Model Representation - Restoration of commuted portion of pension

Many senior are asking about the representation I made for the restoration of the commutation amount. The same is already tagged with the Anbudan kayveeyes & Yourskayveeyes YouTube channel. However, the contents of the same are furnished here for the consumption of my blog viewers.From

K.V.Sridharan,

Retd Asst Chief Postmaster (HSG I),

Chennai GPO, Chennai 600001

@ 34, Devar Stret,

Villivakkam,

Chennai 600049

Tamilnadu

1. The Secretary, Department of Posts, New Delhi 110001

2. The Chief Postmaster General, Tamilnadu Circle, Chennai 600002

3. Department of Pension & Pensioners' Welfare, Janpath Bhawan, B Wing, 8th Floor, New Delhi – 110001

Respected Sirs,

Sub: Re-fixation of Pension by restoration of commuted portion of the pension after 10.8 years and restore full pension wef 1.1.2023 - regarding.

With due respects and regards, I wish to place on record with due submission the following for your kind consideration and immediate orders.

I have served in the Department of Posts and I have retired on superannuation on 31.5.2012 from the post of Assistant Chief Postmaster, HSG I, Chennai GPO under Tamilnadu Circle. after serving the department for 39 years. My PPO number is 33413/LPS dated 18.5.2012.

At the time of superannuation on 31.5.2012, my basic pension was fixed as Rs. 10645 and I had applied for commutation of pension at the time of retirement to the extent of 40% and received the commuted portion amount to the extent of Rs.4186 and the total commutation amount was paid to me as Rs.411601 duly applying the commutation factor of 8.194 as per the LIC ultimate table of 1994-96 which fetches at the interest rate of 8%.

I submit the following in support of my claim to restore my commutation amount to my pension and paid with effect from 1.2.2023 ie after completion of 10 years and eights months from the date of the superannuation ie on 31.5.2012. The following is the justification for may claim.

1. The Commutation formula has been existed as follows”

i. From 1986 to 1995, the retirement age for superannuation was fixed as 58 years of age. The commutation factor was then fixed as 10.46. The rate of interest was calculated at the rate of 4.75% per annum and the commutation amount was fully recovered in 12.73 years. Because of 10.46 factor, the commutation amount was high that enlarged the recovery period to the extent of 12.73 years.

ii. During 1996 to 2005, the retirement age on superannuation was enhanced from 58 years to 60 years. The commutation factor was slashed to 9.81 from the 10.46. However, the rate of interest per annum remained as 4.75 %. The entire amount was recovered in 12.08 years. Because of the reduction in the commutation factor the recovery period has been reduced from 12.73 years to 12.08 years.

iii. Since 2006 onwards, the commutation factor was further reduced from 9.81% to the extent of 8.194. The rate of interest has also been enhanced from 4.75% to 8% per annum. Proportionately, the quantum of commutation amount is reduced but the interest amount was raised. Even after, the entire amount including the interest will be recovered in 10.8 months.

iv. For example, in my case, I retired from service on 31.5.2012 and I received the commutation amount to the extent of Rs.411601 (ie.40% of the pension of Rs, 10465 which worked out to Rs.4186) on 1.6.2012. The entire principal amount of Rs, 411601 has been recovered from my pension within 8.2 months that is as on 31.7.2020. The annual interest as if HBA to the simple interest will work out to Rs. 136281.42 to be recovered from pension @ Rs. 4186 per month for a period of 2 years and 6.5 months as interest for the commuted amount I received. As such the entire amount has been fully recovered within 10.85 years.

v. As such the principal amount as well as the interest has been recovered from me and the restoration of commuted portion with pension shall be done.

2. While comparing the datas, the average life expectancy which was 49.37 years has been raised to 66.1 years in 2006 and now it stands as 70.42 years as in the year 2023 as per the reports published by Institute of Actuaries which is also a Central Government agency. The mortality age of 60 years has been reduced as 0.0063 in 2023 from the figure of 0.130 in 2008. The death ratio has been reduced and therefore the risk factor as prevailing earlier is not there and the entire commutation amount will be recovered within 10 years.

