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📘 CCS (Commutation of Pension) Rules, 1981 – MCQ

All 55 questions with answers & brief explanations (based on Rules, O.M. & clarifications).

Q1

When did the Central Civil Services (Commutation of Pension) Rules, 1981, come into force to the employees retiring from Central Government Civil Departments?

(a) 01-04-1972

(b) 01-06-1972

(c) 01-04-1981

(d) 01-07-1981

✅ Correct answer: (d) 01-07-1981

As per Rule 1(2), the Rules came into force on 1‑7‑1981.

Q2

To whom does CCS (Commutation of Pension) Rules, 1981 apply?

(a) Government servants appointed on or before 1-1-2004

(b) Government servants appointed on or before 31-12-2003

(c) Government servants appointed on or before 1-4-2004

(d) Government servants appointed on or before 1-6-1972

✅ Correct answer: (b) Government servants appointed on or before 31‑12‑2003

Rule 2 applies to Government servants appointed on or before 31‑12‑2003.

Q3

What does "Applicant" mean under CCS (Commutation of Pension) Rules?

(a) A Government servant in service, who applies for Commutation of Pension in the prescribed form

(b) A Government servant, including a retired Government servant, who applies for Commutation of Pension in the prescribed form

(c) A Government servant who on attaining the age of 50 years applies for Commutation of Pension in the prescribed form

(d) All the above

✅ Correct answer: (b)

Rule 3(b) defines “applicant” as a Government servant including a retired Government servant who applies for commutation.

Q4

What is the meaning of "Retirement Gratuity" for the purpose of CCS (Commutation of Pension) Rules?

(a) Gratuity payable under sub rule (1) of Rule 50 of CCS (Pension) Rules, 1972

(b) Gratuity payable under sub rule (1) of Rule 51 of CCS (Pension) Rules, 1972

(c) Gratuity payable under Rule 51 A of CCS (Pension) Rules, 1972

(d) Gratuity payable under Rule 52 of CCS (Pension) Rules, 1972

✅ Correct answer: (a)

Rule 3(d) states that “Retirement Gratuity” means gratuity under Rule 50(1) of CCS (Pension) Rules, 1972.

Q5

What does "Pension" mean for the purpose of Commutation of Pension?

(a) Any class of pension including compassionate allowance and compulsory retirement pension

(b) … (full option not shown in snippet, but answer is (d) as per key)

✅ Correct answer: (d) (as per Rule 3(j))

Rule 3(j) defines “Pension” to include any class of pension, including compassionate allowance and compulsory retirement pension.

Q6

To what extent can a Government servant commute his pension for a lumpsum payment?

(a) Not exceeding 30% of the pension admissible at the time of retirement

(b) Not exceeding 40% of the pension admissible at the time of retirement

(c) Not exceeding 50% of the pension admissible at the time of retirement

(d) No limit on commutation of pension prescribed.

✅ Correct answer: (b) 40%

Rule 5(1) prescribes the maximum limit as 40% of pension.

Q7

From when was the maximum limit on Commutation of Pension increased to 40% of pension?

(a) From 1-1-1986

(b) From 1-10-1986

(c) From 1-1-1996

(d) From 1-1-2006

✅ Correct answer: (c) From 1‑1‑1996

Based on O.M. No. F.45/86/97‑P&PW(A) dated 27‑10‑1997 (below Rule 5).

Q8

Who of the following Government servants shall be entitled to commute for a lumpsum payment up to 40% of his pension?

(a) Government servants who retire on or after 1-1-1986

(b) Government servants who retire on or after 1-1-1996

(c) Government servants who retire on or after 1-1-2006

(d) Government servants who are appointed on or before 31-12-2003

✅ Correct answer: (b) retire on or after 1‑1‑1996

O.M. dated 27‑10‑1997 (below Rule 5) clarifies that the 40% limit applies to those retiring on or after 1‑1‑1996.

Q9

How will the commuted value be determined in case the percentage of pension commuted results in fraction of rupee?

(a) Fraction shall be rounded off to the next higher rupee

(b) Fraction of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise to be ignored.

(c) Fraction shall be ignored for the purpose of commutation

(d) Fraction of less than 50 paise ignored and rounded off to the nearest multiple of ₹10

✅ Correct answer: (c) Fraction shall be ignored

Rule 5(3) provides that the fraction shall be ignored.

Q10

What procedure has been prescribed on limit on commutation of pension in respect of an applicant who desires to commute for a lumpsum payment of pension?

