Pension Payment Instructions to Pension Disbursing Authorities

Department of Pension and Pensioners Welfare has issued Consolidated Pension Payment Instructions to Pension Disbursing Authorities to ensure smooth payment of pension/family pension to pensioners /family pensioners.

Pension Payment Instructions

The Consolidated Pension Payment Instructions to Pension Disbursing Authorities provided through DoPPW Order No.No.12/4/2020-P&PW(C)-6300 dated 15th May 2020 is given below.

“On an analysis of the grievances received in this Department, it has been observed that updated and consolidated instructions will help improve the processing of Pensioners requests by banks and others. Hence, an attempt has been made herein, to consolidate relevant instructions issued by Department of Pension & Pensioners’ Welfare from time to time with regard to disbursement of pension and family pension. These Banks are adopting different procedures, while releasing pension/ family pension or seeking declarations/certificates from pensioners / family pensioners at different periodicity. Therefore, the following consolidated guidelines are being issued with an objective to create awareness among CPPCs/ bank branches on updated rules and instructions in this regard-:

(i) Requirement of pensioners to be present in person before paying bank branch for credit of first pension : The pensioner is no longer required to visit bank in person for credit of his first pension. The undertaking with regard to recovery of overpayment from pensioner is forwarded to concerned bank CPPC through CPAO along with the PPO. Bank will not insist for the presence of pensioner in order to activate their pension account. (DoPPW’s OM No. 1/27/2011-P&PW dated 7th may 2014)

(ii) Requirement of family pensioner to submit form 14 : On death of a pensioner, the spouse is not required to submit form 14, if he/she was having a joint account with the pensioner and authorisation for payment of family pension exists in the Pension Payment Order (PPO) in his/her favour. In such cases, spouse will be required to provide only a copy of the death certificate to the pension paying branch in order to commence his/her family pension. Pension disbursing bank will identify the family pensioners based on the information furnished in PPO and its own Know Your Customer procedure without insisting him/her to physically present himself/herself in the paying bank.(DoPPW’s OM No. 1/27/2011-P&PW dated 20th September 2013 )

(iii) Insisting spouse to open separate bank account for getting family pension –:Banks will not insist for opening a new account when the spouse was having a joint account with the pensioner and authorisation for payment of family pension exists in the Pension Payment Order (PPO) in his/her favour. (RBI Circular- Disbursement of Government Pension by Agency Banks dated September 9, 2019)

(iv) Submission of declaration for taking up commercial employment after retirement: This declaration is required from pensioners who have retired from Group ‘A’ services/posts. This declaration is required only in the first year after retirement of a Group A officer. Therefore, this declaration may not be sought from the pensioner after expiry of one year from the date of retirement. If a pensioner declares that he has taken up commercial employment within one year from the date of retirement without obtaining permission of Government, Pension disbursing bank will seek the orders of the Government through the CPAO before making further pension payments.

However, if a pensioner declares that he has taken up commercial employment within one year after retirement with the permission of the Government, Pension disbursing bank will continue to pay his /her pension. (Rule 10 of CCS Pension Rule).

Submission of re- employment certificate

(v) Submission of re- employment certificate: A pensioner is required to furnish a re-employment declaration once in a year i.e. in the month of November every year. If a pensioner declares that he is re-employed under the Central or State Government, or a Corporation/ Company/ Body/ Bank under them, the element of dearness relief during the period of re-employment may not be credited by the bank during the period of such re-employment.

However, if a pensioner declares about his re-employment and also states that in accordance with the relevant rules/instructions, entire amount of his/her pension has been ignored while fixing his/her pay in the re- employment post, he will continue to be eligible to draw dearness relief along with pension.

If a pensioner fails to submit requisite declaration in the month of November, the element of dearness relief on his monthly pension may not be credited by the bank and he may be paid pension excluding the dearness relief. Employment/re-employment of spouse does not affect his/her family pension. Therefore, Dearness Relief will continue to be paid with family pension to the spouse who is employed/re-employed in the aforesaid organizations. ( Rule 55 of CCS Pension Rules, 1972 ),

(vi) Submission of non-earning certificate : A family pensioner, other than spouse. has to submit a declaration of non-earning his/her livelihood every year in the month of November. As per rule 54(6) of CCS (Pension) Rules, 1972, family pension is allowed to a son, daughter, disabled sibling or parents of a deceased pensioner or a deceased Government servant until he/she starts earning his/her livelihood. This declaration is however, not required from the spouse for continuing his/her family pension. (Rule 54(6) of CCS Pension Rules).

