7.20.1 The details of the Defined Contribution Pension Scheme introduced for Central Government Employees now called National Pension System (NPS) are briefly explained below:
(i) A New Pension Scheme (Contribution based Pension Scheme) now called National Pension System (NPS), was introduced for Central Government employees vide Ministry of Finance (Department of Economic Affairs) Notification No.5/7/2003- ECB & PR dated 22nd December, 2003. Government of India vide this Notification introduced a new pension scheme viz. Defined Pension Contribution Scheme for all those government servants joining service under the Government of India on or after 1-1-2004 (except the armed forces, in the first stage). The scheme has two tiers-Tier-I and Tier-II. Under Tier-I, the Government servants have to make a mandatory contribution at the rate of 10% of salary and DA while the Government will make equal matching contribution (Government contribution raised to 14% w.e.f.1.4.2019). The contributions and investment returns will be kept in a nonwithdrawable Tier–I Pension account.
(ii) In addition to the above pension account, each individual may also have a voluntary Tier-II withdrawable account at this option. The Government will not make any contribution to this. This amount will be kept in a separate account that will be withdrawable at the option of the Government Servant. GPF will not be available to those who are covered under the Defined Pension Contributory Pension Scheme. Employees would be free to withdraw part or all of the accumulations under Tier-II.
(iii) Individuals can normally exit at the age of 60 or after 60 years of age for Tier–I of the pension system. At exit the individual would be mandatorily required to invest 40 percent of pension wealth to purchase an annuity (from an IRDA-regulated life insurance company). In case of government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and spouse. The individual would receive a lump sum of the remaining pension wealth, which he would be free to utilise in any manner. Individuals would have the flexibility to leave the pension system prior to the age of 60, but in such case the mandatory annuitisation would be 80% of the pension wealth.
(iv) CPAO initially acted as the interim Record Keeping agency till NSDL was appointed by PFDRA as the Central Record Keeping Agency (CRA) and maintained the individual accounts DCPS in respect of the Central Government servants. Several Fund Managers were appointed to offer three categories of Schemes to Government servants viz. options A, B and C, the categories based upon the ratio of investments in fixed income instruments and equities.
What This Means
This paragraph covers the National Pension System (NPS) — the defined contribution pension scheme for Central Government employees who joined on or after 1 January 2004. Under NPS, employees contribute 10% of salary+DA to a mandatory Tier-I account (non-withdrawable), and the Government matches with 14% (raised from 10% in 2019). An optional Tier-II account is available for voluntary, withdrawable savings. The paragraph details the complete accounting cycle: DDOs deduct contributions from salary bills, PAOs book them under specific heads, and funds are transferred to the Trustee Bank (presently Axis Bank) via NPSCAN system. It covers PRAN allotment, the role of nodal offices, the subscriber registration process, and the reconciliation of contributions between Government books and the NPS Trust. Monthly and annual reconciliation procedures, handling of missing credits, and the roles of CRA, NPS Trust, PFRDA, and the Trustee Bank are all specified.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
1NPS applies to Central Govt employees joining on or after 1 January 2004 (except armed forces initially)
2Employee contributes 10% of salary+DA (Tier-I mandatory); Government contributes 14%
3Optional Tier-II account for voluntary withdrawable savings; no GPF for NPS subscribers
4Contributions routed through NPSCAN system to Trustee Bank (Axis Bank) for investment
5Monthly reconciliation between DDO/PAO records, NPSCAN, and NPS Trust is mandatory
Practical Example
A newly appointed Assistant Section Officer who joined service in 2024 is automatically enrolled in NPS. The DDO deducts 10% of her basic pay plus DA as her NPS contribution from the monthly salary bill. The PAO books the deduction under the NPS heads and transfers the total (employee 10% + Government 14%) to Axis Bank via NPSCAN. The amount is credited to her PRAN and invested by the pension fund manager chosen by her.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Is the General Provident Fund (GPF) available to NPS subscribers?▼
No. GPF is not available to employees covered under NPS. Instead, they have the mandatory Tier-I pension account and an optional Tier-II withdrawable account.
Can an NPS subscriber withdraw from the Tier-I account?▼
No. Tier-I is non-withdrawable until retirement or superannuation. Partial withdrawals are allowed only under specific conditions defined by PFRDA rules (such as critical illness, higher education, etc.).
