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Home Personal Finance Centre Introduces New Guidelines to Ensure Timely Pension and Retirement Dues

Centre Introduces New Guidelines to Ensure Timely Pension and Retirement Dues

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The Department of Pension and Pensioners’ Welfare of the Central Government on Tuesday issued new guidelines for the settlement of retirement dues and issuance of Pension Payment Orders (PPOs) of Central Civil Services employees.

The new guidelines issued by the government are aimed at better coordination among ministries to ensure timely payment of pension to government employees after retirement. The Personnel Ministry said in a statement on Tuesday that there will be no delay in pension due to vigilance clearance.

Service records will be digitized

Key policy measures include digitisation of service records for reforms, future universalisation, constitution of an Inter-Ministerial Monitoring Committee in the Department of Pension and Pensioners’ Welfare and related ministries and appointment of Pension Mitra/Welfare Officers to assist pensioners in all departments.

PPO should include e-PPO

Special emphasis has been placed on the need for PPOs to include e-PPOs to further promote digitization of the pension process. The need for business process reengineering in each ministry/department has also been emphasized. Digitization of service records through the universalization of e-HRMS for all ministries and departments will help reduce errors and significantly shorten processing timelines.

Pension cannot be delayed in the absence of vigilance clearance.

It has been clarified that no pension can be delayed in the absence of vigilance clearance, as per the specific provisions of the CCS (Pension) Rules, 2021. It has been specifically emphasized that every Ministry/Department should ensure that vigilance clearance is issued in respect of its retiring employees at least three months before retirement, as the validity of vigilance clearance is three months as per the existing norms.

Inter-ministerial oversight mechanism to be set up to monitor processes

A robust inter-ministerial oversight mechanism (OSM) will be established for the “future” to monitor processes and ensure strict adherence to the timelines set for each stakeholder. This will include the formation of a high-level oversight committee consisting of the Controller General of Accounts, Director General (CGHS), Director General (NIC), Principal CCA/CCA (Ministry of Home Affairs), CCA/CCA (Ministry of Finance), and CPAO as members, with the Secretary (Pensions) as its chairperson.

PPO will be issued 60 days before retirement

With this system, nodal officers will be designated for oversight in the concerned ministry/department/bank and the pension disbursing banks. With these interventions, the government aims to ensure issuance of PPO/e-PPO for all Central Civil Services employees 60 days before retirement, payment of retirement dues one day after the date of retirement, and payment of first pension on the last day of the month following retirement.

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