Retiring Soon! Govt takes steps for timely payment of retirement benefits to employees

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Updated: March 12, 2021 11:48 AM

The timelines have been prescribed for each activity involved in the processing of a pension case and for payment of pension and gratuity to a retiring Government employee.

Government, retiring employees, retirement benefits, gratuity, ppo, CCS Pension RulesThe issuance of the PPO and payment of retirement benefits continue to be delayed in a large number of cases.

Government Employee Retirement Rules: Timely payment of retirement benefits to the retiring employees is important. Keeping this in view, the Department of Pension and Pensioners’ Welfare under the Ministry of Personnel & Public Grievance has issued an Office Memorandum to all the Ministries and Departments regarding timely payment of retirement benefits to the retiring employees.

The department has found that in spite of the timelines prescribed in the rules and instructions and simplification and streamlining of the procedures through BHAVISHYA ( the online Pension Sanction & Payment Tracking System), the 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 relates to non-payment of retirement dues for several months after retirement. Delay in settlement of retirement dues also leads to avoidable litigations. In a number of cases, courts have directed payment of interest for the delayed period to the affected pensioners, besides making adverse comments on the functioning of the administration.

New steps taken

In order to ensure timely payment of retirement dues in all cases, the government has now 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 the processing of the pension cases. The information available from the BHAVISHYA software may be utilized for this purpose.

Farewell programs are often organized in the offices on the occasion of the 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.

The departments have been informed that 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 employee.

A half-yearly statement may be submitted by each Department to the Secretary of the administrative Ministry/Department indicating the particulars of the Government employees 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.

Pension rules timeline

The 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 employee.

As per this timeline, the process of verification of service and other preparatory work should be undertaken one year before a Government employee is due to retire on superannuation, the Government employee 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.

A copy of pensioner PPO is to be handed over to the employee at the time of retirement along with other retirement dues. The Rules also provide for sanction of provisional pension in cases where a Government employee is likely to retire before finalization of his pension and gratuity.

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