What is NPSCAN?▼
NPSCAN (NPS Contribution Accounting Network) is the electronic system through which PAOs transfer NPS contributions to the Trustee Bank. It ensures proper mapping of contributions to individual PRANs.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
(v) M/o Finance D/o Economic Affairs vide their resolution No. F.5.(1)-PD/2003 dated 21/04/2005 have decided that during the interim period the accumulation under the Tier-I of the Pension Fund in respect of the subscribers to the NPS (Defined Contribution Pension Scheme) would carry interest at the rate of 8% per annum for the period of interim arrangement. It has also been decided by the Government that in case of death of a government servant covered under the New Pension Scheme, the deceased government employee’s own contribution and government’s matching contribution plus 8% interest thereon may be payable to the legal heirs immediately- vide M/o Finance D/o Economic Affairs UO No. 5(27/A)/2006-ECB &PR dated 14/03/2006.
7.20.2 The procedure for registration of DDOs in NSDL, remittance of contribution to Trustee bank etc. which are applicable w.e.f. 1.7.2008 are contained in CGA Office OM
No.1(7)/2003/TA/Pt file/279 dated 2.9.2008. The salient points are reproduced below:-
(i) Registration of Principal Accounts Offices/Pay and Accounts Offices/DDOs with NSDL: NPS registration forms N1 (Principal Accounts Office Registration), N2(PAO/CDDO Registration), N3 (DDO registration) and N4 (PAO covering letter for DDO registration) can be downloaded from www.npscra.nsdlco.in and www.nsdl.co.in. On receipt of the duly filled DDO registration forms from its NCDDOs, PAOs will authenticate/attest in the relevant column of the form and forward it to NSDL along with Annexure N4. On successful registration of the NCDDO, NSDL will confirm DDO Registration Number allotted to each NCDDO and intimate the same to the respective PAOs. PAOs shall on receipt of the DDO Registration Numbers intimate the same to its NCDDO.
(ii) Subscriber Registration: The procedure of registration of the new entrants will be specified by NSDL. NSDL would allot and communicate to the PAOs the individual Permanent Retirement Account Number (PRAN) in respect of each subscriber mapped to the PAO. PAOs should communicate to the DDOs who in turn shall intimate the subscribers under their payment control of the new PRAN allotted to the individual subscribers.
(iii) Uploading of Subscribers Contribution File (SCF) and PAOs/CDDOs shall download the File Preparation Utility (FPU) and the File Validation Utility (FVU) for the purpose of regular upload of the subscriber contribution details on NPSCAN. These utilities and other instructions on uploading and remitting are available and can be downloaded from NSDL website-www.npscra.nsdico.in and www.nsdico.in. PAOs shall use the User ID and I-Pin to access the NPSCAN and upload the subscriber contribution details on a monthly basis. PAOs/CDDOs will first upload the subscriber contribution details on NPSCAN following the instructions of NSDL. NPSCAN will generate a unique Transaction ID for the upload done. PAO should note down this unique Transaction ID. PAO/CDDO after uploading the subscriber contribution details will remit the NPS contribution to the Trustee Bank through PFMS.
(iv) Remittance of contribution to the Trustee Bank: The amounts of employees’ contributions recovered from the bill will be initially classified under the Head “0071- Contributions and Recoveries towards Pension and Other Retirement Benefits-500-Receipts Awaiting Transfer to other Minor Heads” (RAT). Government’s contribution bills duly supported by schedules will also be prepared by DDOs. The amount will be debited to the head “2071- Pension & Other Retirement Benefits-117 DCPS”. After passing the bills by the PAO/CDDO, these amounts will also be booked under the Head “0071-Contributions and Recoveries towards Pension and Other Retirement Benefits-500-Receipts Awaiting Transfer to other Minor Heads” (RAT). After the bills are passed, the PAO/CDDO will upload the data relating to contributions (both of Employees’ and Government’s Contributions) into NPSCAN and also tally the figures uploaded with that booked under the Head ‘RAT’. After uploading is completed, PAO/CDDO will get Transaction ID and draw the total amount by minus crediting the Head “RAT” mentioned above through e-payment through PFMS in favour of the Trustee Bank. There should be no balance under the Head “0071- Contributions and Recoveries towards Pension and Other Retirement Benefits-500-Receipts Awaiting Transfer to other Minor Heads” at the end of each month.
(v) Timelines for PAOs/CDDOs and NCDDOs: The responsibility of the correct and timely deduction of the contribution for each subscriber as mandated under the scheme will rest with the respective NCDDOs. NPS Bills should be preferred so as to reach the PAO by 20th of every month. The responsibility for timely remittance to the Trustee Bank is that of the PAO in respect of all the subscribers under his domain. Once the upload of subscriber contribution details to NPSCAN is enabled, the PAO should upload the subscriber contribution details on NPSCAN and obtain the Transaction ID by the 25th of each month.
