CGA Issues Strict Timelines for Finalization of Pension Cases

The Controller General of Accounts (CGA) under the Ministry of Finance, Department of Expenditure, has issued a fresh Office Memorandum (OM) reiterating the timelines and responsibilities related to the finalization of pension cases and verification of pay fixation to avoid last-minute discrepancies that cause hardship to retiring employees.

Focus on Early Verification of Pay Fixation

The CGA observed that errors in pay fixation are often detected at the fag end of employees’ service, resulting in large recoveries and undue stress. To address this, the OM draws attention to Rule 63(1)(c) of the CCS (Pension) Rules, 2021, which mandates Pay and Accounts Offices (PAOs) to verify the correctness of emoluments up to twenty-four months before the date of retirement.

This verification must be read in conjunction with para 5 of DoPT’s OM dated 03.10.2022, which outlines the process for recovery of wrongful or excess payments made to government servants.

Mandatory Internal Audit and Preventive Measures

The CGA has directed all Ministries, Departments, and Offices to exercise extreme caution during pay fixation and to take the following measures:

1. Preventive vigilance: Ensure that lapses or mistakes in pay fixation and related payments do not occur.
2. Internal audit: Pay fixation orders, especially those involving MACP/ACP/financial upgradation or promotion, must be audited by the internal audit unit and/or the concerned PAO within three months of issuance.
3. Priority audits for near-retirement employees: For employees due to retire within four years, prior pay fixation orders and service verification should be audited on a priority basis.

These instructions are consistent with the provisions under paras 2.16.3.2 and 2.16.3.3 of the Civil Accounts Manual, 2024.

Compliance and Reporting

All Principal CCAs/CCAs/Dy.CAs (IC) have been asked to ensure that their respective Internal Audit Teams conduct the mandatory audit of all such cases and submit a detailed compliance report to the CGA by March 31, 2026.
This directive aims to minimize discrepancies in emoluments, ensure timely pension finalization, and uphold financial discipline within departments.

View OM: