Restoration of commuted pension

The commuted portion is restored after 15 years from the date the pension was reduced, not from retirement, under Rule 10-A. Why 15 years, with an example.

Updated 14 September 2026

Restoration of commuted pension is the automatic ending, on completion of 15 years, of the reduction in a central government pensioner’s monthly pension caused by commutation, under Rule 10-A of the Central Civil Services (Commutation of Pension) Rules, 1981. The 15 years runs from the date the reduction became operative under Rule 6, which is the date the commuted value was paid, and not from the date of retirement.

Two things about that sentence are what pensioners get wrong. The first is the start date: a pensioner who retires in June but whose commutation is paid in October reaches restoration in October fifteen years later, not June. The second is the length: the lump sum is arithmetically repaid in roughly eight years and is repaid with notional interest in about twelve, yet the rule is 15, and the Supreme Court fixed it there deliberately rather than by oversight.

This article is the dedicated treatment of restoration. The commutation of pension article covers the 40% limit under Rule 5(1), the application routes and the medical examination, and the commutation factor table article covers the factor itself; this page picks up at the moment the reduction begins and follows it to the day the pension is made whole. The rule is written by the Department of Pension and Pensioners’ Welfare and applied by the pension-disbursing bank.

It covers what restoration is, the date the clock starts from, the arithmetic of recovery and the reasoning that rejects it, the demand to cut the period to 12 years and where that demand now stands, how restoration happens in practice and what to do when it does not, a worked example, the dearness relief position, the case of more than one commuted amount, death before restoration, the public-sector absorbee category, the tax treatment under the Income-tax Act, 2025, and the position of defence, railway and bank pensioners.

What restoration is

Restoration is the ending of the commutation reduction, so that the full basic pension resumes. Under Rule 5(1) of the CCS (Commutation of Pension) Rules, 1981 a pensioner may commute a fraction not exceeding 40% of basic pension. The pensioner receives a one-time lump sum, and the monthly basic pension is reduced by the commuted amount. Rule 10-A ends that reduction on completion of 15 years from the date it became operative, and nothing is recovered and no interest is charged when it stops.

Two facts run through the whole subject. The un-commuted portion, the remaining 60% or more, is never touched. And dearness relief is paid on the full, un-commuted basic pension throughout the reduction period, so the reduction bites only on the basic. That is why restoration raises the basic pension without producing any jump in dearness relief.

Restoration is not a benefit the pensioner earns and not a concession the disbursing bank grants. It is a term of the statutory bargain, fixed at the moment commutation becomes absolute under Rule 6, and it attaches to the commuted amount rather than to the pensioner.

The 15-year period and the date the clock starts

The 15 years is counted from the date the reduction of pension became operative, which is the date the commuted value was paid. It is not counted from the date of superannuation, not from any birthday, and not from any arithmetic break-even. Rule 6 of the CCS (Commutation of Pension) Rules, 1981 fixes the date on which commutation becomes absolute, and that date does three separate jobs: it sets the age against which the commutation factor is read, it starts the reduction, and it starts the 15 years to restoration.

The distinction matters because the commutation payment does not always fall on the retirement date. Where a pensioner applies before retirement and commutation becomes absolute on the day following retirement, the two dates are effectively the same and restoration falls at about the fifteenth anniversary of retirement. Where the application follows a medical examination, or follows a pay revision that raised the pension, the reduction begins on that later date, and the restoration date moves back by exactly the same interval.

Take the case concretely. A pensioner who retires on 30 June 2026 and whose commutation becomes absolute on 1 July 2026 is restored on 1 July 2041. A pensioner who retires on the same day but whose commuted value is paid on 15 October 2026, after a medical examination, is restored on 15 October 2041, three and a half months later. Neither pensioner loses anything by the difference, because the reduction ran for the same 180 months in each case, but the dates on their Pension Payment Orders are not the same and a bank that reads the retirement date instead of the reduction date will restore one of them early.

