Commutation Rule No.14: Application for commutation of pension

14.  Application For Commutation Of Pension:-

(1)   An applicant, who is in receipt of any pension referred to in rule 13 and desires to commute a percentage of the pension any time after the date following the date of his retirement from service but before the expiry of one year from the date of retirement, shall –

(a)   Apply of the Head of Office in Form 1 after the date of his retirement;

(b)   Ensure that the application in Form 1, duly completed, is delivered to the Head of Office as early as possible but, not later than one year of the date of his retirement:

Provided that in the case of an applicant-

(a)    Referred to in clause (iii) of rule 13 where order retiring him from Railway service had been issued from a retrospective date, the period of one year referred to in this sub-rule shall reckon from the date of issue of such retirement order;

(b)    Referred to in clause (v) of Rule 13, the period of one year referred to in this sub-rule shall reckon from the date of the issue of the orders consequent on the finalization of the departmental or judicial proceedings.

(2)   An applicant who applies for commutation of pension within one year of the date of his retirement but his application Form 1 is received by the Head of Office after one year of the date of his retirement shall not be eligible to get his pension commuted, without medical examination. Such an applicant, if he desires to commute a percentage of his pension, shall apply afresh in Form 2 in accordance with the procedure laid down in Chapter IV.

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

(3)   A railway servant who is due to retire on superannuation and desires payment of the commuted value of pension being authorized at the time of issue of the pension payment order, shall be eligible to apply in Form 8 of the Railway Services (Pension) Rules, 1993 for commutation of a percentage of pension along with pension papers prior to the date of retirement.

(3A) If a railway servant referred to in sub-rule (3) desires to apply for commutation of a percentage of pension after submission of pension papers and Form 8 of the Railway Services (Pension) Rules, 1993, he shall apply for the same in Form 2.

(3B) The application for commutation of a percentage of pension under sub-rule (3) or sub-rule (3A) shall be subject to the following; namely:

(a)   The railway servant retires on superannuation pension only;

(b)   The application is submitted to the Head of Office in Form 2 of these rules or in Form 8 of the Railway Services (Pension) Rules, 1993, so as to reach the Head of Office not later than three months before the date of superannuation;

(c)    No such application shall be entertained if the period is less than three months from the date of superannuation of the railway servant; and

(d)    The railway shall have no liability for the payment of the commuted value of pension if the Railway servant dies before the date of superannuation or forfeits claim to pension before such retirement.

[Authority: RBE No.113/2015, No.2015/F(E)III/1(2)/8. 22.09.2015]