Commutation Rule No.7: Commutation of pension to become absolute

7.      Commutation Of Pension To Become Absolute:-

(1)     The commutation of pension shall become absolute in the case of an applicant referred to:-
(i)   In sub-rule (1) of rule 14 on the date on which the application in Form 1 is received by the Head of Office;
(ii) In sub-rule (3) of rule 14 on the date following the date of retirement of the applicant;
(iii) In Chapter IV, on the date on which the medical authority signs the medical report in Part III of Form 5.
Provided that:-
(a)    In the case of an applicant who is drawing his pension from a treasury or Accounts Officer, the reduction in the amount of pension on account of commutation shall be operative from the date of receipt of the commuted value of pension or at the end of three months after issue of authority by the Accounts Officer for the payment of commuted value of pension, whichever is earlier;
(b)     In the case of an applicant who is drawing pension from a branch of a Nationalized bank or Post Office, the reduction in the amount of pension on account of commutation shall be operative from the date on which the commuted value of pension is credited by the bank to the applicant’s account to which pension is being credited; and
(c)      In case of an applicant governed by sub-rule (3) of rule 14 in whose case the commuted value of pension becomes payable on the day following the date of his retirement, the reduction in the amount of pension on account of commutation shall be operative from its inception. Where payment of commuted value of pension could not be made within the first month after the date of retirement, the difference of monthly pension for the period between the day following the date of retirement and the date preceding the date on which the commuted value of pension is deemed to have been paid in terms of rule 49 of the Central Government Accounts (Receipts and Payments) Rules, 1983, shall be authorized by the Accounts Officer.
(2)     In the case of an applicant referred to in rule 10 or rule 11 the commuted value is paid in two or more stages. The reduction in the amount of pension shall be made from the respective dates of the payments as laid down in clause (a) or clause (b) of the provision to sub-rule (i).
[Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]
(3)     The date on which the payment of the commuted value of pension was credited to the applicant’s account shall be entered in both halves of the pension payment order by the disbursing authority under intimation to the Accounts Officer who authorized the payment of commuted value of pension.