There is no age condition anywhere in Rule 10-A. This is worth stating plainly because the Government’s own proposal placed before the Supreme Court in 1986 did carry one: it would have stopped the recovery on completion of 15 years from the date of retirement on superannuation, or on the pensioner attaining the age of 70, whichever was later. The Supreme Court did not adopt the age limb, and the rule as framed carries only the 15-year period.

Why the period is 15 years and not the recovery point

The recurring objection is that the lump sum is repaid long before 15 years, so the deduction should stop sooner. The arithmetic behind the objection is real and is worth setting out before the answer to it. A pensioner who commutes Rs. 20,000 a month at the factor 8.194 receives Rs. 19,66,560, computed as Rs. 20,000 multiplied by 8.194 and by 12 under Rule 8, and forgoes Rs. 20,000 a month from then on. Undiscounted, the principal is repaid in 98.328 months, a little over eight years and two months. Add the interest element embedded in the lump sum and the 7th Central Pay Commission put the recovery at about twelve years. The pensioner then continues to lose Rs. 20,000 a month for roughly three further years.

The Supreme Court was confronted with exactly this contention in Common Cause (A Registered Society) versus Union of India, decided on 9 December 1986 and reported at 1987 (1) SCC 142, and rejected it. The Court held that commutation carries two advantages to the pensioner, the immediate availability of a lump sum and the risk factor, meaning that the State recovers nothing if the pensioner dies early. On the method of fixing the period it said:

In dealing with a matter of this nature, it is not appropriate to be guided by the example of life insurance; equally unjust it would be to adopt the interest basis. On the other hand, the conclusion should be evolved by relating it to the “years-of-purchase” basis. An addition of two years to the period necessary for the recovery on the basis of years of purchase justifies the adoption of the 15-year rule.

The phrase carrying the weight is “years-of-purchase”. The Court declined both the life-insurance model and the plain interest computation, and set the period by adding a buffer to an actuarial recovery figure rather than to the undiscounted one. It fixed restoration at 15 years, effective 1 April 1985, extended the same period to armed forces personnel on the footing that no separate period need be fixed for them, and the Government gave effect to the direction by Office Memorandum No. 34/2/86-P&PW dated 5 March 1987. Rule 10-A was inserted into the 1981 Rules to carry the direction into the rulebook.

The risk factor the Court relied on is not theoretical. Where a pensioner dies during the reduction period, the Department of Pension and Pensioners’ Welfare confirmed in Office Memorandum No. 42/15/2022-P&PW(D)/5 dated 25 October 2022 that the family pension is paid in full with no deduction on account of the commuted portion, and nothing is recovered from the legal heirs. A pensioner who dies six years after commuting has repaid under three-quarters of the lump sum and the balance is written off. The extra years in the 15-year period are the price of that write-off, spread across everyone who lives.

The 7th Central Pay Commission examined the same question and reached the same conclusion. It recorded that the commuted amount is recovered in about twelve years, noted that a risk factor exists, and retained the restoration period at 15 years.

The demand to cut the period to 12 years

No reduction has been ordered, and the 15-year period was upheld in litigation in 2026. The demand itself is long-standing and has support inside government, which is why it recurs.

The Department of Pension and Pensioners’ Welfare proposed on 25 October 2012 that the restoration period be reduced, and the proposal did not receive the concurrence of the Department of Expenditure. DoPPW cannot move the pension structure on its own, because relief and structure fall under an entry that requires the Ministry of Finance to agree. Pensioners’ federations have since pointed to the DoPPW Supplemental Report of March 2021 and to the Second National Judicial Pay Commission, both of which recommended restoration after twelve years, and to Kerala and Gujarat, which have adopted twelve-year and thirteen-year periods for their own state pensioners.

