Commuted pension for government employees as per scheme for central govt civil pensioners – Details

By: |
July 16, 2021 5:02 PM

All the authorised banks and Pay & Accounts Offices are directed to sacrosanctly follow the procedure for the payment of commuted value of pension mentioned in the Scheme for payment of pensions to Central Government Civil Pensioners.

commuted pension for government employees, procedure for payment of commuted value of pension, Payment of commuted value of pension, Scheme for payment of pensions to Central Government Civil Pensioners, CCS Pension Rules,It was observed that the procedure for the payment of commuted value of pension is not being strictly adhered to by the Pay and Accounts Offices and the Paying Branches of the Authorised Banks for payment of pensions.

The Ministry of Finance has come out with a clarification on payment of commuted value of pension. Going forward, the government employees retiring on superannuation can be a relief as far as receiving the commuted value of pension is concerned.

At the time of retirement, if an employee opts for commutation of pension, a lump sum amount is paid to the pensioner while on the balance the pension begins. In simple terms, commutation means a lump sum payment in lieu of periodic payments of pension.

As per the office memorandum issued by the government, it was observed that the procedure for the payment of commuted value of pension is not being strictly adhered to by the Pay and Accounts Offices and the Paying Branches of the Authorised Banks for payment of pensions.

All the CPPCs of the Authorised Banks and Pay & Accounts Offices are directed to sacrosanctly follow the procedure for the payment of commuted value of pension mentioned in the “Scheme for payment of pensions to Central Government Civil Pensioners through Authorised Bank’, Civil Accounts Manual, and CCS Pension Rules.

The procedure for payment of commuted value of pension is re-iterated as under:

1. The case in which government employees retiring on superannuation may desire authorisation for payment of the commuted value of the pension at the time of the issue of the PPO

a) The Accounts Officer after necessary verification shall authorise the Head of Office to draw the amount of commuted value of pension on submission of a bill to him and hand over the cheque/draft superscribed ‘Not payable before the date following the date of retirement’ to the pensioner.

b) The Account Officer shall indicate in both the halves of the PPO – gross pension, amount of pension commuted and the fact that the commuted value of pension has been authorised separately through DDO.

c) The Account Officer shall make a note of payment of the commuted value of pension having been made to the retiring Government employee in his Service Book.

2. The case in which the pensioner who has been drawing pension through the bank and has not been paid commuted value of the pension by the Head of the Office on the authorisation issued by the Accounts Officer-

a) The payment in such a case will be made by the bank.

b) This will be done on the receipt of authorisation from PAO of the / Ministry/Department or the Accounts Officer of the UT Government/Administration through a separate authority letter.

c) The payment authority will be communicated to the concerned paying branch through CPAO in accordance with the procedure indicated in the Scheme of Payment of Pensions to the Central Government Civil Pensioners by authorised banks.

d) The paying branch on the receipt of the paying authority will arrange immediate payment of the amount payable by crediting the same to the account opened by the pensioner for payment of pension under intimation to the pensioner.

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