PCDA Circular 208: Points and Clarification on Common Errors being noticed or brought to the notice by pensioners/family pensioners or PDAs etc.

O/o the Principal Controller of Defence Accounts (Pension)

Draupadighat, Allahabad 0 211014

Circular No. 208

No. AT/Tech/70-Vol. XXVI 

Dated: 25/01/2019 

To

1. The Chief Accountant, RBI Deptt. of Govt. Bank Accounts, Central office C-7, Second Floor, Bandre- Kurla Complex, P B No. 8143, Bandre East, Mumbai-400051
2. The Director of Treasuries of all State……………
3. The Manager CPPC of Public Sector Banks including IDBI
4. The CDA (PD) Meerut
5. The CDA, Chennai
6. The Nodal Officers (ICICI/AXIS/HDFC Bank)….
7. The Pay & Accounts Officer……………
8. The Military. & Air Attache, Indian
9. Embassy, Kathmandu, Nepal 10. The D.P.D.O…………………….
11. Post Master, Kathua (J & K) and Camp Bell Bay

Sub: Common errors being noticed in screen audit/spot audit or brought to the notice of this office by the pensioners/family pensioners or PDAs etc.

There are various common errors being noticed during Screen Audit/Spot Audit conducted by this office or brought to the notice of this office by the pensioners/family pensioners or Pension Disbursing Agencies (PDAs) etc. Hence, competent authority has decided to issue a comprehensive circular highlighting the common errors being noticed during Screen Audit/Spot Audit conducted by this office or brought to the notice of this office by pensioners/family pensioners or PDAs etc. along with corrective measures required to be taken by the PDAs to avoid the recurrence of similar irregularities in future. 

2. Common errors and the corrective measures required to be taken by the PDAs to avoid the recurrence of irregularities in future are as below:

Sl.No.	Common errors
(i)	Release of withheld amount of gratuity/DCRG
(ii)	Restoration of Commuted Portion of Pension after 15 years of retirement
(iii)	Payment of Fixed Medical Allowance
(iv)	Payment of Enhanced Rate of Ordinary Family Pension
(v)	Payment of Additional quantum of pension/family pension to pensioners/family pensioners of 80 years of age and above
(vi)	Payment of Dearness Relief on pension/family pension
(vii)	Payment of dearness relief during re-employment of pensioners/family pensioners
(viii)	Compensation by the Agency Banks for delay in crediting pension/family pension/arrear thereof.

3. Necessary instructions for the above common errors have already been issued vide this office Circular No. 165 dated 22/02/2013. Circular No. 200 dated 12/04/2018 has also been issued to regulate payment of dearness relief on pension during re-employment of pensioners/family pensioners. 

1. Apart from the above, following common errors are also being noticed and corrective measures required to be taken is appended below:

