Pension Payment Order to be handed over on the day of retirement – CPAO Instructions

CPAO decides to modify procedures for in the case of issue of PPO (Pension Payment Order) to retiring central government employees

PPO which were issued by Banks to pensioners after pension fixation will be issued soon at the time of retirement itself to employees.

GOVERNMENT OF INDIA
DEPARTMENT OF EXPENDITURE
MINISTRY OF FINANCE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW Delhi-110066
PHONES :26174596, 26174456, 26174438

CPAO/IT&Tech/11(Vol-VI)/Simplification/2018-19/01

01.04.2019

OFFICE MEMORANDUM

Subject : Simplification of pension procedure – submission of undertaking by retiring Government servant along with pension papers & Handing over of PPO booklet to Pensioners by Head of Office – reg.

The Scheme for Payment of pensions to Central Government Civil Pensioners through Authorized 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. In view of the above Department of Pension & Pensioners’ Welfare issued instructions vide its O.M. No. 1/27/2011-P&PW(E) dated 07.05.2014 which were also communicated through this office O.M. No. CPAO/Tech/Simplification/2014-15/53 dated 28.05.2014. These provisions are reiterated below:

(a) It has been established 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 the undertaking.

(b) 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.

(c) 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 dispatched 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.

(d) However, if any 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.

3. Pay & Account Office/Head of Office should not wait for the copy of PPO (SSA) for confirmation of the dispatch of the same by CPAO to bank for handing over of the pensioner’s copy to the retiring government servant along with other retirement dues. PAO/Ho0 may confirm the dispatch of Banks Copy of PPO by visiting CPAO’s website i.e www.cpao.nic.in -> See your PPO Status.

4. It has been observed that pensioner’s portion of the PPO is not being handed over to the pensioner, but being sent to the bank through CPAO. It seems that the timeline for submission of finalizing the pension cases as mentioned in the CCS (Pension) Rules, 1972 are not being adhered to by HoO/PAO.

5. All Pr. CCAs/CCA/CAs/AGs (with independent charge)/JS(Admin) are requested to issue instructions to all Pay and Accounts Offices/ Head of Offices under their jurisdiction to ensure timely submission of pension papers so that the correct procedure is followed strictly. Timeline for finalization of pension cases as prescribed in CCS (Pension) Rules, 1972 is annexed herewith.

This issues with the approval of Chief Controller (Pension).

Encl.: Annexure

(Praful Dabral)
Sr. A.O. (IT & Technical)

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