Pension Procedure Latest updates
(1) What is the meaning of the following terms?
(a) Pension Disbursing Authority
(b) Pension Sanctioning Authority
(c) PPO Issuing Authority
(2) What should a Government servant do to claim his pension?
During service each Govt. servant should satisfy himself that service is being verified and recorded so in the service book and that there are no gaps in this. He should also ensure that nomination for all payments due to him are current and valid.
Six months prior to the retirement date, a Government servant is required to furnish certain information (e.g. joint photo with spouse, family details, name of the branch of the authorized bank through which he desires to draw his pension etc.) to his Head of Office in the prescribed Form No. 5.
The Head of Office is required to undertake the work of preparation of pension papers in Form No. 7 one year before the date on which a Government servant is due to retire on superannuation. After complying with the requirements of CCS Pension Rules 59 & 60, the Head of Office has to forward to the Pay & Accounts Officer Form 5 and Form 7 duly completed with a covering letter in Form 8 along with service book of the Government servant duly completed up-to-date and any other documents relied upon for the verification of service, not later than six months before the date of retirement of the Government servant.
(3) Who is to authorize the pension?
On receipt of pension papers from Head of Office, the Pay & Accounts Officer concerned will, after applying requisite checks, assess the amount of pension and issue the Pension Payment Order (both halves of Pension Payment Order, i.e. disburser’s portion and pensioner’s portion) not later than one month in advance of the date of retirement of the Government servant with forwarding authority letter, duly ink signed and embossed, to Central Pension Accounting Office (CPAO) who in turn will generate on computer a Special Seal Authority on the basis of details given in the Pension Payment Order and authority letter of the Pay & Accounts Officer and forward disburser’s half of PPO with Special Seal Authority to the Central Pension Processing Centre (CPPC) of the concerned authorized Bank. The Pay & Accounts officer after ascertaining that the special seal of authority has been issued shall send pensioners’ half of PPO to be handed over to the retiring employee. However, if the employee opts to take the PPO from bank, both halves shall be sent to CPAO. All records will be maintained in the CPPC and the disbursing branch, will make the payments to the pensioner on authorization of payment of pension by the CPPC. The CPPC however is only the back office for processing pensions, all pension related problems/grievances of the pensioners will continue to be handled by the concerned paying branch as before.
(4) What is to be done in case the pension has not been fixed correctly?
The Pay & Accounts Officer while issuing the pension authorization will forward one copy of the pension calculation sheet (out of three received by him from the Head of Office) as certified by the Head of Office and countersigned by him (Pay & Accounts Officer) to the pensioner along with the intimation of his having sent the pension payment authority/PPO to the CPAO. In case it is found from the pension calculation sheet that pension has been fixed incorrectly, the matter may be taken-up with the Head of Office. PAO concerned, if necessary, will issue an amendment authority letter to Central Pension Accounting Office for onward transmission to the CPPC to carry out
necessary amendments in both halves of PPO.
Fixed Medical Allowance and Amount
What is Fixed Medical Allowance and its Amount is the first question answered in the FAQ issued by DoPPW which was updated on 18-4-2018.
FIXED MEDICAL ALLOWANCE (FMA)
1. What is the Fixed Medical Allowance for pensioners? What is it’s amount?
Fixed Medical Allowance is granted to the pensioners residing in areas not covered by CGHS, if they are not using CGHS facility for OPD treatment from a CGHS dispensary in the nearest city. The amount of Fixed Medical Allowance has been increased from Rs. 500/- per month to Rs. 1000/- per month w.e.f. 01.07.2017.
2. Are the Government Pensioners who have not applied for CGHS card in spite of residing in areas covered by CGHS, also eligible for Fixed Medical Allowance?
In accordance with Office Memorandum No. 45/57/97-P&PW(C) dated 19.12.1997, Central Government pensioners/ family pensioners residing in areas not covered by Central Government Health Scheme administered by Ministry of Health and Family Welfare and corresponding Health Schemes administered by other Ministries/ Departments for their retired employees are entitled to Fixed Medical Allowance (FMA) for meeting expenditure on day-to-day medical expenses that do not require hospitalization. Government pensioners/ family pensioners residing in CGHS covered areas are eligible to avail medical facility under CGHS for both indoor as well as outpatient treatment on payment of CGHS contributions. Those pensioners/ family pensioners residing in CGHS areas who do not opt to avail CGHS facility are not eligible to receive FMA. Government pensioners/ family pensioners residing in Non CGHS area are also entitled to avail CGHS facility from the nearest city covered by CGHS for the both Indoor and OPD treatment on payment of CGHS contributions. If they do not avail CGHS facility, they are eligible for FMA. Government pensioners/ family pensioners not residing in CGHS area have an option to avail CGHS facility from the nearest CGHS city for Indoor treatment only (on payment of CGHS contribution) and to get monthly FMA in lieu of OPD facility.
3. In the case of those Pensioners who are in receipt of two pensions viz., service pension and family pension OR military pension and another civil pension to which category of pension, medical allowance shall be allocated.
