who have not commuted so far have now sought commutation. Some of these pensioners are in the 15th year of their retirement. If, in their case, the 15th-year period prescribed for restoration is reckoned from the date of their retirement, while the commutation entitlement will be paid in full to them, they should suffer reduction in pension only for a few months till the 15-year limit is reached. There are other pensioners who have already crossed the 15^th year limit. In their case, application of the 15-year limit from the date of their retirement would mean that there can never be any recovery towards the commuted amount paid to them as the 15-year period had already expired. This is not the correct position.

3.    With a view to ensuring that the decision regarding restoration of the commuted portion of pension is uniformly applied in all cases according to its true intendment, it is clarified that the 15-year period for restoration may be reckoned from the date of retirement itself only in cases where commutation of pension was/is simultaneous with retirement. In other words, cases where payment of the commuted value of pension was/is made during the first month of retirement leading to appropriate reduction on account of commutation in the first pension itself will be deemed to be falling in this category. In all other cases, i.e., where commutation of pension led/leads a reduction in the second or subsequent month, the 15 year period will be reckoned  i.e., from the date on which reduction in pension on account of commutation became/becomes effective. Where the date of commutation is not readily available in the pension documents in the Pension Disbursing offices (PDO), e.g., PPO, etc.,  the PDO will obtain this information from the Accounts Office which issued the PPO before restoring the commuted portion of pension.

4.    Cases already settled otherwise than in accordance with the clarification contained in this Decision need not be reopened.

[G.I., Dept. of Pen. & Pen. Welfare, O.M. No. 34/2/86-P. & P.W. (G), dated the 22nd August, 1990.]

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(4)   Restoration of commuted pension admissible to all those Government servants who had been absorbed in PSUs/ABs and received commuted value of the full pension. -    In accordance with the provisions of this Department's O.M. No. 34/2/86-P. & P.W., dated the 5th March, 1987 Decision (2) above, Central Government pensioners who have commuted a portion of their pension are entitled to the restoration of the commuted portion of pension on the expiry of 15 years from the date of commutation. These orders were issued as a result of the Supreme Court Judgment, dated 9-12-1986 in Writ Petition Nos. 3958-61 of 1983, viz., "Common Cause" case. Para. 4 of the said OM stipulates that Central Government employees who got themselves absorbed under Central Public Sector Undertakings/Autonomous Bodies and received/or opted to receive commuted value of 1/3rd of pension as well as terminal benefits equal to the commuted value of the balance amount of pension left after commuting 1/3rd of pension would not be entitled to any benefit under these orders as they ceased to be Central Government pensioners.

2.    The Supreme Court of India in its judgment, dated 15-12-1985 in Writ Petition (C) No. 11855 of 1985 while quashing Para. 4 of the O.M., dated 5-3-1987 ibid have ruled that the petitioners who had commuted full pension are also entitled to the benefit as given by Supreme Court of India in the "Common Cause" case so far as it related to restoration of 1/3rd of commuted pension.

3.    The question regarding implementation of the Supreme Court Judgment has been under consideration of the Government. The President has now been pleased to decide that Para. 4 of the O.M., dated 5th March, 1987, shall be deemed to have been deleted. Accordingly, the benefit of the restoration of commuted pension shall be admissible to all those Government servants who had been absorbed in Public Sector Undertakings/Autonomous/Statutory Bodies notwithstanding the fact that having commuted the full pension they were not in receipt of any monthly pension.

 4.    The Armed Forces Personnel including officers under their Services Regulations are entitled to commutation of 45%/43% of their pension on their retirement in normal cases instead of 1/3rd commutation of pension that is admissible in the case of civilian Government servants. Accordingly, the Armed Forces Personnel who had commuted full pension shall be entitled to the restoration of 45% of their pension and the officers in the Armed Forces shall be entitled to the restoration of 43% of their pension in accordance with the above procedure.

5.    All the concerned Central Government absorbees in a PSU/Autonomous Body, etc., shall have to formally apply to the respective Administrative Ministry/Department/Office, from where they had retired and were paid lumpsum commuted value of pension for the purpose of getting benefit of this OM.