3. The Life expectancy is increasing year after year. The risk factors such as life expectancy is increasing as per the “SRS Based Abridged Life Tables” published by Census department in the year 1986 the life expectancy was at 57.7 years and in 2008 it was at 66.1 years & further in the year 2023 it stood as 70.42 years. The death rate has considerably reduced from the year 1986 to 2023 as per the statistics of the census department.

4. The interest rate is also slashing and the GPF interest rate which stood as 8% has been reduced the extent of 7.1%. Instead of GPR rate, the RBI repo rate of 6.5% as on 2008 should have been applied. There was a fall of interest rate in between 2019 to 2023.

5. The Vth Central pay commission in its report under Para 136.9 has observed as regards to restoration of pay commission as interalia.

“Apart from the fact that the commuted value is not fully adjusted in five or ten years, it would be incorrect. In our view, to restore the commuted portion without taking into account the element of interest which, in any case, is levied only at the concessional rate of 4.75% per annum.”

It has further recommended the restoration of the commuted portion of the pension after 12 years instead of 15 years in its para 136.10 of its report.

6. Even the commutation table based on LIC 1994-96 was adopted by the Govt with effect from 1.1.2006 for the purpose of arriving at the commutation amount proceeds on the basis of longevity to the extent of 18 years. Whereas the superannuation is at the age of 60 years, the longevity is at the age of 60 years plus 18 years ie. 78 years. The longevity has improved and the interest rates have steeply fallen. Moreover, the LIC Ultimate Table 1994-96 is not valid since the LIC has revised the table that would have been applied.

7. The restoration of restoration period of commutation value to 15 years orders were issued in the year 1986, the judgment of Hon’ble Supreme Court rendered in the year 1986 {(1987) 1 SCC 142} has lost its relevance in the present-day context and cannot be taken as a binding precedent for all time to come. The issue to restoration of commutation value to 12 years instead of 15 years at present shall be re-examined. The judgment of Hon’ble Supreme Court rendered in the year 1987 has lost its relevance in the present-day context and it cannot a be a ruse to deny my benefits of restoration of commutation amount.

8. The Kerala state Government of the Kerala Pension (Commutation) Rules under Rule 6A has issued orders for restoration of commuted portion after 12 years. Similarly, the Gujarat State Govt has restored the commuted portion of the pension to its employees from October 2022 after completion of 13 years vide its OM dated 12.10.2022. The Haryana Govt has issued orders on 17.7.2024 staying the recovery of commuted portion after completion of 10 years and 8 months from all pensioners of the State Government.

9. While examining the issues relating to the commutation of pension of the Judges, the National Judicial Commission chaired by Justice PV Reddy (Former Judge of the Supreme Court of India) with Shri. R Basant (Former Judge of the High Court of Kerala) as Member and Shri. Vinay Kumar Gupta as Member Secretary, has recommended for 12 years restoration of commutation of pension. It had categorically emphasised to review the decision of the Supreme Court in 1987 and recommended to examine the restoration period since the entire amount is being recovered within 11 months. This was referred to the Government of India in the year 2021 for its implementation.

10. It is pertinent to submit that the DOP & PW has submitted a proposal on 25.10.2012 for reducing the period of commuted pension and its restoration from 15 years to 13 years which had been turned down by the MOF on the pleas that the period of 15 years has been decided by the Supreme Court and subsequently in 2023 to restore after 12 years which has also been rejected. The Parliamentary Standing Committee which was also recommended to reduce the period to 12 years had been summarily rejected during the year 2023.

11. The policy of the Central Government towards its employees who have served the nation building for more than 30 years of service should be sympathetic. The restoration of commuted value of pension should be done at least after 11 years instead of 15 years at present as pensioner’s have no other income expect pension for their livelihood .

