SRINAGAR: The Jammu and Kashmir Finance Department has issued fresh guidelines for sanctioning commutation of pension, directing all Pension Sanctioning Authorities (PSAs) to strictly follow the provisions laid down under the Civil Pension (Commutation) Rules, 1960.
In a circular issued by the Finance Department (Codes Division), the government said it had come to its notice that while according sanction to commutation of pension in respect of government employees and retired government servants, the authorities were not strictly adhering to the prescribed rules incorporated in Schedule-X of the J&K Civil Services Regulations, 1956.
The department said the matter was examined and several instructions were being reiterated for strict compliance while processing and sanctioning commutation cases.
As per the circular, applicants seeking commutation of pension will now have to furnish complete details of their financial position and clearly indicate the necessity for commutation along with the specific benefits expected from it.
The government said the commuted value of pension should ordinarily be used for bona fide and essential purposes such as construction or purchase of a residential house, liquidation of debts, education of children or dependents, marriage expenses, or for starting a business enterprise.
The circular further stated that government servants against whom departmental or judicial proceedings have been instituted prior to retirement or within one year from the date they were last on duty shall not be eligible to commute any portion of pension during the pendency of such proceedings, as such employees are entitled only to provisional pension.
The Finance Department also clarified that if an application for commutation is received by the Pension Sanctioning Authority after one year from the date of retirement, the applicant shall not be eligible for commutation without undergoing medical examination. Such applicants will have to apply afresh through Form-A (Digital).
The circular warned that if, prior to payment of the commuted value, it is found that the applicant had made any false statement or suppressed material facts during the medical examination process, the sanctioning authority would have the right to cancel the sanction of commutation. It added that such acts would be treated as grave misconduct under Article 168 of the J&K Civil Service Regulations.
The government further directed that pensioners applying for commutation after one year would be required to appear before the Medical Authority within three months from the issuance of Form-B (Digital), failing which the intimation would lapse.
According to the circular, the Pension Sanctioning Authority shall forward the application along with the medical fitness certificate to the Office of the Accountant General for authorization of commutation of pension, subject to the fitness certificate issued by the medical authority.
The Finance Department also clarified that UT government employees absorbed in Central or State Public Sector Undertakings or Autonomous Bodies would not be entitled to benefits under these rules as they cease to be UT government pensioners.
An annexed checklist issued along with the circular includes verification of application forms, timelines, vigilance status, pension eligibility, medical examination, identity documents, sanction details and forwarding of complete records to the Accountant General for authorization. The government said this checklist would be integrated into the Pension Suvidha Portal to ensure strict compliance.
The circular, issued by Financial Commissioner (Additional Chief Secretary), Finance Department, Shailendra Kumar, stated that all administrative departments and Pension Sanctioning Authorities shall ensure strict compliance of the instructions and warned that any deviation would be viewed seriously.
