commutation deduction

[Prasad PLN]

Dear sirs,

Will someone please let me know the "period of repayment" of commuted amount,that is deduction from BP? eg: Rs 4000 is deducted from my BP since 2010 Whether it is a lifetime deduction or any fixed duration?And I think the medical reimbursement paid to us is for the calender year and may be claimed from January to December in the same year,(any month) by submitting a declaration ?Pls clear my confusion.

Regards

[mohan p]

Dear Sri.Prasad,

                             

                             Commuted portion of pension is not a life time deduction as you have mentioned.

                            An employee who had commuted the admissible portion of pension(not exceeding one-third of his pension) is entitled to have the commuted portion of the pension restored after the expiry of a period of fifteen years from the date of commutation.

--
Visit our blog site http:://bankpensioner.blogspot.com
---
You received this message because you are subscribed to the Google Groups "bankpensioner" group.
To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com.
Visit this group at http://groups.google.com/group/bankpensioner.
For more options, visit https://groups.google.com/groups/opt_out.

[Mohandas Rao]

Dear Sri Prasad,

      Commutation is recoverable in 180 monthly instalments, that is in 15 years, from the month of commutation. Thereafter recovery will stop, and full pension will be paid. Regarding the reimbursement of medical expenses, there is no uniformity in the banks. Schemes change from bank to bank. Please refer the circular issued each year (when funds are available and allocated to staff welfare measures) by your bank.

K. MOHANDAS RAO

--

[Satish Khatri]

Deduction period is 15 years .

satish khatri

--

[mahaboob basha]

Dear Sir,

Commutation will be allowed @ 33% or say 1/3rd amount of basic pension. This commuted amount will be deducted from the basic pension for a period of 15 years(180 months) from the date of commutation. Thus the monthly pension = basic pension minus commuted amount + DA on the full basic pension.

After 15 years from the date of commutation, it will be restored and deduction will be stopped from basic pension.
As you said 4000 was commuted means basic pension must be 12000.
Monthly pension = (12000 - 4000) + 88.95% on 12000 = 8000+10674=18674.

COMMUTATION PROFIT OR LOSS IN THE ABOVE EXAMPLE:

Part I:
4000 commuted on superannuation means, .461280 is commutation value -- non taxable.
(commutation factor for age 61 = 9.61 and commutation value is = 9.61 x 12 x 4000 = 461280)

If this 461280 is deposited for 15 years @ 10%(first for 10yrs and then renew for 5 yrs), the maturity amount will be 2029535.

Part II:
recovery of 4000 every month for 180 months @ 10% = 1659097
(RD 4000 for 180 months @ 10% --- maturity value = 1659097. principal 4000 x 180 = 720000 and interest 939097 for 180 months @ 10%)

conclusion:

Commutation is beneficial in the above case to a tune of 370438 (PROFIT) + restoration after 15 years.

With regards
smbasha

From: mohan p <moha...@gmail.com>
Sent: Thu, 12 Sep 2013 19:19:37
To: bankpensioner google <bankpe...@googlegroups.com>
Subject: Re: bankpensioner commutation deduction

Dear Sri.Prasad,

                             

                             Commuted portion of pension is not a life time deduction as you have mentioned.

                            An employee who had commuted the admissible portion of pension(not exceeding one-third of his pension) is entitled to have the commuted portion of the pension restored after the expiry of a period of fifteen years from the date of commutation.

Ganesha offers Company email & website (FREE) at your own domain (FREE) - KNOW MORE >

[Venkata Rao Tumati]

Sir,

Commutation amount  will be deducted for 15 years from the day of commutation amount paid and in your case,it will be restored in 2025.

T.Venkata Rao
Andhra Bank VRS retiree

---

From: Prasad PLN
Sent: ‎12-‎09-‎2013 16:42
To: bankpe...@googlegroups.com
Subject: bankpensioner commutation deduction

[P.VIJAYARAGHAVAN]

Sir..after 15 years of repayment of commutation amount, are the pensioners eleigible for fresh commutation....and basis  any medical test etc required...?????Is it correct 15 years are needed to recoer the commutation amount if so the particulars..?/Thank you

[PM]

Dear Mr. Raghavan,

                                  An employee shall be entitled to commute for a lump sum payment of a fraction not exceeding one-third of his pension. Once it is fully availed, as above,and restored after 15 years,there is no provision for further commutation of pension as per Bank employees Pension Regulations.It is also correct that commutation amount will be restored after expiry of  15 years from the date of commutation.