NPS contributions (Government’s and employees) should be credited to the account of the Trustee Bank by the PAO on the last working day of each month for that month.
7.20.3 Central Civil Services (Implementation of National Pension System) Rules, 2021 were notified on 30.03.2021 for regulating service-related matters for Central Government employees covered under NPS.
7.20.4 Additional Relief on Death and Disability of Government Servant under NPS will be covered under CCS (Implementation of NPS) Rules, 2021.
7.20.5 In case of amount remitted by PFDRA for crediting into Government account so as to make payment of invalid pension or disability pension or family pension on death of a Government Servant under National Pension System, the head of account to be used are as follows:
(a) Adjustment of employee’s contribution and return (appreciation accrued) thereon: Amount remitted by PFDRA may be credited initially under Major Head 8443-Civil DepositsMinor Head 800-Other Deposits-Sub-head-59- Money remitted by PFDRA (employee contribution and return thereon). This head of account will be (-) credited while making the payment to the employee/family of the employee as the case may be.
(b)Adjustment of Government Contribution remitted by PFDRA: The amount should be accounted for as (-) Debit under Major Head 2071-Pension and other Retirement BenefitsSub-major head-01-Civil-Minor Head-911-Deduct recoveries of over payment-sub head-02- Money remitted by PFDRA-Object head-70-Deduct recoveries.
(c)Adjustment of return (appreciation accrued) on Government contribution: Amount remitted by PFDRA may be accounted for by crediting the amount to Government account under Major Head 0071-Contributions and Recoveries towards Pension and other Retirement benefits-sub major head-01-civil- Minor Head-800-Other Receipts-subhead- 01- Money remitted by PFDRA (return on Government Contribution).
(published in the Gazette of India part II Section-3, Sub-section ii)
Ministry of Finance Department of Economic Affairs Budget Division New Delhi the 31st December,1990.
No.F.1(19)-B(R)/90 : In exercise of the powers conferred by the first proviso to subsection(1) of Section 10 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 (56 of 1971) and in partial modification of the order of the Government of India in the Ministry of Finance (Department of Economic Affairs) No. F.1(15)-B(AC)/76 dated 8.9.1976, the President, after consultation with the Comptroller and Auditor General of India, hereby relieves the Comptroller and Auditor General from the responsibility for compiling the accounts of:
a. The Ministry of Finance relating to pensions: and b. The Ministry of Home Affairs relating to pensions to freedom fighters.
2. This order shall come into force with effect from the financial year 1990-91. By order and in the name of the President.
To The Manager Government of India Press
Sd/- (Smt. Janaki Kathpalia) Officer on Special Duty (Budget)
Office of the Pay and Accounts Officer Department of ………………………… Ministry of……………………………..
The Pay and Accounts Officer, CPAO, Ministry of Finance Govt. of India Trikoot-II, Bhikaji Cama Place R.K. Puram, New Delhi - 110066.
A Pension Payment Order in favour of Shri/Smt ………………………designation ______________ last pay drawn ____________ at the time of retirement in the level________, index__________, details of which are given below is forwarded for arranging payment:-.
1. PPO No. & date ……………………………………………………… 2. Category of pension…………………………………………………. 3. a) Amount before commutation (Basic Pension)……………………………………. b) Amount after Commutation pension)……………………………. c) Date of Commencement of Pension………. d) Family pension in the event of death of pensioner…… Enhanced Rate up to …………………………. Normal Rate ₹ ……………………………… with effect from………………………………
4. Monetary allowances attached with Gallantry award to be paid by Pension Disbursing Authority ....................... 5. Medical Allowance………………………………………. 6. Name of Bank …………………………………………………………… 7. Branch and Code No. ……………………………………………………………………. 8. Location ……………………………………………………. 9. Bank Account No…………………………………………………………….. 10. District …………………………………………… 11. State …………………………………… 12. Pin Code 13. BSR Code
Pensioner’s Portion of the PPO is being handed over to the Pensioner by …………..
Commutation already paid or being authorized through DDO/Commutation authorized through a separate letter/commutation not applied for.
Conditions attached to pension: - Payment may be made subject to the conditions specified in the PPO as well as in the CCS (Pension) Rules and CGA(R&P) Rules.
• Strike out whichever is not applicable.
