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Union of India - Section

Section 41 in United Bank of India (Employees') Pension Regulations, 1995

41. Commutation.

(1)An employee shall be entitled to commute for a lump sum payment of a fraction not exceeding one-third of his pension:Provided that in respect of an employee who is governed by sub-regulation (5)of Regulation 3 of these regulations, the family of such employee shall also be entitled to commute for a lump sum payment a fraction not exceeding one-third of the pension admissible to the employee.
(2)An employee shall indicate the fraction of pension, which he desires to commute, and may either indicate the maximum limit of one-third pension or such lower limit, as he may desire to commute.
(3)if fraction of pension to be commuted results in fraction of rupee, such fraction of a rupee shall be ignored for the purpose of commutation.
(4)The lump sum payable to an applicant shall be calculated in accordance with the Table given below.TableCommutation values for a pension of Re. one per annum
Age Next birthday Commutation value expressed as the number ofyear's purchase Age next birthday Commutation value expressed as the number ofyear's purchase
17 19.26 31 17.62
18 19.20 32 17.46
19 19.11 33 17.29
20 19.01 34 17.11
21 18.91 35 16.92
22 18.81 36 16.72
23 18.70 37 16.52
24 18.59 38 16.31
25 18.47 39 16.09
26 18.34 40 15.87
27 18.21 41 15.64
28 18.07 42 15.40
29 17.93 43 15.15
30 17.78 44 14.90
45 14.64 66 8.17
46 14.37 67 7.85
47 14.10 68 7.53
48 13.82 69 7.22
49 13.54 70 6.91
50 13.25 71 6.60
51 12.95 72 6.30
52 12.66 73 6.01
53 12.35 74 5.72
54 12.05 75 5.44
55 11.73 76 5.17
56 11.42 77 4.90
57 11.10 78 4.65
58 10.78 79 4.40
59 10.46 80 4.17
60 10.13 81 3.94
61 9.81 82 3.72
62 9.48 83 3.52
63 9.15 84 3.32
64 8.82 85 3.13
65 8.50    
Note. - The table above indicates the commuted value of pension expressed as number of years' purchase with reference to the age of the pensioner as on his next birthday. The commuted value in the case of an employee retiring at the age of fifty eight years is 10.46 years' purchase and. therefore, if he commutes rupees one hundred from his pension within one year of retirement, the lump sum amount payable to him works out to Rs. 100 x 10.46 x 12 = Rs. 12,552.
(5)An employee who had commuted the admissible portion of pension is entitled to have the commuted portion of the pension restored after the expiry of a period of fifteen years from the date of commutation.
(6)An application who is authorised a superannuation pension or voluntary retirement pension or premature retirement pension or compulsory retirement pension or invalid pension or compassionate allowance shall be eligible to commute a fraction of his pension under these regulations;Provided that on and from 1.7.2003, in case of an applicant in whose case, the om-muted value of pension becomes payable on the day following the date of his retirement or from the date from which the commutation becomes absolute, the reduction in the amount of pension on account of commutation shall become operative from its inception. where, however, payment of commuted value of pension could not be made within the first month after the date of retirement or within the first month after the date which the commutation becomes absolute as the case may be, the difference between the monthly pension and the commuted pension shall be paid for the period between the date following the date of retirement or the date when the commutation becomes absolute, as the case may be, and the date preceding the date on which commuted value of pension is deemed to have been paid.
(7)In the case of a pensioner eligible for superannuation pension or pension on voluntary retirement or premature retirement pension, no medical examination shall be necessary, if the application for commutation is made within one year from the date of retirement. However, if such a pensioner applies for commutation of pension after one year from the date of his retirement, the same will be permitted subject to medical examination:Provided that in the case of an applicant who is in receipt of a provisional pension as in Regulation 46 and for whom pension in whole or in part on the finalisation of the departmental or judicial proceedings has been authorised, the period of one year referred to in this sub-regulation shall reckon from the date of issue of the orders consequent upon the finalisation of the departmental or judicial proceedings.
(8)An applicant who -
(i)retires on invalid pension under regulation 30 of these regulations; or
(ii)is in receipt of compassionate allowance under regulation 31 of these regulations; or
(iii)is compulsorily retired by the bank and is eligible for compulsory retirement pension under regulation 33,
shall be eligible to commute a fraction of his pension subject to the limit specified in sub-regulation (1) after he has been declared fit by a medical officer approved by the Bank.
(9)The commutation of pension shall become absolute in the case of an employee :
(a)retiring on superannuation or voluntary retirement who submits an application for commutation of pension before the date of retirement, on the date following the date of retirement:
Provided that the employee governed by sub-regulation (3) of regulation 29 shall not apply for commutation of a part of his pension before the expiry of the notice of three months and the commutation of pension shall become absolute only on the expiry of the period of notice referred to in sub-regulation (1) of regulation 29;
(b)retiring on superannuation or on voluntary retirement or on premature retirement, if he applies for commutation of pension after the date of retirement but before the completion of one year from the date of retirement, on the date the application for commutation is received by the Competent Authority;
(c)retiring on superannuation or on voluntary retirement or on premature retirement, if he applies for commutation of pension after one year from the date of retirement, on the date of medical certificate given by a medical officer approved by the Bank;
(d)who has retired prior to the 1stday of-November 1993 and who opts to be governed by these regulations, on the 1stday of November 1993, where the application for commutation is made within the period specified by clause (b) of sub-regulation (1) of regulation 3;
(e)who was in the service of the Bank on or after the 1stday of November, 1993 but who retired prior to the publication of these regulations on the day immediately following the date of his retirement, where the application is made within the period specified by clause (b) of sub-regulation (2) of regulation 3;
(f)who retired on or after the 1sl day of November, 1993 but died prior to the notified date, on the day immediately following the date of his retirement, where the application for commutation is made by the family of the deceased within the period specified by clause (a) of sub-regulation (5) of regulation 3;
(g)in respect of whom invalid pension under regulation 30 or compassionate allowance under regulation 31 or compulsory retirement pension under regulation 33 is admissible, commutation shall become absolute on the date of the medical certificate given by a medical officer approved by the Bank.