RCS Rules 6Chapter II · General Conditions

Section 6 · Commutation of pension to become absolute

(1)

The commutation of pension shall become absolute in the case of an applicant referred to-

(i)

in sub-rule (1) of rule 12 on the date on which the application in Form 1 is received by the Head of Office;

(ii)

in chapter IV on the date on which the medical authority signs the medical report in Part III of Form 4;

(iii)

In sub-rule (3) of rule 12, on the date following the date of his retirement.

Provided that-

(a)

in the case of an applicant who is drawing his pension from a treasury, the reduction in the amount of pension on account of commutation shall be operative from the date of receipt of the commuted value of pension or at the end of three months after issue of authority by the Director Pension for the payment of commuted value of pension, whichever is earlier, and

(b)

in the case of an applicant who is drawing pension from a branch of a nationalised bank, the reduction in the amount of pension on account of commutation shall be operative from the date on which the commuted value of pension is credited by the bank to the applicant's account to which pension is being credited.

(c)

in the case of an applicant governed by sub-rule (3) of Rule 12 in whose case the commuted value of pension becomes payable on the day following the date of his retirement, the reduction in the amount of pension on account of commutation shall be operative from its inception. Where, however, payment of commuted value of pension could not be made within the first month after the date of retirement, the reduction in the amount of pension on account of commutation shall be operative in accordance with proviso (a) or (b), as the case may be.

(2)

In the case of an applicant referred to in Rule 9, the commuted value is paid in two stages. The reduction in the amount of pension shall be made from the respective dates of the payments as laid down in clause (a) or clause (b) of the Proviso to sub-rule (1).

(3)

The date on which the payment of the commuted value of pension was made to the applicant or the commuted value was credited to the applicant's account shall be entered in both halves of the Pension Payment Order by the disbursing authority under intimation to the Director Pension who authorised the payment of commuted value of pension.

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