फा.न.  3/7/2024-P&PW(F) (10139)
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi -110 003
Dated: 25.10.2024

OFFICE MEMORANDUM

Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant – regarding

Recently few references regarding interest on delayed payment of GPF to the retired Government have been received for clarification whether interest is payable on GPF after retirement.

2. In this connection, it may be stated that detailed clarifications regarding timely payment of GPF final payment to the retiring Government servant were furnished to all Ministries/Departments vide this Departments’ Office Memorandum No.3/3/2016-P&PW(I) dated 16th January, 2017 (copy enclosed).

3. The per Rule 34 of General Provident Fund (Central Service) Rules, 1960 clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment.

4. It is also added the amount deposited in General Provident Fund Account is solely the asset of the individual Government servant. Any disciplinary case pending or penalty imposed against him does not have any impact on the disbursement of the GPF amount. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also.

5. This issues with the approval of competent authority.

Encl- As above.

(Dilip Kumar Sahu)
Under Secretary to the Govt. of India

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Government servant whose date of birth is the first of a month shall retire from service on the afternoon of the last day of the preceding month.

No. 42/15/2022 -P&PW(D)/2
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi – 110003
Date:- 25th Oct, 2022

OFFICE MEMORANDUM

Subject:- Clarification regarding commutation value for Government servant whose date of birth is the first of a month and who retires on the afternoon of the last day of the preceding month – reg

In accordance with proviso to Fundamental Rule [FR-56(a)], a Government servant whose date of birth is the first of a month shall retire from service on the afternoon of the last day of the preceding month.

2. References/ Representations have been received in this Department seeking clarification as to which commutation value is to be taken in cases where a Government servant whose date of birth is first of a month and who retires from service on the afternoon of the last day of the preceding month.

3. In such cases, pension becomes due from the day following the date of retirement. Further, as per Rule 6(1)(i-a) of CCS(Commutation of Pension) Rules, the commutation of pension shall become absolute on the day following the date of retirement. Therefore, the retiring Government servant will be eligible for commutation of pension on the day following the date of his retirement and the commutation value expressed as number of year’s purchase will be age on next birthday.

4. Accordingly, in the case of such Government servants who retire on attaining the age of 60 years, the age next birthday will be 61 years, including in cases where the date of birth is first of a month and the Government servant retires on the afternoon of the last day of the preceding month. Therefore, the commutation value of 61 years (i.e age on next birthday) will be applicable in this case.

(Charanjit Taneja)
Under Secretary

1. All Ministries/ Departments of the Government of India (as per standard distribution list).
2. C&AG of India, UPSC, etc. as per standard endorsement list.

Download Clarification regarding commutation value for Government servant whose date of birth is the first of a month and who retires on the afternoon of the last day of the preceding month PDF

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No. 3(6)/2021- P&PW(H)- 7083
Government of India
Ministry of Personnel & Public Grievance
Department of Pension and pensioners’ Welfare

8th Floor, Janpath Bhavan,
Janpath, New Delhi,
Dated: 9th March, 2021

OFFICE MEMORANDUM

Subject: Timely payment of retirement benefits to the retiring employees

The undersigned is directed to say that timelines have been prescribed under the CCS (Pension) Rules, 1972 for each activity involved in the processing of a pension case and for payment of pension and gratuity to a retiring Government servant. As per this timeline, the process of verification of service and other preparatory work should be
undertaken one year before a Government servant is due to retire on superannuation, the Government servant should submit the forms six months before retirement, the Head of Office should send the pension case to the PAO four months before retirement and the PAO should issue PPO and send it to CPAO one month before retirement. The CPAO is required to issue the Special Seal Authority within 21 days, thereafter.

2. Instructions have been issued vide this Department’s OM No 1/27/2011- P &PW (E) dated 01.08.2017 for handing over the copy of pensioner PPO to him/her at the time of retirement along with other retirement dues. The Rules also provide for sanction of provisional pension in cases where a Government servant is likely to retire before finalization of his pension and gratuity.

3. “BHAVISHYA’, the online Pension Sanction & Payment Tracking System, facilitates online tracking of pension sanction and payment process by the individual as well as the administrative authorities and keeps the retiring employees informed of the progress of pension sanction process through SMS/E-Mail. The system is, therefore, very useful for ensuring timely payment of pensionary benefits to the retiring Government servant.

