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What is Commutation of Pension and Restoration of Commuted Portion of Pension

What is Commutation of Pension and Restoration of Commuted Portion of Pension

A commutation of pension is defined as giving up part payable from retirement in exchange for an immediate lump sum amount. Age factors (usually calculated by Commutation Table) are used to determine the amount of pension which needs to be given up in order to provide the lump sum amount at the time of retirement.

At present, a govt. servant can commute his pension up to 35% of the gross pension and 65% of the gross pension as net pension is paid to him on monthly basis.

Example:

Gross Pension = 50,000

Net Pension (65%) = 32,500

Commute (35%) = 17,500

Commutation= 17,500 x 12 x Age Rate

                         = 17,500 x 12 x 12.3719

                         = 25,98,099

Commutation Tables

Find attached the Commutation tables introduced in 1986 and then in 2001 by the Finance Division, Government of Pakistan.

3 thoughts on “What is Commutation of Pension and Restoration of Commuted Portion of Pension”

  1. JIN. MILTIRY. PENSIONERS. KI. PENSION. CHAND. MAH. PEHLY HI. POST OFFICES. SE. BANKS. MAIN. DCS. SYSTEM. KE. TEHAT. TRANSFER. KI. GAI HE. WOH. APNA. PERSONAL NUMBER. KAHAAN. SE. AOUR. KESY. HASIL. KERIN.
    KIOUN KEH. CMA. LAHORE. WALOUN. NAIN. TOU. KOI. INFORMSTION. NAHEIN. DI. ISS. BARY. MAIN
    SABQA. PPO,,NO. SE. FIFRA. MAIN. PENSION. SLIP. KI. REGISTRATION. NAHEIN. HO. RAHI,, KOI. HAL. BATA. DEIN. JIS. SE. PERSONAL. NUMBER. MIL. SAKY.
    SHUKRIA,,
    DOUA. GO
    MUHAMMAD SIDDIQUE,BHERA,

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  2. السلام و علیکم: سوال ہے کہ میرے والد صاحب 60 سال کی عمر میں ریٹائر منٹ کے بعد 70 سال میں وفات پاگئے تھے اب والد صاحب کی عمر 72 سال ہوچکی ہے تو بیوہ کو مکمل 35 فیصد کمیوٹ شدہ ملے گا یا اس کا آدھا حصہ، مہربانی کرکے ضرور رپلائی کرے، شکریہ

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