Central Civil Services Pension – Frequently Asked Questions
1. Which rules Govern Pensions ?
Central Civil Services Pension Rules.
2. Who is the Pension Sanctioning Authority ?
Head of Office in the Ministry/Department/Office where a Government servant last served is the pension sanctioning authority.
3. What should a Government servant do to claim his pension ?
The Head of Office is required undertake the work of preparation of pension papers in form No. 7 of Pension Rules two years before the date on which a Government is due to retire on superannuation. Eight months prior to the retirement date, a Government servant is required to furnish certain information (e.g. joint photo with wife/husband, family details, name of the branch of the authorized bank through which he desires to draw his pension etc.) to his Head of Office in the prescribed form No. 5. After complying with the requirements of CCS Pension Rules 59 & 60, the Head of Office has to forward to the Pay & Accounts Officer form 5 and form 7 duly completed with a covering letter in form 8 along with service book of the Government servant duly completed up-to-date and any other documents relied upon for the verification of service, not later than six months before the date of Retirement of Government Servant.
4. Who is to authorize the pension ?
On receipt of pension papers from Head of Office, the Pay & Accounts Officer concerned will, after applying requisite checks, assess the amount of pension and issue the pension payment order (both halves of Pension Payment Order, i.e. disburser’s portion and pensioner’s portion) not later than one month in advance of the date of retirement of the Government servant with forwarding authority letter, duly ink-signed and embossed, to Central Pension Accounting Office which in turn will generate a Special Seal Authority on the basis of details given in the Pension Payment Order. the authority letter of the Pay & Accounts Officer and both halves of PPO with Special Seal Authority shall be forwarded to the concerned link branch of the authorized Bank in the State/Union Territory, which after keeping the details in the index register will transmit the documents received from the C.P.A.O. to its paying branch opted for by the pensioner for making payment thereof.
5. What is required in case the pension has not been fixed correctly ?
The Pay & Accounts Officer while issuing the pension authorization shall forward one copy of the pension calculation sheet (out of three received by him from the Head of Office) as certified by the Head of Office and countersigned by him (Pay & Accounts Officer) to the pensioner alongwith the intimation of his having sent the pension payment authority/PPO to the CPAO. In case it is found from the pension calculation sheet that pension has been fixed incorrectly, the matter may be taken-up with the Head of Office, PAO concerned who, if necessary, will issue an amendment authority letter to Central Pension Accounting Office for onward transmission to the paying branch (through its link branch) to carry out necessary amendments in both halves of PPO.
6.Whether retirement gratuity, death gratuity can be paid by PAO/CPAO ?
No. The amount of retirement/death gratuity as determined by the PAO shall be intimated to the Head of Office who will draw and disburse the amount to the retired Government servant or to the nominee/family as the case may be.
7. Is the Dearness Relief payable on original basic pension or on reduced pension after commutation ?
The Dearness Relief is payable on original basic pension before commutation.
8. Is any authorization from PAO/CPAO required for payment of dearness relief at increase rates to pensioners/family pensioners ?
No. Whenever any additional relief on pension/family pension is sanctioned by Government an intimation to this effect is sent by the Ministry of Personnel, Public Grievances and Pensions (Deptt. of Pension and Pensioners’ Welfare) to the authorised representative of each nominated Public Sector Bank. Each link branch will be responsible for ensuring that copies of the orders sanctioning additional relief have actually been received by their paying branches and payment of additional relief at the revised rates to the pensioners has been commenced by them without any undue delay. Whenever there is change in the rates of dearness relief on pension, paying branch will keep a note of rates along with date from which relief would take effect in disburser’s portion and the pensioner’s half of the PPO under attestation by the branch Manager or in-charge before commencing payment of relief at the revised rates and/or payment of arrears, if any, due to the pensioner on this account.
9. Is there any restriction on commutation of pension ?
Yes. No Government servant against whom departmental or judicial proceedings as referred to in Rule 9 of the Pension Rules, have been instituted before the date of his retirement or the pensioner against whom such proceedings are instituted after the date of retirement should be eligible to commute a fraction of his provisional pension authorised under Rule 69 of the Pension Rules or the pension, as the case may be, during the pendency of such proceedings.
10. Is there any limit on commutation of pension ? A Government servant shall be entitled to commute for a lump sum payment up to 40 per cent of his pension. 11. What will be the effective date of reduced pension if, a) The applicant is drawing pension from PAO? b) The applicant is drawing pension from a branch of an authorised bank ? c) A Government servant who retired on superannuation and applied for commutation in form 1-A of CCS(Commutation of Pension)Rules upto the date of retirement and commutation paid through Head of Office within the first month of retirement ? d) In case of commutation of provisional pension and retrospective revision of final pension?
a) The reduction in the amount of pension on account of the commutation shall be operative from the date of receipt of the commuted value of pension or at the end of three months after issue of authority by the PAO for the payment of commuted value of pension, whichever is earlier. b) The reduction in the amount of pension on account of commutation shall be operative from the date on which the commuted value of pension is credited by the bank to the applicant’s account to which pension is being credited. c) The reduction in the amount of pension on account of commutation shall be operative from its inception. The commuted value is paid in two stages as such the reduction in the amount of pension shall be made from the respective dates of the payment as per (a) or (b) above, as the case may be.
