Introduction:
Pensions are financial funds established through systematic employee contributions during their working years. These contributions are amassed and invested, with withdrawals available as installments, regular payments, or a lump sum after retirement. Pension plans primarily come in two forms: defined benefit and defined contribution. A defined benefit plan offers a predetermined retirement benefit, whereas in a defined contribution plan, the future benefit is uncertain, although the contribution amount is.
In India, employer-funded pensions serve a dual purpose by aiding both tax planning for employers and employees. Predominantly, Indian pensions follow defined contribution plans, where contributions from both employer and employee match each other within a prescribed limit. The efficacy of a pension plan hinges on total contributions and the investment returns based on diverse assets.

Pension System in India:
The Indian pension system encompasses four types of pension schemes:

1. National Social Assistance Programme: Offers pension to elderly persons in need.
2. Civil Servants Pension Scheme: Tailored for central and state government employees.
3. Employees' Provident Fund Organisation: Caters to private and state-owned company employees, and voluntary plan individuals.
4. Armed Forces Service Pension: Managed by the Department of Ex-servicemen Welfare, for Army, Navy, and Airforce personnel.

Key Insights:
Retirement planning is pivotal for ensuring financial security and dignity in later years. Indian pension frameworks enforce mandatory savings, and combining them with voluntary savings can fulfill financial requirements during retirement. Retirement should ideally be about leisure and joy, devoid of financial stress.

Public Pensions in India:
Public pension schemes in India are designed to:

1. Aid the elderly in financial need, benefiting about 16 million individuals with a monthly payment of Rs 200.
2. Serve civilian workers, offering a gratuity based on the final 15 days' salary per service year, with a cap of Rs 3,50,000 for over five years of service. Members can contribute between 6% to 100% of their salary, culminating in a lump sum after 20 years. The corpus accrues 8.5% annual interest from the government.

A new mandatory pension scheme for all civil servants allows for 10% contributions from both employer and employee into personal accounts, aimed at targeting final wage replacement with an 8% portfolio return rate. The choice among three fund types is available, and non-choice defaults to a safe fund.

Employee Provident Fund Organisation Schemes:
The Employee Provident Fund Organisation comprises three schemes: Employee Pension Scheme, Employee Deposit Linked Insurance Scheme, and Employee Provident Fund Scheme. In the Employee Pension Scheme, contributions include 8.33% from employers and 1.16% from the government, with retirement at age 58 and early retirement options available from age 50. This scheme supports 32 million members with assets managed by state-owned banks.
The Employer's Provident Fund is a defined contribution plan with contributions of 3.67% from both parties. Partial employee withdrawals are permitted for major expenses, with an 8.5% annual return rate, covering 43 million employees.

Pension Commutation Overview:
All pensioners can commute a portion of their monthly pensions into a lump sum, conditional on no pending legal proceedings. They may choose to commute the entire pension or just part of it. The formula for commutation is:

Total Commutation Amount = Commuted Amount x Commutation Factor x 12

For instance, with a Rs 50,000 pension and a 50% commutation factor, the maximum commuted amount is Rs 25,000. The lump sum calculable for a retired employee with a basic pension of Rs 24,500 is:

Commuted pension amount = Rs 9,800 (40% of Rs 24,500)
Next birthday age is 62 in 2022.
Commutation factor = 8.093.
Lump sum = Rs 9,800 x 12 x 8.093 = Rs 951,736.8
The monthly pension is reduced to Rs 14,700. Commutation deductions apply from the application date or three months after approval, whichever comes first. Pensioners can restore commuted amounts after 15 years by applying to the pension authority.

Additional Forms:
Guidance on restoring full pension post-15 years.
Maximum and Minimum Pension after 7th Pay Commission:
As per the 7th Pay Commission, the minimum pension is Rs 7,000 and the maximum pension is Rs 1,25,000 monthly. For those who partially commuted pensions before September 26th, 2008, full restoration is possible after 15 years. Under the Employee Pension Scheme, pre-September 26th, 2008 retirees can receive one-third as a lump sum, with the rest as a monthly pension.

Taxation of Commuted Pensions:
Pension income is taxable under Indian tax laws. Regular pension income is taxed as per different slabs, while commuted pensions taken as lump sums are partly exempt for non-government workforce and wholly exempt for government employees, under Section 10(10A) of the Income-tax Act.

Conclusion:
Understanding facets of pension payments, the National Pension Act, alterations in pension post-commutation, and tax obligations is vital. Along with employer and government pensions, consistent savings create a robust buffer to address unexpected financial emergencies in retirement. Meticulous financial planning throughout one's career is invaluable in tackling unanticipated needs during retirement.