6.    Since no PPO had been issued in their case as they had drawn lumpsum payment and were not entitled to the drawal of monthly pension, the concerned Administrative Ministry/Department/Office shall, after verification of the claims from the relevant records, issue suitable instructions to their Pay & Accounts Officer for issue of PPOs through the normal channel, viz., the Central Pension Accounting Office.

7.    In cases where the absorbee Government servant had completed 15 years from the date of commutation on 1-4-1985 or thereafter and had died subsequently, his/her legal heir(s) is/are entitled to receive arrears with effect from 1-4-1985 or from the date of completion of 15 years the date of commutation, whichever is later, till the date of the absorbee's death. For this purpose, legal heir(s) shall have to apply to the concerned Administrative Ministry/Department/Office from where the absorbee had retired for settlement of the case.

8.    Administrative Ministries/Departments are also requested to note that restoration of 1/3rd commuted portion of pension in the case of absorbees would not make the family member(s) of the absorbee eligible to claim family pension from the Central Government because the entitlement to family pension on absorption of a Government servant is governed by a separate set of instructions on the subject. It is therefore to be ensured by the Administrative Ministries/Departments, etc., that no mention about payment of family pension from the Central Government in respect of family member(s) of an absorbee should be made in the PPO.

[G.I., Dept. of Pen. & Pen. Welfare, O.M. No. 4/3/86-P. & P.W. (D), dated the 30th September, 1996.]

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(5)  Applicable to Government servants absorbed in an autonomous body as a result of conversion of an Office/Department as such. - Clarifications have been sought by Ministries/Departments regarding applicability of the provisions of the OM,dated 30-9-1996 to Government servants who have been absorbed in a Central PSU/Autonomous Body as a result of conversion of a Government Office/Department as such.

2.    The matter has been carefully examined. It is clarified that the provisions of O.M. No. 4/3/86-P & PW(D),dated 30-9-1996(GID(4) above)are also applicable to the Central Government employees who have been absorbed in a Central PSU/autonomous body as a result of conversion of a Government office/Department as such.
[G.I., Dept. of P. & P.W., O.M. No. 4/3/86-P. & P.W. (D), dated the 3rd July, 1997.]

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11.   Scope -

    The provisions of this Chapter shall apply to an applicant who is eligible to commute a fraction of his pension without medical examination.

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12.   Eligibility -

shall, subject to the limit in Rule 5, be eligible to commute a fraction of his pension without medical examination :   

    Provided that he applies for commutation of pension in Form 1 or Form 1-A in accordance with the provisions of Rule 13.

    NOTE. - Pension referred to in Clause (i), Clause (ii) and Clause (iv) shall include the provisional pension sanctioned under Rule 64 of the Pension Rules.

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13.    Application for commutation of pension -

(1)    An applicant, who is in receipt of any pension referred to in Rule 12 and desires to commute a fraction of that pension any time after the date following the date of his retirement from service but before the expiry of one year from the date of retirement, shall -

(2)    An applicant who applies for commutation of pension within one year of the date of his retirement but his application in Form 1 is received by the Head of Office after one year of the date of his retirement, shall not be eligible to get his pension commuted, without medical examination. Such an applicant, if he desires to commute a fraction of his pension, shall apply afresh in Form 2 in accordance with the procedure laid down in Chapter IV.

(3)    A Government servant who is due to reitre on superannuation and desires payment of the commuted value of pension being authorized at the time of issue of the pension payment order, shall be eligible to apply for commutation of a fraction of pension along with pension papers prior to the date of retirement provided that -

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GOVERNMENT OF INDIA'S DECISION

(1)    Form 1-A to be entertained up to the date of retirement and commutation paid through Head of Offices. - As per Rule 13 (3) (b) and (c) of CCS (Commutation of Pension) Rules, 1981, official retiring on superannuation is required to submit an application in Form 1-A so as to reach the Head of the Office not later than three months before the date of superannuation so that the authority for payment of commuted portion of pension is issued along with the PPO, etc. It further provides that no such application shall be entertained if the period is less than three months from the date of superannuation of the Government servant. This matter has been considered by the Government and it has been decided that in case an application for commutation of pension is received late, it should not be rejected on the ground of delay. In such cases, if possible, the Accounts Officer should issue authority for payment of commuted value along with the Pension Payment Order, otherwise authority for payment of commuted value should be issued as soon as possible after the issue of the Pension Payment Order. In any case, if application for commutation of pension is received by the Head of Office on or before the date of retirement of the Government servant, commutation of pension shall become absolute on the date following the date of retirement.

