Delay in restoration of commutation amount by Pension Disbursing Banks even after completion of 15 years of retirement: Minutes of the 33rd SCOVA meeting

 Delay in restoration of commutation amount by Pension Disbursing Banks even after completion of 15 years of retirement: Minutes of the 33rd SCOVA meeting

[DoP&PW OM No. 42/11/2023-P&PW(D) dated 03.04.2024]

Sub:- Minutes of the 33rd SCOVA meeting held under the Chairmanship of Hon’ ble MOS(PP) on 22.02.2024, at Vigyan Bhawan, New Delhi-reg

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(33.9) Delay in restoration of commutation amount by Pension Disbursing Banks even after completion of 15 years of retirement

As per CCS (Pension) Rules, 1981, commutation amount is restored after completion of 15 years. However, it is found that commutation is not restored by Pension Disbursing Banks after 15 years. Excess commutation amount has been recovered even for more than one year. This is happening in respect of pensioners who have retired during 2007 to 2008 due to implementation of 6th CPC. Other Association may have similar problems due to introduction of SPARSH. There is no accountability for excess deduction of commutation amount. Therefore it is requested that excess amount recovered from pension for more than three months be paid to the individual with interest which should be recovered from the dealing officer and officials. If agreed to a letter may kindly be issued to all PDAs and departments.

Discussion/Decision taken in the meeting

Shri Sham Dev, Pr. Controller (PCDA) informed that the issue is largely related to Defence pensioners. In 2020, SPARSH portal was introduced and pensioners’ data started migrating from Banks to SPARSH which was deficient. Anomalies arising out of incorrect restoration dates of commutation in cases migrated from banks to SPARSH were taken up with the concerned Banks for providing correct set of dates (start date & restoration date). Out of 7.22 lakh cases received from SBI, restoration dates have already been updated in respect of 6 lakh cases, while 1.22 cases are under analysis.

Further, cases having excess recovery of commutation, identified as a result of above updation will be taken up for reversal of excess amount after verification by disbursement authorities.

Representative of SBI said that whatever data is in the system, the same will be shared with Ministry of Defence.

In view of the above, the item was closed.