7th Pay Commission: Centre to make this change in pension payment system
With a lot of confusion in the system, retired and soon to retire government employees have to run from pillar to post to try and get the money that they have earned or is due to them from the Centre. There are many reasons for this, but the Centre is working to get rid of these problems and the most recent example of one such trouble causing issue that is set to get solved is pension.
This will come as good news for new pensioners as the government is going to digitize the entire system of pension payment system and that will happen very soon. With this new system, the Electronic Pension Payment Order (e-PPO) will now be issued to pensioners and the complete information of any pensioner’s account will be easily shared between the Banks, Central Pension Accounting Office (CPAO) and Pension and Accounts Office (PAO).
What is the current system?
In the current system, half of the pension work is done online while half the work is operated manually. However after digitalising the system, pension fixation of the retiring employee will be expedited much faster, which currently takes 2 to 3 months.
Effect on pensioners
General Secretary, All India Account and Audit Committee, HS Tiwari said that as per the current scenario the pension of a retiree employee reaches his bank account after wandering across many places. While in case of central government employees, the head office processes and sends it to the PAO and from there the pension papers go to CPAO. After following all these procedures, it is finally transferred to the bank, from where the bank releases the amount.
What will be the new system
‘Zee Business’ has a copy of this order of the Finance Ministry and according to this, e-PPO i.e. Electronic PPO will be sent to banks and pension software of the banks will be updated soon. While as of now the manual PPO booklets will also be sent to the banks to avoid initial problems.
Importance of PPO booklet
As per the recent order, only the information given in the PPO booklet will be considered correct and accurate and in case of any mistakes found in the PDF files, the PPO booklet will be followed for further procedures. A copy of this order is already been sent to all the banks across nation.