Finance Ministry Flags Delays in Pension Finalization, Urges Immediate Corrective Action

In a fresh directive aimed at expediting pension processing, the Controller General of Accounts (CGA) under the Ministry of Finance has issued an Office Memorandum addressing the persistent delay in finalization of pension cases. The communication highlights systemic shortcomings and urges all Heads of Offices across Ministries and Departments to comply strictly with prescribed procedures to ensure timely disbursal of pensions.

Audit reveals multiple causes for delay

According to the memorandum (No. TA-3-07001/2/2021-TA-CGA/cs-5365), the CGA and the Central Pension Accounting Office (CPAO) have been closely tracking delays and have identified recurring issues that hinder pension case processing. The major causes include:

• Incorrect pay fixation on account of promotions, Non-Functional Upgradation (NFU), and MACP benefits.
• Non-adherence to audit timelines mandated under Para 2.16.3 of CAM 2024, particularly for employees nearing retirement within 4 years.
• Delayed service verification, contrary to the timelines laid down under the CCS (Pension) Rules, 2021.
• Lack of vigilance clearance within the required timeframe.
• Geographical and departmental peculiarities, especially in CAPFs under the MHA, Jal Shakti, and Urban Development departments, many of which are located in remote regions.
• Inadequate awareness among prospective retirees regarding rules, resulting in untimely submission of pension papers.

Strict compliance instructed

Heads of Offices have been directed to maintain proper timelines from initiation to final disbursement of pension benefits. Special emphasis has been laid on:

• Ensuring timely and accurate pay fixation, which is to be followed by a mandatory audit, as per DoPT’s Office Memorandum dated 03.10.2022.
• Ensuring priority audits for employees retiring within four years if pay fixation orders are not issued within 3 months.

Focus on timely pension disbursal

The memorandum stresses that strict adherence to procedural timelines is crucial for the ease of pensioners and a smoother administrative process. The CGA has reiterated that compliance is non-negotiable for ensuring a dignified and delay-free retirement for central government employees.

This directive was issued with the approval of the Competent Authority and has been circulated to all Pr. CCAs/CCAs/CAs (IC) of Ministries and Departments for immediate action.

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