If any pensioner or family pensioner receives two pensions, Fixed Medical Allowance is admissible from only one of the two organizations. As regards, pensioner who gets both military pension and civil pension, if the pensioner avails of the medical facilities provided by one of the civil or military organisations, he is not entitled to Fixed Medical Allowance and if he does not avail medical facilities from any of the organizations, he is entitled to Fixed Medical Allowance for only one of the two organizations
Commutation of Pension Latest FAQ
A pensioner can opt to commute up to 40% of the pension admissible at the time of retirement.
11. COMMUTATION OF PENSION
(11.1) How much of the pension can be commuted?
A pensioner can opt to commute up to 40% of the pension admissible at the time of retirement.
(11.2) Is there any restriction on commutation of pension?
Yes. No Government servant against whom departmental or judicial proceedings as referred to in Rule 9 of the Pension Rules, have been instituted before the date of his retirement or the pensioner against whom such proceedings are instituted after the date of retirement, shall be eligible to commute a fraction of his provisional pension authorised under Rule 69 of the Pension Rules or the pension, as the case may be, during the pendency of such proceedings.
(11.3) Whether the family can be given the benefit of 40 per cent commutation if a pensioner dies before exercising option?
No, since the commutation does not become absolute in such cases the benefit cannot be given to the family.
(11.4) What will be the effective date of reduced pension if,
a) The applicant is drawing pension from PAO?
b) The applicant is drawing pension from a branch of Public Sector Bank?
c) A Government servant who retired on superannuation and commutation applied in Form 1-A of CCS(Commutation of Pension) Rules before the date of retirement and commutation paid through Head of Office within the first month of retirement ?
(a) The reduction in the amount of pension on account of the commutation shall be operative from the date of receipt of the commuted value of pension or at the end of three months after issue of authority by the PAO for the payment of commuted value of pension, whichever is earlier.
(b) The reduction in the amount of pension on account of commutation shall be operative from the date on which the commuted value of pension is credited by the bank to the applicant’s account to which pension is being credited.
(c) The reduction in the amount of pension on account of commutation shall be operative from its inception. The commuted value is paid in two stages as such the reduction in the amount of pension shall be made from the respective dates of the payment as per (a) or (b) above, as the case may be.
(11.5) How does the period of 15 years for restoration of commuted portion of pension reckon?
The 15-year period for restoration may be reckoned from the date of retirement itself only in case where the payment of commuted value of pension was/is made during the first month of retirement leading to appropriate reduction on account of commutation in the first pension itself. In all other cases, where the commutation of pension led/leads to a reduction in the second or subsequent month, the 15-year period will be reckoned from the date on which reduction in pension became/ becomes effective.
(11.6) Is any authorization for restoration of commuted portion of pension after 15 years required from PAO/CPAO?
No, Restoration of commuted portion of pension after 15 years (from the date of crediting of commuted value) or as fixed by the Government from time to time is to be made automatically by bank. In cases where the date of commutation is not readily available in the PPO, the bank will obtain the information from the concerned PAO who issued the PPO through CPAO before restoring the commuted portion of pension.
(11.7) What has the pensioner to do for restoration of commuted portion of pension? From what date is it restored?
Commuted portion of pension is to be restored after 15 years from the date of commutation. This restoration was introduced w.e.f 01.04.1985. The commuted amount of pension shall be restored on completion of fifteen years from the date the reduction of pension on account of commutation becomes operative in accordance with Rule 6 of CCS (Commutation of Pension) Rules provided that when the commutation amount was paid on more than one occasion on account of upward revision of pension, the respective commuted amount of pension shall be restored on completion on fifteen years from the respective date(s).
(11.8) What is reduce/residual/residuary pension?
Reduce/residual/residuary pension is the part of pension which is payable after deducting commuted portion of the pension.
(11.9) What would be the age to be used for commutation of additional commutable pension and which factor would be used for such additional commuted value of pension?
The age reckoned for calculation of commuted value of pension at the time of original application for commutation of pension will apply for calculation of commutation value of additional commutable pension. However, as mentioned in the OM dated 04.08.2016, the commutation factor in the revised Table of Commutation Value for Pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension.
(11.10) From which date the reduction in pension on account of additional commutation of pension will take effect?
Reduction in pension on account of additional commutation of pension will be in two or more stages as per the provisions contained in Rule 6 and Rule 10 of the CCS(Commutation of Pension) Rules,1981.
(11.11) What will be the date of restoration of additional commutation of pension?
The commuted portion of pension shall be restored after 15 years from the respective dates of commutation as provided in Government of India decision No.1 under the Rule 10 of CCS(Commutation of Pension) Rules,1981. Necessary endorsement should be made on PPO.
(11.12) A person with D.O.B. on first of month retires in the previous month. What will be the value to be taken for calculation from commutation table ?
The commutation of pension become absolute on the date following the date of his retirement. The commutation value taken will be Age on 61st Birthday (i.e. 8.194) in the present commutation table, if he has retired on attaining the age of 60 years.
(11.13) Whether a person who has commuted some percentage of his pension, can commute remaining part up to maximum of 40% afterwards( e.g if a person have commuted 20% of his pension on retirement and the same was duly authorized, whether he can commute the remaining 20% of his pension)?
There is no provision for second option for commutation after the first option becomes absolute.