Wednesday 30 October 2024

Government Sets Clear Timelines for Pension and Gratuity Processing

 Government Sets Clear Timelines for Pension and Gratuity Processing

In an effort to streamline retirement benefits, the Ministry of Personnel, Public Grievances, and Pensions has issued new timelines for processing pension and gratuity authorizations. The Office Memorandum, released by the Department of Pension and Pensioners’ Welfare, provides detailed steps and deadlines to ensure timely authorization of these benefits upon retirement.

The guidelines target various stages of the retirement process to ensure that every government servant’s pension and gratuity are promptly addressed. These timelines, issued as per the Central Civil Service (Pension) Rules, 2021, cover activities ranging from preliminary preparation to final authorization.

Key Activities and Deadlines for Pension and Gratuity Authorization

The Office Memorandum outlines several mandatory steps, each assigned a specific timeline to enhance accountability and reduce delays.

1. List of Retiring Employees

  • Timeline: By the 15th of every month
  • Requirement: Each Head of Department (HoD) must maintain an updated list of employees scheduled for retirement within the next 15 months. This list ensures preparedness for upcoming retirements.

2. Verification of Accommodation Details

  • Timeline: At least one year before retirement
  • Requirement: Government accommodation details must be verified well in advance. HoDs are instructed to obtain information from the retiring employee and forward it to the Directorate of Estates. A “No Demand Certificate” must be issued at least eight months before retirement to ensure a smooth transition.

3. Service Verification and Book Completion

  • Timeline: During the last year of service
  • Requirement: According to Rules 56 and 57, extensive verification of the service record, including rectification of omissions or inaccuracies, should be completed within one year before the retirement date. This preparatory work aims to prevent any last-minute complications.

4. Submission of Pension Forms

  • Timeline: Within two months from form receipt
  • Requirement: The HoD must submit the completed pension case, along with a covering letter (Format 10), to the Pay & Accounts Office within two months of receiving the pension forms from the employee.

5. Issuance of Pension Payment Order

  • Timeline: No later than two months before retirement
  • Requirement: The Accounts Officer is responsible for applying necessary checks and issuing the Pension Payment Order (PPO) at least two months before the employee’s retirement. This prompt issuance of the PPO aims to avoid delays in disbursement.

6. Forwarding to Central Pension Accounting Office (CPAO)

  • Timeline: Within two months from PPO issuance
  • Requirement: Once the PPO is issued, the Accounts Officer must forward a copy to the CPAO. The CPAO, in turn, is expected to issue a Special Seal Authority within 21 days, which is then sent to the Pension Disbursing Authority for final disbursement.

Ensuring Timely Disbursement of Pension Benefits

The Ministry emphasized the importance of adhering to these guidelines to prevent delays and ensure that retired employees receive their benefits on time. In this regard, all Ministries and Departments are urged to circulate the new timelines among relevant personnel involved in pension and gratuity processing.

Under the new rules, the Pension Disbursing Authority will handle the final step of disbursing the pension to retired government employees promptly after the issuance of the PPO. By standardizing the procedures and setting clear deadlines, the government aims to foster an efficient retirement process.

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