COMMUTED PENSION RESTORATION 2026
(15-Year Rule & Restoration Date)
(When does the 40% deduction stop? Check here.)
⚡ Quick Answer: When is full pension restored?
The commuted portion of your pension (usually 40%) is restored automatically after completion of 15 years.
Critical Rule: The 15-year count starts from the Date of Payment of the commuted value (when money hit your bank), NOT from your Retirement Date.
⚠️ Family Pension Alert: Commutation is NEVER deducted from Family Pension. If the pensioner passes away, the spouse gets the full entitled Family Pension without any 40% cut.
Note: If your restoration date has passed but the bank is still deducting the amount, you must submit a written application immediately. Banks often do not auto-restore without a reminder.
📢 Help Pensioners Know the Rules:
Upon retirement, most employees “sell” 40% of their future pension to get a large lump sum (Commutation). This results in a reduced monthly pension. The good news is: this reduction is temporary. After 15 years, your full pension is restored.
1. Calculating the Exact Date (The Trap)
Many pensioners wrongly calculate 15 years from their retirement date. This is incorrect if the payment was delayed.
📅 Example Calculation:
- Date of Retirement: 31st January 2011.
- Commutation Amount Paid on: 15th April 2011.
- 15 Years Start From: 15th April 2011.
- Full Pension Restored on: 15th April 2026.
*Note: If the amount was paid in the first month of retirement itself, then the date coincides with the retirement date.
2. Does Family Pay the Price?
❌ Absolutely Not.
Commutation is a contract between the Pensioner and the Government. If the pensioner passes away (even before 15 years), the deduction STOPS immediately.
The spouse/family receives the Full Family Pension. The government does NOT recover the remaining commuted amount from the family.
3. How to Apply for Restoration?
Ideally, CPPC (Centralised Pension Processing Centres) of banks should do this automatically. However, glitches happen.
- Check your Pension Slip. Identify the “Commuted Portion” deduction.
- Calculate the exact 15-year date from the “Commutation Credit Date” in your passbook.
- If deduction continues after this date, write an application to your Bank Manager.
- Required Documents: PPO Copy, Passbook Copy showing credit date, and Life Certificate.
❓ Pension Common Questions
Can I repay the amount early to restore pension?
No. There is no provision to refund the commuted value to the government to restore full pension before 15 years. You must wait for the period to complete.
Is commuted lump sum taxable?
No. The lump sum amount received as Commuted Value of Pension is fully exempt from Income Tax for government employees.
🇮🇳 हिंदी में सारांश (Summary in Hindi)
पेंशन पूरी कब होगी? (Full Pension Date)
अगर आपने रिटायरमेंट के समय पेंशन का कुछ हिस्सा “बेचकर” (Commute) एकमुश्त पैसा लिया था, तो आपकी पेंशन 15 साल पूरे होने के बाद अपने आप पूरी हो जाएगी।
- 📅 तारीख कैसे गिनें: 15 साल की गिनती उस दिन से शुरू होती है, जिस दिन कम्युटेशन का पैसा आपके बैंक खाते में आया था (Payment Date), रिटायरमेंट की तारीख से नहीं।
- 👨👩👧 फैमिली पेंशन (Family Pension): अगर पेंशनर की मृत्यु हो जाती है, तो परिवार को मिलने वाली पेंशन में से कोई कटौती नहीं होती। उन्हें पूरी पेंशन मिलती है।
- 🏦 बैंक को अर्जी: कई बार बैंक 15 साल बाद भी पैसे काटते रहते हैं। ऐसे में आपको बैंक मैनेजर को एक लिखित एप्लीकेशन देनी होगी।
नोट: कम्युटेशन का जो पैसा आपको रिटायरमेंट पर मिला था, उस पर कोई टैक्स (Income Tax) नहीं लगता।