[G.I., Dept. of P. & P.W., O.M. No. 34/3/86-P. & P.W., dated the 30th May, 1986.]

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14.    Action to be taken by the Head of Office on application for commutation of pension -

(1)    The Head of Office on receipt of application in Form 1 under sub-rule (1) or in Form 1-A of sub-rule (3) of Rule 13, shall :-

(2)    In case application in Form 1 is received by the Head of Office under sub-rule (1) of Rule 13 after one year of the date of retirement of the applicant, the Head of Office shall inform the applicant that :-

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15.    Authorization of commuted value by the Accounts Officer -

(1)    The Accounts Officer on receipt of Form 1 from the Head of Office shall verify that -

(2)    The Accounts Officer after necessary verification of the information furnished in Form 1 shall -

(3)    (a)    The Accounts Officer, on receipt of Form 1-A from the Head of Office, shall ascertain and verify if the amount of superannuation pension of the applicant has been calculated and if not, take steps to finalize the amount of pension so that the Pension Payment Order is issued before one month of the date of retirement of the applicant.

    ¹[(b)    (i)    The Accounts Officer after necessary verification of the information furnished in Form 1-A shall :-

  Footnote : 1. Substituted by G.I., Dept. of P. & P.W., Notification No. 34/6/84-Pension Unit, dated the 1st May, 1985 and published as S.O. No. 2097 in the Gazette of India, dated the 18th May, 1985.

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16.    Authorization of the commuted value of a fraction of provisional pension -

(1)    If pending determination of final pension, the Head of Office has sanctioned provisional pension to a Government servant under Rule 64 of the Pension Rules and such a Government servant has applied for commutation of provisional pension in Form 1 in accordance with the provisions of Rule 9, the Head of Office on receipt of Form 1 shall -

(2)    The Accounts Officer on receipt of Form 1 under sub-rule (1), shall verify the correctness of the amount of provisional pension and make further verification as provided in sub-rule (1) of Rule 15.

(3)    The Accounts Officer after necessary verification of the amount of the provisional pension and the amount of the commuted value shall -

(4)    The Head of Office on receipt of authority from the Accounts Officer under sub-rule (3), shall draw the amount of commuted value of pension and disburse the same to the applicant under intimation to the Accounts Officer.

(5)    The Accounts Officer shall on final assessment of pension '-  

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17.    Scope -

   The provisions of this Chapter shall apply to an applicant who is eligible to commute a fraction of his pension after medical examination.

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18.    Eligibility -

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19.    Application for commutation of pension -

   An applicant referred to in Rule 18 shall apply to the Head of Office in Form 2 for commutation of a fraction of his pension including provisional pension sanctioned under Rule 64 of the Pension Rules.

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20.    Action to be taken by the Head of Office on application for commutation of pension -

(1)    The Head of Office on receipt of application in Part 1 of Form 2 under Rule 19 shall -

(2)    The Accounts Officer on receipt of Form 2 from the Head of Office under sub-rule (1) shall complete Part IV of that Form and transmit the same to the Head of Office as early as possible.

(3)    The Head of Office on receipt of Form 2 from the Accounts Officer under sub-rule (2) shall address in Form 3 the Chief Administrative Medical Authority of the State or Union Territory as specified in the Annexure where the applicant desires to be medically examined and forward to him the following documents :-

(4)    A copy of letter in Form 3 addressed to the Chief Administrative Medical Authority shall be endorsed to the applicant and the Accounts Officer by the Head of Office.

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21.    Action to be taken by the Chief Administrative Medical Authority -

(1)    The Chief Administrative Medical Authority on receipt of documents referred to in sub-rule (3) of Rule 20 shall -

(2)    In fixing the date of medical examination, it shall be ensured that the medical examination is held, as far as possible, before the date of applicant's next birthday.

