Commutation of Pension Rules, Chapter-IV : Commutation Of Pension After Medical Examination

Commutation Rule No.18: Scope

The provisions of this Chapter shall apply to an applicant who is eligible to commute percentage of his pension after medical examination.
[Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]

Commutation Rule No.19: Eligibility

An applicant who:-

(i)    Retires on invalid pension under rule 55 of the Railway Pension Rules; or

(ii)    Omitted

[Authority: RBE No.16/2005, No.FE-III/2003/PN1/25, 24.01.2005]

(iii)   Is compulsorily retired from service as penalty and is granted pension under rule 64 of the Railway Pension Rules; or

(iv)   Is in receipt of compassionate allowance under rule 65 of the Railway Pension Rules; (v) has retired from service on one of the pensions referred to in rule 13 but his application for commutation has not been received by the Head of Office within one year of his retirement, shall be eligible to commute a percentage of his pension subject to the limit specified in rule 6 after he has been declared fit by the appropriate medical authority.

[Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]

Commutation Rule No.20: Application For Commutation Of Pension

An applicant referred to in Rule 19 shall apply to the Head of Office in Form 3 for commutation of a percentage of his pension including provisional pension sanctioned under rule 91 of the Railway Pension Rules.

Commutation Rule No.21: Action To Be Taken By The Head Of Office On Application For Commutation Of Pension

(1)   The Head of Office on receipt of application in Part I of Form 3 under rule 20 shall:-

(a)   Acknowledge immediately the receipt of Form 3 in Part II of that Form and dispatch the same to the applicant;

(b)   Forward Form 3 in original to the Accounts Officer in Part III of that Form with the request that Part IV of that Form may be completed immediately and returned to him as early as possible so that action for getting the applicant examined by the appropriate medical authority is taken.

(2)   The Accounts Officer on receipt of Form 3 from the Head of Office under sub-rule (1) shall complete Part IV of that Form and transmit the same to the Head of Office as early as possible. (3)   The Head of Office on receipt of Form 3 from the Accounts Officer under sub-rule (2) shall address in Form 4 to the Chief Medical Authority where the applicant desire to be medically    examined and forward to him the following documents:

(i)    Form 3 with Part IV of that Form duly completed in original;

(ii)    Two copies of the applicant’s photograph of which one shall be an attested copy;

(iii)   A copy of Form 5 with a spare copy of Part III of that form;

(iv) Report or statement of the applicant’s case if he been granted invalid pension or has previously commuted part of his pension or declined to accept commutation on the basis of an addition of years to his actual age or has been refused commutation on medical grounds.

(4)   A copy of letter in Form 4 addressed to the Chief Medical Authority shall be endorsed to the applicant and the Accounts Officer by the Head of Office.

Commutation Rule No.22: Action To Be Taken By The Chief Medical Authority

(1)   The medical authority on receipt of documents referred to in sub-rule (3) of Rule 21 shall:-

(a)   Arrange as far as possible for the medical examination of the applicant by the medical authority at the nearest available station indicated by the applicant in Form 3;

(b)   Transmit the documents referred to in sub-rule (3) of rule 21 to the medical authority with the direction to examine the applicant as provided in rule 26;

(c)   Inform the applicant as to where and whom he should appear for medical examination or if necessary direst the medical authority to communicate to the applicant the date and time of such examination.

(2)   In fixing the date of medical examination is held, as far as possible, before the date of applicant’s next birthday.

Commutation Rule No.23: Medical Authority

(1)   Save as otherwise provided in sub-rule (2), the medical authority shall be a Medical Board, where an applicant for commutation of pension:-

(a)   Seeks commutation of invalid pension, or

(b)   Seeks commutation of pension other than invalid pension but the amount of pension to be commuted together with the amount or amounts previously commuted exceeds six thousand rupees per mensem, or [Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]

(c)   Has been refused commutation on medical grounds or if he having once declined accept commutation on the basis of addition of years to his actual age recommended by the medical authority, applied for a second medical examination in accordance with the provisions of rule 27 and rule 28.

(2)   In any other case not covered by sub-rule (1), the medical authority shall be a Medical Officer not lower in status than that of a Divisional Medical Officer or a Civil Surgeon, as the case may be.

