No.
38/64/98-P&PW (F)
Government
of India
Ministry
of Personnel, P.G. & Pensions
Department
of Pension & Pensioners' Welfare
Third
Floor, Lok Nayak Bhavan
New
Delhi-110003
Dated
the 5th October, 1999
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 - regarding.
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 Government. The Committee 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 '17 A Payment of Pension' which inter-alia 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 examined in this Department in consultation with
Department of Personnel & Training and Department of Expenditure, Ministry
of Finance and it has been decided to implement the recommendation as detailed
below:-
(a)
All pensioners' dues are to be settled by
strictly following the procedures laid down in Rules 56 to 76 of CCS (Pension)
Rules, 1972.
(b)
Wherever delays are anticipated provisional
pension should be sanctioned immediately.
(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 reported 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 it results in payment of penal interest at the rate applicable to GPF
deposits (at present 12% per annum 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
proportion 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 immediately 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
encashment, the Department of Personnel & 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, encashment 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, Ministry of Finance in their U.O.No. 709/EV/99 dated 6.8.99 has
clarified that payments under CGEGIS cannot be termed as terminal benefit. 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 cannot be withheld 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 issue after
consultation with the Comptroller & Auditor General of India.
5. Hindi version will follow.
Sd/-
(
Smt. Ganga Murthy )
Director
(PP)
To
All Ministries/Departments of
Government of India
Comptroller & Auditor General of
India
(As per Standard Mailing List)