Payment of Pensions
SECTION -I - General Rules
A. - DATE OF COMMENCEMENT OF
PENSION
10.1 Apart from special orders, a pension, other than a wound or extraordinary pension under Chapter VIII, is payable from the date on which the pensioner ceased to be borne on the establishment.
Note 1. - The pension of a Government employee
who under rule 5.9 has received a gratuity in lieu of notice is not payable for
the period in respect of which the gratuity is paid.
Note 2. - A Government employee who has taken leave
without pay in the hope of being able to resume duty and who subsequently
decides that his health will not permit of his return should not be regarded as
entitled to pension from the commencement of his leave without pay.
10.2 The preceding rule applies to ordinary, not to special cases. If, under special circumstances, a pension is granted long after a Government employee had retired, retrospective effect should be given to it without the special orders of the Government; in the absence of special orders such a pension takes effect only from the date of retirement.
10.3 In cases where considerable delay has occurred in making application for a Wound or Injury pension, it will, save as provided in Chapter VIII, be granted only from the date of the report by the Medical Board and no application for a gratuity or pension will be entertained unless submitted within five years of the date of the wound or injury.
10.4 Omitted.
10.5 Omitted.
10.6 Except where specifically otherwise provided all pensions shall be payable in rupees in India.
10.6. - A, 10.6 - B, 10.6 - C, 10.6 -D, 10.6 - E, and 10.7. Omitted.
B. - TRANSFERS
BETWEEN ENGLAND AND INDIA
10.8 Transfer of a pension from India to the United Kingdom (where it is payable through the High Commissioner for India) and vice-versa is permitted twice only.
Note. - Frequent transfers of a
pension to and from are not permissible, and the Accountant-General should
report to the Government for special orders any case in which it appears to him
that undue advantage is being taken of the rule.
10.9 Application for transfer of payment from India to the Treasury in U.K. should be made to the Accountant-General within whose jurisdiction the treasury of payment is, who will grant a last pay certificate, forwarding a duplicate, with a copy of the first stage of the application upon which the pension was originally granted, to the High Commissioner for India.
SECTION II. - Payments
in India
10.10 Omitted.
10.11 The Accountant-General of the State in which payment is to be made will communicate to the treasury officer, who is to pay the pension, authority to make the payment, in the case of a pension such authority will be a Pension Payment Order in Form Pen. 10.
Note. - Each
pension payment order will be accompanied by a wallet intended to be delivered
by the disbursing officer to the pensioner concerned for use in respect of the
pensioner's half of the Pension payment order.
10.12. (a) A gratuity is paid in a single sum, and not by instalments, on receipt of the Accountant-General's authority.
(b) A gratuity may, at the discretion of the competent authority or with its sanction on the application of the recipient, be converted either into a life annuity, or into a temporary life annuity or into an annuity payable for a fixed number of years with remainder to the annuitant's heirs in case of his death. The amount of the life annuity will be determined by the table prescribed under the rules in Chapter XI, while that of the temporary life annuity will be determined in each case in consultation with the Actuary to the Government of India on the assumption of the same rates of interest and mortality on which the table prescribed under the rules in Chapter XI is based.
(a) The competent authority will never insist on the conversion of a gratuity into an annuity, unless the expectation of life of the Government employee be reported by competent medical authority to be equal to the average.
10.13 (a) If a pension payable in India remains undrawn for more than one year, the pension ceases to be payable.
(b) If the pensioner afterwards appears or a claim is presented on his behalf the disbursing officer may make the payment but the arrears can be paid :
(i) if the amount in arrear does not exceed Rs.2,500 or with the previous sanction of the Collector of the District in which the pension payment office is located if it exceeds Rs.2,500 but does not exceed Rs.5,000 provided that in both the cases the arrears are not to be paid for the first time, and
(ii) in all other cases with the sanction of the authority by whom the pension was sanctioned :
Provided that if in any case a pension remains undrawn for three years in the case of service pension or six years in case of political pension it can not be paid without the authority of the Accountant-General.
10.14 to 10.22. Omitted.