11. How is the period of 15 years for restoration of commuted portion of pension reckon ?
The 15-year period for restoration may be reckoned from the date of retirement itself in case where the payment of commuted value of pension was/is made during the first month of retirement leading to appropriate reduction on account of commutation in the first pension itself. In all other cases, where the commutation of pension led/leads to a reduction in the second or subsequent month, the 15 year period will be reckoned from the date on which reduction in pension became/becomes effective.
12. Whether the family can be given the benefit of 40 per cent commutation if a pensioner dies before exercising option ?
In view of Governments clarificatory orders, no benefit can be given to the family.
13. Is any authorization for restoration of commuted portion of pension after 15 years required from PAO/CPAO ?
Restoration of commuted portion of pension after 15 years (from the date of crediting of commuted value) or as fixed by the Government from time to time is to be made automatically by bank on receipt of application in prescribed proforma from eligible pensioner. In cases where the date of commutation is not readily available in the PPO, the bank will obtain the information from the concerned PAO who issued the PPO through CPAO before restoring the commuted portion of pension.
14. Whether retirement gratuity/death gratuity , commuted value of pension is taxable ?
Retirement/death gratuity and the lumpsum amount received on account of commutation of pension is not taxable under the Income Tax Act 1962.
15. Is the payment of pension in cash or through a joint account with or without “EITHER” or “SURVIVOR” facility permitted in the Scheme for Payment of Pension to Central Government Civil Pensioners by authorised Banks ?
Payment of pension in cash or through a joint account with or without “EITHER” or ‘SURVIVOR” facility is not permitted in the Scheme.
16. Can a pension account be operated by a holder of Power of Attorney ?
The pension account cannot be allowed to be operated by a holder of Power of Attorney except in the case of the pension accounts of the former Presidents of India or of the spouses of deceased Presidents. However, the facility of allowing cheque books and acceptance of standing instructions for transfer of funds from the account is admissible as per instructions of R.B.I.
17. Can the deduction of Income Tax at source be made from pension payments ?
Yes, the paying branch will be responsible for deduction of Income Tax at source from pension payments in accordance with the rates prescribed from time to time. While deducting such tax from pension payments the paying branch will also allow deduction on account of relief available under Income Tax Act from time to time on production of proper and acceptable evidence of eligible savings by pensioners. The paying branch will also issue the pensioner in April each year a certificate of tax deducted in the form prescribed in the Income Tax Rules.
18. Can the excess payment, if any, credited to the pensioner’s account be recovered by the bank ?
Before commencing payment of pension the paying branch is required to obtain an undertaking in the prescribed form Annexure-XI of the Scheme from the pensioner. On the strength of this undertaking the excess payment, if any, credited to his/her account can be recovered by the paying branch.
19. Can the payment of retirement/death gratuity be made by the bank ?
Unless otherwise specified, payment of death/retirement gratuity is not covered under the Scheme.
20. What is required if a pensioner/family pensioner desires to get his pension payment account transfered (a) From one paying branch to another of the same public sector bank within the same station or a different station ? (b) From one public sector bank to another public sector bank within the same station. (Such transfers to be allowed only once in a financial year) ? (c) From one public sector bank to another public sector bank at a different station ?
Applications for transfer of pension falling under category (a) may be entertained by the paying branch of the Public Sector Bank itself. In case the transfer is at the same station, Link Branch will make necessary entries in the register maintained by them in the prescribed form in Annexure-VIII of the scheme and forward the disburser’s portion of PPO to the paying branch at which payment is desired under intimation to the CPAO and the pensioner. In case transfer is at different station, link branch after keeping the requisite note, will forward disburser’s portion of the PPO to the link branch at new station for arranging payment through the new paying branch. Necessary intimation of effecting such transfer will be sent to CPAO by the new as well as old link branches in the form Annexure XXI for keeping a note of change in their records under intimation to the pensioner. The receiving link branch on receipt of the pension documents, will ensure forwarding the PPO to the paying branch within three days and intimate the pensioner simultaneously. Before forwarding the disburser’s portion of PPO to the new paying branch/link branch, it will be ensured that the month up-to which the payment has been made is invariably indicated in the disburser’s portion of PPO. In cases request falling under category (b) & (c), when a pensioner applies for transfer on a simple sheet of paper the old bank (transferor paying branch) will send a letter duly signed by its Branch Manager to the Branch Manager of the new paying branch, wherever located, alongwith photocopy of the pensioner’s PPO showing the last payment made. This will be sent by Speed Post/Courier/Regd. Post to the new paying branch at the new location, alongwith a copy each to the pensioner, CPAO and for information to the Link Branch of the old paying branch. Simultaneously, the old paying branch will send the bank’s copy of the PPO to its link branch, duly completing all entries for transmission to the new link branch. However, pensioner’s copy of PPO will be retained by pensioner and produced at the new paying branch. The new paying branch will commence the pension payment immediately on receipt of letter of the last payment certificate as above. Simultaneously, it will send an intimation to its link branch with full details of the commencement of the pension. The old paying branch and its link branch will ensure that the bank’s copy of PPO is transmitted to the new paying branch through its link branch. Pension will be paid for three months on the basis of the photocopy of the pensioner’s PPO at transferee (New) branch, from the date of last date of payment made at the transferor (Old) branch. During this time, it will be the joint responsibility of both transferor (old) and transferee (New) bank branches to ensure that all the documents under the procedure, are received by the transferee (New) branch within the period of three months. To avoid the risk of overpayment at the time of transfer, the following certificate is required to be recorded on the Disburser’s portion of PPO by the paying branch of the Public Sector Bank: Certified that payment of pension has been made upto the month —————– and that this PPO consists of ———————continuation sheets for recording disbursement.” Except as stated above , the transfer of a pension from one payment point to another will not ordinarily be permitted.