Sl. No.	Points/Clarification
(i)	Point	Revision of pension of pre-2006 Pensioners/family pensioners who retired as NCC Whole Time Officers and MNS (Local)
	Clarification	It has come to the notice of this office that some of the PDAs have revised pension of NCC Whole Time Officers treating as Commissioned Officers of the armed forces instead of civilian pensioners under 6th CPC effective from 01/01/2006. In this regard, it is stated that although NCC Whole Time Officers have rank/designation like Lieutenant, Captain, Major and Lt. Col similar to pensioners in the Army and equivalent ranks/designations in Navy/Air Force of Armed Forces, but pension of the NCC Whole Time Officers is sanctioned/revised treating as civilian pensioners and in their cases PPO is issued in ‘C’ series by this office. Their pension under 6th CPC is required to be firstly revised as per this office Circular No. 57 dated 17/09/2008. Pension so revised as per Circular No. 57 is required to be compared with modified parity as per this office Circular No. C-167 dated 21/06/2017. Revised pension whichever beneficial under Circular No. 57 and Circular No. C-167 is required to be payable w.e.f. 01/01/2006 in the case NCC Whole Time Officers. However, pension of MNS (Local) is required to be revised as per this office Circular No. 57 dated 17/09/2008, Circular No. 102 dated 11/02/2013, Circular No. C-144 dated 14/08/2015 and Circular No. C-149 dated 08/04/2016 as amended time to time.
(ii)	Point	Wrong revision of pension of Reservist pensioners.
	Clarification	It has been observed that pension of some of the Reservist pensioners has been revised treating rank of the pensioners as Sepoy or otherwise. In this context, it is intimated that such type of pensioners are entitled for revised pension @ Rs. 3,500/- per month w.e.f. 01/01/2006 under 6th CPC and @ Rs. 9,000/- per month w.e.f. 01/01/2016 under 7th CPC. In case, the rank of the pensioner is shown as Reservist in the original PPO/Corr. PPO, but rank has been shown as Sepoy or otherwise in corrigendum PPO issued under 6th CPC series “S/Corr/6th CPC….”, in such situation pension of the pensioner is required to be revised for the rank of Reservist and matter may be referred to this office for clarification/necessary action in regard to rank of the pensioner.
(iii)	Point	Payment of family pension without notification of name of family pensioner through PPO/Corrigendum PPO.
	Clarification	It has been observed that some of the individuals are being paid family pension without notification of his/her name in the PPO/Corrigendum PPO. Therefore, it is advised that such type of individuals are not entitled for family pension without notification of his/her name in the PPO/Corrigendum PPO. In such cases, the individual may be advised to approach deceased pensioner’s Service HQrs/Records Office/Head of the Office as the case may be for processing of the claim for notification of the name for family pension by the Pension Sanctioning Authority (PSA). In case, the name of the family pensioner has not been notified in the original PPO/Corr. PPO, but the name of the family pensioner has erroneously been shown in the corrigendum PPO issued under 6th CPC, in such situation, the name of the family pensioner is not required to be considered for family pension and the claimant may advised to contact concerned Service HQrs/Records Office/Head of the Office as the case may be for processing of the claim for notification of the name for family pension by the Pension Sanctioning Authority (PSA).
(iv)	Point	Revision of pension in respect of Post-2006 Havildars granted ACP-I who later on promoted to the Rank of Hony Nb Sub.
	Clarification	It is clarified that pension of Post-2006 Havildars granted ACP-I, who got pensionary benefits of Nb-Sub rank but later on promoted to the rank of Hony. Nb-Sub for which Corr. PPOs were issued revising the rank as Hony. Nb-Sub. Pension in such cases shall be revised for the rank of Nb-Sub as per One Rank One Pension (OROP) referring this office Circular No. 555 dated 04/02/2016.
(v)	Point	Revision of pension under as per One Rank One Pension (OROP) in respect of Fly. Sergeant.
	Clarification	The rank of Fly. Sergeant has not been mentioned in the equivalence of ranks in Appendix – ‘Y’ of this office Circular No. 555 dated 04.02.2016 & Circular No. 557 dated 17.03.2016. In this regard, it is clarified that rank of Fly. Sergeant is equivalent to JWO of the Air Force and Naib Subedar of the Army. Hence, pension of Fly. Sergeant shall be revised from the Tables of Naib Subedar as per One Rank One Pension (OROP) referring this office Circular No. 555 dated 04/02/2016.
(vi)	Point	Non-payment of correct rate of monetary allowance attached with Gallantry Awards.
	Clarification	Representations are being received in this office that Monetary Allowances attached to pre and post independence Gallantry Awards has not been revised w.e.f. 01/08/2017. During audit of pension payment scrolls of the Pension Disbursing Authorities (PDAs), this office has also observed that in some of the cases, the Monetary Allowances attached to pre and post independence Gallantry Awards has not been revised w.e.f. 01/08/2017 as per this office Circular No. 30 dated 22/12/2017. Therefore, it is requested to the PDAs that the Monetary Allowances attached to pre and post independence Gallantry Awards may be revised w.e.f. 01/08/2017 as per this office Circular No. 30 dated 22/12/2017.