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22.   Medical Authority -

(1)    Save as otherwise provided in sub-rule (2), the medical authority shall be a Medical Board, where an applicant for commutation of pension ,-     

(2)    In any other cases not covered by sub-rule (1), the medical authority shall be a Medical Officer not lower in status than that of a Civil Surgeon or a District Medical Officer.

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23.    Fee for medical examination to be borne by the applicant -

   The applicant shall be required to pay for medical examination such fee as may be specified by the Central Government.

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24.    Failure to appear before medical authority -

(1)    If the applicant after receipt of communication from the Chief Administrative Medical Authority or the medical authority referred to in Clause (c) of sub-rule (1) of Rule 21 fails to appear for medical examination before the medical authority on the date and time communicated to him (including any change therein either at the request of the applicant or due to administrative reason) and there is no reasonable ground for his failure, the medical authority shall report the fact to the Head of Office concerned and return to him the documents received under Clause (b) of sub-rule (1) of Rule 21.

(2)    With the return of documents to the Head of Office under sub-rule (1), the application for commutation shall be treated as having been withdrawn.

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25.    Procedure for Medical Examination -

the medical authority shall, before completing the certificate contained in Part III of Form 4, take into consideration the statement of the medical case of the applicant.

(2)    After complying with the requirements of sub-rule (1), the medical authority shall without delay forward to the Accounts Officer who has already completed Part IV of Form 2, the following documents, namely : -

(3)    The medical authority shall also send to the applicant a certified copy of Part III of Form 4.

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26.    Second Medical Examination -

(1)    Subject to the provisions of Rule 27, the medical examination in the case of an applicant referred to in Clause (c) of sub-rule (1) of Rule 22 shall take place after the expiry of a period of not less than one year from the date of the first medical examination.

(2)    If the applicant desires to be re-examined on the expiry of the period specified in sub-rule (1), the examination shall be by a Medical Board at his own expense. For this purpose, he shall address a letter to the Head of Office with the request that arrangements for his re-examination by a Medical Board may be made. He shall indicate in the letter -

(3)    The Head of Office on receipt of letter under sub-rule (2) shall address the Chief Administrative Medical Authority for arranging re-examination of the applicant by a Medical Board and forward the following documents to such authority :-

(4)    The Chief Administrative Medical Authority on receipt of the communication from the Head of Office under sub-rule (3) shall inform the applicant as to where and when he should appear for medical examination before the Medical Board or if necessary direct the Medical Board to communicate to the applicant the place, date and time of such examination.

(5)    The applicant after the receipt of communication under sub-rule (4) shall appear before the Medical Board at the place and on the date and time communicated to him.

(6)    The Medical Board shall examine the applicant and if after the examination it is of the view that the earlier opinion of the medical authority needs no revision or modification or needs revision or modification shall record its opinion and communicate the same to the Head of Office under intimation to the applicant. The documents received by the Medical Board under sub-rule (3) shall also be returned to the Head of Office.

(7)    If as a result of the opinion of the Medical Board received by the Head of Office under sub-rule (6), the applicant becomes eligible to commute a fraction of pension originally applied for, the Head of Office shall determine the commuted value with reference to the Table applicable on the date, the Medical Board recorded its opinion. The Head of Office thereafter shall request the Accounts Officer to take further action for the authorization of the commuted value and forward the following documents to him :-

(8)    The Accounts Officer on receipt of the documents under sub-rule (7) shall verify the correctness of the commuted value determined by the Head of Office and thereafter take action to authorize the commuted value to the applicant under intimation to the Head of Office.

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27.    Appeal against the findings of medical authority -

(1)    Notwithstanding anything contained in Rule 26, an applicant referred to in Clause (c) of sub-rule (1) of Rule 22 shall be eligible for second medical examination before the expiry of the period specified in sub-rule (1) of Rule 26, if he feels that the medical authority in refusing commutation on medical grounds or making addition of years to his actual age has committed an error of judgement. Such an applicant may, within one month of the receipt of the certified copy of Part III of Form 4, from the medical authority, prefer an appeal by addressing a letter to the Head of Office that the opinion of the medical authority may be got reviewed by another medical authority mentioned in sub-rule (2) at his own expense. He shall also indicate in the letter -