CHAPTER XI. - Commutation of Civil Pensions
SECTION I. -
General
11.1 (a) A Government employee who is not governed by the pension rules referred to in sub-rule (b) below, shall be entitled to commute for a lump sum payment any portion consisting of whole rupee, not exceeding one-half, of any pension which has been or may be granted to him under the provisions of the Punjab Civil Services Rules. But any such commutation shall be subject to the conditions that the uncommuted residue of the pension shall not be less than Rs.240 per annum :
Provided that in calculating the amount of the uncommuted residue, there may be added to it the uncommuted portion of any other permanent pension or pensions payable to the applicant from the revenues of the Punjab Government, any other State Government, or of Indian Government :
Provided also that a Government employee against whom judicial or a departmental proceeding has been instituted or a pensioner against whom any such proceeding has been instituted or continued under rule 2.2 (b) ibid., shall not be permitted to commute any part of his pension during the pendency of such proceeding.
(b) A Government employee who is governed by the New Pension Rules or who has opted for modified pension rules [vide alternative (c) under rule 1.2-B] shall be entitled to commute for a lump sum payment any portion consisting of whole rupee, not exceeding one-third of any pension which has been or may be granted to him under these rules. But any such commutation shall be subject to the condition that the uncommuted residue of the pension shall not be less than Rs.240 per annum :
Provided that in calculating the amount of the uncommuted residue, there may be added to it the uncommuted portion of any other permanent pension or pensions payable to the applicant from the revenues of the Punjab Government, any other State Government, or of Indian Government :
Provided also that a Government employee against whom judicial or a departmental proceeding has been instituted or a pensioner against whom any such proceeding has been instituted or continued under rule 2.2 (b) ibid, shall not be permitted to commute any part of his pension during the pendency of such proceedings.
Note 1. - The
commutation of an anticipatory pension will require the sanction of the Finance
Department (See also sub-note below Rule 11.4 below). An explanation of the reasons of delay in the sanction of final
pension should be furnished to the Finance Department alongwith the report on
the title to the commutation applied for.
In order to secure repayment of the commuted value of the part of an
anticipatory pension paid in declaration in the form below should be obtained
from the pensioner concerned along with the application for commutation.
FORM OF DECLARATION
"Whereas the (here state the designation of the officer sanctioning the commutation) has consented, provisionally to advance to me the sum of ___________ being the commuted value of a part of the anticipatory pension, in anticipation of the completion of the enquiries necessary to enable the Government to fix the amount of any pension and consequently the part of that pension that may be commuted. I hereby acknowledge that in accepting the advance, I fully understand that the commuted value now paid is subject to revision on the completion of the necessary formal enquiries, and I promise to base no objection to such revision on the ground that the provisional amount now to be paid to me as the commuted value of the part of anticipatory pension exceeds the amount to which I may be eventually found entitled. I further promise to repay either in cash or by deduction from subsequent payments of pension any amount advanced, to me in excess of the amount to which I may be eventually found entitled."
Note 2. - If two different Governments within
the meaning of direction in Appendix 3 to the Punjab Financial Rules, are
concerned, a Government employee shall be deemed to be under the administrative
control of the Government (other than Central Government) to which the payment
of the commuted value of his pension will be debited and the application for
commutation shall be disposed of by that Government according to the procedure
rules framed for its own employee. In
cases, in which the commuted value of a pension divisible between the Central
Government and that State Government is wholly chargeable to the Central
Government, the application for commutation is made before the date on which
the pension is sanctioned, the Government under which the applicant was last
permanently employed shall be the Government competent to dispose of his
application in accordance with the procedure rules prescribed for its
employees.
Note 3. - No Government employee, even if
belonging to a class entitled to commute ordinary pension, is entitled to
commute a compassionate allowance. A
commutation of such an allowance may be sanctioned by a competent authority only
on proof that the proceeds of the commutation will be invested for the
permanent benefit of the commuter's family.
Note 4. - These rules are also followed
generally, as a matter of convenience, in respect of commutation of pension of
political pensioners who are non-officials, subject to the following main
reservations :-
(1)
the tables of present values prescribed under rule 11.5 apply to
commutation of these pensions with 10 per cent deduction ;
(2)
the reduction of pension by the commuted portion will take effect
from the date of payment of the commuted value.
SECTION II.
- Submission of Applications
11.2 An application for commutation of pension should be made in Part I of Form Pen. 12 accompanied by two passport size photographs (one duly attested and other without any attestation) and addressed :-
(1) If the applicant is still in service, or has retired but his pension has not yet been sanctioned, to the authority competent to sanction his pension, through the Head of the Office, through the Head of his Department.