12. It is pertinent to submit in the recent days here are many decision in the Honble Courts in this regard and there are many interim orders not to recover the commutation amount after 10.8 years. The following are fortified with my claim for the restoration of the commuted portion amount with effect from 1.2.2023.

i. In the case of Sri. R.S.Jindal, Retired Sect Supdt in CWP No. 2490/2024, the Punjab & Haryana High Court has ordered stay on 9.2.2024 for the future recovery of the commuted amount in the pension.

ii. In another case, in the same court under CWP/8222/2024 in the case of Om Prakash Aneja, has issued orders on 15.4.2024 for stayal of recovery of commuted amount from the pension.

iii. In other cases, in the same court, under CWP No 14058 & CWP No 10149, interim stay orders had been ordered for the Punjab and Haryana State Govt employees and High Court employees.

iv. Allahabad High Court also ordered stay for this effect on 27.7.2024.

v. Kerala High Court, Ernakulam had issued interim stay on recovery in the case of WP ( C ) 22753 of 2024 on 8.8.2024.

vi. Chandigarh CAT in OA No. 746/2024 with MA 1684 of 2024 in the case of Krishnadevi vs, Telecom had issued interim stay on recovery that the applicant has completed 10 years and 8 months after the retirement.

vii. Again in OA No 843 pf 2024, the CAT Chandigarh in the case of Subh Karan Singh had granted stay.

viii. Based on the verdicts, the Haryana Govt had issued orders on 19.7.2024 not to recover the amount after completion of 10 years and 8 months after the commutation.

ix. CAT Ernakulam in OA No. 548 of 2024 in the case of K.G.Balakrishna Pillai vs. Department of Telecom caused interim orders not to recover the commuted portion in the pension.

x. C AT, Chandigarh has again issued interim orders in OA No850 of 2024 in the case of Sri Jagdeep Jaswal on 29.8.2024 staying the recovery after 11 years.

xi. The High Court Ernakulam in the WP ( C ) No 22753 of 2024 has issued orders for stay of recovery towards commuted portion with immediate effect to the 36 applicants of the case on 8.8.2024.

xii. CAT Jaipur in the case of OA No.413 of 2024 has issued orders on 21.8.2024 directed to implement the directions of OA No.413 of 2024 within eight weeks to the 42 retired railway servants.

xiii. CAT, Chandigarh again in OA No 805 in the case of Sh. Jaswant Singh vs Department of Telecom issued injection orders for the recovery on 14.10.2024.

xiv. On the same day, 14.10.2024, the CAT, Chandigarh has given stay in another case under OA No. 920 of 2024 in the case of Pawan Kumar Jindal vs. Department of Telecom.

xv. The High Court of Telengana in the WP ( C ) No 26042,25032, 20932 had issued interim orders to stop the recovery and stayed accordingly.

xvi. Hon’ble Supreme Court in SLP No. 17176/2024 dismissed the SLP filed against the order of the High Court of Punjab & Haryana in CWP No 16291/2024 on 9.8.2024

xvii. The Armed Forces Tribunal Principal bench New Delhi in its OA 2307/2024 with MA 2732/2024 stayed the recovery of commuted portion after 122 years on 24.7.2024.

All the above orders similar to my case. Further, I am to submit that in the Department of Posts where I served, the SPOs, Gurdaspur division in Punjab circle has issued orders vide his letter dated 3.10.2024 implementing the stay orders granted in the case of Tilak raj and others in CWP 22441 of 2024.

It is most apt to mention that in the court orders of Hon’ble Punjab & Chandigarh High Court in CWP No.2490 of 2024, 14184 of 2024 etc, it is mentioned that stay orders may be implemented to all the pensioners who had completed 10 years of retirement and above. Based on these orders, the state Govt employees of both the states have been benefitted. The similarly situated persons are not driven for fresh cases filed in the courts for legal remedies.

With due respects, I submit that the Hon’ble Supreme Court in various judgments including the case of Arvind Kumar Srivastava vs State of UP & others in Civil appeal No.9849 of 2014 arising our of SLP ( C) No. 18639 of 2021 decided on 17.10.2024 held that it is incumbent upon the respondents to extend the benefits of the court orders to all the similarly/identically placed persons voluntarily irrespective of the fact whether they approached the court or not. If not implemented it will tantamount to the discrimination and would be violative of Article 14 of the Union Constitution.

I submit that the entire recovery towards the commutation amount had been completed in the month of January 2023 and therefore I am eligible for the restoration of commuted amount and the same has to be drawn to me.

It is therefore requested to kindly cause appropriate orders to stop the recovery of commuted value of pension beyond the period of 10 years and 8 months from the date of my superannuation ie from 31.5.2012 at the earliest for which kind act I will be grateful to you Sir.

Thanking you in anticipation, Sir,

With profound regards,

K.V.Sridharan

28.10.2024