(vii)	Point	Non-restriction of pension as per terms of engagement.
	Clarification	In some cases, it has been observed that pension as per One Rank One Pension (OROP) referring this office Circular No. 555 dated 04/02/2016 has not been revised for the actual qualifying service subject to the maximum term of engagement for each rank as applicable from time to time as per Appendix-X of the ibid circular as amended time to time. Therefore, PDAs are requested to revise the pension as per the tables enclosed with the ibid circular after ascertaining the actual qualifying service subject to the maximum term of engagement for each rank as applicable from time to time.
(viii)	Point	Rounding of qualifying service.
	Clarification	While calculating the length of qualifying service for the pensionary benefits, a fraction of a year equal to 3 months and above but less than 9 months is treated as one half (1/2) year period, and nine months or more but less than a year is treated as a completed one year for determining the amount of pension w.e.f. 28/06/1983. Prior to 28/06/1983, the broken period of service of 180 days or more is to be treated as ½ years w.e.f. 22/04/1960. Accordingly, fraction of a year is required be rounded of as per following table: Period Rounding of Prior to 22/04/1960 Fraction of a year is ignored. 22/04/1960 27/06/1983 Fraction of a year of 180 days or more is to be treated as ½ years. 28/06/1983 Onwards Fraction of a year equal to 3 months and above but less than 9 months is treated as half (1/2) year period and nine months or more but less than a year is treated as a completed one year In view of above, if qualifying service has been mentioned as 17 years 10 months in PPO/Corr PPO, it should be rounded upto 18 years for post 28.06.1983 retirees, 17.5 years for pre-28.6.1983 but post 22.04.1960 and 17 years for pre-22.04.1960 retirees.
(ix)	Point	Incorrect revision of Liberalised Family Pension (LFP) and Special Family Pension (SFP).
	Clarification	Some of the family pensioners are representing to this office that type of family pension sanctioned to his/her has not been correctly revised by the PDAs. The matters have also been examined in this office with the Pension Payment Scrolls of the PDAs available in this office and it has been observed that in some of the cases, the family pensioners are not being paid correct rate of revised family pension for which family pensioner is entitled. For example: In some of the cases, it has also been observed that although the family pensioners are entitled for LFP or SFP, but the family pensioner is being paid ordinary rate of family pension. Therefore, it is advised to the PDAs that family pension may be revised for the type of pension she/he is entitled for.
(x)	Point	Non revision of pension as per rank of the pensioner.
	Clarification	It has been observed that in some of the cases, the pension of the pensioner has not been revised as per the rank of the pensioner for which the pensioner is entitled. For example: Pension of Commissioned officer of the rank of Lt. Cdr. in Navy which is equivalent to Major in Army and Sqn Ldr. in Air Force is being paid pension for the rank of Lt. Col. of Army as per One Rank One Pension (OROP) referring this office Circular No. 555 dated 04/02/2016. Therefore, it is advised to the PDA that pension may be revised after confirming the equivalent rank as mentioned in Appendix-Y of Circular No. 555.
(xi)	Point	Non-revision of pension of Commissioned Officers as per the corps/categories of pensioners.
	Clarification	The pension of the Commissioned Officers is required to be revised as per the corps/categories of the officers mentioned in the PPO/Corrigendum PPO issued by the Pension Sanctioning Authority. In case of Army Officers, the corps/categories are identified from the prefix attached to their personnel no. The prefix and corresponding category of officers are mentioned as under- Prefix attached with Personnel No. Category of pensioners of Commissioned officers IC, SL, SC, RC Regular Commissioned officers MR Officers of Army Medical Corps DR Officers of Army Dental Corps V Officers of Remount Veterinary Corps TA Officers of Territorial Army NR Officers of MNS NTR Non-technical Officers of Army Medical Corps EC Emergency Service Commissioned Officers SS Short Service Commissioned Officers. The non-technical officers of Army Medical Corps are entitled to pension/family pension for regular Army officers and not as per AMC/ADC/RVC.
(xii)	Point	Wrong payment of double service element of pension for a service for which pensioner has beensanctioned War Injury Pension.
