Section 83 in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
83. Limit on commutation of pension.
(1)An employee shall be entitled to commute for a lumpsum payment a fraction not exceeding one-third of his pension.Explanation - (1) The term "Pension" referred to in this Chapter and hereinafterin Chapters XII and XIII unless the context otherwise required, means any class of pension including compassionate allowance referred to in Chapter V of these Regulations but does not include any amount granted by the Commission to a pensioner as compensation for higher cost of living.(2)In an application for commutation in Form 19 or Form 20, as the case may be an applicant for commutation shall indicate the fraction of pension which he desires to commute and may either indicate the maximum limit of one third or 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.Note. - When a part of pension is withheld or withdrawn under Regulation 7 the residual amount is the amount that has been granted from the date of withholding or withdrawal or a part of the pension. As such if commutation is applied for after the date, the admissible amount that can be commuted will have to be calculated with reference to the pension payable to the person after that date.