Commutation Rule No.24: Fee For Medical Examination To Be Borne By The Applicant

The applicant shall be required to pay for medical examination such fee as may be specified by the Railway Board.

Commutation Rule No.25: Failure To Appear Before Medical Authority

(1)   If the applicant after receipt of communication from the Chief Medical Authority or the medical authority referred to in clause (c) of sub-rule (1) of rule 22 fails to appear for medical examination before the medical authority on the date and time communicated to him (including any change therein either at the request of the applicant or due to administrative reasons) and there is no reasonable ground for his failure, the medical authority shall report the fact to the Head of Office concerned and return to him the documents received under clause (b) of sub-rule (1) of rule 22.

(2)   With the return of documents to the Head of Office under sub-rule (1), the application for commutation shall be treated as having been withdrawn.

Commutation Rule No.26: Procedure For Medical Examination

(1)   The medical authority shall:-

(a)   Obtain from the applicant a statement in Part I of Form 5, duly signed by the applicant in its presence;

(b)   Subject the applicant to medical examination and enter the result thereof in Part II of Form 5;

(c)   Attest the unattested copy of the photograph of the applicant;

(d)   Complete the certificate contained in Part III of Form 5; Provided that where:-

(i)  An applicant has been granted invalid pension, or

(ii) An applicant has previously commuted a part of his pension; or

(iii) And applicant has been refused commutation on medical grounds; or

(iv) An applicant has declined to accept the commutation on the basis of addition of years to his actual age, the medical authority shall, before completing the certificate contained in Part III of Form 5, take into consideration the statement of the medical case of the applicant.

(2)   After complying with the requirements of sub-rule(1), the medical authority shall without delay forward to the Accounts Officer who has already completed Part IV of Form 3, the following documents, namely;

(a)   Form 3 in original;

(b)   Attested copy of the applicant’s photograph,

(c)   Form 5 in original; and

(d)   A certified copy of Form 5 to the Head of Office, who has countersigned Part IV of Form 3.

(3)   The medical authority shall also send to the applicant a certified copy of Part III of Form 5.

Commutation Rule No.27: Second Medical Examination

(1)   Subject to the provisions of rule 28, the medical examination in the case of an applicant referred to in clause (c) of sub-rule (1) of rule 23 shall take place after the expiry of a period of not less than one year from the date of the first medical examination.

(2)   If the applicant desires to be re-examined on the expiry of the period specified in sub-rule (1), the examination shall be by a Medical Board at his own expense. For this purpose, he shall address a letter to the Head of Office with the request that arrangements for his re-examination by a Medical Board may be made. He shall indicate in the letter.

(i)    The medical authority which examined him earlier and the date on which such examination took place.

(ii)    The place where he was examined,

(iii)   The opinion of the medical authority,

(iv)   The date of birth and the date of retirement,

(v)     Designation of the post held at the time of retirement,

(vi)    The amount of pension authorized,

(vii)    The percentage of pension which was originally applied for commutation.

[Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]

(3)   The Head of Office on receipt of letter under sub-rule (2) shall address the Chief medical authority for arranging re-examination of the applicant by a Medical Board and forward the following documents to such authority:-

(i)    Letter in original received from the applicant.

(ii)    The certified copy of Form 5 received earlier by the Head of Office from the medical authority under clause (d) of sub-rule (2) of rule 26.

(4)   The Chief medical authority on receipt of the communication from the Head of Office under sub-rule (3) shall inform the applicant as to where and when he should appear for medical examination before the Medical Board or if necessary direct the Medical Board or if necessary direct the Medical Board or if necessary direct the Medical Board to communicate to the applicant the place, date and time of such examination.

(5)   The applicant after the receipt of communication under sub-rule (4) shall appear before the Medical Board at the place and on the date and time communicated to him.

(6)   The Medical Board shall examine the applicant and if after the examination it is of the view that the earlier opinion of the medical authority needs no revision or modification or needs revision or modification shall record its opinion and communicate the same to the Head of Office under intimation to the applicant. The documents received by the Medical Board under sub-rule (3) shall also be returned to the Head of Office.

