Wednesday, May 07, 2014

Simplification of pension procedure - submission of undertaking by retiring Government servant along with pension papers

                                                        No. 1I27/2011-P&PW (E)
                                                         Government of India
                         Ministry of Personnel, P.G. & Pensions Department of Pension & Pensioners' Welfare
                         3rd Floor, Lok Nayak Bhavan,Khan Market, New Delhi,the 7th May, 2014
                                                                        Office Memorandum

'The Scheme for Payment of pensions to Central Government Civil Pensioners through Authorised Banks', issued by the Central Pension Accounting Office provides for an undertaking to be submitted by the retiring Government servant/pensioner to the pension disbursing bank before commencement of pension. The pensioner undertakes to refund or make good any amount to which he is not entitled.2. It has been found that the first payment of pension after retirement gets delayed mainly due to two reasons. One, the delay in receipt of intimation by the pensioner that pension papers have reached the bank and two, delay on part of the pensioner in approaching the bank for submission of undertaking. 3. The feasibility of submission of undertaking by the retiring Government servant along with pension papers had been under consideration in the Government for some time. The following simplification has therefore been approved with the concurrence of Department of Expenditure, vide their I.D. No.130/E.V/2014, dated 24th February, 2014. The required undertaking may be obtained by the Head of Office from the retiring Government servant along with Form 5 and other documents before his retirement. This undertaking shall be forwarded to the pension disbursing bank along with the Pension Payment Order by the Accounts Officer/CPAO following the usual procedure. The bank shall credit the pension to the account of the pensioner as soon as this Undertaking is received along with the pension documents. 4. The pensioner would no longer be required to visit the bank to activate the first payment of pension. Therefore, after ascertaining that the Bank's copy has been despatched by the Central Pension Accounting Office, the pensioner's copy of the Pension Payment Order (PPO) may be handed over to him at the time of retirement along with other retirement dues. This should be feasible in all cases where the Government servant had submitted pension papers within the time-limits prescribed in the Central Civil Services (Pension) Rules, 1972.
5. An employee posted at a location away from the office of the Head of Office or who for any other reasons feels that it would be more convenient to him to obtain his copy of PPO from the bank, may inform the Head of Office of his option in writing while submitting his pension papers
6. Office of Controller General of Accounts is requested to instruct all Pay and Accounts Offices and all pension disbursing banks to follow the above procedure as well as make necessary amendments to the pension sanction and payment procedures and the Scheme Booklet.
7. All Ministries/Departments are requested to follow the above procedure henceforth. Department of Posts and Department of Telecommunications are requested to make suitable amendments to the instructions to the Accounts Officers and pension disbursing Post Offices/Banks to adhere to the above procedure.

                                                                                                                                    (D.K. Solanki)
                                                                                        Under Secretary to the Government of India