Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions, has extended its partnership with the Indian government’s pension system for defence personnel, SPARSH (System for Pension Administration – Raksha), for an additional three years. This agreement marks the continuation of TCS’s efforts to streamline pension disbursement services for over 30 lakh defence pensioners, ensuring transparency, efficiency, and timely delivery of benefits.
A Transformational Digital Initiative
The SPARSH program, which TCS first launched in October 2020, is a part of the Indian government’s push for digital transformation in its pension systems. The initiative aimed to digitize the pension process, centralize disbursements, and reduce inefficiencies. One of the most significant achievements of this transformation has been the drastic reduction in processing timelines. What once took 12 to 18 months for pension processing has now been reduced to just 14 days, with first-time pension payments now being processed within 5 to 7 days.
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A key feature of the program has been the implementation of the One Rank One Pension (OROP) scheme. Under OROP, defence personnel of the same rank and length of service receive the same pension, regardless of their retirement date. With TCS’s involvement, the disbursement of OROP pensions to 1.8 million eligible pensioners was completed in an unprecedented 15-day window, a process that previously took 6 to 8 months. This efficiency earned TCS a certificate of appreciation from the Controller General of Defence Accounts (CGDA), acknowledging their role in improving the system.
Saving Costs and Enhancing Service Delivery
The integration of SPARSH has not only sped up pension disbursements but also saved the government significant amounts in costs. By centralizing the pension distribution process and eliminating bank service charges, the system has resulted in annual savings of approximately Rs 250 crore. These efficiencies have had a meaningful impact, both for the government and for pensioners, who benefit from quicker and more reliable payments.
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