Simplification Defence Pension payment procedure

Retiring Defence Personnel can submit undertaking regarding re-employment before retirement and therefore need not visit bank to activate first Payment of Pension

Defence Ministry has issued a letter to all the Chiefs of the Army, Naval and Air Staff regarding submission of certificates by retiring Armed Forces Personnel and civilian employees along with pension papers

No 3(01)/2015-D(Pen/Pol)
Government of India
Ministry of Defence

New Delhi, Date: 25th August, 2015

The Chief of Army Staff
The Chief of Naval Staff
The Chief of Air Staff

Subject: Simplification of pension payment procedure – Submission of certificates by retiring Armed Forces Personnel and civilian employees along with pension papers – reg.

The undersigned is directed to refer to ‘Scheme for payment of pensions to Defence pensioners (including Defence Civilian Pensioners) by Public Sector Banks’, issued by this Ministry which provides for submission of undertaking along with non-re-employment/ re-employment certificate by the retiring personnel to the banks before commencement of his/her pension. The pensioner undertakes to refund or make good any amount to which he is not entitled. Banks also regulate entitlement of dearness relief to the pensioner based on non- reemployment/reemployment certificate submitted by the pensioners in terms of Deptt of P&PW OM No 45/73/97 -P&PW(G) dated 211d July, 1999 read with this Ministry’s letter No7(1) /95/D(Pen/Sers) dated 28th  August 2000.

2. 1t has been found that the first payment of pension after retirement gets delayed mainly due to the two reasons i.e. (i) due to delay in receipt of intimation by the pensioner that pension papers have reached the banks and (ii) due to delay on part of the pensioner in approaching the bank for submission of undertaking/ non-re-employment I reemployment certificate.

3. The feasibility of submission of undertaking/non-reemployment/ reemployment certificate by the retiring Defence pensioners along with pension papers had been under consideration with the Government of India for quite some time. In order to simplify the pension payment procedure, the President of India is pleased to decide that the required undertaking/status of non-reemployment/employment after retirement may be obtained by the Record Offices/ Head of Offices from the retiring Defence personnel along with other document before his retirement. The undertaking/certificate shall be forwarded to the pension disbursing agencies along with Pension Payment Order by the Record Office/Head of Office following the usual procedure. The bank shall credit the pensionary awards notified in favour of the pensioner into his/her bank account as and when due if said undertaking/certificate is received along with the pension documents. In case of pensioner drawing pension from agencies other than bank viz Defence Pension Disbursing Office/Treasury Office etc., a copy of cancelled cheque obtained from retiring personnel shall also be forwarded by the Record Office/Head of Office along with pension payment order to the pension disbursing agency to ensure payment of pension into the pensioners’ account. The pensioner would no longer be required to visit the pension disbursing agency to activate the first payment of pension. Submission of certificates prescribed  for continuation of monthly pension/payment of dearness relief, shall be followed as hithertofore.

4. From November, 2014, Government has introduced Aadhar Card number based biometric verification system for pensioners as an additional option for submission of life certificate by the pensioners. All the pension disbursing agencies are hereby instructed to accept e-life certificate of the pensioners as annual life certificate which pensioner can submit online to his pension disbursing agency by Registering themselves on

5. Detailed implementation instructions on the matter will, be issued by the Pr.CDA (Pension) Allahabad after receipt of this order. Necessary amendments to the procedure of pension sanction and disbursement of pension procedures shall be issued in due course.

6. This issues with the concurrence of Ministry of Defence(Fin) vide their ID No.
10(7)2014/Fin/Pen dated 31.07.2015.

Hindi version will follow.

[ R. K. Arora ]
Under Secretary to the Government of India

Download Defence Ministry letter No 3(01)/2015-D(Pen/Pol) dated 25.08.2015.

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