Note.
- The attested copy will be
pasted on part I of Form Pen. 12 and the other copy loosely attached to it.
(2) if the applicant's pension has already been sanctioned :-
(a) if he draws his pension from a treasury in India or if, being resident in a colony having an account current with the Accountant-General, Central Revenues, he draws his pension from the local treasury, to the Head of the Office in which he was employed at the time of his retirement, or if, he was himself the Head of Office, to the Head of his Department; and
(b) if he draws his pension otherwise than in sub-clause (a) to the High Commissioner for India, provided that in the case of pensioners residing in a Dominion or Colony, other than those referred to in sub-clause (a) the application shall be addressed to the High Commissioner through the official from whom the pension is drawn.
11.3 The authorities mentioned in rule 11.3 (1) and 11.2 (a) after complying with the instructions contained in Note 2 under rule 11.6 shall forward the application to the proper Accounts Officer, who is :-
(a) In the case of an applicant mentioned in rule 11.2 (1) the Accounts Officer, who is reporting on the title to his pension;
(b) In the case of a pensioner mentioned in rule 11.2(2) (a) --
(i) if he draws his pension in India, the Accounts Officer of the State in which the treasury from which the pensioner draws his pension is situated ;
(ii) if being resident in a colony having an account current with the Accountant-General, Central Revenues, he draws his pension from the local treasury, the Accounts Officer who issued the authority for payment of the pension in the colony.
Note 1. - If the
pensionary charge is adjustable in the books of a different Accounts Officer,
who received the application should transmit it forthwith to that officer.
Note 2. - In
forwarding an application for commutation of pension already sanctioned, the
number of the Pension Payment Order held by the pensioner and the name of the
treasury from which the pension is drawn should invariably be given to enable
the Accounts Officer to trace his pension file.
SECTION III - Report by the Accounts Officer
11.4 The Accounts Officer should complete Part II of Form Pen. 12 without delay and transmit it together with copies of the medical reports mentioned in the concluding portion of rule 11.7 (iii), if they are on record in his office, to the authority competent to sanction the commutation, whether that authority is correctly named in Part I, or not.
Note. - In order to avoid delay
and save the pensioners from loss, the Accounts Officer should issue a report
on the commutation of pension in advance of the formal report on the title to
pensions in cases in which the report on the title to pension is not likely to
be issued, in sufficient time to permit of arrangements being carried through
before the applicant's next birthday : provided that the portion of the pension
to be commuted is clearly well below one-half of the approximate amount of the
total pension likely to be sanctioned.
If, in such a case, the commutation becomes absolute before the pension
is formally sanctioned, the payment of commutation money should not be
authorised until the formal sanction of the pension is received but an
intimation of the possibility of loss because of delay in the sanction to
pension should be sent to the pensioner when reporting on the claim for
commutation.
This relates to the
position which exists when no pension has been sanctioned, i.e., it
contemplates that no commutation of pension, will be paid until the pension
itself is sanctioned. In the case of an
anticipatory pension sanction to the amount of pension granted as anticipatory
pension can for all practical purposes he takes as given, since an anticipatory
pension is always sanctioned at an amount less than the amount of pension
ordinarily admissible. In cases in
which a portion of an anticipatory pension is commuted, commutation value
should, therefore, be paid as soon as the commutation becomes absolute and that
reports on the title to commutation of a portion of an anticipatory pension
should be referred to the Administrative Department concerned who will obtain
the concurrence of the Finance Department.
11.5 (1) The lump sum payable on commutation shall be calculated in accordance with a table or tables of present values which shall be prescribed by the competent authority.
Note 1. - The lump
payable on commutation to Government employees who have served under more than
one Government when the commutation tables applied by the different Government
are not identical, shall be calculated according to the commutation table of
the Government under whose rule making control they are, at the time of
retirement. In the case of Government
employees who are temporarily lent by one Government to another, the
commutation shall be according to the table of the lending Government and in
the case of those who are permanently transferred from one Government to
another it shall be according to the table of the Government to which their
services have been permanently transferred.
