KVS e-Pension Portal to Enable Direct Payment of Retirement Benefits

In a significant move towards digital transformation, Kendriya Vidyalaya Sangathan (KVS) has announced a major update to its pension disbursement system. Starting April 1, 2025, pensioners will receive their commuted pension and gratuity amounts directly in their bank accounts through the newly enhanced e-Pension portal.

Key Changes in Pension Disbursement

The latest update follows KVS’s initiative to automate pension processing, ensuring faster and hassle-free disbursement of retirement benefits. According to the official notification, the Indian Bank will now directly remit the lump-sum amount of commutation and gratuity to pensioners, eliminating the earlier process of routing funds through regional offices.

New Features in the e-Pension Portal

To facilitate this change, the e-Pension portal has been enhanced with two additional fields:

“Commutation value to be paid” – Displays the amount of pension commuted for lump-sum payment.
“Gratuity to be paid” – Reflects the final gratuity amount to be received.

Regional offices must verify and approve these amounts before submitting the pension case through the system to ensure accuracy in payments.

Direct Payments to Pensioners

From April 1, 2025, all Pension Payment Orders (PPOs) transmitted on or after this date will include the provision for direct remittance. Consequently:

Funds for gratuity and commuted pension will no longer be provided to regional offices and ZIETs, except for arrears and court case settlements.
Leave encashment disbursement will continue as per the existing practice.

Implications for Pensioners and Regional Offices

This direct disbursement system aims to: ✅ Reduce delays in receiving retirement benefits.
✅ Minimize manual errors by eliminating intermediary processing.
✅ Ensure transparency in pension transactions.

KVS pensioners are advised to keep their bank details updated in the e-Pension portal to ensure seamless crediting of their retirement benefits.

Implementation and Next Steps

The Indian Bank, responsible for pension disbursement, will coordinate with KVS and relevant authorities to ensure a smooth transition. Regional offices have been instructed to review and confirm payment details before submission.

See original KVS letter: