1. What commutation means
Commutation is not an extra pension benefit. It converts an admissible portion of pension into a lump-sum commuted value and reduces the monthly pension by the commuted portion for the prescribed period.
2. Check the sanctioned percentage
Do not assume that another pensioner’s commutation percentage applies to you. Check the percentage/amount actually sanctioned in your PPO or commutation authority and the regulations/orders applicable to your retirement category and date.
3. Check the effective date
Note when reduction of pension on account of commutation actually became effective. This date becomes important when calculating restoration. Preserve the PPO/commutation authority and the first pension statement showing the reduction.
4. What happens to Dearness Relief
When checking monthly credit, distinguish basic pension, the commuted deduction and Dearness Relief. Do not calculate a supposed short payment simply by subtracting the lump sum from later pension payments.
5. Before raising a complaint
Write down the sanctioned basic pension, commuted portion, date reduction started and amount actually credited. Compare them with the latest PPO/corrigendum before raising a SPARSH/payment grievance.
6. Restoration
The Defence Pension Regulations provide for restoration of the commuted portion after 15 years. See the separate Restoration guide because the date from which those 15 years are counted can matter.
7. No universal processing promise
Do not rely on a generic processing time for every commutation correction. Use the acknowledgement/status facility for the specific pension service being used.
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Official sources
Source review: 10 September 2026.