(a) The Government servant shall indicate the percentage of monthly pension proposed to be commuted, not exceeding the maximum limit of 50% of pension

(b) The Government servant shall indicate the quantum amount of pension which he desires to commute

(c) The Government servant may either indicate the maximum limit of 40% of pension or such lower limit as he may desire to commute

(d) The Government servant may indicate any percentage which he desires to commute

✅ Correct answer: (c)

As per Rule 5(2), the applicant may indicate 40% or any lower limit.

Q11

When shall commutation of pension become absolute in the case of a Government servant who retires on superannuation and desires payment of the commuted value of pension at the time of issue of the pension payment order?

(a) On the date on which the Government servant retires on superannuation

(b) On the date following the date of retirement

(c) On the date on which the Government servant has drawn his first monthly pension from a Treasury or Accounts Officer

(d) On the date following the date of first monthly pension drawn by the Government servant

✅ Correct answer: (b) date following the date of retirement

Rule 6(i)(a) provides that commutation becomes absolute on the day following retirement.

Q12

When shall the commutation of pension become absolute in respect of an applicant who is in receipt of any pension and desires to commute a percentage of pension any time after the date of retirement but before the expiry of one year from the date of retirement?

(a) Pensioner cannot commute after the date of retirement

(b) On the date following the date of retirement

(c) On the date of retirement from service

(d) On the date on which the application in Form 1 is received by the Head of Office

✅ Correct answer: (d) date of receipt of application in Form 1 by Head of Office

Rule 6(i) specifies the date of receipt of application in Form 1.

Q13

When shall the commutation of pension become absolute in case of an applicant who retires on invalid pension?

(a) From the date on which the applicant has been granted invalid pension

(b) On the date of submission of application to the Head of Office in Form 4

(c) On the date on which the medical authority signs the medical report in Part III of Form 4

(d) On the date on which the application in Form 4 is received by the Head of Office

✅ Correct answer: (c) date on which medical authority signs the medical report in Part III of Form 4

Rule 6(ii) provides the date of signing of medical report.

Q14

How will you calculate the commuted value of pension in the case of absorption?

(a) Based on the age next birthday with reference to the date of resignation

(b) Based on the age next birthday with reference to the date of medical examination

✅ Correct answer: (b)

C&AG Lr. No. 707 Audit.I/20‑90 (KW) (142), dated 23‑10‑1990 (below Rule 6) mentions age next birthday with reference to date of medical examination.

Q15

From which date shall the reduction in the amount of pension on account of the commutation be operative in case of an applicant drawing pension from PAO?

(a) The reduction … shall be operative from the date of receipt of the commuted value of pension

(b) … at the end of three months after issue of authority by the PAO

(c) … from the date of receipt of commuted value or at the end of three months after issue of authority, whichever is earlier

(d) … from its inception

✅ Correct answer: (c)

Rule 6(1) proviso (a) – whichever is earlier.

Q16

What will be the effective date of reduced pension in the case of a Government servant retiring on superannuation pension who applies for commutation before the date of retirement and commutation is paid within the first month of retirement?

(a) … from the date of receipt of the commuted value

(b) … from the date on which the commuted value is credited by the bank

(c) … on the date following the date of retirement

(d) … from its inception

✅ Correct answer: (d) from its inception

Rule 6(1)(c).

Q17

Mention the relevant document on which the date of payment of commuted value of pension shall be entered by the Disbursing Authority under intimation to the Accounts Officer?

(a) Pension papers, forwarded to the Accounts Officer under Rule 61 … and Disburser's portion of the pension payment order

(b) Service book of the retired Government servant

(c) Both halves of the pension payment order

(d) Pensioner's portion of the pension payment order

✅ Correct answer: (c) Both halves of the pension payment order

Rule 6(3).

Q18

Can the family be given the benefit of 40% commutation if a pensioner dies before exercising option?

(a) Yes. The family can be given the benefit of commutation in the manner indicated in Rule 51 of the Pension Rules

(b) … with discretionary powers …

(c) The benefit cannot be given to the family, since the commutation does not become absolute in such cases

(d) None of the above

✅ Correct answer: (c)

Under Rule 6, if commutation does not become absolute, family cannot get the benefit.

Q19

Which of the following factors are required for the purpose of calculation of commuted value of pension?

(a) Age next birthday and commutation value as per table

(b) Date of retirement of the Government servant

(c) Age next birthday, commutation value and the date on which the commutation becomes absolute

(d) Age next birthday, percentage of pension to be commuted and commutation value as per table

✅ Correct answer: (d)

Rule 8 and Table – require age next birthday, percentage, and commutation value.

Q20

From which date does the commuted value of pension become applicable to the applicant?