[Beekay Sharma]

Par...@rediffmail.com

--

[Mohandas Rao]

Dear Sri P. Vijayaraghavan,

      Commutation is paid as per Regulation No.41.  About second commutation (after restoration of the original commutation), there is no mention in the banks' Pension Regulations.  However, a long discussion took place in this forum stating that such provision is available in State or Central Government. In a case of Superannuation Pension, such a second commutation, if any, will be due after attaining an age of 75 years. Because of low commutation factor the amount will be naturally less.

       I do not think in banks it is available. No medical examination is required for availing commutation within 1 year of retirement. Thereafter, if the commutation is availed at a later date (either the full entitlement of 1/3 of basic pension or the difference between the eligibility and actual amount commuted), medical examination is a must. 

K. MOHANDAS RAO

On 12 September 2013 21:21, Venkata Rao Tumati <venkatar...@yahoo.co.in> wrote:

Sir,

Commutation amount  will be deducted for 15 years from the day of commutation amount paid and in your case,it will be restored in 2025.

T.Venkata Rao
Andhra Bank VRS retiree

---

From: Prasad PLN
Sent: 12-09-2013 16:42

To: bankpe...@googlegroups.com
Subject: bankpensioner commutation deduction

Dear sirs,

Will someone please let me know the "period of repayment" of commuted amount,that is deduction from BP? eg: Rs 4000 is deducted from my BP since 2010 Whether it is a lifetime deduction or any fixed duration?And I think the medical reimbursement paid to us is for the calender year and may be claimed from January to December in the same year,(any month) by submitting a declaration ?Pls clear my confusion.

Regards

--
Visit our blog site http:://bankpensioner.blogspot.com
---
You received this message because you are subscribed to the Google Groups "bankpensioner" group.
To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com.
Visit this group at http://groups.google.com/group/bankpensioner.
For more options, visit https://groups.google.com/groups/opt_out.

[perumal maruthu]

Dear sir

To help the Pensioner on his superannuation/exit to get some lump sum amount to meet Marriage/Educational expenses it was considered by the Central Gov't to extend the commutation benefit. It is not a loan but akin to a Reverse-LIC-Policy. Assured sum is recieved upfront but the premium is paid for the Fixed Term of 15Yrs.(In case of death ,in LIP, premium gets stoppped and the assured sum paid; here also the same gets stopped). It is linked to the Age also. Higher the age, lower the commutation factor and lower the commuted value.(In LIP lower the age,lower the premium). Interest Rate factored in is 4.75%. Recovery stops if the commuted Pensioner dies immediately after recieving the commuted amount; his family pensioner need not pay anything.

It is more beneficial to avail of commutation to the maximum of 33.3% immediatley on retirement. Recovery stops after the repayment period of 15years;ie, the instalmet is restored/not deducted thereafter.

M.Perumal

[vijayavittal mulbagal]

DEAR FRIENDS,

I AM HAPPY TO INFORM YOU THAT A CLOSE FRIEND OF MINE, A FORMER COLLEAGUE AND NOW A PRACTICING LAWYER AT SUPREME COURT HAS AGREED TO TAKE UP OUR CASE OF 100% DA NEUTRALISATION, MAKNG US " CO-LITIGANTS".

HE NEEDS COPIES OF MADRAS HIGH COURT VERDICTS, BOTH SINGEL BENCH AND THE DIN BENCH TO ENABLE HIM TO PROCEED FURTHER IN THIS MATTER. IF ANY OF YOU IS AHVING THE COPIES READILY MAY KINDLY SEND IT TO ME... "savv...@gmail.com"

with regard to the expenses he ill be very liberal being a former colleague and a friend of mine.

I WILL COMMUNICATE THE SAME LATER AFTER SENDING HIMA COPIES OF THE MHC JUDGEMENTS.

COM.VIJAYAVITTAL.M

VRS 2001, SYNDICATE BANK










On Fri, 13 Sep 2013 09:00:12 +0530 wrote

>Dear Sri Prasad,

      Commutation is recoverable in 180 monthly instalments, that is in 15 years, from the month of commutation. Thereafter recovery will stop, and full pension will be paid. Regarding the reimbursement of medical expenses, there is no uniformity in the banks. Schemes change from bank to bank. Please refer the circular issued each year (when funds are available and allocated to staff welfare measures) by your bank.

K. MOHANDAS RAO

On 12 September 2013 14:04, Prasad PLN wrote:

Dear sirs,Will someone please let me know the "period of repayment" of commuted amount,that is deduction from BP? eg: Rs 4000 is deducted from my BP since 2010 Whether it is a lifetime deduction or any fixed duration?And I think the medical reimbursement paid to us is for the calender year and may be claimed from January to December in the same year,(any month) by submitting a declaration ?Pls clear my confusion.