4. In spite of the timelines prescribed in the rules/ instructions and simplification/ streamlining of the procedures through BHAVISHYA, issue of the PPO and payment of retirement benefits continue to be delayed in a large number of cases. A significant percentage of the grievances registered on the CPENGRAMS relate to non-payment of retirement dues for several months after retirement. Delay in settlement of retirement dues also leads to avoidable litigation. In a number of cases, the courts have directed payment of interest for the delayed period to the affected pensioners, besides making adverse comments on the functioning of the administration.

5. In order to ensure timely payment of retirement dues in all cases, it has been decided that the progress of the pension cases should be regularly monitored by the Heads of the organizations and the Heads of Departments. An effective monitoring mechanism is required to be established in every office/ Department to review the progress of processing of the pension cases. The information available from the BHAVISHYA software may be utilized for this purpose.

6. Farewell programs are often organized in the offices on the occasion of retirement of employees. This is one of the most appropriate occasions that can be utilized to review the progress of the pension cases and to sensitize the concerned staff about the importance of timely payment of retirement dues. Accordingly, in every farewell function, Heads of organizations/ Departments/ offices may review the progress of pension cases of all the employees of that organization/ Department/ office, who are due for retirement in the next six months. Wherever the processing of any pension case is found to be behind schedule, proactive action must be taken to ensure that all retirement dues are paid on time to the retiring Government servant.

7. A half-yearly statement may be submitted by each Department/ organization/ office to the Secretary of the administrative Ministry/ Department indicating the particulars of the Government servants in whose case issue of PPO was delayed by more than two months after retirement on superannuation. The statement may also contain the reasons for the delay in issuing the PPO and remedial action taken to avoid such delays in future.

2. Instructions have been issued vide this Department’s OM No 1/27/2011- P &PW (E) dated 01.08.2017 for handing over the copy of pensioner PPO to him/her at the time of retirement along with other retirement dues. The Rules also provide for sanction of provisional pension in cases where a Government servant is likely to retire before finalization of his pension and gratuity.

3. “BHAVISHYA’, the online Pension Sanction & Payment Tracking System, facilitates online tracking of pension sanction and payment process by the individual as well as the administrative authorities and keeps the retiring employees informed of the progress of pension sanction process through SMS/E-Mail. The system is, therefore, very useful for ensuring timely payment of pensionary benefits to the retiring Government servant.

4. In spite of the timelines prescribed in the rules/instructions and simplification/streamlining of the procedures through BHAVISHYA, issue of the PPO and payment of retirement benefits continue to be delayed in a large number of cases. A significant percentage of the grievances registered on the CPENGRAMS relate to non-payment of retirement dues for several months after retirement. Delay in settlement of retirement dues also leads to avoidable litigation. In a number of cases, the courts have directed payment of interest for the delayed period to the affected pensioners, besides making adverse comments on the functioning of the administration.

5. In order to ensure timely payment of retirement dues in all cases, it has been decided that the progress of the pension cases should be regularly monitored by the Heads of the organizations and the Heads of Departments. An effective monitoring mechanism is required to be established in every office/ Department to review the progress of processing of the pension cases. The information available from the BHAVISHYA software may be utilized for this purpose.

6. Farewell programs are often organized in the offices on the occasion of retirement of employees. This is one of the most appropriate occasions that can be utilized to review the progress of the pension cases and to sensitize the concerned staff about the importance of timely payment of retirement dues. Accordingly, in every farewell function, Heads of organizations/ Departments/ offices may review the progress of pension cases of all the employees of that organization/ Department/ office, who are due for retirement in the next six months. Wherever the processing of any pension case is found to be behind schedule, proactive action must be taken to ensure that all retirement dues are paid on time to the retiring Government servant.

7. A half-yearly statement may be submitted by each Department/ organization/ office to the Secretary of the administrative Ministry/ Department indicating the particulars of the Government servants in whose case issue of PPO was delayed by more than two months after retirement on superannuation. The statement may also contain the reasons for the delay in issuing the PPO and remedial action taken to avoid such delays in future.

8. All the Ministries/ Departments are requested to bring the above instructions to the notice of the offices/ field organizations under their administrative control for strict compliance.

