You can see the rules of the Department of Pension and Pensioners Welfare for Central Government employees on the rule of withdrawal of lump sum pension. According to this, if the employees have opted to withdraw some percentage of their basic pension in a lumpsum amount or have withdrawn, then they cannot do so again.
Pension System: The central government has issued a clarification regarding the pension system for central employees. You can see the rules of the Department of Pension and Pensioners Welfare (DoPPW) for Central Government Employees on the rule of withdrawal of lump sum pension. According to this, if the employees have opted to withdraw some percentage of their basic pension in a lumpsum amount or have withdrawn, then they cannot do so again.
What is the limit for Lumsum payout?
DoPPW has said in its memorandum that as per the Central Civil Services (Commutation of Pension) Rules, 1981, lumpsum payout of pension is not allowed more than once. According to the fifth rule of the Central Civil Services (Commutation of Pension) Rules, 1981, a government servant can withdraw 40 percent of his basic pension in lump sum, but he can do so only once.
It has been clarified that there is no such withdrawal provision under Rule 1981 that any pensioner can make such withdrawal again after withdrawing 40% as lumpsum amount.
Information to be given in the application form
Such questions were being raised whether such government employees who have already withdrawn lump sum pension from 40 percent of the basic pension, can they withdraw the money again? On this, the government has issued a clarification citing the provision.
The rule states that in the application for commutation, in Form 1 or Form 1-A or Form 2, whichever is the case, the applicant has to tell that how much part of his pension he wants to partially withdraw or he should tell that It would be that he wants to commute or partially withdraw within a maximum of 40% of the basic pension or within such lower limit.