The official position has not moved. In reply to Rajya Sabha Unstarred Question No. 430 on 22 July 2021, DoPPW stated that there was no proposal to revise the period of restoration and recorded that neither the 6th nor the 7th Central Pay Commission had recommended a change to it. At the 34th meeting of the Standing Committee of Voluntary Agencies on 11 March 2025, pensioners’ representatives sought a cut from 15 years to 12; the reply came from the Department of Expenditure, which recorded that the issue may be included in the terms of reference of the 8th Central Pay Commission, and the item was closed. The minutes were circulated by Office Memorandum No. 4/14/2025-P&PW(D)/E-10522 dated 25 March 2025.

The courts then closed the legal route. In Union of India and Others versus Sub Trilok Chand (Retired) and Another, W.P.(C) 12781/2024 and connected matters, a division bench of the Delhi High Court comprising Justice Anil Kshetarpal and Justice Amit Mahajan reserved judgment on 27 March 2026 and pronounced it on 29 May 2026. The batch brought together retired civil, paramilitary, railway, defence and bank pensioners, and raised the common challenge that continued recovery for a uniform 15 years is unsustainable once the commutation factors have been revised by successive pay commissions. The bench dismissed every petition filed by the pensioners, holding that the uniform 15-year period is a conscious policy determination founded on actuarial evaluation, expert recommendations and long-standing statutory practice, and suffers from no constitutional infirmity. It held that a retiree who elects to commute and take the lump sum on clearly prescribed statutory conditions cannot retain the advantage while repudiating the terms attached to it, and that fixing the commutation value and the restoration period involves a specialised economic judgment which courts do not substitute. The same order allowed the Union’s own petition and set aside an Armed Forces Tribunal interim order dated 24 July 2024 that had protected pensioners from recovery beyond twelve years.

So the position is settled at the level of the existing rule and open only at the level of policy. Any change would require the 8th Central Pay Commission to recommend it, the Government to accept it, and Rule 10-A to be amended. Until all three happen, the restoration period is 15 years.

How restoration happens in practice

Restoration is automatic and requires no application. The pension-disbursing authority, the bank branch or treasury that pays the pension, restores the commuted portion on its own on completion of 15 years, reading the date from the Pension Payment Order, which records when the commuted value was paid and the reduction began.

The failure mode is a Pension Payment Order that does not carry the commutation date, which happens with older orders and after a transfer between banks. In that case the pensioner should apply to the disbursing bank, which obtains the date from the Pay and Accounts Office that issued the order, through the Central Pension Accounting Office. The practical rule is to check the pension credit in the month restoration falls due, and to apply only if it has not happened. A grievance that stays unresolved can be taken to CPENGRAMS and, if it persists, to a pension adalat, where the ministry, the bank and the accounts office answer in the same sitting.

Arrears are payable from the date restoration fell due, not from the date the bank acted. Where restoration fell due but the arrears were not drawn before the pensioner died, the legal heirs may claim them up to the date of death.

A worked example

A pensioner retiring at 60 on a basic pension of Rs. 50,000 a month, who commutes the maximum 40%, gives up Rs. 20,000 of monthly pension and receives Rs. 19,66,560 as a lump sum. The factor is 8.194, read against age next birthday 61 in the Table appended to the CCS (Commutation of Pension) Rules, 1981, which took effect on 2 September 2008 and is built on the LIC (1994-96) Ultimate mortality table at 8% interest. During the reduction period the basic pension is Rs. 30,000.

The dearness relief position is the part most often misread. Dearness relief is computed on the full Rs. 50,000, not on the reduced Rs. 30,000. At the current rate of 60%, that is Rs. 30,000 of dearness relief paid on top of the reduced Rs. 30,000 of basic, so the pensioner draws about Rs. 60,000 a month during the reduction period, having already received the lump sum.

