Manner of disposal of PPO – death of the pensioner with no claimant authorized for family pension in the same PPO

| October 9, 2014

Death of the pensioner with no claimant authorized for family pension in the same PPO

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE

TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/Tech/Bank Performance/2014-15/511-581

23 .09.2014

OFFICE MEMORANDUM

Sub: Manner of disposal of PPO – death of the pensioner with no claimant authorized for family pension in the same PPO

The Central Pension Accounting Office is a nodal agency for administering the Scheme for pension disbursement through public sector banks. It is in continuous process of streamlining and simplifying the pension delivery to the utmost satisfaction of Pensioner’s/ family pensioner’s comfort and convenience. The disbursement of family pension to the “family pensioner other than spouse” like widowed/divorced daughter is one of those areas in which a lot of efforts have been put in to simply and make them effective and efficient.

But it has been observed that a number of court cases and legal cases received in CPAO are mainly related to delay in the commencement of family pension to the family pensioner other than a spouse and arisen due to negligence on the part of the banks in returning the disbursers’ and the pensioners’ half of the PPO to CPAO if there is no family pensioner stands to be authorized through the same PPO.

In this context, Para 23.3 of “Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorized Banks” provides the manner of disposal of PPOs wherein no claimant exists after the death of pensioner/family pensioner with the stipulation that the disburser’s portion as well as pensioner’s portion of the PPO is to be returned to CPAO for updation of its record and onward transmission to the PAD/AG who had issued the PPO for similar action and record.

The non-compliance of these instructions by the banks is resulting increase in receipt of number of court cases and legal cases in CPAO, non-updation of CPAO’s and PAO’s relevant record, delay in authorization of family pension to the eligible family members for whom a new PPO is to be issued, causing hardship to the claimants, points raised by the Pensioners’ Welfare Associations from different platforms including SCOVA meetings.

The Para 6.3.1 of the CPPC Guidelines also stressed upon the strict adherence to the codal provisions of “Scheme Booklet”, CCS[Pension] Rules, Orders, Guidelines on Pension issued by Government of India/Reserve Bank of India from time to time.

Non-compliance of codal provisions by the banks is a very serious lapse on their part. Therefore, it is imperative to instruct the Heads of CPPC of all the banks/ Heads of Govt. Business Divisions to take a stock of these cases and send a Review Report within seven days from the receipt of this Office Memorandum followed by returning of both the halves of all such PPOs wherein pensioner/spouse has died and no claimant for family pension has been authorized in the PPO. The matter may be taken
on priority as it is under review at the higher level.

This issues with the approval of Chief Controller [Pensions].

The Hindi version will follow.

(M.M. Kaushik)
Asstt. Controller of Accounts

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Category: Department of Expenditure, Finance Ministry

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