	Clarification	In some of the cases, it has been observed that War Injury Pension consisting of service element and war injury element has been sanctioned as a single amount under “D/BC” series by the Pension Sanctioning Authority. In such type of PPOs, service pension/element already sanctioned under “S” series has either been held in abeyance or cancelled. But, during audit of pension disbursed by the PDA, it has been observed that the pensioner is being paid service pension under “D/BC” series as well as “S” series which causes over payment of pension.
(xiii)	Point	Enhancement of amount of Ex-Gratia payable to Reservists and families of Reservists.
	Clarification	The existing amount of ex-gratia of Rs. 600/- per month being paid to reservists and the amount of ex-gratia of Rs. 605/- per month being paid to dependents members of families i.e. widow and dependents children of deceased beneficiaries has been revised w.e.f. 4th June 2013 vide this office Circular No. 521dated 30/12/2013 at the following rates:  Kind of recipients Enhanced amount of basic monthly ex-gratia Reservists Rs. 750/- Widows and dependent children of the deceased Reservists Rs. 645/- Dearness ex-gratia equal to 50% of the enhanced amount of ex- gratia and Dearness Relief, as notified from time to time, on the sums of the enhanced amounts of ex-gratia and dearness ex-gratia shall also be admissible to them.
(xiv)	Point	Payment of family pension beyond the period mentioned in the PPO/Corrigendum PPO.
	Clarification	In some cases, it has been observed that the family pensioners have been sanctioned family pension for the limited period i.e. upto 25 years of age, till earning livelihood, till marriage/re-marriage, till widowhood etc. But, the family pension is being paid beyond the period mentioned in the PPO/Corrigendum PPO. Hence, family pension is required to be restricted up to the period/conditions mentioned in the PPO/Corrigendum PPO.
(xv)	Point	Payment of disability/war injury element of pension beyond the period mentioned in the PPO/Corrigendum PPO.
	Clarification	In some cases, it has been observed that disability/war injury element of pension have been sanctioned to the pensioners for the limited period. But, disability/war injury element of pension is being paid beyond the period mentioned in the PPO/Corrigendum PPO. Hence, disability/war injury element of pension is required to be restricted up to the period mentioned in the PPO/Corrigendum PPO.
(xvi)	Point	Benefit of delinking of 33 years of qualifying service for revision of pension of Pre-2006 pensioners/family pensioners
	Clarification	Complaints from pensioners as well as other agencies are being received in this office that benefit of delinking of 33 years of qualifying service for revision of pension of Pre-2006 pensioners has not been given to pensioners/family pensioners. Necessary instructions in the matter have already been issued vide this office Circular No. 568 dated 13/10/2016 in respect of the Armed Forces pensioners/family pensioners and Circular No. C-149 dated 08/04/2016 in respect of Defence civilian pensioners/family pensioners. As circulars in the matter have been issued more than two year ago, it is requested to the PDAs to review the left over cases and settle urgently.
(xvii)	Point	Non-revision of pension as per One Rank One Pension.
	Clarification	It has also been observed that in some of the cases, the pension of the Armed Forces pensioners has not been revised as per One Rank One Pension (OROP) effective from 01/07/2014 referring this office Circular No. 555 dated 04/02/2016. Hence, such pensioners/family pensioners are also being paid less pension than the entitlement as per 7th CPC. As circulars in the matter have been issued more than two year ago, it is requested from the PDAs to review left over cases and settle urgently.
(xviii)	Point	Payment of pension/family pension without PPO(s)
	Clarification	In some cases, it has been observed that pensioners/family pensioners are being paid pension without the copy of PPO(s) issued in that case. For payment of pension, it is necessary that the PDA may have all the PPO(s) of the concern pensioners/family pensioners in the pension file of the pensioner maintained by the PDA. If the PDA is not having all the PPO(s) in any case, the missing PPO(s) may be obtained from the concerned Pension Sanctioning Authority (PSA) by sending loss certificate in the prescribed format and other necessary documents for issuance of duplicate copy of PPO(s).
(xviii)	Point	Revision of Pension of DSC pensioners as per One Rank One Pension (Circular No. 555 dated 04/02/2016)
	Clarification	Pension of DSC personnel who are in the receipt of pension for DSC service only (i.e. those who served only in DSC or those who are getting single pension for the services rendered both in the Army and the DSC by way of counting former service in the Army along with the service in the DSC) shall be revised based on the same rates as provided for regular army under Table No. 7 of Circular No. 555 dated 04/02/2016. DSC personnel on ‘clerical duty’ and ‘other duty’ are entitled for pension of regular army personnel of group ‘Y’. However, for JCOs/ORs of DSC in receipt of 2nd pension due to their services in the DSC, their pension is required to be revised as per Table No. 8 of ibid circular. DSC personnel on ‘clerical duty’ and ‘other duty’ are entitled for the same rate of pension.