Stage	Basic pension	Dearness relief at 60%	Monthly total
Before commutation	Rs. 50,000	Rs. 30,000	Rs. 80,000
During the 15-year reduction	Rs. 30,000	Rs. 30,000	Rs. 60,000
After restoration	Rs. 50,000	Rs. 30,000	Rs. 80,000

Figures at a basic pension of Rs. 50,000 with 40% commuted, at the dearness relief rate effective 1 January 2026 under Department of Expenditure Office Memorandum F. No. 1/1(i)/2026-E.II(B) dated 22 April 2026. Derived for salary-calculator.in from the rates and the commutation table; the dearness relief column is identical across all three rows by design.

At restoration, 15 years after the date the reduction became operative, the Rs. 20,000 is added back and the monthly total returns to about Rs. 80,000 at the same relief rate. Across the 15 years the pensioner gave up Rs. 36,00,000 of basic pension, being Rs. 20,000 multiplied by 180 months, against Rs. 19,66,560 received at the outset. The difference is the interest and mortality content of the factor together with the two-year buffer the Supreme Court added beyond the years-of-purchase recovery point.

Dearness relief, gratuity and family pension at restoration

Nothing except the basic pension changes on the day restoration takes effect. Dearness relief was already running on the full un-commuted pension throughout the reduction period, so it neither jumps nor is recalculated; from restoration it simply continues on a basic that is now whole.

Retirement gratuity is computed on emoluments and qualifying service under the CCS (Pension) Rules, 2021 and never had any relationship to the commuted fraction, so restoration leaves it untouched. Family pension is a percentage of last pay drawn, not of the reduced pension, and is paid in full throughout the reduction period, so it does not rise at restoration either.

The additional pension payable from age 80 is computed on basic pension, so a pensioner who crosses 80 while still under the reduction draws the additional pension on the reduced basic and sees it recomputed on the full basic once restoration takes effect. That is the one interaction where the order of two dates changes a figure, and it favours the pensioner whose commutation was early.

More than one commuted amount

Each commuted amount carries its own 15-year clock. Where a pension is revised upward, most often by a pay commission arrear or a revision of pension order, Rule 10 of the CCS (Commutation of Pension) Rules, 1981 allows the pensioner to commute a fraction of the increase, without a fresh medical examination where the original commutation did not require one. The factor for that further commutation is read against the age next birthday on the date the further commutation becomes absolute, so it is normally lower than the first one.

The proviso to Rule 10-A gives each such amount its own period. A pensioner who commuted at retirement in 2016 and commuted a slice of the 7th Central Pay Commission arrear in 2018 has two restoration dates, in 2031 and 2033, and the monthly pension rises in two steps rather than one. Banks handle this less reliably than the single-commutation case, and it is the situation in which checking the Pension Payment Order entries is worth the trouble.

Death before restoration

Where the pensioner dies before the commuted portion is restored, the unrecovered balance is not recovered from anyone. Office Memorandum No. 42/15/2022-P&PW(D)/5 dated 25 October 2022 directs that no deduction on account of the commuted portion be made from the family pension, which is paid in full. The Delhi High Court recorded the same position in 2026 as a feature of the scheme rather than a concession: on death, no recovery is effected from the legal heirs and family pension becomes payable independent of the commutation already received.

The family pensioner never commuted and so has nothing to restore. The point matters for a different reason: this is the risk the State assumes, and it is the reason the period is 15 years rather than the recovery point. A pensioner who dies six years after commuting Rs. 20,000 a month has repaid about Rs. 14,40,000 of a Rs. 19,66,560 lump sum, and the shortfall is not pursued.

Public-sector absorbees and the one-third restoration

A separate and narrower category is the employee who was permanently absorbed in a public-sector undertaking or an autonomous body and took a lump sum in place of pension. Under Rule 37-A of the CCS (Pension) Rules, 1972, such an employee could take a lump sum not exceeding the commuted value of one-third of pension, plus terminal benefits equal to the commuted value of the balance, on surrendering the right to draw the remaining two-thirds. That produced three classes of absorbee: those who commuted nothing and drew a full pro rata pension, those who commuted one-third and drew a reduced pension, and those who had been paid out in full and drew no monthly pension at all.