Yours faithfully,
Authorised Signatory with Stamp and Special Seal
1. PPO (Disburser & Pensioner portion). 2. Photo and specimen signature slip 3. Identification marks 4. Undertaking by pensioners 5. Nomination form (Form A) 6. Details of family (Form 4) 7. Option of the pensioner indicating Name and full address of the Authorised Bank.
To The Pay and Accounts Officer CPAO Ministry of Finance Department of Expenditure Trikoot-II, Bhikaji Cama Place R.K. Puram, New Delhi- 110066.
Deptt./Ministry
Subject: Revision of pension/family pension of Shri/Smt…………………………………………… holder of PPO No…………………………………… Last Pay Drawn of the retired government servant:……… Level…. Index…..
I request you to make arrangement for carrying out the modification in both the halves of the said PPO as detailed below:
(a). Revised pension ₹ ……………………………………………. (₹……..………………………………) under class /category.......of Rules........ effective from …………………………......... (b). Revised pension commuted ₹ …………………………… (₹ ……………………………………………………) (c). Revised Reduced Pension after commutation ₹…………………………… (₹ ………………………………………………….) effective from ……………………………………………
(d) Monetary allowances attached with Gallantry award to be paid by Pension Disbursing Authority:............................ 2. (a). Differential commuted value paid or being arranged through Pay and Accounts Office ₹……………………………………… (₹….……………………………………………………) (b). Differential commuted value of pension payable by the bank ₹……………………………………… (₹.…………………………………………………………)
(a) or
(b) whichever is applicable should be filled up. The other column should be prominently marked as ‘Not applicable’). 3. a. Differential Amount of Gratuity paid by PAO……………………….. b. Differential Amount of Gratuity payable by Bank……………………….. * 4. Revised Family Pension under class/category ..................of Rules........... a. At enhanced Rate ₹ ……………… (₹………………………………..) up to ………………… b. At normal Rate w.e.f. ₹ …………………………………….. c. EOP (F) Original /Revised ₹............(₹...............) d. effective from...................... 5. Fixed Medical Allowance……………..
6. Details of Disbursing Bank.
(i) Name of Bank ……………………………………………….
(ii) Branch and BSR Code No. (if any). …………………………………………..
(iii) Account No. ……………………………………………….
(iv) Department ……………………………………………………..
(v) State. ………………………………………………………
(vi) BSR Code…………………………
Yours faithfully,
Pay and Accounts Officer
* In case the family pension does not undergo any change as a result of revision of pension, the words “No change” should be inserted in column No. 4. In case family pension is not admissible, the words ‘Not applicable’ should be inserted in this column.
CENTRAL CIVIL PENSIONS
SPECIAL SEAL AUTHORITY:
The authority given for under mentioned PPO has been verified as per records given by respective PAO. You are requested to make payment as per this authorisation below (Details are given in enclosed P.P.O) to Name …………………….
Holder of P.P.O No. Category of Pension Aadhaar No: ############ Pan No: Mobile No: Email ID. Date of Birth (Pensioner): Pay Level: Last Pay Drawn: Net Qualifying Service (Years-Month-Days): Name of Spouse: Date of Birth (Spouse): Paying Branch: A/C No. P.P.O. issuing authority: 1. Basic Pension per month:/- Date of Commencement: 2. Residual Pension per month.: Commencement Date (Residual Pension): 3. Additional Pension P.M. (80 Years &above): 4. Constant Attendant Allowance P.M.: 5. Family Pension at Enhanced Rate: From: To: 6. Family Pension Normal Rate: From: To: 7. Medical Allowance Payable (as per rate admissible from time to time): 8. Commuted Value Payable by Bank: 9. Provisional pension/family pension has been/shall be paid for the period from ---- @ ₹ -------------- plus Dearness Relief. (Strike off whichever is not payment of final family pension may be commenced by the bank w.e.f. ------------ 10. Monetary allowances attached with Gallantry award to be paid by Pension Authority:………………..
------- to ----- applicable). The Disbursing
Pay and Accounts Officer
1. The pensioner portion of the PPO is to be handed over to the pensioner by the bank. 2. If pension papers do not pertain to your bank, please redirect them to the concerned bank, under intimation to this office to avoid delay 3. DR is admissible on basic pension + additional pension if any. 4. Reduced pension payable w.e.f. date of crediting the amount of commuted value into pensioner's a/c. 5. Undertaking for recovery of over payment made by bank attached 6. Please see reverse for other guidelines for bank & pensioners
Copy Forwarded To: 1. Pensioner: 2. PAO:
APPENDIX 7.5 (PARA 7.5.5)
SCHEDULE OF PENSION PAYMENTS FOR THE MONTH OF…………………………………………. NAME OF PAO/TREASURY COUNTERS……………………………………….. CODE NO. OF PAO/TREASURY COUNTERS ………………………………..
