Q. 1. What is commutation and how is it worked out?
Ans. A pensioner can opt to commute maximum 1/3rd of pension and in lieu of that, lumpsum amount is paid to him by taking into account the age factor i.e. age on next birthday.
Q. 2. How is the restoration of commutation done?
Ans. Restoration of commutation is done against application (in prescribed format), by the pensioner to the pension disbursing authority on completion of 15 years from the date of retirement or attainment of the age of 75 years, whichever is later.
Q. 3 Can an application for commutation be withdrawn?
Ans. On receipt of “No payment certificate“ from the respective treasury the application may be withdrawn.
Q.4. If a departmental or judicial proceeding stands pending against a pensioner, does he have the right to apply for commutation?
Q. 5 Can a pension once restored be commuted again?