Central government pensioners get the option of commuted pension, where they can take up to 40% of their basic pension as a lump sum amount at the time of retirement. The commuted portion is then deducted from their monthly pension and is restored only after 15 years. However, as the 8th Pay Commission is working to prepare its report of recommendations, many employees and pensioners' associations strongly want to reduce the commutation period from 15 years to 11 to 12 years. Such bodies believe that the current pension commutation rules are based on four-decade-old parameters that no longer apply to current pensioners.
Key recommendations to 8th Pay Commission for commuted pension restoration
