In a development that could trigger a fresh debate over whether the centre should fully restore the pension of its employees after 12 years instead of 15 years, a Mumbai-based tribunal recently gave a relief to a group of pensioners from the Department of Posts who sought restoration of their full pension after having completed 12 years of retirement.
These pensioners had filed an application before the Central Administrative Tribunal (CAT), Mumbai, seeking interim relief regarding the recovery of commuted pension. The applicants argued that recovery should cease after 12 years of retirement, instead of the currently prescribed 15 years under Rule 10A of the CCS (Commutation of Pension) Rules, 1981.
These pensioners argued that the commuted amount had already been recovered within 12 years of their retirement from the service.
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On retirement from the Department of Posts, these pensioners commuted 40% of their pensions. Now, they claim that the commuted amount has been recovered in 12 years.
What does Rule 10A say on commuted pension?
It must be noted here that Rule 10A specifies that commuted pensions get restored after 15 years from the date of pension commutation.
In their arguments, the pensioners cited the 5th Pay Commission recommendation which favoured bringing down the commutation period to 12 years from 15 years. They also mentioned that states like Gujarat and Andhra Pradesh have already brought down the pension commutation recovery period to 12 years and 13 years, respectively.
Responding to pensioners’ arguments, respondents said that applicants were fully aware of the 15-year pension commutation under Rule 10A of the CCS (Commutation of Pension) Rules, 1981. Respondents also had objection to pensioners’ arguments on the ground that the rule was framed in 1981 and that the challenge is barred by limitation.
The tribunal, however, was not convinced by the arguments presented by the respondents, stating that when the full amount of commuted pension is already recovered then there is no justification in continuing with curtailed pensions to these pensioners.
This development can pave the way also for other central government employees who have been demanding for long the restoration of commuted pension after 12 years and not 15 years.
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