Commutation of pension

2014 PLC(CS) 73 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

S. 18Punjab Civil Services (Pension) Rules, 1955, Ch.VIIIConstitution of Pakistan, Arts.9, 25, 212, 2A, Preamble & 199Constitutional petitionCivil ServicePensionCommutation of pensionQuantum of pension to be granted to civil servants after lapse of the period of commutation, determination ofIncrease in pensionEffect of such increase on the quantum of pension payable after lapse of period of commutation

Petitioners, after retirement from civil service commuted 50% of their pension for a period of 15 years and during said period of commutation, the monthly (50%) pension had increased by certain percentages over the years

Contention of the petitioners/pensioners was that after the period of commutation ended, the restored commuted portion of the pension should be at par with the 50 % pension as it stood after lapse of 15 years

Validity

Pension of the petitioners was increased every year in the range of 5% to 20% and 50% pension of the petitioners in the year 2008 was much higher than in the year 1993

Said increase in pension covered the inflationary tendencies over the years

Pensioners commuted their 50% pension for a period of 15 years, which meant that a lump sum payment of 50% of the pension on the basis of the pension as it stood in the year 1993 was worked out over a future period of 15 years and handed over to the pensioners

During said period of 15 years, the benefit of increase in pension was enjoyed by the pensioners only to the extent of 50% which was the pension received by them monthly

Under the Punjab Civil Services (Pension) Rules, 1955, the pension stood restored at the end of the commutation period which meant that the pensioners were once again entitled to 100% pension as it stood on that day

Best index to gauge the pension due on the said date was the amount of 50% pension being received monthly by the pensioners on the said date and pension due would now be double the said amount

Preposterous to imagine that a civil servant be given pension in the year 2008 which he was entitled to draw in 1993 (15 years ago) as such action offended the right to livelihood of the pensioners guaranteed under Art.9 of the Constitution and failed to meet the test of economic justice which is also an integral part of right to life as provided in the Preamble and the Objectives Resolution to the Constitution (Art.2A)

Depriving a civil servant of his lawful pension was also discriminatory when compared to equally placed retired civil servants who were drawing the current rate of pension, which offended Art.25 of the Constitution

No civilized system could provide for such an unreasonable and uneconomical post retirement benefit to their employees who had given their golden years for the public service of the country

Petitioners were therefore, entitled to all increments in pensions accumulated over the last 15 years and restored computed portion of the pension must be at par with the remaining 50% net pension as it stood on the day of the expiry of the commutation period

Constitutional petitions were allowed, accordingly.