Letter by AIBRF to IBA for payment of full pension till commutation is paid​

Dear Raithatha, There is no provision in the pension rules of LIC and Banks to start paying reduced revised Basic Pension from the date of payment of difference in commuted value of pension. If it is to be done so, then reduced Commutation Factor will have to be made applicable to as for age 63(next birthday) for the difference in commutable Basic Pension.In that case it will be tantamount to paying commuted pension twice which is not permissible as per pension rules. If your Federation request is to be acceded to pension rules will have to be suitably amended. A more practical approach for the pensioners will be to demand payment of interest on the difference commuted pension as factored in the commutation factors which will not require amendment of pension rules. If IBA does not agree, the matter has to be taken to the court of law. Kind regards. C H Mahadevan