(2)    In case an applicant referred to in sub-rule (1) -

(3)    The Head of Office shall, within one month of the receipt of letter under sub-rule (1), take steps for arranging the re-examination of the applicant. For this purpose, he shall address the Chief Administrative Medical Authority, where the applicant was examined previously. He shall, while addressing the Chief Administrative Medical Authority, invite his attention to the provisions of sub-rule (2) and forward to it the following documents :-

(4)    The Chief Administrative Medical Authority on receipt of communication from the Head of Office under sub-rule (3) shall arrange for the second medical examination of the applicant by a Medical Board which shall be constituted in accordance with the provisions of sub-rule (2). The Chief Administrative Medical Authority shall, thereafter, inform the applicant as to where and when he should appear for medical examination before the Medical Board or if necessary direct the Medical Board to communicate to the applicant the place, date and time of such examination.

(5)    The applicant on receipt of the communication under sub-rule (4) shall appear for the medical examination before the Medical Board on the date and time, communicated to him.

(6)    The Medical Board shall examine the applicant and if after the examination, it is of the view that the earlier opinion of the medical authority needs no revision or modification or needs revision or modification shall record its opinion and communicate the same to the Head of Office under intimation to the applicant and the findings of the Medical Board shall be binding on the applicant.

(7)    If the Medical Board as a result of the second medical examination of the applicant, sets aside or modifies the opinion of the first medical authority, the finding of the Medical Board shall be deemed to have come into force on the date on which the first medical authority recorded its opinion and the claim of the applicant for commutation shall be settled accordingly.

(8)    Nothing contained in this rule shall apply to an applicant in whose case the medical authority as a result of the first medical examination had directed that the applicant's age for the purpose of commutation should be assumed to be greater than his actual age, and the applicant received the commuted value with reference to the enhanced age.

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28.    Withdrawal of application -

(1)    The applicant may, after giving notice in writing, to the Head of the Office, withdraw his application at any time before subjecting himself to medical examination before the medical authority but in no case after he has appeared before such authority.

(2)    In case the medical authority directs that the applicant's age for the purpose of commutation shall be assumed to be greater than his actual age, the applicant may, -

(3)    Where a request for withdrawal has not been made by the applicant within the time specified in Clause (a) of sub-rule (2), it shall be presumed that he has accepted the findings of the medical authority and the Accounts Officer shall take action to authorize the payment of commuted value of pension.

(4)    If a request for reduction in the amount of pension to be commuted is made as provided in Clause (b) of sub-rule (2), the Accounts Officer shall authorize the payment of commuted value of pension with reference to the reduced amount.

(5)    If the applicant is informed by the Accounts Officer under Rule 29 that on account of modification of the Table, the commuted value becoming payable to the applicant will be less than the value communicated to him in Form 3, it shall be open to the applicant to withdraw his applicantion by a written notice addressed to the Accounts Officer and the applicant shall endorse a copy of the notice to the Head of Office within fourteen days of the date on which he receives intimation of such modification.

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29.    Modification in the value specified in the Table -

(1)    In case the value specified in the Table is modified at any time before the commutation becomes absolute in terms of Clause (ii) of sub-rule (1) of Rule 6, the payment shall be made in accordance with the value so modified.

(2)    Where the commuted value calculated with reference to the Table as modified, is less favourable than the value determined with reference to the Table before it was so modified, the Accounts Officer shall -

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30.   Authorization of payment of commuted value by the Accounts Officer

(1)    Subject to the provisions of sub-rule (2) and sub-rule (3) of Rule 28, the Accounts Officer on receipt of the documents referred to in sub-rule (2) of Rule 25, from the medical authority, shall without delay issue an order to the disbursing authority concerned and furnish to it the following particulars and documents, namely :-

(2)    The Accounts Officer shall also -

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31.    Final assessment of provisional pension

(1)    An applicant referred to in sub-rule (3) of Rule 9 to whom the commuted value of the fraction of the provisional pension has been paid by the Head of Office, shall, on final assessment of the pension, be paid by the Accounts Officer, the difference between the commuted value so determined and the commuted value already paid :

    Provided that where an applicant has been examined by a Medical Officer for the commutation of a fraction of provisional pension and such an applicant on assessment of final pension becomes eligible to commute an amount exceeding one hundred rupees per mensem, he shall be allowed the difference between the commuted value of one hundred rupees per mensem and the commuted value of the fraction of the provisional pension without further medical examination but the payment of the commuted value of pension exceeding one hundred rupees per mensem shall be made if the applicant applies afresh for medical examination as provided in Clause (c) of sub-rule (3) of Rule 9 and he is declared fit by a Medial Board.

