COMMUTATION OF ADDITIONAL PENSION

Thursday, September 17, 2009
Very Important : Last opportunity for commutation of additional pension for defence personnel who retired between 01-01-2006 and 02-09-2008
Personnel who retired between 01 Jan 2006 and 02 Sept 2008 had availed their commutation of pension at old rates and at the old percentage. The Sixth Central Pay Commission had enhanced the percentage of commutable value to 50%. As a result, some personnel who had retired prior to the announcement of the acceptance of the 6th CPC had gone home with a commutation value at 5th CPC rates and at a lesser percentage. The Govt had then granted an option to such retirees to opt for the new rates if they so desired. Due to lack of circulation of this option, coupled with lack of knowledge of the issue, many did not exercise the same. The problem was compounded by the fact that no cut-off date or last date for exercising the option was mentioned in the letter issued by the Govt of India.

The Ministry of Defence has now decided that the said option for additional commutation may be exercised by such left out retired personnel by 10 October 2009. Those who do not exercise the option by 10-10-2009 would be deemed to have refused the additional commutation.

The entire circular of PCDA(P) on the issue alongwith the Govt letter dated 10-09-2009 on the subject can be accessed and downloaded by clicking here.


Please spread the word since there shall be no separate communication to defence personnel on the issue.

The earlier letter dated 12-11-2008 detailing the modalities of commutation after the 6th CPC can be accessed by clicking here. (Please refer to Para 9.3 of this)


The option certificates and corrigendum of the above mentioned letter dated 12-11-2008 can be accessed by clicking here.


Once again the same request : Please do not email me individual queries or doubts on calculations on the above, my profession does not allow me the luxury of such time. You are most welcome to post your queries / doubts as comments to this post. Thanks.
Posted by Navdeep / Maj Navdeep Singh at 5:01 AM 2 comments
Labels: Pay Commission, Pension, Policy and Benefits