Commutation lump sum = gross pension x commuted share (up to 35%) x 12 x the years purchase for your age next birthday. At 60 the rate is 12.3719, so commuting 35% of a Rs 80,000 pension gives Rs 28,000 x 12 x 12.3719 = Rs 4,156,958.
Your monthly pension then falls by the commuted amount. Federal pensioners get it back after roughly the number of years in the table, about 12 years 4 months for someone who retired at 60.
How commutation is calculated
- Commuted amount = gross pension x the share you commute. Federal and provincial rules allow up to 35%.
- Years purchase = the figure in the table below for your age next birthday on the day commutation takes effect.
- Lump sum = commuted amount x 12 x years purchase.
- Net pension = gross pension minus the commuted amount.
On superannuation the commutation is worked out at age 60. Rule 13(4) of the KP Pension Rules 2021 says commutation on superannuation is calculated "on the basis of sixty years", and the Punjab and federal pension calculators we checked use the same rate. For any other retirement, use your age next birthday on the day commutation takes effect.
The year you choose matters. Commuting at age next birthday 61 instead of 60 on the same Rs 80,000 pension gives Rs 3,986,035, which is Rs 170,923 less.
Lump sum on a Rs 100,000 pension by age
Commuting the full 35%, that is Rs 35,000 a month.
| Age next birthday | Years purchase | Lump sum for 35% of Rs 100,000 |
|---|---|---|
| 50 | 18.3129 | Rs 7,691,418 |
| 55 | 15.1478 | Rs 6,362,076 |
| 56 | 14.5602 | Rs 6,115,284 |
| 57 | 13.9888 | Rs 5,875,296 |
| 58 | 13.4340 | Rs 5,642,280 |
| 59 | 12.8953 | Rs 5,416,026 |
| 60 | 12.3719 | Rs 5,196,198 |
| 61 | 11.8632 | Rs 4,982,544 |
| 65 | 9.9639 | Rs 4,184,838 |
| 70 | 7.8778 | Rs 3,308,676 |
Commutation table: age next birthday and years purchase
This is the table issued with the Revised Pay Scales 2001 and still used by AGPR and the provincial Accountants General. The KP Pension Rules 2021 carry the same figures.
| Age next birthday | Years purchase | Age next birthday | Years purchase | Age next birthday | Years purchase |
|---|---|---|---|---|---|
| 20 | 40.5043 | 41 | 24.6406 | 62 | 11.3684 |
| 21 | 39.7341 | 42 | 23.9126 | 63 | 10.8872 |
| 22 | 38.9653 | 43 | 23.1840 | 64 | 10.4191 |
| 23 | 38.1974 | 44 | 22.4713 | 65 | 9.9639 |
| 24 | 37.4307 | 45 | 21.7592 | 66 | 9.5214 |
| 25 | 36.6651 | 46 | 21.0538 | 67 | 9.0914 |
| 26 | 35.9006 | 47 | 20.3555 | 68 | 8.6742 |
| 27 | 35.1372 | 48 | 19.6653 | 69 | 8.2697 |
| 28 | 34.3750 | 49 | 18.9841 | 70 | 7.8778 |
| 29 | 33.6143 | 50 | 18.3129 | 71 | 7.4983 |
| 30 | 32.8071 | 51 | 17.6526 | 72 | 7.1314 |
| 31 | 32.0974 | 52 | 17.0050 | 73 | 6.7766 |
| 32 | 31.3412 | 53 | 16.3710 | 74 | 6.4342 |
| 33 | 30.5869 | 54 | 15.7517 | 75 | 6.1039 |
| 34 | 29.8343 | 55 | 15.1478 | 76 | 5.7858 |
| 35 | 29.0841 | 56 | 14.5602 | 77 | 5.4797 |
| 36 | 28.3362 | 57 | 13.9888 | 78 | 5.1854 |
| 37 | 27.5908 | 58 | 13.4340 | 79 | 4.9030 |
| 38 | 26.8482 | 59 | 12.8953 | 80 | 4.6321 |
| 39 | 26.1009 | 60 | 12.3719 | ||
| 40 | 25.3728 | 61 | 11.8632 |
Restoration of the commuted pension
Under the Finance Division order of 7 July 2015, federal pensioners who retired on or after 1 December 2001 get the commuted part of their pension restored. Restoration comes after the period you were paid for, the years purchase in the table. At age next birthday 60 that is 12.3719 years, about 12 years 4 months after retirement. The calculator on the pension calculator page shows the likely restoration date from your retirement date.
After restoration, the net pension goes back up by the commuted amount. Provincial rules on restoration may differ, so ask your Accountant General's office.
The lump sum is paid once and is not a loan: you do not repay it. The AGPR pension manual asks for a medical examination if you apply more than a year after retirement, so most people commute at retirement. This calculator is a guide; the pension sanctioning authority fixes the amount.
Commutation questions
What is the commutation formula?
Lump sum = gross pension x commuted share x 12 x years purchase for age next birthday. For a Rs 80,000 gross pension at 35% and age 60 that is Rs 28,000 x 12 x 12.3719 = Rs 4,156,958. The monthly pension falls to Rs 52,000.
What is the commutation rate at age 60?
12.3719 years purchase for age next birthday 60, which applies to retirement on superannuation. At 61 it is 11.8632 and at 59 it is 12.8953. The full table from 20 to 80 is on this page.
How much is commutation on 1 lakh pension?
If Rs 100,000 is your gross pension and you commute 35% at 60, the lump sum is Rs 35,000 x 12 x 12.3719 = Rs 5,196,198. Your monthly pension becomes Rs 65,000.
When is the commuted pension restored?
For federal pensioners who retired after 1 December 2001, after the years purchase used in the table: about 12 years 4 months for age 60, longer for younger retirees. The Finance Division order of 7 July 2015 allowed this restoration.
Is commutation compulsory?
No. You may commute any share from 0% to 35%. Commuting less keeps a higher monthly pension, and family pension is based on the pension being drawn. Most retirees commute the full 35% because the lump sum is paid at once.
Last reviewed 29 September 2026. Results are estimates; official notices always take precedence.