(2)    The commuted value of the fraction of provisional pension as indicated in the endorsement in Form 3 addressed to the applicant and forwarded under sub-rule (4) of Rule 20 shall be deemed to have been amended with the issue of an authority by the Accounts Officer for the payment of difference between the commuted value of the fraction of the final pension and the fraction of the provisional pension.

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32.    Interpretation -

   Where any doubt arises as to the interpretation of these rules, it shall be referred to the Government in the Department of Personnel and Administrative Reforms for decision.

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33.    Power to relax -

   Where any Ministry or Department of the Government is satisfied that the operation of any of these rules causes undue hardship in any particular case, that Ministry or Department, as the case may be, may, by order for reasons to be recorded in writing, dispense with or relax the requirements of that rule to such extent and subject to such exceptions and conditions, as it may consider necessary for dealing with the case in a just and equitable manner :

    Provided that no such order shall be made except with the concurence of the Department of Personnel and Administrative Reforms.

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34.    Repeal and Savings -

(1)    On the commencement of these rules, every rule, regulation or order including Office Memoranda (hereinafter referred to in this rule as the old rule) in force immediately before such commencement shall, in so far as it provides for any of the matters contained in these rules, cease to operate.

(2)    Notwithstanding such cesser of operation -

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FORM I

FORM OF APPLICATION FOR COMMUTATION OF A
FRACTION OF PENSION WITHOUT MEDICAL EXAMINATION

(To be submitted in duplicate after retirement but within one year
of the date of retirement)

PART I

Sir,

    I desire to commute a fraction of my pension as indicated below in accordance with the provisions of the Central Civil Services (Commutation of Pension) Rules, 1981. The necessary particulars are furnished below -

* The applicant should indicate the fraction of the amount of the monthly pension subject to maximum of 40% thereof which he  desires and not the amount in Rupees.

1 Score out which is not applicable.

PART II

ACKNOWLEDGEMENT

Received from Shri........................(name)......................(former designation) application in Part I of Form 1 for the commutation of a fraction of pension without medical examination.

NOTE. - This acknowledgement is to be signed, stamped and dated and is to be detached from the Form and handed over to the applicant. If the form has been received by the post, it has to be acknowledged on the same day and the acknowledgement sent under registered cover.

PART III

   Forwarded to the Accounts Officer..............................................(here indicate the address and designation) with the remarks that -

2.    It is requested that further action to authorize the payment of the amount of commuted value of pension may be taken as in Rule 15 of the Central Civil Services (Commutation of Pension) Rules, 1981.

3.    The receipt of Part I of the Form has been acknowledged in Part II which has been forwarded separately to the applicant on................................

4.    The commuted value of pension is debitable to Head of Account -----.

FORM 1-A

FORM OF APPLICATION FOR COMMUTATION OF A
FRACTION OF SUPERANNUATION PENSION WITHOUT
MEDICAL EXAMINATION WHEN APPLICANT DESIRES
THAT THE PAYMENT OF THE COMMUTED VALUE OF
PENSION SHOULD BE AUTHORIZED THROUGH THE
PENSION PAYMENT ORDER

[see Rules 5(2), 12,13(30,14(i) and 15(3)

(To be submitted in duplicate at least three months
before the date of retirement)

PART I

    Subject: - Commutation of pension without medical examination.

Sir,

    I desire to commute a fraction of my pension in accordance with the provisions of the Central Civil Services (Commutation of Pension) Rules, 1981. The necessary particulars are furnished below -

Footnote : 1. The applicant should indicate the fraction of the amount of monthly pension (subject to a maximum of one-third thereof) which he/she desires to commute and not the amount in rupees.

                2. Score out which is not applicable.

PART II

(ACKNOWLEDGEMENT)

   Received from Shri/Smt./Kumari................................................(name)...................................(designation) application in Part I of Form I-A for commutation of a fraction of pension without medical examination.

