Commutation Rule No.6: Limit On Commutation Of Pension

6.    Limit On Commutation Of Pension:-

(1)   Subject to the provisions of these rules, a railway servant shall be entitled to commute for lump sum payment of an amount not exceeding forty percent of his pension. [Authority: RBE No.16/2005, No.F(E)III/2003/PN1/25, 24.01.2005].

(2)   In an application for commutation in Form 8 of the Railway Services (Pension) Rules, 1993 or in Form 1 or Form 2 or Form 3 of these rules as the case may be, an applicant shall indicate the percentage of pension which he desires to commute and shall indicate the maximum limit of forty percent of pension or such lower limit as he may desire to commute.

[Authority: RBE No.16/2005, No.F(E)III/2003/PN1/25, 24.01.2005 and, RBE No.113/2015, No.2015/F(E)III/1(2)/8, 22.09.2015]

(3)   If percentage of pension to be commuted results in fraction of rupee, such fraction of rupee, such fraction of a rupee shall be ignored for the purpose of commutation.

[Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]