What is the formula for central government pension commutation?

Under Rule 10 of CCS (Commutation of Pension) Rules 1981, Lump Sum = Monthly Pension Commuted × 12 × Commutation Factor. The factor is obtained from the official Table II based on age next birthday.

Does Dearness Relief (DR) reduce after pension commutation?

No. Dearness Relief (DR) is always calculated and disbursed on the full original basic pension throughout the entire 15-year commutation period, without any deduction.

When is the commuted pension restored?

The commuted portion of pension is automatically restored after exactly 15 years from the date the reduced pension became payable, without requiring reapplication.

100% Rule-Based • Non-Speculative Statutory Tool

Central Pension Commutation Calculator

Unlike projected 8th CPC fitment estimates, pension commutation is governed by existing statutory rules under Table II of the CCS (Commutation of Pension) Rules, 1981. Calculate your exact tax-free lump sum, reduced monthly pension, and 15-year restoration schedule.

Monthly Basic Pension (₹)50% of your last drawn basic pay

Commutation Percentage (%)CCS Rules limit commutation to 40% max

Age Next Birthday (Table II)Age on the date commutation becomes absolute

Commutation DateUsed to calculate 15-yr restoration date

Lump Sum Commuted Value

₹17,69,904

100% Tax-Free under Section 10(10A)

Monthly Commuted Portion

₹18,000

Deducted monthly for 15 years

Reduced Monthly Pension

₹27,000

Plus Dearness Relief on FULL ₹45,000

Full Pension Restoration

30 June 2041

Exactly 15 years from effective date

Statutory Rule Protection: Dearness Relief (DR) is NEVER reduced by Commutation

Many pensioners mistakenly assume that DR is paid on the reduced pension. Under Rule 10A of the CCS (Commutation of Pension) Rules, Dearness Relief continues to be paid on your full original basic pension (₹45,000) throughout the entire 15-year period.

Official DoPPW Table II: Commutation Factors by Age Next Birthday

Source: Department of Pension and Pensioners' Welfare (DoPPW), based on LIC (94-96) Ultimate Tables and 8.00% interest rate.

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Age Next Birthday	Commutation Factor	Age Next Birthday	Commutation Factor	Age Next Birthday	Commutation Factor
Age 20	9.188	Age 40	9.09	Age 60	8.287
Age 21	9.187	Age 41	9.075	Age 61	8.194
Age 22	9.186	Age 42	9.059	Age 62	8.093
Age 23	9.185	Age 43	9.04	Age 63	7.982
Age 24	9.184	Age 44	9.019	Age 64	7.862
Age 25	9.183	Age 45	8.996	Age 65	7.731
Age 26	9.182	Age 46	8.971	Age 66	7.591
Age 27	9.18	Age 47	8.943	Age 67	7.431
Age 28	9.178	Age 48	8.913	Age 68	7.262
Age 29	9.176	Age 49	8.881	Age 69	7.083
Age 30	9.173	Age 50	8.846	Age 70	6.897
Age 31	9.169	Age 51	8.808	Age 71	6.703
Age 32	9.164	Age 52	8.768	Age 72	6.502
Age 33	9.159	Age 53	8.724	Age 73	6.29
Age 34	9.152	Age 54	8.678	Age 74	6.085
Age 35	9.145	Age 55	8.627	Age 75	5.872
Age 36	9.136	Age 56	8.572	Age 76	5.657
Age 37	9.126	Age 57	8.512	Age 77	5.443
Age 38	9.116	Age 58	8.446	Age 78	5.229
Age 39	9.103	Age 59	8.371	Age 79	5.018

Official Gazette / Notified Rule•Statutory government rule or gazette notification

Last verified: September 30, 2026

Source: CCS (Commutation of Pension) Rules, 1981 — Table II Notification(Official statutory rule. Values verified against primary DoPPW gazette records.)

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