I am here sharing the clarification of double pension. I hope you will like this article composed by Mr. Agha Amir. Detail is as under:
- The concept of “double pension” is still not clear to many a friend. I keep on receiving questions like Q1 to Q3 listed below. And the pensioners expect me not only to give a brief answer Yes or No, but also to explain reasons for such an answer.
Q1. Does the pension become double upon restoration of commuted part ?
Q2. Is doubling the pension at the age of 75 ?
Q3. Does direction by High Court [upheld by Supreme Court] override pension rules ?
Commutation History
2. Commutation of pension was regulated by Civil Pensions (Commutation) Rules 1925. Rule 3 entitled the Government servants to commute a portion [not exceeding one-half] of the pension against a lump payment. Rule 6(2) prescribed that the commutation was final and absolute. Title of the government servant to receive the commuted part ceased forever, and only the un-commuted part remained receivable. This was also commonly known as “selling” half the pension for good.
3. Increases in pension however continued to be allowed on Gross Pension up to and including the 1999 increase. Para 2 of the 1999 increase orders specified that:
“For the purpose of admissibility of the increase in pension sanctioned in this O.M., the term
‘Pension’ means:
pension before commutation and or surrender of ¼ for gratuity;
plus
dearness / ad hoc increases / indexation in pension sanctioned from time to time.
4. Termination of commuted pension against lump grant was reversed in 1985 after government issued orders that the commuted portion would be restored upon expiry of the number of years for which commutation value had been received. If a pensioner had got 50% pension commuted on 1.7.1970 and received 15 years’ commutation value, the commuted part stood restored from 1.7.1985. And if a pensioner retired on 1.7.1984, the commuted part was restorable from 1.7.1999. For all these years, the increases continued to be allowed on “Gross Pension plus previous increases”. This practice was changed from 2001.
2001 Payscales-cum-Pension Scheme
5. Two major “reforms” were introduced in pension from 1.12.2001- (A) The benefit of restoration of commuted part was withdrawn under Para 16 (e) of the orders; and (B) increases in pension from 2001 onward were reduced to Net Pension [instead of Gross Pension] under para 16 (f). The second reform simply meant that increases from 2001 onward were no longer admissible on the 50% commuted part.
6. Those pensioners who had retired before 2001 payscales were getting increases on both parts [(A) Un-commuted and (B) Commuted] up to and including the 1999 increase. To illustrate this, consider the case of a pensioner who retired in pay scale 16 on 1.1.1991 with a gross pension of Rs.2,000 out of which 50% (Rs.1,000) had been commuted. The 1991, 1995, 1997 and 1999 all increases are equal on both un-commuted and commuted parts, as per rows 3 and 8 of Table A given at the end. However, two figures are given for the 2001 increase, (i) if it was on Gross, and (ii) actual given on Net. The actual increase on Net Pension is Rs.100 lesser as shown in rows 8 and 11 than what would have been on Gross.
7. Para 16 (e) of the 2001 Orders [through which restoration of commuted part of pension was discontinued] was soon reversed in respect of persons who had already retired before 2001 orders. One such pensioner took up the legal stand that upon restoration, both halves [un-commuted as well as commuted] of pension, plus all increases, should be equal. If otherwise, the restoration would be erroneous. For this purpose, the increases (not actually given on commuted part from 2001 onward) should be given, at least on notional basis, upon restoration of that part from the date of restoration. This is illustrated in respect of a government servant whose period of commutation expired on 31 Dec 2005, and restoration fell due on 1 Jan 2006, in Table B at the end.
8. This petition was accepted by Court with the observation that restoration means bringing back into original condition. If both parts were equal to begin with, then both parts along with all increases should be equal upon restoration too. Otherwise the restoration would be imperfect. Directions by court included that on restoration, the amount of commuted part should be increased notionally to bring it equal to the un-commuted higher part, thus making the two halves equal, and the total equal to double of the higher amount. In other words, the total pension upon restoration should be double the amount of un-commuted pension along with increases on restoration date.
9. This doubling formula is based on factors listed below. If any factor varies, the formula may not be applicable. For example, if the commutation was only 25%, the doubling formula will not apply.
- Exact 50% of Gross Pension was commuted. [Pensioners have the option of getting less than 50% commuted].