Regards



--

Visit our blog site http:://bankpensioner.blogspot.com

---

You received this message because you are subscribed to the Google Groups "bankpensioner" group.

To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com.

Visit this group at http://groups.google.com/group/bankpensioner.

For more options, visit https://groups.google.com/groups/opt_out.






--
>
Visit our blog site http:://bankpensioner.blogspot.com
>
---
>
You received this message because you are subscribed to the Google Groups "bankpensioner" group.
>
To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com.
>
Visit this group at http://groups.google.com/group/bankpensioner.
>
For more options, visit https://groups.google.com/groups/opt_out.
>

In God Do We Trust
M.Vijaya Vittal
202,Keerthi Bhadra Apts,
Gokhale Nagar,
Ramanthapur,

Hyderabad..500 013.Ph:040-27034622
AP Mob. 099637 46222

[Govindarajan.L.N.]

No second commutation sir.

 

From: P.VIJAYARAGHAVAN

Sent: Friday, September 13, 2013 9:04 AM

To: bankpe...@googlegroups.com

Cc: mohand...@gmail.com

Subject: Re: bankpensioner commutation deduction

 

Sir..after 15 years of repayment of commutation amount, are the pensioners eleigible for fresh commutation....and basis  any medical test etc required...?????Is it correct 15 years are needed to recoer the commutation amount if so the particulars..?/Thank you

On Thu, Sep 12, 2013 at 7:34 PM, Mohandas Rao <mohand...@gmail.com> wrote:

Dear Sri Prasad,

 

      Commutation is recoverable in 180 monthly instalments, that is in 15 years, from the month of commutation. Thereafter recovery will stop, and full pension will be paid. Regarding the reimbursement of medical expenses, there is no uniformity in the banks. Schemes change from bank to bank. Please refer the circular issued each year (when funds are available and allocated to staff welfare measures) by your bank.

 

K. MOHANDAS RAO

On 12 September 2013 14:04, Prasad PLN <prp...@gmail.com> wrote:

Dear sirs,

Will someone please let me know the "period of repayment" of commuted amount,that is deduction from BP? eg: Rs 4000 is deducted from my BP since 2010 Whether it is a lifetime deduction or any fixed duration?And I think the medical reimbursement paid to us is for the calender year and may be claimed from January to December in the same year,(any month) by submitting a declaration ?Pls clear my confusion.

Regards

--
Visit our blog site http:://bankpensioner.blogspot.com
---
You received this message because you are subscribed to the Google Groups "bankpensioner" group.

To unsubscribe from this group and stop receiving emails from it, send an email to mailto:bankpensioner%2Bunsu...@googlegroups.com.

Visit this group at http://groups.google.com/group/bankpensioner.
For more options, visit https://groups.google.com/groups/opt_out.

--
Visit our blog site http:://bankpensioner.blogspot.com
---
You received this message because you are subscribed to the Google Groups "bankpensioner" group.

To unsubscribe from this group and stop receiving emails from it, send an email to mailto:bankpensioner%2Bunsu...@googlegroups.com.

Visit this group at http://groups.google.com/group/bankpensioner.
For more options, visit https://groups.google.com/groups/opt_out.

[Ashwani Dabra]

Dear Sirs
while retiring from sbi under vrs 2006 i have not opted
for commutation .Can i opt now? If yes what will be procedure?.
Thanks
ASHWANI KUMAR DABRA

[P.Vijayaraghavan]

Thank you for the information

Sent from my iPad

[PM]

Dear Mr.Ashwani Dabra,

                                        If you have not availed commutation of pension at the time of retirement you can avail the same 

now or at a future date.Only difference is  in the case of a pensioner eligible for superannuation pension or pension on 

voluntary retirement or premature retirement pension, no medical examination shall be necessary, if the application for commutation is made within one year from the date of retirement. 

                                                 However, if such a pensioner applies for commutation of pension after one year from the date of his retirement, the same will be permitted subject to medical examination.;Further The commuted value in the case of an employee retiring at the age of 60 years is  9.81 years' purchase  if he commutes rupees one hundred from his pension within one year of retirement,and when age advances the amount of commutation decreases( ie: to 7.85)

[harinarayana sarma nandivada]

Sir,

Well explained.  Thanks for your service to the community of retirees.

N.Harinarayana Sarma

---

From: PM <moha...@gmail.com>
To: bankpe...@googlegroups.com
Sent: Sunday, 15 September 2013, 20:53

Subject: Re: bankpensioner commutation deduction