Note 2. - In the event
of the table of present values applicable to an applicant having been modified
between the date of administrative sanction to commutation and the date on
which commutation is due to become absolute, payment shall be made in
accordance with the modified table, but it shall be open to the applicant if
the modified table is less favourable to him than that previously in force, to
withdraw his application by notice in writing despatched within 14 days of the
date on which he receives notice of modification.
(2) The table of present value is given in Annexure to this Chapter and will be applicable to all Government employees.
For the purpose of this rule, the age, in case of impaired lives, shall be assumed to be such age, not being less than the actual age as the certifying medical authority may direct.
11.6 The authority competent to sanction commutation should thereupon accord its administrative sanction in Part III of Form Pen.12.
Note 1. - If the
Accounts Officer's certificate in Part II shows that the commutation charge
falls partly on any other State Government which has stipulated that it should
be consulted regarding availability of funds, the sanctioning authority must
obtain that Government's consent before it accords administrative
sanction. These Governments are Tamil
Nadu, Maharashtra, Bengal, Uttar Pradesh and Assam.
Note 2. - The
authority competent to sanction commutation may authorise a responsible
gazetted Government employee to sign for him the administrative sanction in
Part III of Form Pen. 12.
B. - INTIMATION TO THE APPLICANT AND THE
CHIEF ADMINISTRATIVE MEDICAL OFFICER
11.7 The sanctioning authority should then --
(i) transmit to the applicant, on Form Pen. 13, a certified copy of the Accounts Officer's certificate contained in Part II of Form Pen. 12 (of lump sum payable on commutation in the event of his being reported by the medical authority prescribed in rule 11.9 to be a fit subject for commutation) and one copy of Form Pen.14, Part I of which is to be filled in by the applicant before his medical examination and handed to the medical authority.
(ii) instruct him to appear for examination before the said medical authority, in fixing the date of medical examination, it shall be ensured that the medical examination is held after the actual date of retirement of the applicant and that as far as possible, it is held before the date of his next birthday. This intimation shall constitute administrative sanction to commutation of pensions.
(iii) forward to the Chief Administrative Medical Officer, in original the completed Form Pen. 12 together with a copy of Form Pen.14, a copy of the unattested photograph sent alongwith the application as in rule 11.2 above and as extra copy of Part III of that Form if the applicant has been granted as invalid pension, or has previously commuted any portion of his pension (or declined to accept commutation on the basis of an addition of years to his actual age, or has been refused commutation) on medical grounds, copies of the previous medical reports or statement of his case.
11.8 The Chief Administrative Medical Officer should arrange for the medical examination of the applicant by the medical authority prescribed in rule 11.9 at the nearest available station to that named by the applicant in Part I of Form Pen. 12 and as early as possible within the period prescribed and inform the applicant direct. The Form and other documents shall be transmitted by the Chief Administrative Medical Officer to the examining medical authority.
11.9 (i) Before any commutation administratively sanctioned becomes absolute, the applicant must be examined by the proper medical authority hereinafter prescribed --
(ii) The Medical authority shall be --
(a) in the case of an applicant who has been or is about to be granted an invalid pension or in whose case the total of the amount of the pension to be commuted together with the amount or amounts previously commuted, if any, exceeds Rs.25 -- a Medical Board or a Standing Invaliding Committee in the State concerned nearer to the place of applicant's residence before which the applicant must appear in person;
(b) applicant who has not been or is not about to be granted an invalid pension and who applies for commutation of a sum such that the total of the amount of pension to be commuted, together with the amount or amounts previously commuted, if any, if Rs.25 or less, the Medical Officer, not being of lower status than the Chief Medical Officer or Principal Medical Officer of the district in which he is ordinarily resident.
(iii) The medical authority after obtaining from the applicant a statement in Part I of Form Pen. 14 (which must be signed in its presence) shall subject him to a strict examination; enter the results in Part II of Form Pen. 14 and record its opinion as to the accuracy with which the pensioner has answered the questions prescribed in Part I regarding his medical history and habits. Lastly, it shall attest the unattestedcopy of the photograph of the pensioner, and complete the certificate contained in Part III of Form Pen. 14.
(iv) In the case of an applicant who has been or is about to be granted an invalid pension, the grounds of invaliding or the statement of the medical case shall be duly considered by the certifying medical authority before the certificate (Part III of Form Pen.14) is signed.