- Pensioners retired at the age of 60. [In certain cases, pensioner may seek pre-mature retirement, or retire on medical grounds, at a younger age].
- The commutation value was received for 15.4649 [15 rounded off] years, on expiry of which period, restoration fell due. [The number of years may be higher for persons retiring at a younger age than 60].
10. The Court further directed that the increased pension would be admissible from date of restoration, and no arrears for the period prior to restoration would be admissible.
Notional increase
11. There are two methods to determine how much notional increase would make the two halves equal upon restoration. The one generally practised by Accounts Offices is to calculate on notional basis all increases on Gross Pension, and then pay the difference from the date of restoration of commuted portion of pension.
12. The second method is to calculate the amount of all increases NOT given on the commuted part from 1.12.2001 till restoration date. And then add the commuted amount, plus the amount of all such increases to the pension on restoration date.
13. If the calculations are correct, both
methods would yield the same result, and the amount of pension upon restoration
would be the same, and double of the un-commuted part + increases.
Table A, all increases on Gross Pension up to 1999, and 2001 increase on Gross / Net
| All increases on Gross Pension | 2001 increase on Net Pension | |||||||
| Increases on Un-Commuted Part | Increases on Un-Commuted Part | |||||||
| Year | 1991 | 1995 | 1997 | 1999 | Year | 2001 | 2001 | |
| 1 | Increase on | 1,000 | 1,050 | 1,208 | 1,304 | Increase on | 1,435 | 1,435 |
| 2 | increase % | 5 | 15 | 8 | 10 | increase % | 10 | 10 |
| 3 | Increase Rs | 50 | 158 | 97 | 130 | Increase Rs | 143 | 143 |
| 4 | With increase | 1,050 | 1,208 | 1,304 | 1,435 | With increase | 1,578 | 1,578 |
| 5 | Net received | 1,050 | 1,208 | 1,304 | 1,435 | Net received | 1,578 | 1,578 |
| Increases on Commuted Part | Increases on Commuted Part | |||||||
| Year | 1991 | 1995 | 1997 | 1999 | Year | 2001 | 2001 | |
| Gross | Net | |||||||
| 6 | Increase on | 1,000 | 1,050 | 1,208 | 1,304 | Increase on | 1,435 | 435 |
| 7 | increase % | 5 | 15 | 8 | 10 | increase % | 10 | 10 |
| 8 | Increase Rs | 50 | 158 | 97 | 130 | Increase Rs | 143 | 43 |
| 9 | With increase | 1,050 | 1,208 | 1,304 | 1,435 | With increase | 1,578 | 478 |
| 10 | Less commuted | (1,000) | (1,000) | (1,000) | (1,000) | Less commuted | (1,000) | |
| 11 | Net received | 50 | 208 | 304 | 435 | Net received | 578 | 478 |
| Increases on Both Parts | Increases on Both Parts | |||||||
| Year | 1991 | 1995 | 1997 | 1999 | Year | 2001 | 2001 | |
| 12 | Increase on | 2,000 | 2,100 | 2,415 | 2,608 | Increase on | 2,870 | 1,870 |
| 13 | increase % | 5 | 15 | 8 | 10 | increase % | 10 | 10 |
| 14 | Increase Rs | 100 | 315 | 193 | 261 | Increase Rs | 287 | 187 |
| 15 | With increase | 2,100 | 2,415 | 2,608 | 2,869 | With increase | 3,157 | 2,056 |
| 16 | Less commuted | (1,000) | (1,000) | (1,000) | (1,000) | Less commuted | (1,000) | |
| 17 | Net received | 1,100 | 1,415 | 1,608 | 1,870 | Net received | 2,156 | 2,056 |
Table B, showing notional increase of Rs.614.14 from date of restoration 1 Jan 2006
| Date | Row # | Item | Including commuted 1,000 | Excluding commuted 1,000 | Diff |
| Rs | Rs | Rs | |||
| 1-Jan-91 | 1 | Pension | 2,000.00 | 1,000.00 | |
| 1991~99 | 2 | Increases to 1999 on Gross | 435.00 | 435.00 | |
| 3 | With increases | 2,435.00 | 1,435.00 | ||
| 1-Dec-01 | 4 | 10% increase on Net | 243.50 | 143.50 | 100.00 |
| 5 | With increase | 2,678.50 | 1,578.50 | ||
| 1-Jun-03 | 6 | 15% increase on Net | 401.78 | 236.78 | 165.00 |
| 7 | With increase | 3,080.28 | 1,815.28 | ||
| 1-Jul-04 | 8 | 16% increase on Net | 492.84 | 290.44 | 202.40 |
| 9 | With increase | 3,573.12 | 2,105.72 | ||
| 1-Jul-05 | 10 | 10% increase on Net | 357.31 | 210.57 | 146.74 |
| 11 | With increase | 3,930.43 | 2,316.29 | ||
| 1-Jan-06 | 12 | Commuted part restored | 1,000.00 | ||
| 13 | Total with restoration | 3,930.43 | 3,316.29 | 614.14 | |
| 14 | Notional increase | 0.00 | 614.14 | ||
| 15 | With increase | 3,930.43 | 3,930.43 | ||
| 16 | Total of both parts | 7,860.86 | |||
| 17 | Double of 3,896.55 | 7,860.86 |
Viewers’ comments /suggestions are welcome.
