Government of Pakistan, Finance Division (Regulation Wing) has issued an Office Memorandum on 04-03-2021 in connection with Commute Value of Pension Death before Signing Pension Papers for the employees compulsory retired from service.
Commute Value of Pension Death before Signing Pension Papers
The undersigned directs to refer to Finance Division’s O.M. No.10<3> (10)-Reg. 6/86 dated 01.07.1986, and to state that Commutation up to 50% of gross pension was admissible to a civil pensioner at his option. Under the existing procedure, as contained in Finance Division’s O.M. No. 1 (5)- lmp/2001 dated 4.9.-2001 the entitlement of commuted Value of Pension up to 40% of gross pension becomes valid as of and when a Government servant, while in service or on retirement, exercises his option for commuted value of a pension on prescribed Form (CST-25 Revised). Few references this division received wherein Government servants while having retired compulsorily, could not sign their pension papers due to their death. Consequently, the bereaved families of deceased pensioners could not get the benefit of the commuted value of pension under the existing rule· and orders.
- The case has been considered and it has been decided that the family of a deceased Government servant, who after having compulsorily retirement, could not sign his pension papers due to death, will also be entitled to the commuted value of pension henceforth.
