Dear Mr.S.Sethupati,
We are thankful for your iputs.
Mangesh Wakodkar
[
QUOTE=sethupathy;1801841]Dear Sekar,
At the time of introduction of this EPS scheme in 1995, there was a provision of commutation of pension.
Through which the pensioner can withdraw a lump sum amount as a commutation pension and rest will be paid as monthly pension.
Let me explain it with an example-
Suppose pension sanctioned is Rs. 1000/= if you wish to commutate 30% of it for 100 months, then you will get Rupees 30000 as a lumpsum payment and balance 700 rupees will be disbursed to you as a monthly pension.
The idea behind this provision is to start a business of his own to nullify the fall in earning capacity just after the retirement. But due to some administrative reasons the provision has been withdrawn in due course.
Hope I made it clear
S.Sethupathy,
Excellent Hr Services.[/QUOTE]