Chandigarh, Dec. 26 -- In a major relief to the Punjab pensioners who retired between July 31, 2003 and October 30, 2006, the high court has ruled that they are entitled for a higher rate of commutation. Commutation of pension refers to a lump sum amount of payment availed by an employee at the time of retirement in lieu of a portion of pension surrendered voluntarily. The bench of Justice Anoop Chitkara and Justice Sukhvinder Kaur held them entitled for higher rate as was in existence prior to July 31, 2003 and after October 30, 2006 and has directed the state to re-calculate the commutation and pay the difference of the same to the petitioners by March 31, 2026. The judgment will be applicable in the case of only those who were before the court. The court was dealing with petitions filed between 2006 and 2019 by retirees from the government and autonomous bodies. As per counsel Ranjivan Singh, the petitioners had argued that the scheme of commutation of pension is governed by the Punjab Civil Services Rules, which provides 4.75% per annum as rate of interest. However, on July 29, 2003, the said rate of interest was enhanced to 8% per annum as a consequence of which the amount of commutation of pension came down drastically to the extent of 40%. Later, considering the consistent demand of the retirees, the state government, in its October 31, 2006 notification, restored the rate of interest at 4.75% per annum for the calculation of the commutation. However, while doing so, it was decided that the same would be applicable to all cases of retirement rising on or after October 31, 2006. The petitioners had termed the move discriminatory and violative of Article 14 and 16 of the Constitution of India. The government had argued that the 2003 circular arose due to the financial crunch and instability faced by the state, keeping in mind the higher interest rates at which the state was raising loans from banks and financial institutions. As per the government, due to this decision, only 19,220 out of 44,163 retirees opted for pension commutation. "Had all of them opted for it,the financial liability would have been Rs.839.85 crore which could have pushed the state into a financial crisis," the government claimed. The court said that commutation of pension is a statutory welfare scheme and an essential part of a retiree's pension benefits, especially for those who have dedicated most of their lives serving the state and have diligently paid their annual taxes for its development. It further said that it seems that the entire responsibility for the so-called self-made financial crisis was unfairly placed on retirees at the end of their careers, when they needed financial support the most. ".if the state of Punjab was in a financial crisis, it could have definitely reduced the spending on unnecessary advertisements, billboards and wasteful schemes, which only appeal for votes by the ruling party. However, they imposed cuts on employees who had completed their service, and if they had been wealthy, they would surely not have taken pension commutation, which itself indicates they have limited means," it remarked, adding that the state has estimated a figure of Rs.839.85 crore by assuming that all 44,163 retirees would opt for pension commutation at an interest rate of 4.75%. However, there is no supporting data to prove that the state exchequer would have incurred financial consequences from this large amount. The court further noted that the state has miserably failed to demonstrate that its financial condition significantly improved in 2006, which led to restoring the interest rate to 4.75%....