IndiaPosted at: Nov 5 2026 2:00PM


Centre clarifies pension commutation rules, exempts 5 categories from medical exam; one-year deadline specified

New Delhi, Nov 5 (UNI) The Centre has clarified that five categories of central government pensioners can commute part of their pension without undergoing a medical examination, subject to prescribed conditions, while specifying that the one-year application period will begin from the date of the retirement or pension authorisation order in certain cases rather than the actual date of retirement.
The Department of Pension and Pensioners' Welfare, under the Ministry of Personnel, Public Grievances and Pensions, issued an Office Memorandum clarifying the provisions of the Central Civil Services (Commutation of Pension) Rules, 1981, following queries regarding circumstances in which medical examination is not required.
The clarification is particularly significant for employees whose retirement orders are issued with retrospective effect or whose pension is authorised following the conclusion of departmental or judicial proceedings.
Under Rule 12 of the CCS (Commutation of Pension) Rules, 1981, five specified categories of pensioners are eligible to commute pension without medical examination, subject to the applicable requirements.
These include employees receiving superannuation pension under Rule 33 of the CCS (Pension) Rules, 2021, and those receiving a retiring pension under Rule 34.
The exemption also covers employees receiving a pension following absorption into a corporation or company under Rule 36, provided they opt to receive a monthly pension and retirement gratuity.
Employees granted compensation pension following the abolition of a permanent post under Rule 39 are also covered.
The fifth category comprises employees whose pension, wholly or partly, is authorised following the finalisation of departmental or judicial proceedings under Rule 8 of the CCS (Pension) Rules, 2021, and the issuance of final orders.
The department further clarified that superannuation pension, retiring pension and compensation pension under the specified provisions include provisional pension sanctioned under Rule 62 of the CCS (Pension) Rules, 2021.
Under Rule 13 of the commutation rules, an eligible pensioner seeking to commute a percentage of pension after retirement must ordinarily submit the prescribed application within one year of retirement to obtain commutation without medical examination.
However, the government has specified two situations in which the one-year period will be calculated differently.
In cases involving employees covered by Rule 12(iii), where a retirement order is issued with retrospective effect, the one-year period will be counted from the date on which the retirement order is issued.
Similarly, for employees covered by Rule 12(v), whose pension is authorised after the conclusion of departmental or judicial proceedings, the one-year period will begin from the date on which the relevant order is issued following the finalisation of those proceedings.
The clarification means that employees falling under these two categories will not have their one-year application period calculated from an earlier retirement date where the specified conditions apply.
The department has asked all ministries and departments to communicate the provisions to Heads of Offices, Pay and Accounts Offices and other authorities responsible for processing pension cases.
"All Ministries/Departments are requested to bring the aforesaid provisions to the notice of Heads of Offices, Pay and Accounts Offices and other pension processing authorities under their control for proper examination and timely disposal of applications for commutation," the memorandum stated.
The memorandum clarifies the application of existing pension commutation provisions rather than introducing a new exemption or extending the facility to all pensioners.
The clarification is expected to help pension-processing authorities determine eligibility and calculate the applicable application period, particularly in cases involving retrospective retirement orders and pension authorisation following disciplinary or judicial proceedings.
UNI KK RSA
Tags: #Centre clarifies pension commutation rules# exempts 5 categories from medical exam; one-year deadline specified
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