Name of the pensioner PPO. Period for Which the Pensi on is paid Amount of pension Recover y of over payment , if any Income Tax deducte d Net amount paid Allocation of pension Remarks Basic Pensi on Person al Pensio n D.Relief (1) (2) (3) (4) (5) (6) (7) (8) (9)
APPLICATION FOR DRAWAL OF PENSION THROUGH AUTHORISED BANK (TO BE SUBMITTED IN DUPLICATE)
To The Pension Disbursing Officer (Exact designation Of the Officer to be indicated) (Place).
Sir, I opt to draw my pension through Authorised Bank and give below the necessary particulars to enable you to make arrangements in this regard:
1. PARTICULARS OF PENSIONER:
a. Name ……………………………………….. b. PPO No……………………………………… c. Present Address……………………………….
2. PARTICULARS OF THE AUTHORISED BANK
a. Name ……………………………………… b. Branch where payment desired ……………………….
3. *Pensioner’s S.B Account No. at the Branch to which pension is to be credited.
Yours faithfully,
Place: Date: (Pensioner) *(Joint Account of the Pensioner with the spouse could be operated either by ‘Former or Survivor’ or ‘either or survivor’)
Pensioner’s Specimen Signature……………………………
FOR USE IN THE OFFICE OF THE PENSION DISBURSING AUTHORITY
Forwarded to the CPAO for transmission to Link Branch of PSB ……………………………………… ……….. (Name of Branch). The Disburser’s half of PPO of Shri/Smt./Km…………………………………. bearing No. ……… ……………….. is (are) sent herewith.
The pensioner has been paid pension @ ₹ …………… p.m. and dearness relief thereon @ Rs……… p.m. for the period up to the month of ……………Pension due from the month of …………………………. is to be arranged by the Bank.
Station : Date:
(Pension Disbursing Authority) (with Name & Seal)
Office of the Pay and Accounts Officer Department/Ministry.
Regd. AD (if sent by post). To The Pay and Accounts Officer, CPAO Govt. of India, Ministry of Finance Trikoot -II, Bhikaji Cama Place R.K. Puram, New Delhi -110066.
(Authority for Commutation)
Subject: Commutation of pension of Shri/Smt./Kum………………………… holder of PPO No.
Sir, I request you to make arrangement for payment of commuted value of pension amounting to Rs………… (₹…………………………) in respect of PPO mentioned above by carrying out the modifications in both halves of PPOs as detailed below:-
Reduced pension payable after Commutation ₹……………………
(₹ ……………………………….. ……….only) 2. Details of Disbursing Bank:
(i) Name of Bank.…………………………………………
(ii) Branch, location and Code No. (if known) ……………..
(iii) Account No. …………………………………………………….
(iv) Distt.………………………
(v) State …………………………………..
3. * Already drawing pension from the Bank indicated at 2 above/pension being authorized simultaneously.
I. Reduced monthly pension after commutation will take effect from the date commuted value credited into the pensioner’s Account by the Bank. II. Pension/provisional pension, if paid, may be adjusted suitably. III. Dearness Relief to be allowed as admissible from time to time. * Strike out whichever is not applicable.
Yours faithfully,
Pay and Accounts Officer (Signature with Special Seal Authority)
To, All CCAs/Chief Secretaries (As per list)
Sub: -Procedure for Payment & Accounting of Pension etc in respect of All India Services officers retiring from Government of India/State Government.
A reference is invited to DOPT OM No.25014/2/2002-AIS (II) dated-11th April, 2007 wherein it was decided that:
Government of India would take over the entire pension liability of AIS Officers, who had already retired or would be retiring, either from the State Government or from the central Government.
All retiring, All India Service Officers and the exiting pensioners would uniformly have the option of drawing pension through the Government of India or through the State Government on whose cadre they are borne.
The detailed procedure to be followed by various agencies for preparation of pension papers as approved by C&AG and the CGA is enclosed.
The PAOs/DAs are required to prepare the both halves of PPO in White Colour only respect of AIS Officers. The Cadre/State/Batch to which the AIS officers belong should be clearly mentioned in SSA as well as both halves of the PPOs.
State Governments are requested to send the name of the Designated Authority at the earliest. Further the budget may send to this office by all Designated Authorities latest by 15th Sep. 2008, enclosing prescribed forms duly filled.
Please ensure that the guideline / procedure are followed strictly by PAOs / D.A.s for smooth disbursement of pension to AIS officers and its proper budgeting and accounting.