The facility of receiving capitalised value equivalent to 100% commutation on absorption was withdrawn by Office Memorandum No. 4/42/91-P&PW(D) dated 31 March 1995, so no fresh case arises; a body of absorbees from before that date remains. Restoration was initially denied to them on the ground that they had ceased to be central government employees. In Welfare Association of Absorbed Central Government Employees in Public Enterprises versus Union of India, the Supreme Court held that denying restoration of the one-third commuted portion to absorbees who had commuted under Rule 37-A violated Articles 14 and 16 of the Constitution, and that the principle of Common Cause applied to them equally.

The CCS (Pension) Rules, 2021 carry absorption forward at Rules 35 to 38, with pension on absorption in or under a corporation, company or body at Rule 36, and carry no successor to Rule 37-A, because the lump-sum-in-lieu facility no longer exists. An absorbee should read the orders specific to the category rather than reason from ordinary commutation, since both the quantum restored and the date it runs from differ. The permanent absorption article carries the wider position.

Tax on the restored pension

The restored pension is taxable, and so was the reduced pension before it. The monthly pension is charged under the head Salaries under Section 15(1) of the Income-tax Act, 2025 read with Section 16(b), which brings any pension within salary, and Section 15(2), which treats a former employer as an employer. It carries the salary standard deduction at serial 2 of the Table in Section 19(1). Restoration therefore increases taxable income from the month it takes effect, by the amount of the restored basic and by the dearness relief that follows it.

Only the lump sum itself carried relief, and the mechanism for that changed on 1 April 2026 while the outcome did not. The commuted value received by a government pensioner is deductible in full, with no monetary ceiling, at serial 7 of the Table in Section 19(1) of the Income-tax Act, 2025. That provision replaced the exemption in Section 10(10A)(i) of the Income-tax Act, 1961, which was repealed with effect from 1 April 2026 by Section 536(1) of the 2025 Act and which governs returns for the financial year 2025-26 and earlier. A non-government employee receives only a partial deduction, at serial 8. The income tax for pensioners article works through the full computation.

Defence, railway and bank pensioners

The 15-year period is nationally uniform and applies well beyond the civil services. The Supreme Court in Common Cause held that no separate period need be fixed for armed forces personnel, extended restoration on expiry of 15 years to them as conceded for civil pensioners, and fixed 1 April 1985 as the effective date for them too. Defence commutation is governed by its own regulations rather than by the 1981 Rules, and railway and bank pension establishments by theirs, but the restoration period in each is the same 15 years.

The Delhi High Court treated them as one question on 29 May 2026. Its order dismissed the challenges to Rule 10-A and to the analogous provisions applicable to railway, defence, bank and autonomous body pension regimes in a single batch, and upheld the validity of the uniform 15-year restoration period across all of them.

What people get wrong

Restoration runs from the date the reduction became operative under Rule 6, not from retirement; if commutation was paid months after retirement, the date shifts by the same months.
The period is fixed at 15 years, not the eight-year undiscounted recovery point and not the twelve-year recovery point with interest.
There is no age condition. The age-70 limb in the Government’s 1986 proposal was not adopted and does not appear in Rule 10-A.
Restoration is automatic. Apply to the bank only if it fails to happen, and claim arrears from the date it fell due.
Dearness relief does not jump at restoration, because it was always being paid on the full un-commuted pension.
No balance is recovered and no interest is charged when the reduction stops.
A second commutation after a pay revision has its own 15-year clock and its own restoration date.

Frequently Asked Questions (FAQs)

When is commuted pension restored?

After 15 years, counted from the date the reduction of pension became operative under Rule 6, which is the date the commuted value was paid, under Rule 10-A of the CCS (Commutation of Pension) Rules, 1981. Because commutation is usually paid a little after retirement, restoration usually falls a little after the fifteenth anniversary of retirement.

Is restoration 15 years from retirement or from commutation?

