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State of Punjab - Section

Section 23 in Punjab School Education Board (Employees' Pension, Provident Fund and Gratuity) Regulations, 1991

23. Commutation of Pension.

- (i) An employee shall be entitled to commute, for a lumpsum payment, any portion (consisting of whole rupee) not exceeding one third of his pension which has been or may be granted to him.
(ii)For calculating the lumpsum payment for commutation, the instructions of the State Government/Provisions of C.S.R. Rules in force at present shall be applicable. Any further revision shall be adopted with the prior approval of the Board. A few entries of the table, currently in force, are given below as illustration :-
Age next birthday Commutation value expressed as number of years' purchase
59 years 10.46
60 years 10.13
61 years 9.81
(iii)An example of calculation of commuted value payable is given below :-
Example :- An employee belonging to class I to III retires on attaining the age of superannuation (58) on 31.12.91. If pension admissible to him is say Rs. 2500/- per month, he can commute any amount not exceeding Rs. 833/-. In case he applies for commutation of Rs. 833/- per month within one year of retirement, before attaining the age of 59 years, he will be entitled to receive Rs. 1,04,158.16 as commuted value of pension.= 833 X 12 X 10.46 = 1,04,158.16Thereafter his monthly pension will be rounded to Rs. 1667/- but Dearness relief will continue to be paid as admissible on the total pension of Rs. 2500/- per month.
(iv)Commutation of pension is permissible without medical examination if applied for within one year of the date of retirement. In the case of invalid pension, commutation is permitted only after medical examination. In case of employees retiring between 1.4.91 and the date of notification of these regulations the period of one year shall be counted from the date of notification.
(v)Commuted portion of pension shall be restored when the pensioner attains the age of 70 years, if the commutation was applied for and sanctioned within one year of retirement, and the employee had retired on attaining the age of super-annuation. For other types of cases restoration shall be done after varying periods as specified in the C.S.R. or instructions of the State Government