(7)   If as a result of the opinion of the Medical Board received by the Head of Office under sub-rule (6), the applicant becomes eligible to commute a fraction of pension originally applied for, the Head of Office shall determine the commuted value with reference to the Table applicable on the date the Medical Board recorded its opinion. The Head of Office thereafter shall request the Accounts Officer to take further action for the authorization of the commuted value and forward the following documents to him;

(i)    Letter in original received from the applicant under sub-rule (2);

(ii)    The opinion of the Medical Board received under sub-rule (6) in original;

(iii)   Calculation sheet showing the commuted value determined with reference to the revised or modified opinion of the Medical Board.

(8)   The Accounts Officer on receipt of the documents under sub-rule (7) shall verify the correctness of the commuted value determined by the Head of Office and thereafter take action to authorize the commuted value to the applicant under intimation to the Head of Office.

Commutation Rule No.28: Appeal Against The Findings Of Medical Authority

(1)   Notwithstanding anything contained in rule 27, and applicant referred to in clause (c) of sub-rule (1) of rule 23 shall be eligible for second medical examination before the expiry of the period specified in sub-rule (1) of rule 27 if he feels that the medical authority in refusing commutation on medical grounds or making addition of years to his actual age has committed an error of judgment. Such an applicant may, within one month of the receipt of the certified copy of Part III of Form 5, from the medical authority, prefer an appeal by addressing a letter to the Head of Office that the opinion of the medical authority may be got reviewed by another medical authority mentioned in sub-rule (2) at his own expenses. He shall also indicate in the letter:-

(i)    The medical authority which had examined him earlier and the date on which the examination took place;

(ii)    The place where he has examined;

(iii)   The opinion of the medical authority;

(iv)   The date of birth and the date of retirement;

(v)   The designation of the post held at the time of retirement.

(vi)   The amount of pension authorized;

(vii) The percentage of pension which was originally applied for commutation;

[Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]

(2)   In case an applicant referred to in sub-rule (1) – (i) was examined previously by a Medical Officer, not lower in status than a Divisional Medical Officer or Civil Surgeon he shall be re-examined by a Medical Board, or (ii) was previously examined by a Medical Board, shall be re-examined by a second Medical Board, the members of which shall be different from those of the first Medical Board.

(3)   The Head of Office shall, within one month of the receipt of letter under sub-rule (1), take steps for arranging the re-examination of the applicant. For this purpose, he shall address the Chief Medical Authority, where the applicant was examined previously. He shall, while addressing the Chief Medical Authority invites his attention to the provisions of sub-rule (2) and forward to it the following documents;

(i)    Letter received from the applicant in original.

(ii)    Certified copy of Form 5 received earlier by the Head of Office from the medical authority under clause (d) sub-rule (2) of rule 26.

(4)   The Chief Medical Authority on receipt of communication from the Head of Office under sub-rule (3) shall arrange for the second medical examination of the applicant by a Medical Board which shall be constituted in accordance with the provisions of sub-rule (2). The Chief Medical Authority shall thereafter inform the applicant as to where and when he should appear for medical examination before the Medical Board or if necessary direct the Medical Board to communicate to the applicant the place, date and time of such examination.

(5)   The applicant on receipt of the communication under sub-rule (4) shall appear for the medical examination before the Medical Board on the date and time, communicated to him.

(6)   The Medical Board shall examine the applicant and if after the examination, it is of the view that the earlier opinion of the medical authority needs no revision or modification or needs revision or modification shall record its opinion and communicate the same to the Head of Office under intimation to the applicant and the findings of the Medical Board shall be binding on the applicant.

(7)   If the Medical Board as a result of the second medical examination of the applicant, sets aside or modifies the opinion of the first medical authority, the findings of the Medical Board shall be deemed to have come into force on the date on which the first medical authority recorded its opinion and the claim of the applicant for commutation shall be settled accordingly.

(8)   Nothing contained in this rule shall apply to an applicant in whose case the medical authority as a result of the first medical examination had directed that the first medical examination had directed that the applicant’s age for the purpose of commutation should be assumed to be greater than his actual age and the applicant received the commuted value with reference to the enhanced age.

Commutation Rule No.29: Withdrawal Of Application

(1)   The applicant may after giving notice in writing, to the Head of Office, withdraw his application at any time before subjecting himself to medical examination before the medical authority but in no case after he has appeared before such authority.