(Rajesh Kumar)
Under Secretary to the Government of India

To,

1. Admin Division of all Ministries/ Departments of Govt. of India:- for strict compliance.
2. NIC: to upload in the website of this Department

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No. 1/27/2011-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 1st August, 2017

Office Memorandum

Sub: Simplification of pension procedure (i) Handing over of PPO to the retiring employee by the Head of Office before retirement and

(ii) Submission of undertaking by retiring Government servant along with pension papers – reg.

The undersigned is directed to invite attention to this department’s Office Memorandum of even number, dated 7th May, 2014 (copy available at departmental website), vide which provision had been made that the undertaking to be submitted by the retiring Government servant/pensioner to the pension disbursing bank to refund or make good any amount to which he is not entitled 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 is forwarded to the pension disbursing bank along with the Pension Payment Order (PPO) 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.

2. The pensioner is no longer 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 PPO is to 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.

3. 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.

4. However, in the recent past, many instances have come to the notice of this Department wherein the pensioner’s copy of the PPO had not been handed over to him/her and instead had been sent to the Bank and the same was lost in transit sometimes thereby causing hardship to the pensioner.

5. In view of the foregoing, all Ministries/Departments are once again requested to strictly follow the above procedure henceforth viz., handing over the copy of pensioner PPO to him/her at the time of retirement along with other retirement dues except if the pensioner specifically requests for delivering his/her copy of PPO through bank. 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
Ph: 24644632

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No.3/3/2016-P&PW(F)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003
Dated 16th January 2017.

OFFICE MEMORANDUM

Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant – regarding

During review meetings held to evaluate the status of implementation of Bhavishya with Ministries/Departments, it was observed that GPF final payment in many cases is not being paid to the retiring Government servants immediately on retirement from service leading to payment of interest for the delayed period.

2. Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment. The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation. It may be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide this Department’s Notification No.20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.1996.

3. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.

4. To ensure timely final payment of GPF, and to avoid unnecessary financial burden on account of interest beyond retirement, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary in terms of Rules 11(4) of GPF Rules, 1960, shall be put up for consideration to the Secretary of the Administrative Ministry/Department. In all such cases the Secretary of the Administrative Ministry/Department will fix responsibility at all levels to take appropriate action against the Government servant or servants who are found responsible for the delay in the payment of General Provident Fund.

5. This issues with the concurrence of the Ministry of Finance, Department of Expenditure, vide their 10 NO.187/EV/2016 dated 2th September 2016.

6. Hindi version will follow.

(Seema Gupta)
Director

Authority: http://www.pensionersportal.gov.in/

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“Central Civil Service (Pension) Rules, 1972 on 29.8.2014 that in the absence of records of verification of service, the retiring Government servant may submit a written statement on plain paper stating that he had in fact rendered service for that period, and shall, at the foot of the statement, make and subscribe to a declaration as to the truth of that statement. The Head of Office shall, after taking into consideration the facts in the written statement admit that portion of service as having been rendered for the purpose of calculating the pension of that Government servant”.

Problems of Pensioners

The financial burden on account of pension has shown increasing trend because of, inter-alia, increase in the number of pensioners, periodic release of dearness relief, etc. it is because of pension liability likely to assume unsustainable proportions that the Government had taken decision in December 2003 to switch over form the “defined benefit” based pension to the “defined contribution” based pension scheme in case of Central Government civilian employees (except the Armed Forces) joining on or after 01.01.2004.

As regards lack of proper maintenance of records regarding delay in sanction of pension and other related problems after the employees retirement, a provision has recently been made by amending the Central Civil Service (Pension) Rules, 1972 on 29.8.2014 that in the absence of records of verification of service, the retiring Government servant may submit a written statement on plain paper stating that he had in fact rendered service for that period, and shall, at the foot of the statement, make and subscribe to a declaration as to the truth of that statement. The Head of Office shall, after taking into consideration the facts in the written statement admit that portion of service as having been rendered for the purpose of calculating the pension of that Government servant.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

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No. 1/27/2011-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

Sub: Simplification of pension procedure – submission of undertaking by retiring Government servant along with pension papers – reg.

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

Source: pensionerportal.gov.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/PPWE_070514.pdf]

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