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My father has been died on 21 december 2007 and penhion transfer to my mother now my mother grant family penshon for Rs 8250/.age my mother 52 years can any rules that after 52 year 15000 wel be granted
Kindly email to Mr. Agha Amir for its details.
My father has been died on June 2007 . and pension were transfer to my mother . Now my mother grant family pension for a Rs, 8250/- pm. Age of my mother is 75 year. Can any rule that after 75 year 15000 pension will be granted.
Kindly email to Mr. Agha Amir for the details of this topic.
From 1 July 2018, the minimum family pension is Rs.11,250 plus medical in death after retirement cases. Have you requested the pension payment office for this ? For further information, please send to me email at [email protected]. Or, send to me message through whatsapp on 0300-9800246.
Sir, I was retired from Punjab Govt service on 2013 on account of superannuation with full pension benefits. One year prior to my retirement No Demand Certificate was circulated to all the departments for knowing if anything is outstanding against me. After receiving clearance certificates from all the concerned departments including accounts wing I was paid full pension. Now after 7 long years Accounts wing has pointed out a recovery of Rs. 2.00 lac as a loan which I may had taken from my GPF Account and is demanding its payment lest stoppage of Pension. It is very shocking to see such huge amount wrongly reflected against me, because I had cleared all my dues during my service, evident from the fact that upon receiving clearance certificates from all the departments I was paid full pension, had there been any legitimate recovery the same would have been deducted from my lumpsum pension payment. Kindly advise what should I do against such high handedness?
I was retired from Punjab Govt service on 09.09 2013 on reaching superannuation. My no demand certificate was cleared from all the concerned departments including Accounts department. After clearance from all the concerned I was paid full pension. Now, after 7 years of retirement Accounts wing has informed me that a loan of rs 2.00 lacks is outstanding against me, and required me to pay or the pension will be stopped. Whereas I had cleared all my dues during service, and accounts department had also given clearance for payment of pension. It is really shocking for me to hear this huge amount being demanded from me which is wrong and highly unjustified. Kindly advise me what I should do??
Sir meri retirement date 9 Mar 2017 he Pakamy main 26yrs svcki he age on discharge 43 yrs he meri restore pension date kia ho gi aur plz restoration of pention ki tashreeh kia he kia iss main pension main izafa hota he
Double pension 1.12.2001 mai jo 12 year wala notification send kerden
You can check the details in the below letter:
https://www.glxspace.com/2013/01/09/notification-of-revised-pay-scales-2001-its-effects-on-employees/
sir, I want to ask about the benefits which an employee get at the age of 72 years in the education department Punjab
Yes for Punjab Too restoration of Pension.
Dear sir , my mother is widow and her age is 84 till now , she is receiving my father’s half pension after his death from 2008 . May she now receive outstanding amount of by rule of full pension during the time after my father’s death and where I can check rules of widow full pension , she is still receive half pension last 12 years . Plz help me or guide me . I have no safarish except Allah . My father was retired from education department in 18 scale . Plz Ans me also on my email address . Thinking of you .