(vii) Submission of declaration of marriage : A family pensioner, other than spouse, has to submit a declaration of non-marriage/non re-marriage every six months. The family pension is discontinued if she/he gets married/re-married. If the spouse is a recipient of family pension, no certificate of remarriage is required to be furnished by him/her. At the time of commencement of family pension, an undertaking will be obtained from him/her to the effect that in the event of his/her re¬marriage, he/she will report the fact to the pension disbursing bank promptly.

However childless widow of deceased Government servant and disabled child of a pensioner/Government servant will continue to get family pension even if they get married/re-married. (Rule 54(6) of CCS (PENSION) RULES, 1972)

Submission of life certificate

(viii) Submission of life certificate: Life certificate has to be submitted by every pensioner/family pensioners in the month of November every year. Pension Disbursing bank will also accept Aadhar enabled Digital Life Certificate “Jeevan Pramaan”. Old aged pensioners who are 80 years and above can submit life certificate in the month of October also.( D/o Pension & Pensioners Welfare’s OM No. 1/20/2018 P&PW (E) Dated 18.07.2019)

(ix) Submission of disability certificate : If family pension has been sanctioned to a disabled child and the disability is temporary, the guardian of such disabled child shall produce disability certificate once in every 5 years to the effect that he/she continues to suffer from such disorder /disability in order to continue family pension. No fresh certificate of disability would be required in the case of a child with permanent disability. A disabled child will also be required to self-certify every year that he/she has not started earning his/her livelihood (Rule 54(6) of CCS Pension Rule,1972)

Restoration of commuted portion of pension

(x) Restoration of commuted portion of pension: Restoration of commuted portion of pension after 15 years is to be made automatically by bank. Pensioner will not be asked to make application for restoration of commuted portion of pension. In cases where the date of commutation is not readily available in the PPO. the bank will obtain the information from the Accounts Officer who issued the PPO through Central Pension Accounting Office before restoring the commuted portion of pension.

The amount of commuted pension will not be deducted from family pension. Rule 10 of CCS (Commutation of Pension) Rules,1981

(xi) Paying additional amount of pension on attaining the age of 80 ears and above: The additional quantum of pension/family pension will be paid on attaining the age 80 years and above. Additional pension is paid from the first day of the month in which a pensioner/family pensioner completes the age of 80 years and above. For example, if a pensioner /family pensioner completes the age of 80 years in the month of August, 2020, he will be paid additional pension/family pension from 1st day of the month of August, 2020.

Bank will not insist for any request /application from pensioners /family pensioners in order to pay additional pension to them. The quantum of additional pension/family pension to the pensioners/family pensioners is as follows:-

Age of Pensioner	Additional quantum of pension
From 80 years to less than 85 years	20% of basic pension
From 85 years to less than 90 years	30% of basic pension
From 90 years to less than 95 years	40% of basic pension
From 95 years to less than 100 years	50% of basic pension
100 years or more	100% of basic pension

(D/o Pension & Pensioners Welfare’s OM No. dated 38/37/08 P&PW(A) dated 2nd September & 3rd October 2008)

(xii) Obtaining of Life Certificate from the doorstep of the pensioners:- The Department has issued directions to all the Pension Disbursing Banks to send SMSs/Emails to all their pensioners on 24th October, 1st November, 15th November and 25th November every year reminding them to submit their Annual Life Certificates by 30th November. The Department directed all Pension Disbursing Banks to make an exception list as on 1st December every year of those pensioners who fail to submit their Life Certificate and issue another SMS/Email to them for submitting the Life Certificate.

The bank in addition will also ask such pensioners through SMS/Email as to whether they are interested in submission of Life Certificate through a chargeable doorstep service, on a nominal charge not exceeding Rs. 60/-. (D/o Pension &Pensioners Welfare’s Circular No. 12/4/2020-P&PW(C)-6300, dated 17.01.2020).

All banks are advised to comply with the above instructions and to give wide publicity by putting up these instructions on their websites and also on the notice boards of the branches of the bank etc.

View The DoPPW Order Copy