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Union of India - Section

Section 41 in The Life Insurance Corporation of India (Employees) Pension Rules, 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-rule (5) of rule 3 of these rules, 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
Agenext birthday Commutationvalue expressed as number of year’s purchase Agenext birthday Commutationvalue expressed as number of year’s purchase Agenext birthday Commutationvalue expressed as number of year’s purchase
17 19.28 42 15.4 67 7.85
18 19.20 43 15.15 68 7.53
19 19.11 44 14.90 69 7.22
20 19.01 45 14.64 70 6.91
21 18.81 46 14.37 71 6.60
22 18.70 47 14.10 72 6.30
23 18.59 48 13.82 73 6.01
24 18.47 49 13.54 74 5.72
25 18.34 50 13.25 75 5.44
26 18.24 51 12.95 76 5.17
27 18.21 52 12.66 77 4.90
28 18.07 53 12.35 78 4.65
29 17.93 54 12.05 79 4.40
30 17.78 55 11.73 80 4.17
31 17.62 56 11.42 81 3.94
32 17.46 57 11.10 82 3.72
33 17.29 58 10.78 83 3.52
34 17.1 59 10.46 84 3.32
35 16.92 60 10.13 85 3.13
36 16.72 61 9.81    
37 16.52 62 9.48    
38 16.31 63 9.15    
39 16.09 64 8.82    
40 15.87 65 8.50    
41 15.64 66 8.17    
Notes :- (1) 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.
(2)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.
(3)An applicant who is authorised a superannuation pension, voluntary retirement pension, invalid pension or compassionate allowance shall be eligible to commute a fraction of his pension under these rules.
(4)In the case of a pensioner eligible for superannuation pension or pension on voluntary retirement, 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.Explanation.- An applicant who -
(i)retires on invalid pension under rule 32 of these rules, or
(ii)is in receipt of compassionate allowance under rule 33 of these rules,
shall be eligible to commute a fraction of his pension subject to the limit specified in sub-rule (1) after he has been declared fit by a medical officer approved by the Corporation.
(5)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-rule(3) of rule 31 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-rule (1) of rule 31;
(b)retiring on superannuation or on voluntary 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, if he applies for commutation of pension after one year from the date of retirement, on the date of the medical certificate given by a medical officer approved by the Corporation;
(d)who has retired prior to the 1st day of November, 1993 and who opts to be governed by these rules, on the 1st day of November, 1993, where the application for commutation is made within the period specified by clause (b) of the sub-rule (1) of rule 3;
(e)who was in the service of the Corporation on or after the 1st day of November, 1993 but who retired prior to the publication of these rules, on the day immediately following the date of his retirement, where the application is made within the period specified by clause (b) of sub-rule (2) of rule 3;
(f)who retired on or after the 1st 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-rule(5) of rule 3;
(g)in respect of whom invalid pension under rule 32 or compassionate allowance under rule 33 is admissible, commutation shall become absolute on the date of the medical certificate given by a medical officer approved by the Corporation.
(h)[ in respect of an employee, under sub-rule (11) of rule 3, who opts to be governed by the Life Insurance corporation of India (Employees) Pension (Amendment) Rules, 2019, commutation shall become absolute on the date on which the application for commutation is received by the Competent Authority or the date of the medical certificate given by a medical officer approved by the Corporation, whichever is later.] [Inserted by Notification No. G.S.R. 324(E), dated 23.4.2019 (w.e.f. 28.6.1995).]
Chapter - IX General Conditions