This is unprecedented relief for central government employees and millions of pensioners. The Department of Pension and Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances and Pensions, has issued a strict and decisive clarification regarding pension deductions. Now, once a pension or family pension is determined, it cannot be easily reduced.
This historic decision will provide financial security to pensioners who previously faced erroneous recovery notices years after retirement. Learn about the key provisions of this new DoPPW directive dated October 30, which ensures financial stability for millions of families.
A Lock on Pension Deductions
This landmark decision comes because, in many cases, the department had arbitrarily reduced pension amounts after years of claiming higher pension payments, causing financial hardship for retired employees. This new DoPPW directive now eliminates such insecurity.
Once pensions and family pensions have been finally determined or revised under Sub-Rule 1 of the CCS (Pension) Rules, 2021, they cannot be reduced. Reductions are possible only in one situation: if the pension amount has been increased due to a clerical error, i.e., a mistake in writing or calculation.
The rules clarify that if such an error is discovered after two years, the Department of Pension and Pensioners’ Welfare must obtain high-level approval before reducing the pension or family pension. This simply means that pensions cannot be reduced without the consent of top officials, ensuring the security of the pensioner.
Rules and Procedures for Recovery of Wrongly Overpaid Pensions
The Department has also clarified that if an overpaid pension is received due to a mistake in pension calculation, a humane and fair decision will be taken on the recovery. According to the Office Memorandum (OM), if the pensioner is not at fault or was misinformed by the department, resulting in an excess pension payment, the concerned ministry must decide whether to waive or recover the excess amount. This rule ensures that innocent pensioners do not suffer unnecessary financial penalties.
If the ministry decides to recover the excess pension amount, it must follow a well-defined and transparent process. First, the concerned ministry must consult the Department of Expenditure before making a recovery decision. Following this, the pensioner will be given a two-month notice to refund the excess amount. If the amount is not refunded despite the notice, the department may recover the amount by deducting installments from future pension payments.