Plz email all these details to the Pension Expert Mr. Agha Amir. Thanks
Dear Waseem. The minimum family pension is Rs.11,250 plus medical from 1.7.2018. Pl email to me full particulars on [email protected], or send message through whatsapp on 0300-9800246 for further guidance.
I m Wapda Employee, retired on 29.08.2014. i want to know when my pension will be double.
If you retired at the age of 60 then expected at the age of 72 years.
My father date of birth is 6 june 1948
Hislength of service quality35 y 8 mnth
And date of reirement o5-06-2008
Kya wo avail kr sakty hai double pension..
His designation is 14 v. t. Plz rply me urgently. And tell me the way. How i take this.
Dear Humera
In my opinion the commuted part of pension is restorable from 5.6.2020. So the new pension will be 100/65 of pension as on 5.6.2020. Have you requested the pension payment office for it ? For further information please send to me email at [email protected] or send message through whatsapp at 0300-9800246
Respected Mr. Agha Amir Sb,
A o A,
My particulars related to pension are as under:
Date of birth : 22 June 1956
Date of retirement / pension : 1 August 1999
Date of 50% restoration of pension : 21 June 2026
Please let me know whether I am entitled to benefit of restoration of commuted portion of pension after 15 years wef retirement i.e 1 August 2014 or wef 21 June 2026 on completion of 70 years age.
Best Regards,
Dear Malik
15 years period is for those who retired at age of 60. In your father case he retired at age of 44 so he got commutation for 28 years. So commuted part will be restored from 1 Aug 2027 in my opinion.
SIR ASSALAM-O-ALAIKUM
PLEASE HELP ME
MY FATHER RETIRED FROM WAPDA QESCO .
DATE OF BIRTH IS 29.2.1960
DATE OF RETIREMENT IS 31.03.2005.
HE OPTED FOR PENSION (REVISED PAY SCALE) DATED 10 NOVEMBER 2001
NOW MY FATHER AGE IS 60 YEARS
PENSION DOUBLE KAB HO GI
Dear you can get help from the given below article:
http://www.glxspace.com/2015/01/19/how-to-find-the-restoration-date-of-commuted-portion-of-pension/
just like title of the subject “what is double pension” the answer should be a very simple way for a layman. the answer should be like “a person who was retired on 1990 with a total gross pension is of Rs. 2000/- and after 50% commutation of his remaining pension of Rs. 1000/-. After the period of 15 years which the period, the person commuted his portion of gross pension of 1000/- for 15 years. After expiry of that period i.e in the year 2005 he was drawing of Rs. 13500/-.with increases of all ad-hoc reliefs etc since 1990 to 2005. After restoration of his commuted portion of his pension he will be drawn Rs. 27000/-,p.m his pension.All the periodical increases in the 15 years on his net pension should also available on his commuted portion as he was received on his net pension.as per the law laid down by the of the Hon’ale superior Courts in this regarding from 2011 to 2018.
Thanks sir for the nice information.
Sir my question is. Can a family pension will be restored if the employee dies during their service?
Same question Respected Sir Mr Agha Amir Sb,
My father died during service 39 years service. his commuted portion date completed on 2018. I sent application but they say no allow commuted restoration of those GOVT employees who died during service.
I need any notification. Please help me becz many people here to asks this qeustion that commuted portion of restoration is allow to those GOVT people who died during service. Yes or no. if yes so need notification. JAZAK ALLAH
Sir, kindly advise whether commuted portion of pension can be restored to the widow of a deceased employee with all increases as allowed on net pension or otherwise (1) in case of employee who died during service (2) in case of employee who died after retirement.
Mr. Agha Amir can reply this question.
AA
All the provided information is really useful for every person.
My question is:
My husband got retired dated 1-12-2001 and his DOB is 7-2-49. He commuted 40 % of his pension. His starting pension was 9551 rupees. He commuted 3820 rupees and received every month 5731 rupees at start.
Please tell me when he can recover his commutation amount. As we r building house so we really need it.
Please help in this regard.
Really thankful.
Regards
Mrs. Arif Shaikh.
According to my information his pension is now restoarable. You should contact your accounts office for the latest updates of the process. Thanks