(v) If the examination is conducted by a single medical officer, the applicant shall himself pay the fee of the medical officer who shall retain an amount of Rs.12, out of the prescribed fee of Rs.16, and credit the remaining Rs.4 to Government but if he is originally examined by a medical board or an invaliding committee in India, he shall pay a fee of Rs. 4 into a Government treasury and make over the receipt for the fee to the Board or Committee before examination, together with an additional fee of Rs.12 in cash to be retained and divided by the members of the Board or the Committee, as the case may be, among themselves. If he is examined by a board outside India, he shall pay to the board such fee as may be required of him.
Note 1. - The above
rule applies only in the case of ordinary monthly standing Medical Board and
Invaliding Committee. In cases where
special Medical Boards or Committees are convened at a very short notice in the
interest of the applicant, a fee of Rs.48 will have to be paid by the applicant
for his medical examination. Of that
fee, a sum of Rs.12 shall be paid by the applicant into a Government treasury
and the receipt for it shall be made over by him to the Board or Committee, as
the case may be, before examination, together with the remaining amount of the
fee, viz., Rs.36 in cash to be retained and divided by the members of the Board
or the Committee among themselves.
Note 2. - No fee will
be payable for medical examination in the case of a Government employees in
Class IV service who are granted invalid pensions under rule 6.18.
(vi) An applicant who has once been refused commutation on medical ground or after he has once declined to accept commutation on the basis of an addition of years to his actual age, may apply for a second medical examination, at his own expense if at least a year has elapsed, since his first examination. Such an examination shall invariably be made by a Medical Board or Standing Invaliding Committee.
The medical authority examining the pensioner should be furnished, in addition to the documents mentioned in the concluding portion of rule 11.7 (iii), with a copy of the report of the medical authority which previously examined him.
(vii) The ultimate medical authority prescribed in clause (ii) shall without delay forward the completed Forms Pen. 12 and Pen. 14 in original and the copy of photograph attested by it, to the Accounts Officer, who gave the certificate contained in Part II of Form Pen. 12, a certified copy of the completed Form Pen. 14 to the sanctioning authority. A certified copy of Part III of Pen. 14 should be given to the pensioner on the spot after his medical examination.
Note 1. - If in the
opinion of the medical authority prescribed in clause (ii) some special
examination is necessary which is not in a position to carry out itself, it may
require the applicant to undergo such examination at his own expense. No refund of such expenditure will be given
by Government irrespective of the result of the examination.
Note 2. - In case, a
copy of the report of the medical authority or the intimation by the Accounts
Officer, where necessary, of the revised sum payable on commutation, has to be
sent to the applicant by post, it should be sent invariably by registered post
with acknowledgement due to the Accounts Officer.
D - LAPSE
OF ADMINISTRATIVE SANCTION AND THE PERIOD FOR THE WITHDRAWAL OF APPLICATION
11.10 The applicant may withdraw his application by written notice dispatched at any time before medical examination is due to take place, but this option shall expire on his appearance before a medical authority :
Provided that, if the medical authority directs that his age for the purpose of commutation shall be assumed to be grated than his actual age, the applicant may withdraw his application by written notice dispatched within two weeks from the date on which he receives intimation of the revised sum payable on commutation or, if this sum is already stated in the sanctioning order within two weeks from the date on which he receives intimation of the finding of the medical authority.
if the applicant does not withdraw in writing his application within the period of two weeks prescribed above, he shall be assumed to have accepted the sum offered.
Note.
- When the medical authority
has directed that the age of an applicant shall be assumed to be greater than
his actual age he will be allowed in addition to the option of withdrawing his
application, the option of reducing the amount mentioned in his application
within two weeks from the date on which he receives instructions of the revised
sum payable on commutation
E - COMMUTATION
TO BECOME ABSOLUTE
11.11 Subject to the provision contained in rule 11.12 and subject to the provisions for the withdrawal of an application under rule 11.10, the commutations shall become absolute, that is the pensioner shall become entitled to receive the commuted value, on the date on which the Medical Board/ Authority signs the medical certificate.
