7th CPC on reduction of restoration period of commuted portion of pension of Pre -2016 Pensioners

Reduction of restoration period of commuted portion of pension

The Commission has received a number of representations requesting reduction of restoration period of commuted portion of pension from the existing 15 years.

Reduction in the time period for restoration of basic pension, reduced on account of commutation

The Commission ‘s Recommendations on this demand ..

The Commission notes that prior to V CPC the commutation allowed was one-third. However, there was no restoration.

The Supreme Court, vide their judgement dated 09.12.1986, allowed restoration of pension after 15 years.

The Supreme Court in its judgement specifically stated that though the amount is recovered in 12 years, yet since there is a risk factor and some of the states are restoring pension after 15 years, the period of restoration is fixed at 15 years.

READ ALSO : Easy steps to Calculate your Basic Pension in 7th Pay Commission

The V CPC in its recommendation increased the percentage of commutation to 40 percent and recommended restoration period at 12 years. But the reduction of restoration period was not accepted by the government. The VI CPC did not recommend any change in the maximum percentage of commutation allowed or in the period of restoration.

This Commission also does not recommend any change either in the maximum percentage of commutation or in the period of restoration.

Raising the existing rates of pension and Family pension : 7th CPC Recommendation

Now 50% of Last Pay drawn has been granted as Pension for retiring Government Servants.Federations and Govt servants demanded 60% of Last Drawn Pay to be fixed for Monthly Pension and demanded to increase the family Pension from existing 30% to 50 %. The Commission stated in its recommendation that  [ Continue Reading ].

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3 thoughts on “7th CPC on reduction of restoration period of commuted portion of pension of Pre -2016 Pensioners”

  1. m pradeep kumar

    is there any changes
    to commutation factor table after 7 th pay, please
    circulate new table

  2. sridhar alias krishnan.R

    A Pensioner has opted 40% of his pension as commuted value. Now after implementing 7th pay commission he may get the arrear amount. If he get the arrear his pension will be less. Can he submit application (exercise option) for reduction of commutation i.e 25% Now to the pension authorising authority.give option

  3. There is absolute lack of clarity on the methodology in the 7th CPC report about the methodology to re-fix the revised pension in case of Employees who opted for 100% commutation on absorption in PSU form whom there is now rovision for restoration of the 1/3 rd portion of pension with DA on the 100% of the revised notional pension post 6th CPC
    Would like to seek clarifications & help on this aspect. If needed I could feed in my personal details as I am one such case
    Thanks

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