Rule 308 limits a payment in commutation of an annuity to the commuted value of one-third of the annuity where the employee receives gratuity, and one-half otherwise, valued by age, health, interest rate and officially recognised mortality tables.
308
Rules 2026 · Rule 308
Commutation of annuity (approved superannuation fund)
Rules 261-310
The rule. Any payment in commutation of an annuity shall not exceed (a) where the employee receives any gratuity, the commuted value of one-third of the annuity he is normally entitled to receive, and (b) in any other case, the commuted value of one-half of the annuity — the commuted value being determined having regard to the recipient's age, state of health, the rate of interest and officially recognised tables of mortality.