In order to check delay in disbursal of pension, the Centre has decided to give Pension Payment Order (PPO) to all central government employees at the time of retirement along with their other dues.
At present, the scheme for payment of pensions to central government civil pensioners through authorised banks, issued by the central pension accounting office provides for an undertaking to be submitted by the retiring government servant or pensioner to the pension disbursing bank before commencement of pension.
"It has been found that the first payment of pension after retirement gets delayed mainly due to two reasons. One, the delay in receipt of intimation by the pensioner that pension papers have reached the bank and two, delay on part of the pensioner in approaching the bank for submission of undertaking," the Ministry of Personnel said.
The pensioner would no longer be required to visit the bank to activate the first payment of pension, it said in a recent order.
"Therefore, after ascertaining that the bank's copy has been dispatched by the central pension accounting office, the pensioner's copy of the Pension Payment Order (PPO) may be handed over to him at the time of retirement along with other retirement dues. This should be feasible in all cases where the government servant had submitted pension papers within the time-limits," the Personnel Ministry said.
An employee posted at a location away from the office of the Head of Office or who for any other reasons feels that it would be more convenient to him to obtain his copy of PPO from the bank, may inform the Head of Office of his option in writing while submitting his pension papers, it said.
The Ministry of Personnel has asked Office of Controller General of Accounts to instruct all Pay and Accounts Offices and all pension disbursing banks to follow its directives.
There are about 30 lakh Central government pensioners.
The Ministry has also issued a proforma of an undertaking to be filled by a pensioner and submitted to pension disbursing bank agreeing "to refund or make good any amount to which he is not entitled to".