Encl: - As above
Yours faithfully
Sd/- (Tripti P. Ghosh) Controller of Accounts
Earlier the payment of pension to All India Service Officers was being made by the respective State Governments on whose cadre those officers were borne. After considering the difficulties experienced by these officers in receiving payment of pension and with a view to simplifying the procedure it was decided by the Government of India that the AIS officers who were on deputation with the Central Government could opt for payment of pension and other retirement benefits through the Central Government. As a measure of further simplification of the pension payments, Department of Personnel & Training vide their OM No. 25014/2/2002- AIS (II) dated 11th April, 2007 took the following the decisions:-
1) Government of India would take over the entire pension liability of AIS Officers, who had already retired or would be retiring, either from the State Governments or from the Central Government.
2) All retiring AIS Officers and the existing pensioners would uniformly have the option of drawing pension through the Government of India or through the State Government on whose cadre they are borne.
Payment of pension to All India Service Officers
With a view to implementing the above decisions of the Government and ensuring smooth disbursal of pensions and its prompt accounting, the following new system is prescribed which comes into effect from 1st April, 2008.
A. Procedure to be followed in cases where payment is sought from the Central Government. 1. ACTION IN STATE AG /STATE GOVERNMENTS
(a) Nomination of Designated Authority:
At present, AG authorizes pension in 18 out of 28 states and in the rest, this function is discharged by the Director of Pensions or other similar authorities (Mentioned in Annexure 1). However, under the new scheme, all the States/AsG, will have to nominate/ appoint a Designated Authority (D.A.) in their respective state who will be authorized to issue PPOs in respect of AIS retiring from their states. DAs will forward the same to CPAO (CPAO). Department of Expenditure, Ministry of Finance, who is responsible for arranging payment of pension etc. in respect of AIS officers through Banks.
(b) Each State Government will have to intimate the Designated Authority (DA) to CPAO.
(c) New Directory code No. has been allotted by the Office of the CGA to each Designated Authority and intimated to respective State Government.
(d) An impression of the Special Seal of the D.A. and the Specimen signature
(s) of the officer
(s) authorized to issue PPOs, duly attested will be forwarded to the CPAO by the authority who nominate the Designate Authority (DA). In the event of change in the incumbency of DA, the specimen signature of the relieving officer will be sent to the CPAO by the relieved officer.
2. Allotment of PPO slots by CPAO
On the basis of allotment of Directory Code of the Designated Authorities, CPAO will allot a slot of 13 digit PPO numbers to each Designated Authority on the basis of their requirement to enable DA to depict the same in the PPOs.
The breakup of the 13 digit PPO number will be as follows:
a) State Government have already been requested to send a statement in proforma (Annexure-II) in respect of All India Service Pensioners as on 31.03.2008 containing information on (1) Number of Pensioners including Family Pensioners (cadre wise) drawing pension/family pension from treasuries and Banks & (2) Number of pensioners (cadre-wise) opting to draw pension through State Government or Central Government.
b) Each D.A. will furnish in the prescribed proforma (Annexure-III) the details of the AIS officers retiring during the next financial year, to CPAO for creating a data bank, budgeting and further processing.
c) Each D.A. will also submit the expenditure estimates in respect of the AIS Pensioners towards Pension, Family Pension, Commuted Value of Pension, Gratuity & Leave Encashment to be incurred during the next financial year. Then CPAO will prepare Budget estimates for onward transmission to Budget Division, Min. of Finance for allotment of funds under the relevant heads.
d) The information mentioned b) & c) above should reach CPAO by 30th September of every year.
4. PROCESSING OF PENSION CASES
a) Designated Authority (DA) will process the pension cases as per the provisions of the relevant rules and assess the retirement benefits admissible to retiring officers.
b) PPOs must reach this office before one month of the date of retirement of the official concerned.
c) He will forward the signed Special Seal Authorities along with both the copies of the PPOs depicting therein the PPO Nos., to CPAO for necessary action, as laid down in Scheme for Payment of Pensions to Central Government Civil Pensioners by Authorised Banks. In case of e-PPOs the digitally signed Special Seal Authority may be sent to CPAO. Pensioner’s copy (hard copy) will be handed over to the individual direct by the DA.
d) Commuted Value of Pension (CVP), in case opted for, will be authorized by CPAO and paid through banks in case of Voluntary Retirement cases only. The date of reduced pension starts from the date the Commuted Value has been credited to the pensioner’s account. However, once the payment of pension is commenced, all further payments as per extant rules such as revised pension, commutation, differential DCRG will be payable by the paying branch on issue of revised authority by CPAO.
