8th Pay Commission Update: The central government has issued new rules in the interest of pensioners and their families, aiming to simplify and make the pension process more transparent. Specifically, the process for handling documents related to the Pension Payment Order (PPO) after the death of a pensioner or family pensioner has been made stricter. The government has also reaffirmed existing rules that protect pensioners from arbitrary deductions or recoveries after retirement. These changes aim to protect pensioners and their families from unnecessary difficulties and confusion.
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What the New Rules Say
The Central Pension Accounting Office (CPAO), under the Ministry of Finance, has clarified that upon the death of a pensioner or family pensioner, the PPO and other related documents can only be returned through the CPAO. Banks are not to send these documents directly to the Pay and Accounts Office (PAO) or the concerned department. This rule has been implemented because some banks were not following the correct procedure. Now, strict action can be taken against banks that violate this rule.
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Relief for Pensioners and Their Families
The biggest benefit of this directive will be for the pensioner’s family. Returning the PPO through the correct channel will prevent loss of documents, delays, or unnecessary complications. Often, after the death of a pensioner, the family is under emotional stress, and if pension-related documents get stuck, the problems only increase. Now, with everything being handled systematically through the CPAO, tracking will be easier, and future disputes will be minimized.
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Rules on Pension Deductions and Recoveries
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The government has also provided significant relief to pensioners regarding pension deductions and recoveries. Once the pension or family pension is finalized, it cannot be reduced unless there is a clear clerical error. Even if the error comes to light after two years, the pension cannot be reduced without the approval of the Department of Pension & Pensioners’ Welfare (DoPPW). If excess pension has been paid due to a government error and the pensioner is not at fault, a waiver of recovery will be considered. If recovery is necessary, the bank or department must give two months’ notice, and the deduction will be made in installments, not in a lump sum.