CPAO Order : Providing breakup of pension and arrear payments & recoveries to pensioners

CPAO Order : Providing breakup of pension and arrear payments & recoveries to pensioners

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT II, BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/IT&Tech/Bank Performance/2016-17/ 220
CPAO / IT & Tech / SCOVA / 20 / Part File / 2016-17/220

09.01.2017

Office Memorandum

Subject:  Providing breakup of pension and arrear payments & recoveries to pensioners.

Attention is invited to para 4.6.7 of the Accounting and Operating Procedure for Central Pension Processing Centre of Authorised Banks for Pension Disbursement to Central Government (Civil) Pensioners (February, 2012) whereby it has been provided that "The CPPC software will display on the computer screen, options and view of the details of calculation of pension and its breakup of the pension paid to the pensioner/ family pensioner. The Home Branch will act as intermediary with the CPPC and, besides providing accounts statement, provide to the pensioners the payment of TDS details, pension slip, the Due and Drawn Statement in respect of each arrear and the Annual Income Statement".

2. Taking into consideration the grievances reported by Pensioners’ Associations and Pensioners, CPAO had issued instructions to Heads of CPPCs and Government Business Divisions vide OM No. CPAO/Tech/Banks Performance/2015-16/60 dated-14.06.2016 for strict compliance of above guidelines for providing detailed breakup of pension payments.

3. It has again been reported by Pensioners Associations and Pensioners that "arrears of arrear of Revision of Pension, Fixed Medical Allowance, Additional Pension, Life Time Arrear etc. are clubbed with monthly payment of pension for which it becomes difficult for pensioner/family pensioner to understand if pension and arrears are disbursed correctly. Even recovery of overpayment or wrong payment is not shown separately".

4. Therefore, banks are instructed to follow the provisions of CPPC guidelines and instructions issued vide OM dated-14.06.2016 and provide full breakup of pension payment dearly to the pensioners. A compliance report in this regard may be sent to CPAO latest by 31.01.2017 positively.

(Subhash Chandra)
Controller of Accounts

Order Copy

Reserve Bank of India has issued a circular on Payment of Agency Commission on pension accounts

Reserve Bank of India has issued a circular on Payment of Agency Commission on pension accounts

RBI has clarified that agency banks are being compensated at Rs. 65 per transaction for handling pension computation, payment and related services on behalf of Central and State Governments up to 14 transactions per year. So, splitting up transaction for earning more commission by banks is not permitted.

Reserve Bank circular on Payment of Agency Commission on pension accounts – Transaction in pension more than allowed numbers would not fetch agency commission

RESERVE BANK OF INDIA

RBI/2015-16/294

DGBA.GAD.No. 2278/31.12.010/2015-16

January 21, 2016

The Chairman & Managing Director/
The Chief Executive Officer
All Agency Banks

Dear Sir/Madam
Payment of Agency Commission on pension accounts

As you may be aware, agency banks are being compensated at Rs. 65 per transaction for handling pension computation, payment and related services on behalf of Central and State Governments. As per the norms followed by the Government, a pensioner’s account should not have more than 14 credit transactions in a calendar year attributable to pension and related arrear payments, if any.

2. It has however come to our notice that certain banks are apportioning payment of arrears on account of Dearness Relief (DR) and/or delay in start of pension monthwise, thus, resulting in inflated agency commission claims. It is reiterated that number of commisionable transactions for payment of agency commission on account of pension in a year should not exceed 14. This includes one monthly credit for payment of net pension and a maximum of two per year for payment of arrears on account of increase in DR, if applicable.

3. It is also reiterated that cases involving payment of arrears on account of late start/restart of pension qualifies as a single transaction for claiming of agency commission. In other words, any payment of arrears on account of late start/restart of pension should be effected in a single credit transaction instead of separate monthly credits.

4. Some of the Central Government Departments and State Governments prefer to compute the pension figures on their own and pass them on to banks for payment. Such transactions may be included under non-pension payments, on which agency commission is payable on a turnover basis as per the existing norms (currently at 5.5 paise per Rs. 100/-).

Yours faithfully
(Manish Parashar)
Deputy General Manager

Download RBI Circular RBI/2015-16/294 DGBA.GAD.No. 2278/31.12.010/2015-16 dated 21.01.2016