Centre’s fresh guidelines on pension and gratuity: PPO issuance at least 2 months before retirement date

The Department of Pension and Pensioners’ Welfare (DoPPW) has issued important guidelines to ensure that government employees nearing retirement receive their pensions and gratuities without delay.

According to the new instructions dated October 25, 2024, timely processing is essential, starting from the preparation of retirement lists to the issuance of the Pension Payment Order (PPO). By adhering to these timelines, departments can help retiring employees enjoy a smooth transition into retirement.

The DoPPW, by issuing an Office Memorandum, has established specific timelines for the authorization of pensions and gratuities to support government servants approaching retirement. These steps are crucial for ensuring that employees receive their benefits promptly and without complications.

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One of the key responsibilities lies with the Heads of Departments (HoDs), who must prepare a list of all employees scheduled to retire within the next fifteen months by the 15th of each month. This proactive measure allows for early identification and processing of pension cases, paving the way for a smoother retirement experience.

Ensure Timely Pension Payment: Issue PPO at least 2 months before retirement date

“As per Rule 54, every Head of Department (HoD) is required to have a list prepared by 15th day of every month, of all Government servants, who are due to retired within the next fifteen months of that date,” the memorandum said.

Once the pension case reaches the Accounts Officer, they are required to carry out necessary checks and issue the Pension Payment Order (PPO) at least two months before the employee’s retirement date. This process is designed to prevent any delays in the disbursement of pension and gratuity.

“Elaborate procedure has been laid down in Rules 56 and 57 for preparatory work for processing of pension case on superannuation during the period of one year before retirement. This includes verification of service, making good the omissions, imperfections or deficiencies in the service book,” it added.

The instructions also emphasize the importance of gathering details about government accommodations and completing service verifications well in advance of retirement. These preparations must begin up to a year prior to the retirement date to address any potential issues early on.

Also read: Big update on provident fund settlement for central govt employees – Centre issues THIS clarification

Moreover,

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