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Commutation of Pension
(General Information)

# Commutation of Pension is virtually an outright sale of a portion of pension in consideration of which the government pays a lump sum amount to the pensioner. A pensioner can commute maximum one-third of his pension. Pensioners will have to apply for commutation in the prescribed Form to the Directorate of Pension(DP). DP will then prepare the Admissibility report and send the same to the Pensioner & Pensioners Grievance (P&PG) Department, Government of Assam for according necessary sanction. Based on the sanction order DP will issue authority for drawal of the commuted amount. After commutation basic pension will be reduced by the amount offered for commutation. For example, a pensioner recieves a monthly pension of Rs. 900/- p.m. He commutes one-third of his pension ie; Rs.300/-. Then his reduced pension after commutation will be Rs.600/-p.m.(900-300). If commutation is applied within one year of retirement, no medical examination will be required. The commuted portion of the pension will be restored after 14 years from the date of commutation. The pension will again be Rs.900/-p.m. in the above case. If the pensioner dies on or after the day on which commutation becomes absolute but before recieving commuted value, the commuted value will be paid to his heirs.However, no deduction of the commuted amount is made from the family pension granted to the heir.


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