The government is set to make a significant move for the thousands of employees across the country who are pushing for the old pension scheme (OPS). After two decades of protests over the new pension scheme (NPS) and calls to bring back the old system, the government has decided to enhance the new pension scheme with features similar to the old one.
The Central Pension Accounting Office (CPAO) has instructed all relevant officials to handle NPS pension cases just like they did with the OPS. On December 18, 2023, the CPAO had already laid out guidelines to ensure that retirees under the NPS receive their pensions promptly. An Office Memorandum (OM) from March 12 reminded the Pay and Accounts Offices (PAOs) to adhere to these orders.
The CPAO pointed out that some PAOs have been submitting three copies when processing NPS cases, which is unnecessary. The new directive states that only two copies should be submitted: one for the pensioner and one for the distributor. This change aims to speed up the pension payment process.
What issues were identified?
The CPAO has noticed that some PAOs are not following the guidelines when submitting NPS cases as if they were OPS cases. Specifically, they have been sending in three copies of the Provisional PPO, which was previously used for NPS submissions, instead of the required two copies of the PPO booklets (one for the pensioner and one for the distributor). The Authority has urged the CCAs and CAs to strictly adhere to the updated guidelines.
The Authority has directed all Chief CCAs, CCAs, CAs with independent charge, and AGs to ensure that the PAOs under their supervision adhere closely to the guidelines outlined in the earlier OM released by the CPAO on December 18, 2023. Additionally, all CPPCs of authorized banks are encouraged to thoroughly review the OM from this office and any related directives, and to take appropriate action.