The Punjab government has decided to enhance the amount of commutation of pension from 20% to 30%. The commuted portion of pension will be restored after 15 years from the actual date of commutation.
A notification has been issued in this regard.
A spokesperson of the Punjab government said the above decision would be implemented on those employees who were retiring on or after April 1, 2014. This would also apply to the employees who were on extension and retired on or after April 1, 2014.
The spokesperson said the employees who had retired before April 1, 2014 but have not applied for the commutation of pension as yet, due to any reason would also get enhanced commutation of pension from 20% to 30%.
The spokesperson said the employees retiring on or after April 1, 2014 and whose commutation had already been sanctioned or the employees retired on or after April 1, 2013 would have the option to receive the additional commutation on enhanced rates.
The instructions in this regard have already been sent to the heads of all the departments, divisional commissioners and all deputy commissioners.