    NOTE. - If the application has been received by the Head of Office before the date of retirement on superannuation, this acknowledgement should be detached from the Form and handed over to the applicant. If the form has been received by post, it has to be acknowledged on the same day and the acknowledgement sent under registered cover to the applicant. In case it is received after the specified date, it should be accepted only if it has been put into the post on or before that date subject to the production of evidence to that effect by the applicant.

PART III

   Forwarded to the Accounts Officer.

    (here indicate the address and designation)........................................................ with the remarks that -

2.    The pension papers of the applicant completed in all respects were forwarded under this Ministry/Department/Office Letter No......................., dated............................ It is requested that the payment of commuted value of pension may be authorized through the Pension Payment Order which may be issued one month before the retirement of the applicant.

3.    The receipt of Part I of this Form has been acknowledged in Part II which has been forwarded separately to the applicant on.............................

4.    The commuted value of pension is debitable to Head of Account..........................

FORM 2

FORM OF APPLICATION FOR COMMUTATION OF
PENSION AFTER MEDICAL EXAMINATION BY AN
APPLICANT REFERRED TO IN RULE 18 OF THE
CENTRAL CIVIL SERVICES (COMMUTATION OF
PENSION) RULES, 1981

[see Rules 5(2),9(3),13(2), 14(2),19,20(1),(2) and (3), 21(1) and 25(2)]

(To be submitted in duplicate)

PART-I

    Subject :- Commutation of pension after medical examination.

Sir,

    I desire to commute a fraction of my pension in accordance with the provisions of the Central Civil Services (Commutation of Pension) Rules, 1981. An attested copy of my photograph is pasted on the application and an unattested copy is enclosed. The necessary particulars are furnished below -

Footnote : 1. The applicant should indicate the fraction of the amount of monthly pension (subject to a maximum of one-third thereof) which he desires to commute and not the amount in rupees.
                2. Score out which is not applicable.

NOTE. - The payment of commuted value of pension shall be made through the disbursing authority from which pension is being drawn. It is not open to an applicant to draw the commuted value of pension from a disbursing authority other than the authority from which pension is being drawn.

PART- II

ACKNOWLEDGEMENT

   Received from Shri.\ Kum.\Smt.........................................(name)...........................................(designation) application in Part I of Form 2 for commutation of a fraction of pension after medical examination.

PART- III

   Forwarded to the Accounts Officer................................................................(here indicate the address and designation) with the remarks that the particulars furnished by the applicant in Part I have been verified and are correct and the applicant is eligible to get a fraction of his pension commuted after medical examination.

    2.    It is requested that Part IV of the Form may be completed and returned to this office as early as possible.

PART- IV
(To be completed by the Accounts Officer)

NOTE. - The Accounts Officer should enclose with the Form a copy of the report or statement of the applicant's case if the applicant has been granted invalid pension or has previously commuted a part of his pension or declined to accept commutation on the basis of an addition of years to actual age, or has been refused commutation on medical grounds.

FORM 3

FORM OF LETTER OF THE CHIEF ADMINISTRATIVE
MEDICAL AUTHORITY

[see Rules 20(3) and (4) and 28(5) ]

(Please see Annexure)

       Subject:- Medical Examination - Commutation of Pension.

Sir,

    Shri./Smt/Kumari......................................who retired from service on........................................ as........        .....................................(designation) has applied for commuting a fraction of his pension for a lumpsum payment. The following documents are forwarded herewith :-

2.    In terms of Rule 22 of the Central Civil Services (Commutation of Pension) Rules, 1981, Shri./Smt/Kumari ..................................................... should be examined by a Medical Board/Medical Officer not lower than the rank of Civil Surgeon or a District Medical Officer. It is requested that arrangement may be made to get Shri../Kumari/Smt.................................................examined as expeditiously as possible before his/her  next birthday which falls on..................................

3.    It is requested that arrangements for medical examination by the medical authority indicated in para. 2 above may be made at the nearest available station mentioned by Shri./kumari/Smt.................................in his/her  application in Form 2. The attention of the medical authority may be drawn to the provisions of Rule 25 of the Central Civil Services (Commutation of Pension) Rules, 1981.