(a) The date on which the Government servant ceases to be borne on the establishment

(b) The date following the date of retirement from service

(c) The date on which the commutation becomes absolute

(d) All the above

✅ Correct answer: (c) date on which commutation becomes absolute

Rule 8.

Q21

How is the commutation factor to be determined from the commutation table for the purpose of calculation of commutation amount?

(a) With respect to age on date of receipt of application for commutation

(b) With respect to age on the date of cessation of Government service

(c) With respect to the age next birthday

(d) With respect to age on the date of drawal of 1st pension from Government

✅ Correct answer: (c) age next birthday

Rule 8 read with Table.

Q22

Who of the following shall be eligible for commutation of provisional pension?

(a) A Government servant to whom assessment of final pension is pending under Rule 64 of the (Pension) Rules

(b) A Government servant against whom departmental proceedings have been instituted under Rule 9 of CCS (Pension) Rules

(c) A Government servant against whom departmental or judicial proceedings may be pending, under Rule 69 of CCS (Pension) Rules

(d) All the above

✅ Correct answer: (a)

Rule 9.

Q23

State the procedure prescribed for payment of difference in commutation amount when final pension has been raised and enhanced retrospectively after commutation of a percentage of the original pension?

(a) … after receipt of fresh application from him

(b) … shall not be entitled for second option

(c) … paid the difference … without any fresh application from him

(d) … treated as fresh commutation and allowed, subject to examination by a Medical Board

✅ Correct answer: (c)

Rule 10 provides for payment without fresh application.

Q24

What will be the date of restoration of commuted portion of pension?

(a) … on completion of 10 years from the date the reduction of pension … becomes operative

(b) … 12 years

(c) … 15 years

(d) … 20 years

✅ Correct answer: (c) 15 years

Rule 10A.

Q25

What will be the date of restoration when the commutation amount was paid on more than one occasion on account of upward revision of pension?

(a) … restored on completion of 15 years from the respective dates of commutation

(b) … after 15 years from the date of original commutation (i.e.) from the 1st commutation

(c) There is no provision for restoration …

(d) … after 15 years from the date of upward revision of pension

✅ Correct answer: (a)

Proviso to Rule 10A.

Q26

How will you reckon the period of 15 years for restoration of commuted portion of pension?

(a) … from the date of retirement itself in all cases where the payment … was/is made during the 1st, 2nd or subsequent month of retirement

(b) … from the date of retirement itself only in cases where the payment was made during the first month … In all other cases … from the date on which the reduction became effective.

(c) … from the dates of issue of authority by the Accounts Officer

(d) … from the date of retirement

✅ Correct answer: (b)

O.M. No. 34/2/86‑P&PW(G) dated 22‑8‑1990 (below Rule 10A).

Q27

Who of the following are eligible to commute a percentage of pension without medical examination if they apply for commutation before the expiry of one year from the date of retirement?

(a) Government servant who is authorized a retiring pension under Rule 36

(b) … compensation pension on abolition of permanent post under Rule 39

(c) … authorized a pension … on finalization of departmental or judicial proceedings referred to in Rule 9

(d) All the above

✅ Correct answer: (d) All the above

Rule 12.

Q28

What is the time limit fixed to an applicant / pensioner to commute a percentage of pension without medical examination?

(a) Before the expiry of 3 months from the date of retirement

(b) Before the expiry of 6 months

(c) Before the expiry of 9 months

(d) Before the expiry of one year from the date of retirement

✅ Correct answer: (d) one year

Rule 13.

Q29

What should be the age to be used for commutation of additional commutable pension?

(a) Age next birthday, with reference to the date of submission of application for additional commutable pension

(b) The age reckoned for calculation of commuted value at the time of original application

(c) … with reference to the date of retrospective revision of pay / pension

(d) Any one of the above

✅ Correct answer: (b)

O.M. No. 38/79/2008‑P&PW(G) dated 16‑2‑2009 (below Rule 8).

Q30

From which date will the reduction in pension on account of additional commutation of pension take effect?

(a) … from the date the original commutation became effective

(b) … from the date of retrospective revision of pay / pension

(c) … in two stages as per Rule 6 and Rule 10

(d) … will be reckoned

✅ Correct answer: (c)

O.M. dated 16‑2‑2009 (below Rule 8).

Q31

What will be the date of restoration of additional commutation of pension?

(a) … after 15 years from the date of retirement

(b) … after 15 years from the respective dates of commutation, on account of retrospective revision

(c) … after 15 years from the date of retrospective revision

(d) … after 15 years from the date of original commutation

✅ Correct answer: (b)

O.M. dated 16‑2‑2009 (below Rule 8).