From the date the reduction of pension began, which is the date the commuted value was paid. If commutation was paid some months after retirement, the 15-year clock and the restoration date shift back by exactly those months. It is not measured from the date of superannuation, and it is not measured from any birthday.

Do I have to apply for restoration?

No. The pension-disbursing bank restores the commuted portion on completion of 15 years, using the date recorded in the Pension Payment Order. Apply to the bank only if the automatic restoration does not happen on time, in which case the bank obtains the date from the Pay and Accounts Office through the Central Pension Accounting Office.

Why is it not restored after about 12 years, when the amount is already recovered?

The Supreme Court rejected that arithmetic in Common Cause versus Union of India, decided 9 December 1986. It held that commutation carries two advantages, the lump sum and the risk factor, and that the period should be evolved on a years-of-purchase basis with an addition of two years to the period necessary for recovery. The 7th Central Pay Commission kept 15 years on the same reasoning, and the Delhi High Court upheld Rule 10-A on 29 May 2026.

How much does the pension go up at restoration?

The basic pension returns to its full amount, in the worked example from Rs. 30,000 back to Rs. 50,000. Dearness relief does not jump, because it was already being paid on the full un-commuted pension throughout the reduction period. Only the basic rises, and the dearness relief then follows the higher basic.

What happens if the pensioner dies before restoration?

No commutation deduction is taken from the family pension, which is paid in full, per Department of Pension and Pensioners’ Welfare Office Memorandum No. 42/15/2022-P&PW(D)/5 dated 25 October 2022. The unrecovered balance is not recovered from the legal heirs. That assumed risk is the reason the period is 15 years rather than the recovery point.

Is the restored pension taxable?

Yes. The monthly pension is charged under the head Salaries under Section 15(1) of the Income-tax Act, 2025 read with Section 16(b), whether it is the reduced pension during the 15 years or the restored pension after, and it carries the standard deduction at serial 2 of the Table in Section 19(1). Only the lump sum itself was relieved, as a deduction in full at serial 7 of that Table.

I commuted again after a pay revision. When is that portion restored?

On completion of 15 years from the date that second reduction became operative. Further commutation of a fraction of the increase is allowed by Rule 10 of the CCS (Commutation of Pension) Rules, 1981, and the proviso to Rule 10-A gives each commuted amount its own 15-year clock, so a pensioner can have two different restoration dates.

Is restoration linked to age 70 or age 75?

No. The Government’s own offer placed before the Supreme Court in Common Cause would have stopped recovery on completion of 15 years or on the pensioner attaining 70, whichever was later. The Court did not adopt the age condition, and Rule 10-A carries none. Age at restoration is incidental to the 15-year period.

Does restoration change the gratuity or the family pension?

No. Retirement gratuity is computed on emoluments and qualifying service under the CCS (Pension) Rules, 2021 and is unaffected by commutation or by restoration. Family pension is a percentage of last pay, not of the reduced pension, and is paid in full throughout. Commutation reduces only the pensioner’s own monthly basic pension, and only until restoration.

Does restoration apply to defence, railway and bank pensioners?

Yes, under their own analogous provisions. The Supreme Court in Common Cause held that no separate period need be fixed for armed forces personnel and extended the 15-year rule to them from 1 April 1985. The Delhi High Court on 29 May 2026 dismissed challenges to Rule 10-A and to the analogous provisions applicable to railway, defence and bank pension establishments together.

What about employees who took a lump sum in place of the whole pension on absorption in a public-sector undertaking?

The facility of taking capitalised value equal to 100% commutation on absorption was withdrawn by Office Memorandum No. 4/42/91-P&PW(D) dated 31 March 1995. For absorbees who had commuted one-third of pension under Rule 37-A of the CCS (Pension) Rules, 1972, the Supreme Court in Welfare Association of Absorbed Central Government Employees in Public Enterprises versus Union of India held that denying restoration of that one-third violated Articles 14 and 16. An absorbee should read the orders specific to the category, because the treatment differs from ordinary commutation.