(2)   In case the medical authority directs that the applicant’s age for the purpose of commutation shall be assumed to be greater than his actual age, the applicant may, –

(a)   By giving notice in writing to the Head of Office withdraw his application within fourteen days from the date on which he receives the certified copy of Part III of Form 5 and endorse a copy of notice to the Accounts Officer, or

(b)   Request the Head of Office within the period specified in clause (a) under intimation to the Accounts Officer that he may be permitted to reduce the amount of pension already applied for commutation to an amount to be indicated by the applicant.

(3)   Where a request for withdrawal has not been made by the applicant within the time specified in clause (a) of sub-rule (2), it shall be presumed that he has accepted the findings of the medical authority and the Accounts Officer shall take action to authorize the payment of commuted value of pension.

(4)   If a request for reduction in the amount of pension to be commuted is made as provided in clause (b) of sub-rule (2) the Accounts Officer shall authorize the payment of commuted value of pension with reference to the reduced amount.

(5)   If the applicant is informed by the Accounts Officer under rule 30 that on account of modification of the Table, the commuted value becoming payable to the applicant will be less than the value communicated to him in Form 4, it shall be open to the applicant to withdraw his application by a written notice addressed to the Accounts Officer and the applicant shall endorse a copy of the notice to the Head of Office within fourteen days of the date on which he receives intimation of such modification.

Commutation Rule No.30: Modification In The Value Specified In The Table

(1)   In case the value specified in the Table is modified at any time before the commutation becomes absolute in terms of clause (ii) of sub-rule (1) of rule 7, the payment shall be made in accordance with the value so modified.

(2)      Where the commuted value calculated with reference to the Table as modified, is less favourable than the value determined with reference to the Table before it was so modified the Accounts Officer shall- (a) inform the applicant of the revised value and communicate to him the provisions of sub-rule (5) of rule 29, and (b) endorsed to the Head of Office a copy of the communication issued under clause (a).

Commutation Rule No.31: Authorization Of Payment Of Commuted Value By The Accounts Officer

(1)   Subject to the provisions of sub-rule (2) and sub-rule (3) of rule 29, the Accounts Officer on receipt of the documents referred to in sub-rule (2) of rule 26, from the medical authority, shall without delay issue an order to the disbursing authority concerned and furnish to it the following particulars and documents, namely;

(i)    The amount of pension commuted, the amount of commuted value of pension and the date on which the commutation became absolute.

(ii)    The amount of residuary pension,

(iii)   Form 5 in original,

(iv)   Copy of the applicant’s photograph as attested by the medical authority,

(2)   The Accounts Officer shall also;

(a)   Bring to the notice of disbursing authority the provisions of the proviso to sub-rule (1) of rule 7 regarding the date on which the amount of original pension should be reduced,

(b)   Endorse the applicant a copy of the order issued under sub-rule (1) with the remarks that he should collect the commuted value from the disbursing authority; and

(c)   Bring to the notice of the applicant the provisions of the proviso to sub-rule (1) of rule 7.

Commutation Rule No.32: Final Assessment Of Provisional Pension

(1)   An applicant referred to in sub-rule (3) of rule 10 to whom the commuted value of the percentage of the provisional pension has been paid by the Head of Office, shall, on final assessment of the pension, be paid by the Accounts Officer, the difference between the commuted value so determined and the commuted value already paid;

Provided that where an applicant has been examined by a Medical Officer for the commutation of a percentage of provisional pension and such an applicant on assessment of final pension becomes eligible to commute and amount exceeding Six thousand rupees per mensem, he shall be allowed the difference between the commuted value of Six thousand rupees per mensem and the commuted value of the percentage of the provisional pension without further medical examination but the payment of the commuted value of pension exceeding Six thousand rupees per mensem shall be made if the applicant applies afresh for medical examination as provided in clause (c) of sub-rule (3) of rule 10 and he is declared fit by the Medical Board.

(2)   The commuted value of the percentage of provisional pension as indicated in the endorsement in Form 4 addressed to the applicant and forwarded under sub-rule (4) of rule 21 shall be deemed to have been amended with the issue of an authority by the Account’s Officer for the payment of difference between the commuted value of the percentage of the final pension and the percentage of the provisional pension.

[Authority: RBE No.151/2013, No.2011/F(E)III/1(2)/13, 14.01.2013]