Govt revises norms for central staff on lumpsum pension payouts, check details

Central government employees already opted to withdraw a percentage of their basic pension as a lumpsum payout are no longer permitted to do that on a second or subsequent occasion, said the Department of Pension and Pensioners’ Welfare (DoPPW) on 31 October in an office memorandum.

In the circular, the DoPPW highlighted that as per the provisions of the Central Civil Services (Commutation of Pension) Rules, 1981 and said that lumpsum payout of pension on more than one occasion is not allowed.

As per Rule 5 of the CCS (Commutation of Pension) Rules 1981, a government employee can commute, or withdraw, up to 40 per cent of the basic pension as a lump-sum payment.

The recent memorandum arrived at a time after DoPPW received references and representations regarding the lumpsum withdrawal of a portion of pension for a second time.

ALSO READ: National Pension System (NPS) for organised and unorganised sector employees

Earlier several government employees asked if it’s permissible to withdraw, or commute, the remaining percentage of the basic pension for a second time within the 40 per cent limit for those who have already opted for it, reported NDTV.

Citing the rule 10 of CCS (Commutation of Pension), the memorandum stated that if a person withdraws a percentage of his final pension and the pension is later revised and enhanced retrospectively after the withdrawal, then they shall be paid the difference in that case.

As per rules, the difference is the amount between the value already authorised and the value determined after taking into consideration the increase in pension.

Apart from this, the memorandum mentioned that an applicant is not required to file a new application to pay any differential amount.

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