21. What is the procedure for switchover of pension payment from Pay & Accounts Office to authorised Bank ?
The existing pensioner will be required to submit his transfer application in the form in Annexure IX of the Scheme in duplicate to his Pension Disbursing Authority i.e. Pay & Accounts Office or Treasury as the case may be. Transfer application in duplicate shall be forwarded immediately by the Pay & Accounts Office alongwith the disburser’s copy of the PPO halves, duly authenticated and written up-to-date to the CPAO for transmission to the link branch of the authorised Bank for arranging payment after keeping necessary note in their records. Pay & Accounts Office should also update the entries of payment made in the pensioners portion of the PPO if not already done, before the transfer application is sent to the CPAO. (from Treasury to authorised Banks ?) In case of transfer from Treasury to Authorised Banks the transfer application along with PPO should be routed through the concerned A.G. whose authorised officer will countersign and also emboss special seal before transmitting the same to the CPAO.
22. Who is to authorize payment of family pension and death gratuity when a Govt. servant dies while on deputation ?
In the case of a Govt. servant who dies while on deputation to another Central Govt. Deptt., action to authorize family pension and death gratuity in accordance with the provisions of chapter IX of the pension Rules shall be taken by his Head of Office of the borrowing department. In the case of a Govt. servant who dies while on deputation to a State Govt. or while on Foreign Service action to authorize the payments of family pension and death gratuity in accordance with the provisions of Chapter IX of the pension Rules shall be taken by the Head of Office or the cadre authority which sanctioned the deputation of the Govt. servant to the State Govt. or to his Foreign Service.
23. What should a family member eligible for the grant of family pension do to get the family pension ?
Normally, family pension is sanctioned and authorized at the same time as pension and indicated in the pension payment order and is to be drawn after the death of the pensioner. In case of Govt. servant dying while in service, the widow or widower has to make a claim in Form 14 to the Head of Office who will sanction and authorize the family pension through its Pay & Accounts Officer. Where the deceased Govt. servant is survived only by a child or children, the guardian (in case of minor child/children) or such child or children may submit a claim in Form 14 to the Head of Office for sanction and authorisation of family pension with its PAO. For getting family pension, the deceased pensioner’s family should apply in Form no. 14 alongwith a copy of the death certificate of the deceased pensioner (i) to the pension disbursing authority if, the amount of family pension is already indicated in the Pension Payment Order (ii) to the Head of Office for sanction of family pension in all other cases.
24. What is the period up-to which family pension is payable ?
Family pension is payable to one member of the family at a time in the order and for the period as under: a) In the case of a widow or widower, up to the date of death or remarriage, whichever is earlier. b) When widow or widower becomes ineligible, children below 25 years of age in the order of their age, up to 25 years of age or till they get married, in case of daughter or till they start earning Rs.2,550/- P.M. whichever is earlier. c) After (a) & (b) above; for the lifetime to any unemployed son/daughter who is suffering from any disorder or disability of mind (including mentally retarded or physically crippled or disabled.
25. Is family pension payable to more than one person at a time ?
The family pension will be paid in equal shares where the deceased Govt. servant or pensioner is survived by – a) More than one widow (except in the case of Hindu widow). On the death of one widow, her share of the family pension shall become payable to eligible child. If she is not survived by any child, her share of the family pension shall not lapse but shall be payable to the other widows in equal shares. b) A widow and an eligible child through another deceased wife; the eligible child will be paid the share which the mother would have received had she been alive. c) A widow and an eligible child from a divorced wife; the child will be entitled to the share of family pension which the mother would have received had she not been divorced.
26. How is family pension is payable to twins ?
Where the family pension is payable to twin children it will be paid to such children in equal shares provided that when one such child ceases to be eligible his/her share shall revert to the other child and when both of them cease to be eligible the family pension shall be payable to the next eligible single child/twin children.
27. Is family pension payable to a spouse judicially separated ?
Yes, family pension is payable to a spouse judicially separated but not to a spouse judicially separated on the ground of adultery.