5. ROLE OF CPAO
(a) Opening of new heads of accounts:
Separate heads of accounts for booking the various benefits payable to AIS Officers have been opened by CPAO in consultation with Budget Division, Min. of Finance (DEA) and Office of CGA. Vide Annexure-IV.
(b) Preparation of Budget estimates and allocation of funds:
(i) On receipt of relevant information from each DA, entire budget requirement for the next financial year will be assessed by CPAO and submitted to Budget Division, Department of Economic Affairs, Ministry of Finance for necessary allocation of funds under each relevant head of account.
However, during the remaining period of the financial year 2008-2009 the same
procedure will be followed and necessary Supplementary demand will be proposed for allocation of funds from Budget Division received on request by State Governments.
Processing of Pension Payment Authorities/Special Seal Authorities by CPAO:
(i) On receipt of PPOs/e-PPO and Special Seal Authorities from the DAs a unique computerized diary number will be allotted to each case.
(ii) After capturing the data in computer record, the PPOs will be sent to the concerned authorization section who will apply all the necessary checks to ensure that the case is in order in all respects.
(iii) After this scrutiny, a Special Seal Authority/e-SSA will be issued by the Authorization section for making arrangement for payment of pension through Bank from where the pensioner has desires to draw pension.
(iv) SSA along with both the halves of the PPOs and other relevant papers will be forwarded to the Central Pension Processing Centre of the concerned bank for making arrangement for payment of pension from Paying Branch from where the pensioner desires to draw his pension. Once the system of e-PPO and e-SSA is introduced CPAO will transmit the same to CPPC. After the introduction of Extension Counter Bank (EC Bank) at CPAO ePPO/e-SSA will be transmitted to them.
New system of directly crediting the pension in respect of AIS-officers
With a view to making the process faster a new system of direct crediting of pension is to be done by a single bank into the pension accounts of the AIS pensioners in the Paying branches as proposed under:
(a) On receipt of SSAs and e-PPOs from DAs, CPAO will capture the data on its system through special software and generate the requisite e-SSAs drawn on Extension Counter of a Bank (EC Bank) to be situated at CPAO office itself.
(b) This EC Bank will undertake the following action:-
(i) EC Bank will receive from CPAO all the e-SSAs along with both portions of e-PPOs of the AIS pensioner.
(ii) On receipt of e-PPOs, the EC-bank will capture the data and send the pensioner's portion of the PPO's directly to the concerned paying branches.
(iii) The EC-Bank will make available the image of the disburser's portion of PPO on their website. They will transmit the pensioner's portion of the PPO to the Pension Paying Branch who will take a print out and hand over the same to the pensioner after proper identification with reference to the information on the pensioner's copy of the PPO. The disburser's portion of PPO will be available in the read only format so as to avoid tampering of data by any authority.
(iv) The EC-bank will work out the amounts payable in respect of each pensioner and pass on credits on due dates directly to the paying branches through ECS (or any other mode i.e. RTGS, EFT) for crediting the same to the account of respective pensioners. The paying branches will credit the amounts to the accounts of the pensioners and intimate the EC bank.
(v) On receipt of information regarding crediting of the amount, the EC-bank will prepare bank-wise daily bank scrolls both physical as well as electronic and submit the same duly reconciled to CPAO for verification. The position relating to disbursement of the pension to
the pensioners would also be updated by the EC Bank on the basis of the feedback received from the paying branches.
(vi) CPAO would verify the scrolls on the same day and issue clearance on-line to enable the EC bank to claim reimbursement from RBI CAS-Nagpur.
(vii) Simultaneously CPAO will book the expenditure on the basis of the details in the scrolls against the budget allocation available under the relevant heads of accounts. Scrolls will invariably indicate the PPO numbers in respect of the AIS pensioners.
(viii) The pensioners will have to deal with the paying branches alone in relation to their pension related matters. The pension paying branches will also be responsible for obtaining the required certificates. " Life certification" of pensioners at paying branches every year in the month of November will be communicated by paying branches to EC-bank at CPAO preferably electronically, or by fax or post. Any change relating to payment of pension namely death of pensioner, change in marital status, remarriage, reemployment, change in address etc should be also be intimated to EC-Bank.
(ix) Pension for the month of November will be credited by EC-bank only on receipt of Life certificate as in the present system.
