7th Pay Commission News: The Centre has received a proposal on restoration of commuted portion of the pension to the pensioners after 12 years instead of the present 15 years, a demand that has been raised for the past many years by various central staff unions and other consultative bodies engaged on different employee welfare issues.

In a letter addressed to Prime Minister Narendra Modi recently, Shiva Gopal Mishra, Secretary, National Council (Staff Side) of Joint Consultative Machinery (JCM) has submitted 14 demands covering various pending issues related to central government employees. One of the demands is that the Centre must cut the time period for restoration of commuted portion of pension to 12 years from the existing 15 years for central government employees.

The National Council JCM is the highest Consultative Forum of the central government employees for which the Cabinet Secretary is the chairman.

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“As Secretary Staff Side of the National Council (JCM), it is my duty to draw your kind attention to some of the major issues which are agitating the minds of the central government employees and pensioners,” the letter said while demanding “restoration of the commuted portion of the pension to the pensioners after 12 years instead of the present 15 years.”

Earlier in April this year, the All India Defence Employees’ Federation wrote to the government seeking immediate action on this matter.

Commutation of pension:

At the time of retirement, central government employees have this option of commuting a part of their pension, not more than 40%, into a lump sum payment.

Lump sum payable is calculated with reference to the Commutation Table. The pensioner’s monthly pension gets reduced by the portion commuted and the commuted portion is restored on the expiry of 15 years from the date of receipt of the commuted value of pension.

If the retiree opts for pension commutation option within one year of retirement, there will be no medical examination; but if this facility is exercised after one year, then he or she has to undergo a medical examination by the specified competent authority.