Reviewed 16 October 2026. EPS pension commutation is not a general current option for members retiring today. Older articles that promise a one-third lump-sum commutation rely on a provision removed from the Employees’ Pension Scheme, 1995 with effect from 26 September 2008. Do not use a commutation table, factor or calculator to plan a current EPS claim.
What changed?
The original EPS Scheme included a commutation provision, but the 2008 amendment removed the general option. The current Scheme text retains references to deductions for commutation or return of capital taken by members under provisions in force before 26 September 2008. Those historical cases do not create a new commutation right for later retirees.
What can a member do instead?
EPS benefits are determined under the current Scheme based on membership, eligible service, pensionable salary, age and the applicable benefit category. A member may be eligible for a monthly pension, an early pension at a reduced rate, a withdrawal benefit if service is below the pension threshold, or a scheme certificate, depending on their facts and the current rules. These options are different from converting a portion of an existing monthly pension into cash.
Use the claim route currently shown by EPFO and verify the member’s service record before deciding. If a pension has already commenced or an older commutation decision exists, ask EPFO about that individual record; do not rely on a generic online formula.
Official references
For broader EPS eligibility information, see our EPS pension guide. For help with an individual record, contact GHR Consultancy.