Clarification on Restoration Period for Commuted Pension — Retention of 15-Year Rule

 

Issuing Authority:  

Office of the Principal Chief Commissioner of Income Tax, Karnataka & Goa Region, Bengaluru

Date: 24 August 2026

Subject: Restoration of commuted portion of pension — request to reduce period from 15 years to 10.8 years

🔹 Key Points

Background:  

Retired officers requested that the restoration period for the commuted portion of pension be reduced from 15 years to 10.8 years.

Clarification from DoP & PW (Department of Pension & Pensioners’ Welfare):

DoP & PW is the nodal authority for pension policy under the Central Civil Services (Pension) Rules, 2021.

The 15-year restoration period was fixed based on the 6th Central Pay Commission’s recommendation and consultation with the Department of Expenditure.

Any change would require further consultation with the Central Pay Commission and Department of Expenditure.

The Supreme Court (1987) upheld the 15-year period after actuarial review.

Judicial Support:

Delhi High Court (2019), Supreme Court (2019), and Punjab & Haryana High Court (2024) reaffirmed that pension commutation is a policy matter, and existing rules must prevail.

Conclusion:  

The DoP & PW has stated that reducing the restoration period to 10.8 years is not legally or administratively feasible at present.

Action:  

The information should be communicated to all concerned pensioners.

Signed by:  

Anuradha B, Income Tax Officer (OSD), Pension Cell

Office of the Principal Chief Commissioner of Income Tax, Karnataka & Goa Region, Bengaluru