In India, Central Government employees can receive a part of their pension as a lump sum amount. When they choose to commute their pensions, their monthly pensions will be reduced. However, the commuted pensions will be restored after 15 years.

Read on to know more about the rules governing commuted pension restoration and the latest policy changes and recommendations updates.

What is Restoration of Commuted Pension?

Restoration of commuted pension means reinstating the portion of your pension that was previously commuted. This happens after 15 years from the date you received the commuted pension amount. If your commuted pension has not been restored after this period, you should contact your Pension Disbursing Authority (PDA) or pension-paying bank for assistance.

Eligibility Criteria for Pension Restoration

All government employees who have commuted a portion of their pension are eligible for pension restoration. This includes those absorbed into Public Sector Undertakings (PSUs) or Autonomous Bodies (ABs), meeting the specified conditions. 

Rules and Guidelines for Restoration of Commuted Pension

The following are the rules and guidelines for the restoration of commuted pension:

15-Year Restoration Rule

As per Rule 10A of the CCS (Commutation of Pension) Rules, 1981, commuted portion of pension is restored after 15 years from the date of the receipt of the commuted value of the pension.

Push for 12-Year Restoration Rule

Some pensioners and state governments have requested that the restoration period for commuted pensions be reduced to 12 years, arguing that the amount is typically recovered within this timeframe.

5th Pay Commission Recommendations

The 5th Central Pay Commission conducted a thorough study and suggested restoring commuted pensions after 12 years. However, the Central Government did not accept this recommendation.

Latest Orders and Notifications on Pension Restoration

Latest reports confirm that there have been talks for reducing the period of commuted restoration of pension from 15 years to 12 years. The Confederation of Central Government Employees and Workers has requested the Central Government to cut the commutation period to 12 years. Yet, no notification announcing its implementation is released till now.

The call for the restoration of commuted pension to 12 years from 15 years is becoming increasingly popular, with pensioners and advisory bodies urging a reduction of the restoration period. As negotiations have started, no official announcement has been made so far. Pensioners must keep themselves informed about policy amendments and contact their Pension Disbursing Authority for any issues regarding pension restoration.

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