Q32

Find the admissibility for the payment of the commuted value of pension to a Government servant who is due to retire on superannuation on 30‑4 and has applied for commutation on 25‑1 but died on 20‑4?

(a) Family can be given 40% commutation, as the Government servant had applied

(b) Government shall have no liability … if the Government servant dies before the date of superannuation or forfeits claim

(c) Family can be given 40% of family pension

(d) Family can be given such lower limit … subject to medical examination

✅ Correct answer: (b)

Rule 13(3B)(d) – Government has no liability if death occurs before superannuation.

Q33

What is the time limit fixed to submit an application for commutation … by a Government servant who is due to retire on superannuation and desires payment … at the time of issue of the pension payment order?

(a) Not later than 3 months before the date of superannuation

(b) 6 months

(c) 9 months

(d) one year

✅ Correct answer: (a) 3 months

Rule 13(3B)(b).

Q34

How does the period of one year, for the purpose of application for commutation … reckon, in case of a Government servant, who is granted pension on absorption … in terms of Rule 37 of CCS (Pension) Rules?

(a) … from the date of absorption …

(b) … from the date on which a Government servant ceases to be borne on the establishment

(c) … from the date of issue of the retirement orders

(d) … from the date following the date of cessation from Government service

✅ Correct answer: (c) from the date of issue of retirement orders

Rule 13(1) Proviso (a).

Q35

How does the period of one year … reckon in case of a Government servant who is granted a pension … on the finalization of departmental or judicial proceedings …?

(a) … from the date of sanction/grant of pension

(b) … from the date following the date of retirement

(c) … from the date of conclusion of departmental or judicial proceedings

(d) … from the date of issue of the orders, consequent on the finalization

✅ Correct answer: (d) date of issue of orders consequent on finalization

Rule 13(1) Proviso (b).

Q36

Which of the following form is required to be submitted to the Head of Office for the purpose of application for commutation … in respect of an official retiring on superannuation?

(a) Form 1

(b) Form 1 A

(c) Form 2

✅ Correct answer: (b) Form 1 A

Rule 13(3B)(b).

Q37

Who, of the following are eligible to apply for commutation of pension before actual retirement?

(a) Government servant who retires on superannuation pension under Rule 35

(b) … retiring pension under Rule 36

(c) … compensation pension on abolition of permanent post under Rule 39

(d) All the above

✅ Correct answer: (a) only superannuation

Rule 13(3B)(a) – only for superannuation pension.

Q38

When shall the Government have no liability for the payment of the commuted value of pension?

(a) … retires on invalid pension under Rule 38

(b) … compulsorily retired … under Rule 40

(c) … dies before the date of superannuation or forfeits claim to pension before retirement

(d) … in receipt of compassionate allowance under Rule 41

✅ Correct answer: (c)

Rule 13(3B)(d).

Q39

State which of the following statements are not correct with regard to application for commutation … in the case of a Government servant retiring on superannuation?

(a) The application should be submitted in Form 1 A … or Form 5 of CCS (Pension) Rules, 1972

(b) … should reach the Head of Office, not later than 3 months before the date of retirement

(c) The application shall be entertained even if the period is less than 3 months before the date of retirement

(d) All the above

✅ Correct answer: (c)

Rule 13(3B) – application shall not be entertained if less than 3 months.

Q40

Who shall issue the authorization for the payment of commuted value of pension, after necessary verification of the information furnished in Form 5 … or Form 1 A …?

(a) Head of Office

(b) Drawing and Disbursing Officer

(c) Accounts Officer

(d) All the above

✅ Correct answer: (c) Accounts Officer

Rule 15(3)(b).

Q41

Who of the following are eligible to commute pension after medical examination?

(a) A pensioner, in receipt of invalid pension

(b) …

✅ Correct answer: (d) (as per Rule 18)

Rule 18 covers various categories including invalid pension.

Q42

Who shall be the Medical Authority in respect of an applicant who seeks commutation of invalid pension?

(a) Medical Board

(b) Medical Officer not lower in status than that of a civil surgeon

(c) District Medical Officer

(d) All the above

✅ Correct answer: (a) Medical Board

Rule 22.

Q43

Who, of the following, shall be required to bear the fee for medical examination, for the purpose of commutation of pension?

(a) Head of Office

(b) Medical Authority

(c) Applicant seeking commutation of pension

(d) Either Head of Office or Medical Authority

✅ Correct answer: (c) Applicant

Rule 23.

Q44

What should the Chief Administrative Medical Authority, ensure in fixing the date of medical examination, receipt of documents from Head of Office for commutation of pension?