4.    It is requested that Shri./smt/kumari.......................................may be informed direct under intimation to this Ministry/Department/ Office as to where and when he should appear before the appropriate authority for medical examination. A copy of this letter is being endorsed to him/her so that he/she may comply with your instructions on hearing from you.

5.    The receipt of this letter may please be acknowledged.

    Copy forwarded to Shri./Smt/Kumari...............................................................................(here give complete postal address) with the remarks that subject to the medical authority recommending commutation, he/she will, on the basis of the report of the Accounts Officer, be eligible for the lumpsum payment in lieu of the amount of pension to be commuted as follows :

    The Table of the present value, on the basis of which the calculation by the Accounts Officer has been made, is subject to alteration at any time without notice and consequently the basis is liable to revision, before payment is made. The sum payable will be the sum appropriate to the applicant's age on his birthday next after the date on which the commutation becomes absolute or if the medical authority directs that years will be added to that age, to the consequent assumed age.

    Shri/Smt/Kumari.......................................should report for medical examination to the medical authority direct on hearing from.............. She/He should take with him/her the enclosed Form 4 with the particulars required in Part I completed except the signature or thumb or finger impressions.

    Copy forwarded to the Accounts Officer...........................................................(here indicate designation and address) with reference to his Letter No..............................., dated...................................

FORM - 4

MEDICAL EXAMINATION BY THE..............................................................................................
                                  (Here enter the medical authority)
[ see Rules 6(1), 20(3), 25(1), (2) and (3), 26(3), 27(1) and (3), 28(2), 30(1) and 31(2)]

PART-I

PART I

    The applicant must complete this statement prior to his examination by the...........................................................(here enter the medical authority) and must sign the declaration appended thereto in the presence of that authority.

Declaration by Applicant
(To be signed in the presence of the medical authority)

    I declare all the above answers to be, to the best of my belief, true and correct.

    I am fully aware that by wilfully making a false statement or concealing a relevant fact I shall incur the risk of losing the commutation I have applied for and of having my pension withheld or withdrawn under Rule 8 of the Central Civil Services (Pension) Rules, 1972.

Applicant's signature or thumb-impression
in case of illiterate applicant       

Signed in the presence of.................................
(Signature and designation of medical authority)

PART- II
(To be filled in by the examining medical authority)

PART- III
(To be filled in by the examining medical authority)

    I/We have carefully examined Shri/Shrimati/Kumari.........................................................and am/are of opinion that -

    He/She is in good bodily health and has the prospect of an average duration of life.

Or

He/She is not in good bodily health and is not a fit subject for commutation.

Or

Although he/she is suffering from...............................he/she is considered a fit subject for commutation but his/her age for the purpose of commutation, i.e., the age next birthday should be taken to be..................................(in words) years more than his/her actual age.

FORM 5
[ see Rule 7 ]

To
Head of Office
(Place)............................................

    I,....................................................(Name of the pensioner in Capital Letters) hereby nominate the person named below, under Rule 7 of the Central Civil Services (Commutation of Pension) Rules, 1981.

Acknowledgement to be sent by the Head of Office

    Certified that the nomination has been received from....................................................................(name of Pensioner) whose address is......................................................

[G.I., Dept. of Pension and Pensioners' Welfare, Notification No. 34 (5)/83-Pension Unit, dated the 17th April, 1985, published as S.O. No. 1870 in the Gazette of India, dated the 4th May, 1985.]

PRO FORMA
[ see Decision(2), Rule 10 ]

Sir,

    Kindly restore my commuted portion of pension in terms of Ministry of Personnel, Public Grievances and Pensions, Department of Pension and Pensioners' Welfare, O.M. No. 34/2/86-P. & P.W., dated the 5th March, 1987.

TABLE

COMMUTATION VALUES FOR A PENSION OF
Re. 1 PER ANNUM

Effective from 1st March, 1971
[ see Rules 8,26(7), 28(5) and 29(1) and 29(2) ]

NOTE. - This table is based on a rate of interest of 4.75 per cent per annum.

ANNEXURE
[ see Rule 20(3) ]
CHIEF ADMINISTRATIVE MEDICAL AUTHORITIES
IN THE STATES AND UNION TERRITORIES