Para 14.7 — MSO (A&E)
Original Rule Text
14.7 With a view to avoiding delay in the issue of Last Pay Certificate owing to Government dues remaining unassessed and unrealised on the date of retirement of a Government Servant, thereby holding up issue of his Pension Payment Order, most of the State Governments have adopted a procedure under which the last payment of pay etc. is released in such cases and Last Pay Certificate issued either
(a) on the retiring Government Servant furnishing a suitable surety or a cash deposit or
(b) after withholding a portion of gratuity. In such cases the Last Pay Certificate will contain the necessary mention of the surety etc. and the Pension Payment Order can be issued on the basis of such Last Pay Certificate. In cases where intimation in regard to furnishing of suitable surety or a cash deposit have been received by the Accountant
have been appointed to decide them in the rules framed under Act XXIII of 1871.
General or the pension sanctioning authority has recorded orders for withholding a portion of gratuity in page 3 of the application for pension, the production of Last Pay Certificate need not be insisted before releasing the pension and gratuity amounts.
In cases other than those mentioned above, where last pay certificate is not received and pension is payable within his circle of amount, the Accountant General should note across the Pension Payment Order that no payment is to be made until the intimation to the effect that the Last Pay Certificate has been produced to the Accountant General, is received from the Accountant General. The Last Pay Certificate received with a pension case should always be filed with that case. Where the pension is, however, payable in another State, the Last Pay Certificate should be sent to the Accountant General concerned and reference must be made to it before the Pension Payment Order is issued. The amount of deductions to be made monthly towards premia on subscription to the P.L.I. should be noted in the Last Pay Certificate, where necessary, before its transmission to the Accountant General concerned.
What This Means
To prevent delays in issuing Pension Payment Orders caused by outstanding government dues at retirement, most State Governments allow the last pay to be released and the Last Pay Certificate (LPC) issued even before all dues are settled. This is done either by the retiree furnishing a surety or cash deposit, or by withholding a portion of gratuity. If the pension is payable in a different state, the LPC must be sent to the concerned AG before the PPO can be issued. Any PLI premium deductions should also be noted on the LPC.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1LPC delays can hold up Pension Payment Orders, so early release procedures exist
- 2Retiree can furnish surety/cash deposit or have a portion of gratuity withheld
- 3LPC must mention the surety or deposit arrangement
- 4If pension is in another state, the LPC goes to that state's AG before PPO issuance
- 5PLI premium deductions must be noted on the LPC before transmission
Practical Example
A retiring Section Officer's government quarters recovery is still being assessed on his retirement date. To avoid pension delay, the DDO releases his last pay after the officer furnishes a cash deposit of Rs. 50,000. The LPC is issued noting this deposit, and the AG processes the PPO immediately. Once the quarters recovery is finalised, the deposit is adjusted accordingly.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if the LPC is not received and pension is payable within the same AG's circle?▼
Why is the LPC filed with the pension case?▼
What if the pension is payable in another state?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.