RTI reply regarding computation of commutation to those retire last day of the month

F. No. 19/1/2017-JCA

Government of India

Ministry of Personnel, PG &Pensions

Department of Personnel  & Training

Establishment (JCA) Section

                                                                                                                                                          North Block, New Delhi                                                                         Dated 23^thjuly,2018

                                                                                                                                                          

Ms. Simmy  Kumari

2/13-A,LGF- (Backside),

Jangpura A, New Delhi 110014

Sub;  Reg. No. DOP&T/R/2018/53350 dated 02/07/2018

                         Information  under RTI Act, 2005.

Sir,

Please refer to your RTI application dated 02/07/2018. In your RTI application you have mentioned one letter no. NC/JCM/015/DOPT dated 06.07.2015 of Shri Shiva Gopal Mishra, Secretary, Staff Side, NC/JCM. The said letter talks about item no.14 of the 43^rdMeeting of the National Council. Relevant Copies of the item no. 14 of 43^rd Meeting of the National Council as available in file no. 3/24/2004-JCA is enclosed.

Yours   Faithfully

S d/-

(Debabrata Das)

CPIO & Under Secretary to

Govt. of India

Tele  No.  23092110

14. ITEM NO. 14/04/NC-43                                                               DEPTT. OF PENSION  & P.W.

SUB:   COMPUTATION OF COMMUTED VALUE OF PENSION FOR THOSE WHOSE BIRTHDAY FALL ON 1^ST OF THE MONTH.

1. The Staff Side stated that Government employees whose birthday falls on the 1^st of the month are retired on the last day of the previous month. In calculation of the commuted value expressed as number of year’s purchase, the age at the next birthday is taken into account. In case of those employees who retire on the last date of the previous month as their birthday falls on 1^st of the following month, the next birthday after retirement will fall on 1^st of the following month and his age on the date of next birthday is 60 Years and not 61 years. Therefore, his commutation value should be calculated at the rate of 10.13 and not@9.81.

2. The Official Side clarified that Rule 8 of the Commutation of Pension Rules, 1981 says that the commutation value shall be calculated in accordance with the Table of Value prescribed under Commutation Rules, on the date on which the commutation become absolute. As per Rules 6 (1)(i-a)  -In case of Government servant retiring on superannuation commutation become absolute on the day following the date of his retirement. Thus, in view of the above rules, in case of Government employees retiring on the last day of the previous month, the commutation becomes absolute on 1^st of the following month. As such, he has already completed 60 years on 1^st of the following month i.e. the date on which the commutation becomes absolute. Hence, the age next birthday will be 61 years. Therefore ,the commutation factor at the rate of 9.81 applicable to 61 years of age is correctly applied.

                                                                                                                                                                      ITEM FINALISED