Will the restoration period be cut to 12 years by the 8th Central Pay Commission?

No such change has been notified. The demand was raised at the 34th meeting of the Standing Committee of Voluntary Agencies on 11 March 2025; the Department of Expenditure recorded that the issue may be included in the terms of reference of the 8th Central Pay Commission, and the item was closed. Any 12-year figure attributed to the 8th CPC is a demand, not a rule.

Is interest charged, or any balance recovered, when the reduction stops?

No. Restoration simply ends the deduction from the date it falls due. Nothing is recovered from the pensioner and no interest is charged on the lump sum. Where restoration fell due but arrears were not drawn before the pensioner died, the legal heirs may claim the restoration arrears up to the date of death.

External references

References

Central Civil Services (Commutation of Pension) Rules, 1981: Rule 5(1) (commutation of a fraction not exceeding 40% of pension), Rule 6 (date on which commutation becomes absolute), Rule 8 (commuted value), Rule 10 (further commutation on revision of pension) and Rule 10-A with its proviso (restoration of the commuted portion on completion of fifteen years from the date the reduction became operative).
Common Cause (A Registered Society) and Others versus Union of India, Supreme Court of India, decided 9 December 1986, reported 1987 (1) SCC 142, fixing the restoration period at 15 years on the years-of-purchase basis, effective 1 April 1985, and extending it to armed forces personnel.
Department of Pension and Pensioners’ Welfare Office Memorandum No. 34/2/86-P&PW dated 5 March 1987, giving effect to the Common Cause direction.
Table of commutation values appended to the CCS (Commutation of Pension) Rules, 1981, notified by Department of Pension and Pensioners’ Welfare Office Memorandum No. 38/37/08-P&PW(A) dated 2 September 2008, built on the LIC (1994-96) Ultimate mortality table at 8% interest and keyed on age next birthday.
Report of the Seventh Central Pay Commission, recording recovery of the commuted amount in about twelve years and retaining the 15-year restoration period on account of the risk factor.
Department of Pension and Pensioners’ Welfare Office Memorandum No. 42/15/2022-P&PW(D)/5 dated 25 October 2022, directing that no commutation deduction be made from the family pension where the pensioner dies before restoration.
Rajya Sabha Unstarred Question No. 430, answered 22 July 2021, recording that there was no proposal to revise the restoration period and that neither the 6th nor the 7th Central Pay Commission had recommended a change.
Minutes of the 34th meeting of the Standing Committee of Voluntary Agencies held on 11 March 2025, circulated by Office Memorandum No. 4/14/2025-P&PW(D)/E-10522 dated 25 March 2025, closing the demand to reduce the restoration period to twelve years.
Union of India and Others versus Sub Trilok Chand (Retired) and Another, W.P.(C) 12781/2024 and connected matters, High Court of Delhi, division bench of Justice Anil Kshetarpal and Justice Amit Mahajan, judgment reserved 27 March 2026 and pronounced 29 May 2026, upholding the uniform fifteen-year restoration period under Rule 10-A and the analogous provisions applicable to railway, defence and bank pension establishments.
Rules 37 and 37-A of the CCS (Pension) Rules, 1972 (pension and lump sum in lieu of pension on absorption), Office Memorandum No. 4/42/91-P&PW(D) dated 31 March 1995 withdrawing the 100% commutation facility on absorption, and Welfare Association of Absorbed Central Government Employees in Public Enterprises versus Union of India on restoration of the one-third commuted portion.
Income-tax Act, 2025 (Act No. 30 of 2025), Section 19(1) Table serial 7 (commuted pension, deductible in full for a government employee) and serial 2 (standard deduction), with Sections 15(1), 15(2) and 16(b) on pension charged under the head Salaries, replacing Sections 10(10A)(i) and 16(ia) of the Income-tax Act, 1961, which was repealed with effect from 1 April 2026 by Section 536(1) of the 2025 Act.