Commuted value of pension for central government pensioners: 40% lump sum from Table II
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 16 Oct 2026.A central government pensioner can commute up to 40% of basic pension into a lump sum equal to the commuted pension × 12 × the Table II factor for age next birthday. On ₹50,000 of pension at age 61 that is ₹20,000 × 12 × 8.194 = ₹19,66,560, with the full pension restored after 15 years.
2026 · Rates and rules read from the sources listed on this page (the earliest on 16 Oct 2026); they may have changed since.
Type your basic pension a month, the figure on your PPO before dearness relief.
Keep 40% or type a smaller share to commute.
Type your age on your next birthday after the date the commutation becomes absolute.
Read the lump sum, the reduced pension until restoration after 15 years, and the factor used.
This calculator works out the commuted value of pension (CVP) for Central Government pensioners under the CCS (Commutation of Pension) Rules, 1981, using the formula and the commutation table published on the Department of Pension and Pensioners' Welfare's Pensioners' Portal.
The formula. The portal writes it as CVP = 40% × commutation factor × 12. The pension commuted is a share of the basic pension, at most 40%, with any fraction of a rupee dropped. The factor is the value of a pension of one rupee a year at your age next birthday on the date the commutation becomes absolute.
The table. Table II applies from 1 January 2006, based on LIC (94-96) mortality tables and 8% interest. It runs from 9.188 at age 20 to 4.611 at 81. Someone retiring at 60 and commuting at once uses 8.194, the factor for 61. The Commutation table tab lists every age with your lump sum at each.
A worked example. A basic pension of ₹50,000 a month, 40% commuted at 61: ₹20,000 a month is given up, the lump sum is ₹19,66,560, and ₹30,000 of basic pension is paid until restoration.
Restoration. The commuted portion comes back after 15 years from the date the pension was first reduced, automatically through the bank. Dearness relief is always paid on the full original pension.
Is it worth it? The lump sum equals about 98 months of the pension given up, repaid through 180 smaller pensions: roughly 9% a year seen as a loan. The calculator shows this rate for your age.
Not included. Commutation after a medical examination, State Government and Defence tables, and income tax. An estimate, not financial advice.
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The Pensioners' Portal gives the formula CVP = 40% × commutation factor × 12. Take the monthly pension you commute, at most 40% of basic pension, multiply by 12 and by the factor for your age next birthday from Table II. ₹20,000 commuted at age 61 gives ₹20,000 × 12 × 8.194 = ₹19,66,560.
The factor for age next birthday 61 is 8.194 years' purchase in Table II, the table in force since 1 January 2006. Someone retiring at 60 who commutes at once uses it. The factor is 8.287 at 60, 8.093 at 62 and falls with every year of age.
The commuted portion is restored after 15 years, counted from the date the pension was first reduced, and the bank restores it without a fresh application. Restoration is not linked to age: a pensioner who retired on 31 January 2006 and commuted at once had it restored from 1 February 2021.
No. Dearness relief continues to be calculated on the original pension, before the commuted portion is taken off. Only the basic pension falls, by the amount commuted, for 15 years. On ₹50,000 commuted at 40% the basic pension paid becomes ₹30,000 while relief stays on ₹50,000.
The lump sum at 61 equals about 98 months of the pension given up, repaid through 180 months of lower pension. That works out at roughly 9% a year, like a loan. If the lump sum can repay costlier debt or earn more than that safely, commuting helps; otherwise a larger pension may serve better.
Rule 5 of the CCS (Commutation of Pension) Rules drops them. If 40% of the pension is not a whole number of rupees, the fraction is ignored before the lump sum is worked out, so 40% of ₹23,457 commutes ₹9,382, not ₹9,382.80, and the lump sum follows from that.
Rates and rules change; check the source before you rely on a figure.
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