GOVT ORDERS ON PENALITY FOR DELAYED PAYMENTS : PENSION PAYMENT PROCEDURES

1. All Veteran Brothers may kindly peruse the following Govt Orders on the above subject, for their information and record purposes:-

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No. 38/64/98-P&PW(F}
Government of India
Ministry of Personnel, Public grievances & Pensions
(Department of Pension & Pensioners' Welfare)
Third Floor, Lok Nayak Bhavan,
New Delhi-110003'

Dated the 5th October, 99

Office Memorandum\

Subject: Implementation of recommendations contained
in para 61 of 44th Report of Parliamentary Standing
Committee on Ministry of Home Affairs- Time Schedule
for disbursement of Pension" regording.

In para 61 of the 44th Report of Parliamentary
Standing Committee on MHA, the Committee had observed
that timely payment of pension and retirement dues
is not being made to the retiring employees of
Union Govt. TheCommittee drew attention to the
Employees Provident Fund Scheme and the Notification
issued by the Ministry of Labour on 27.10.97
amending the Employees Pension Scheme, 1995. In
terms of provisions under Employees Provident Fund
and Misc. Provisions Act. 1952, the Ministry of
Labour inserted a new provision 17A Payment of
Pension which interalia says that "in case the
Commissioner fails without sufficient cause to
settle a claim complete in all respects within
30 days, the Commissioner shall be liable for the
delay beyond the said period and penal interest
at the rate of 12% per annum may be charged on the
benefit amount and the same may be deducted from
the salary of the Commissioner," On the same
analogy the Committee has recommended that
similar provisions may be formulated and enforced
to ensure timely payment of pension and retirement
dues to the retiring employees of Union Government.

2. As per CCS(Pension) Rules 1972, no interest
is payable on delayed payment of pensions,
commuted value of pension. However, the above
recommendation of the Committee on delayed
payment of retirement dues has been exarned in
this Department in consultation with Department
of Personnel and Training, Department of
Expenditure, Ministry of Fin., and it has been
decided to implement the recommendation as
detailed below:-

(a) All pensioners' dues are to be settled by
strictly following the procedure laid down in
Rules 56 to76of CCS (Pension)Rules, 1972.

(b) Wherever delays are anticipated,provisional
pension should be sanctioned inlmediately.

(c)Any delay in processing of pension resulting
in pension not being authorized on the last
working day of retirement of the government
servant, should be brought out by the Head of
Office to the next higher authority who would
watch the settlement of delayed cases.

(d) In respect of delayed payment of gratuity
wherever itresults in payment of penal interest
at the rate applicableto GPF deposits (at
present 12% p.a. compounded annually) under
Rule 68 of CCS(Pension)Rules 1972.Secretary of
the Administrative Ministry or Department would
initiate action to fix responsibility, at all
levels to recover the amount from the concerned
dealing Official,Supervisor and Head of Office
in proportionate to their salary by following
the prescribed procedures for the purpose. This
should be strictly enforced with immediate effect.

(e) Once it has been decided to pay gratuity
the amount should be paid immediatetly, pending
a decision regarding payment of interest. This
would reduce the interest liability if any on
payment of delayed gratuity.

(f)In the matter of delayed payment of leave
enncashment, the Department of Personnel and
Training in their note dated 2.8.99 has
clarified that there is no provision under
CCS (Leave)Rules for payment of interest or
for fixing responsibility. Moreover encasnment
of leave is a benefit granted under the leave
rules and not a pensionary benefit.

(g) In the matter of CGEGIS,the Department of
Expenditure, Ministryof Finance in their V.D.
No. 709/EV/99 dated 6.8.99 has clarified that
payments under CGEGIS cannot be termed as
terminal benefits. As payments under this
Scheme are made in accordance with the Table
of Benefit which takes into account interest
upto the date of cessation of service, no
interest is payable on account of delayed
payments under the scheme. They have also
clarified that CGEGIS payment cannotbe with
held(and no Government dues can be recovered
from the accumulation except the amount
claimed by the financial institution as due
from the employee on account of loans taken
for house building purpose.)

3. Contents of this OM may also be brought
to the notice of concerned attached/
subordinate/field organisations under the
administrative control of respective
Ministry/Department, for compliance.

4. In so far as persons serving in the
Indian Audit and Accounts Department are
concerned, these orders issued after
consultation with the Comptroller &
Auditor General of India.

5. Hindi version will follow.

~,~o.Ji~

(Smt. GangaMurthy)
Director (PP)

To

All Ministries/ Departments of Government of India
Comptroller and Auditor Genera,l of India

( As per Standard Mailing List)

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(SOURCE : GOI, MIN OF PER PUB GRIE PENS AND PEN WEL)