(a) … within 7 days of receipt of documents

(b) … within 15 days

(c) … within 30 days

(d) … before the date of applicant's next birthday

✅ Correct answer: (d) before the applicant's next birthday

Rule 21(2).

Q45

Under what circumstances, shall the Medical Authority be a Medical Board, for the purpose of commutation of pension?

(a) When a pensioner seeks commutation of invalid pension

(b) … refused commutation on medical grounds applies for a second medical examination

(c) … declined to accept commutation on the basis of addition of years … applies for a second medical examination

(d) All the above

✅ Correct answer: (d) All the above

Rule 22(1)(a),(b),(c).

Q46

Under what circumstances can the withdrawal of application for commutation on medical examination be permissible to a pensioner?

(a) Before medical examination

(b) After medical examination, if pensioner declines to accept addition to actual age … within 14 days of its receipt

(c) Treated as withdrawn, if the pensioner fails to appear for medical examination

(d) All the above

✅ Correct answer: (d) All the above

Rule 24 read with Rule 28(1) & (2).

Q47

When shall a pensioner become eligible to take second medical examination … under provisions of Rule 26?

(a) After 3 months from the date of the first medical examination

(b) After 6 months

(c) After one year from the date of the first medical examination

(d) Any day, within one year

✅ Correct answer: (c) after one year

Rule 26(1).

Q48

Who shall be eligible to take second medical examination after the expiry of a period of one year from the date of the first medical examination?

(a) An applicant who has been refused commutation on medical grounds

(b) … declined to accept commutation on the basis of addition of years … or has been refused commutation on medical grounds

(c) … fails to appear for medical examination

(d) All the above

✅ Correct answer: (b)

Rule 26(1) read with Rule 22(1)(c).

Q49

What is the time limit to prefer an appeal by the Applicant to the Head of Office, against the findings of Medical Authority for re‑examination?

(a) Within 15 days of the receipt of the certified copy

(b) Within one month

(c) Within two months

(d) Within three months

✅ Correct answer: (b) within one month

Rule 27(1).

Q50

How will the claim of the applicant for commutation be regulated/settled in case of an appeal against the findings of Medical Authority and if the Medical Board … sets aside or modifies the opinion of the first Medical Authority?

(a) … payable on the date on which the Medical Board recorded its opinion

(b) … on the date on which the applicant preferred an appeal

(c) …

✅ Correct answer: (c) (as per Rule 27(7))

Rule 27(7).

Q51

Who shall be referred to, in case of any doubt on interpretation of CCS (Commutation of Pension) Rules, 1981?

(a) Pension Fund Regulatory and Development Authority

(b) Department of Personnel and Training

(c) Department of Pension and Pensioners Welfare

(d) Head of Department

✅ Correct answer: (c) Department of Pension and Pensioners Welfare

Rule 32.

Q52

What will be the value to be taken from commutation table for calculation of commuted value of pension of a Government servant whose date of birth falls on first of a month but retires in the previous month, on attaining the age of 60 years?

(a) … age on 59th Birthday

(b) … age on 60th Birthday

(c) … age on 61st Birthday

(d) … 61st Birthday subject to concurrence

✅ Correct answer: (c) age on 61st Birthday

Rule 8 – as per commutation table (age next birthday).

Q53

How will the payment of Dearness Relief be regulated in respect of a Central Government pensioner, after commutation?

(a) DR is payable on reduced pension after commutation

(b) DR is payable on 40% of original basic pension before commutation

(c) DR is payable on original basic pension before commutation

(d) DR is payable on original basic pension before commutation and after the commuted amount … for 15 years

✅ Correct answer: (c) DR on original basic pension before commutation

O.M. No. 1/2/2016‑E.II(B) dated 4‑11‑2016 read with FAQ 12.2 (Swamys News July 2018).

Q54

Find the eligibility for commutation of a percentage of pension, of a Government servant against whom departmental proceedings have been initiated after the date of his retirement

(a) … eligible to commute … during the pendency of proceedings

(b) … shall not be eligible … during the pendency of proceedings

(c) … eligible … subject to concurrence of Department of Pension

✅ Correct answer: (b) not eligible during pendency

Rule 4.

Q55

What is the action to be taken by the Head of Office, when a Government servant is compulsorily retired from service as a measure of penalty, applies for commutation … three months after the date of retirement?

(a) inform that commutation is not admissible due to compulsory retirement as penalty

(b) shall not insist for medical examination since application was received before one year

(c) shall insist that he should be medically examined

(d) forward the application to the Accounts Officer

✅ Correct answer: (c) insist on medical examination

Rule 18(iii).

Based on CCS (Commutation of Pension) Rules, 1981 & official O.M.s. All answers as per key provided.