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Pension commutation brought down to 20% by Punjab
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Pension commutation brought down to 20% by Punjab

Pension commutation brought down to 20% by Punjab
Sarbjit Dhaliwal/TNS

Chandigarh, April 23
Altering its earlier instructions with regard to pension, the Punjab Government has issued a letter reducing the commutation of pension from 40 to 20 per cent.

The instructions were issued today, but they will be operational with retrospective effect from April 1 this year. Though the state government claimed the step had been taken in view of the enhancement of pensionary benefits after the implementation of the Fifth Pay Commission, sources said the decision was taken to tide over the fiscal crisis.

Even the employees, who are on a one-year extension post retirement, will be affected by the decision. Under the earlier provision pertaining to the commutation of the pension, an employee on retirement was entitled to withdraw a lump sum payment of 40 per cent of his or her total pension amount for 12 years.

However, the amount withdrawn was to be recovered from the employee concerned in the 15 years with a simple interest on it. For instance, earlier a Class C category employee opting for commutation of pension on retirement got between Rs 4 and Rs 6 lakh as a lump sum payment but now he will get between Rs 2 to Rs 4 lakh.


Source Link: http://www.tribuneindia.com/2013/20130424/punjab.htm#10

04-24-2013 07:38 PM
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