7. Role of Banks
(a) (In the existing system)
Till the system stated in' para no.6 is put in place, the existing system detailed below will continue:-
i) CPAO will send the PPOs/SSAs to link Branches for onward transmission to paying branches.
ii) The banks will follow a procedure similar to that followed in respect of Central Civil Pensioners for payment of pensions at paying branch level vide Scheme For Payment Of Pension To Central Civil Pensioners Through Authorised Banks.
iii) The banks will prepare separate scrolls depicting therein the disbursement of pensions to AIS Pensioners (it is chargeable to Central Government irrespective of the fact that whether the officer has retired from State Government or Central Government) to the CPAO.
iv) AIS pensioners will have to opt for any of the banks authorized for Central Civil Pensioners. (Annexure V).
v) Those banks which have already switched over to Centralized Pension Processing System (CPPC) may send e-scrolls in addition to physical scrolls.
vi) In the cases where PPOs have been routed through CPAO procedure for transfer of payment of pension from one bank to another will remain the same as laid down in Scheme for Payment of Pension to Central Government Civil Pensioners by Authorized Banks.
vii) Dearness relief is payable by the bank directly in addition to pension /family pension as per rates notified from time to time subject to the production of non-employment certificate by the pensioner.
(b) Procedure to be followed in cases where AIS officers retire from Central Government
In cases, where AIS officers who retire while on deputation to Central Government, the PAO of the Ministry/Department concerned will process the pension papers and issue PPO. The existing procedure for routing of PPOs and payment (as mentioned in CGA's letter no. l(7)/AIS/2004/TA/463 dated 13.8.2004- Annexure-V) will continue. However, since the Government of India have taken a decision to accept the liability on account of these pensions etc., payment scrolls will be sent by banks to CPAO, instead of State AsG.
(c) Procedure to be followed in cases where AIS officers retire from State Government and seek payment through State Governments:
Prior to 1-4-2008, the pension liability in respect of All India Service Officers was borne by the State Government concerned. With effect from 1-4-2008 these payments will be initially paid by State Governments and booked under the suspense heads. Reimbursement will be obtained by the State AsG by raising claims against CPAO, New Delhi.
(d) Procedure for transfer of pension payments
(i) AIS officers drawing pension from Treasury
In case of those AIS officers who are now drawing pension from State Treasury and opt for switchover to draw pension from the Banks, the Designated Authority of the State will arrange to get PPOs from the treasuries. They will then prepare a new PPO (assigning new PPO numbers allotted by the CPAO) after cancelling the old one and forward the same to CPAO for further transmission to the Banks for payment of pension. A certificate indicating the period up to which pension was paid will be recorded therein and the future date of payment indicated. These instructions are also applicable to the Family Pension cases in respect of deceased All India Service Officers.
(ii) AIS Officers drawing Pension from Banks
Many of the All India Service Officers are drawing their pension from the banks arranged by the respective State Government and these payments are now charged to the account of the respective State Governments. Since the Government of India has decided to take over the entire liability of AIS officers the Designated Authorities (DA) will call for the PPOs and prepare fresh PPOs after cancelling the old one and forward the same to CPAO for onward transmission to the Banks for making arrangement for payment of pension/ family pension to the pensioner/family pensioner. A certificate indicating the period up to which pension/family pension was paid will be recorded therein and the future date of payment indicated.
ABSTRACT OF SCHEDULE OF PAYMENT OF PENSIONS
Sl. No. Name of Treasury Month to which pension relates Superannuation & Retirement Allowance Family Pension 1 2 3 4 5
High Court Judges Pensions to legislators (Member of Parliament) Central Freedom Fighters Pension Commuted value of pension Gratuity 6 7 8 9 10
Allocation of pension (if any) Others (specify Category) Gross Total Income Tax Recovered Net Amount paid. Nomenclature of Government Amount of Pension 11 12 13 14 15
REGISTER OF INWARD CLAIMS
Sl.No. No.& Date of letter with which account was received Name of AG from which received Period of Accounts Debits ₹ Credits ₹ Net Debit ₹ 1 2 3 4 5 6 7
Particulars of Cheque sent to AG Amount ₹ No. & Date of letter forwarding Cheque/ Draft to AG Date on which Cheque appeared in Scroll No. & Date of Register sending DISO Remarks 8 9 10 11 12 13
STATEMENT OF OUTWARD ACCOUNTS IN RESPECT OF HIGH COURT JUDGES
Sl. No. Name of A.G. against which pension is adjustable Period to which pension relate Amount ₹ No. & date of letter forwarding claim No. & date of cheque received Date of Scroll for credit of cheque Initials of the PAO 1 2 3 4 5 6 7 8