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Rule 31 - Pension Commutation | KartavyaDesk

RPR

Original Rule Text

31. Payment of commuted value of pension.– The payment of the commuted value of a portion of a pension can be made upon the authority issued by the PAO concerned only to the person legally entitled to receive it.

What This Means

Rule 31 of the Receipt and Payment Rules deals with the payment of the 'commuted value of pension'. Commutation basically means taking a lump sum amount in exchange for a reduction in your monthly pension. This rule simply states that when a retired government employee chooses to commute a portion of their pension, the lump sum payment (the commuted value) can only be made to the person who is legally entitled to receive it. The authority for this payment comes from the Pay and Accounts Office (PAO).

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Deals with payment of commuted value of pension.
  • •Payment is authorized by the Pay and Accounts Office (PAO).
  • •Payment can only be made to the legally entitled person.
  • •Commutation involves receiving a lump sum in exchange for reduced monthly pension.

Practical Example

Mr. Sharma, a retired Section Officer from the Ministry of Finance, opted to commute 40% of his pension. His monthly pension before commutation was ₹50,000. After applying and fulfilling all necessary requirements, the PAO issued an authority for the payment of the commuted value, which amounted to ₹12,00,000. Rule 31 ensures that this ₹12,00,000 is paid directly to Mr. Sharma's bank account, as he is the legally entitled recipient. If Mr. Sharma had passed away before receiving the payment, the PAO would need to determine the legally entitled heir(s) before releasing the funds.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What does 'commuted value of pension' mean?▼
It's a lump sum payment received in exchange for a reduction in your monthly pension amount.
Who authorizes the payment of the commuted value?▼
The Pay and Accounts Office (PAO) is responsible for authorizing the payment.
What happens if the pensioner dies before receiving the commuted value?▼
The payment will be made to the legally entitled heir(s) after proper verification and documentation.
Does this rule apply to all government employees?▼
Yes, it applies to all government employees who are eligible for and opt for commutation of pension.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 31 of the Receipt and Payment Rules, the authority for payment of the commuted value of pension is issued by which of the following?

Related Rules

GeneralReceipt & Payment Rules, 2022 - GeneralRule 1Receipt & Payment Rules, 2022 - Rule 1Rule 11Receipt & Payment Rules, 2022 - Rule 11Rule 23Receipt & Payment Rules, 2022 - Rule 23Rule 12Receipt & Payment Rules, 2022 - Rule 12

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