(xix)	Point	Revision of Pension of Territorial Army as per One Rank One Pension (Circular No. 555 dated 04/02/2016)
	Clarification	It has been observed that in some of the cases, the pension of the Territorial Army pensioners have been revised for other category of pensioners. For example: Service pension of JCO/ORs of Territorial Army has been revised as per Table No. 7 of Circular No. 555 dated 04/02/2016 instead of Table No. 9 of ibid circular.
(xx)	Point	Is the payment of pension in cash or through a joint account with or without "EITHER or SURVIVOR" facility permitted in the Scheme for Payment of Defence Pension by Public Sector Banks?
	Clarification	Payment of pension in cash is not permitted in the scheme. However, the pension payment is permitted to be credited to a joint account operated by the pensioner with his/her spouse (either by ‘Former or Survivor’ or ‘Either or Survivor’ basis) in whose favour an authorization exists in the Pension Payment Order (PPO), subject to the following conditions: (a) Once pension has been credited to a pensioner's bank account, the liability of the Government/Bank ceases. No further liability arises, even if the spouse wrongly draws from the account. (b) As pension is payable only during the life of a pensioner, his/her death shall be intimated to the bank at the earliest and in any case within one month of the demise, so that the bank does not continue crediting monthly pension to the joint account with the spouse, after the death of the pensioner. If however, any amount has been wrongly credited to the joint account, it shall be recoverable from the joint account and/or any other account held by the pensioners/spouse either individually or jointly. The legal heirs, successors, executors etc. shall also be liable to refund any amount, which has been wrongly credited to the joint account. (c) Pensioners who are drawing or desiring to get their pension from the Bank are required to submit an undertaking for recovery of over payment of pension/family pension to the branch bank, from where they are drawing pension in the prescribed form i.e. Annexure-K of “Scheme for payment of Defence Pensions by Public Sector Banks”. This would also be signed by the pensioner's spouse.
(xxi)	Point	Is Ordinary Family pension available to a widow/widower after remarriage?
	Clarification	Earlier ordinary family pension to widow/widower was discontinued on re-marriage. However, scheme of Ordinary Family Pension has now been modified. Now, childless widow is entitled to Ordinary Family Pension even after her re-marriage w.e.f. 01/01/2006. The childless widow of a deceased employee who expired before 01/01/2006 shall also be eligible for family pension irrespective of the fact that the re-marriage of the widow had taken place prior to/on or after 01/01/2006 subject to fulfillment of prescribed conditions mentioned below: (i) The childless widow of a deceased pensioner shall continue to be paid family pension even after her re-marriage subject to the condition that the family pension shall cease once her independent income from all other sources becomes equal to or higher than the minimum prescribed family pension in the Central Government. The family pensioner in such cases would be required to give a declaration regarding her income from all other sources to the Pension Disbursing Authority every six months. (ii) Where the Ordinary Family Pension has been sanctioned till widowhood in the PPO, the family pension will not be automatically continued on re-marriage to childless widow. In such situation, corrigendum PPO for continuance of family pension to childless widow who re-marriage is required to be issued by the concern Pension Sanctioning Authority. (iii) Family pension is not available to a childless widower after his remarriage.
(xxii)	Point	Is the Dearness Relief payable on original basic pension or on reduced pension after commutation?
	Clarification	In some of the cases, it has been observed that dearness relief is being paid on reduced pension after deduction of commuted portion of pension. In this regard, it is intimated that Dearness Relief is payable on original basic pension before commutation.
(xxii)	Point	Wrong debit
	Clarification	In some of the cases, it has been observed that although the pensioner is not defence pensioners, but pension disbursed to him is wrongly debited from defence head treating pensioners as defence pensioners. Hence, it is advised to the PDAs that such type of pensioners whose PPO(s) have not been issued by Pr. CDA (Pensions) Allahabad, JCDA (Air Force) New Delhi and Pr. CDA (Navy) Mumbai, their pension may not be debited from defence head. Their pension may be booked under concerned head of account and pension already disbursed to such pensioners and debited to defence head may be credited to defence head by sending demand draft of wrongly debited amount or through credit scrolls.

This Circular has been uploaded on this office website www.pcdapension.nic.in for dissemination to all concerned.

(SUSHIL KUMAR SINGH)

Addl. CDA (Pensions)

Source: Click here to view/download the PDF
[http://pcdapension.nic.in/pcdapension/6cpc/Circular-208.pdf]