Note 1. - The applicant who has clearly
indicated his intention to commute the maximum amount of his pension or
expressed the amount proposed to be commuted as a fraction or, percentage of
the full and final pension, within the maximum permissible limit and is allowed
to commute such fraction or percentage of the anticipatory or the provisional
pension sanctioned to him on the earlier occasion, shall neither be required to
apply a fresh nor to produce a fresh certificate of medical examination for
commutation of the difference between the fraction or percentage of the final
pension and the anticipatory or provisional pension. As the commutation in such cases is payable in two instalments -
one out of the anticipatory or provisional pension and the other after final
assessment of pension -- the report from the Audit Officer will have to be
called for in Part II of Form Pen.12 for commutation of Civil Pensions,
twice. A fresh sanction of the
administrative authority for the difference of the commuted value, i.e., the
maximum value accrued minus value commuted provisionally shall be necessary,
regard, however, being had to the need for further medical examination as in
Note 2 below. This will also apply to
cases where the pension finally sanctioned to a retire Government employee is
subsequently revised retrospectively.
Note 2. - A person who is allowed provisionally
to commute portion of his pension not exceeding Rs. 25 and who anticipates that
the final amount of pension that he
would be entitled to commute might exceed Rs. 25, shall indicate that fact in
his application in case he desires to commute a sum exceeding Rs.25. The sanctioning authority shall in such
cases arrange for medical examination as if the amount to be commuted exceeds
Rs.25. In case such fact is not
indicated, the Government employee shall be permitted, on finalization of the
amount of his pension, to commute the difference between the amount of pension
originally commuted and Rs.25 without further medical examination, if the
original amount commuted together with the difference referred to does not
exceed Rs.25. If the same exceeds Rs.
25 the commutation of any further sum, if admissible shall be treated as fresh
commutation and allowed subject to examination by a Medical Board.
The date on which the Medical Board signs the Medical report shall be the date of effect for the difference of the account of the portion of pension to be commuted for which the medical examination is conducted.
11.12 If the applicant makes any statement found to be false within his knowledge or willfully suppresses any material fact in answer to any question, written or oral, put to him in connection with his medical examination the sanctioning authority may cancel the sanction at any time before payment is actually made; and such a statement or suppression may be treated as grave misconduct for the purpose of rule 2.2.
11.12-A. (1) Notwithstanding anything contained in rules 11.2 to 11.4 and 11.6 to 11.12 a Government employee, who applies for commutation of pension within one year of the date of his retirement on superannuation or within one year of the expiry of extension if such a Government employee is granted extension of service after superannuation shall not be subjected to medical examination as required under these rules for the purpose of payment of commuted value of pension. Application for commutation of pension shall be made in Form Pen. 14-A after the date of retirement and the commutation shall become absolute. The retired Government employee shall become entitled to receive the commuted value on the date of which his application is received by the Head on Office :
Provided that the Government employee shall not be allowed to withdraw his application given for commutation of pension under this rule.
(2) The operative date for the reduction in the amount of pension in the case of those Government employees who avail of the benefit of commutation of pension without medical examination under sub-rule (1), will be the date on which the pensioner receives the commuted value of pension or the date on which period of three months after the issue of authority by the Accountant-General, Punjab, asking the pensioner to collect the commuted value of the pension expires, whichever is earlier.
11.12-B. (1) The benefit of commutation of pension without medical examination as provided, in rule 11.12-A above shall mutatis mutandis be admissible to a Government employee who is granted --
(i) a retiring pension under rule 4 of the Punjab Civil Services (Premature Retirement) Rules, 1975, or under rule 5.32 of the Punjab Civil Services Rules, Volume II ; or
(ii) a compensation pension on absorption in a service or post in or under a corporation, or company or body under sub-rule (2) of the said rule 5.3 and who opts to receive Death-cum-Retirement Gratuity and monthly pension ; or
(iii) a compensation pension on the abolition of permanent post under rule 5.2.
(2) The benefit of commutation of pension without medical examination under rule 11.12A shall not be admissible to a Government employee, who --
(a) retires on invalid pension under rule 5.11 or who on absorption in a service or post in or under a corporation or company or a body opts for the alternative of receiving the Death-cum-Retirement Gratuity and a lump sum in lieu of pension under sub-rule (2) of rule 5.3 ; or
(b) applies for commutation of pension after one year of the date of his retirement, except when the grant of pension is held up on account of any judicial or departmental proceedings as in such cases the period of one year shall be deemed to commence with effect from the date the proceedings are concluded without extinguishing the title to pension.