Wednesday, 27 June 2018

Automation of pension - Payment of retirement benefits on the day of retirement - Instruction G.O.MS.No.100

 It is the endeavor of the Government to pay pension and pensionary benefits on the date of retirement. Government vide G.O. sixth read above, constituted a committee with officials from General Administration, Law and Finance Departments and officials from the office of the Accountant General (A&E). Andhra Pradesh to study the existing rules and procedures and recommend measures to hasten the process of payment of pension and pensionary benefits by removing the lengthy procedures and redundancies in the existing system. The committee submitted its report.


  • Govt. Memo   No.37989-A/494/A2/Pen.I/98, Finance & Planning Department Dated .21.04.1999.
  •  Govt. Memo No.021383/961/PSC.I/83-1dt.08.06.1983 of Finance & Planning (FW.PSC.I) Department
  • Circular Memo No.12437-A/112/PSC/A/88, dt.23.07.1988 of Finance & Planning (FW.PSC) Dept.
  •  G.O.Ms. No.263, Finance Department,   dated: 23.11.1998.
  • G.O. Rt. No. 213, Finance (PSC)   Department, dated: 19.12.1997.
  •  G.O.Rt.No.117,G.A.(SC-F) Dept., dt.19.01.2018
  • G.O.Ms. No.99,Finance (HR II)Department, dated:27.06.2018


2.             Based on the recommendations of the committee, Government hereby order that -
           i.          the instructions issued vide references 1st  to 4th read above are hereby cancelled.
         ii.          (a) The Executive instructions IV under Rule 45 of AP Revised Pension Rules, 1980 shall be substituted with the following:

“Interest on the delayed payment of pensionary benefits at the rate of 4.5% for the period of delay upto one year and at the rate of 5% for periods beyond one year by recovering the amount from the salary of the Pension Sanctioning Authority (PSA) through Director of Treasuries and Accounts / Pay and Accounts Officer / Director of Works Accounts concerned. In normal cases the pensionary benefits shall be credited to the employees account on the next day of retirement. The regular pension shall be credited from the 1st working day of the next month of retirement onwards”.
2 the employees account on the next day of retirement. The regular pension
shall be credited from the 1st working day of the next month of retirement
onwards”.

 Recovery procedure of interest payable to the pensioner on late payment:-

Based on claim/complaint from the pensioner to the HoD/ Secretary to
Government of the department concerned, the HoD/ Secretary to
Government shall fix responsibility for the delay on the Pension
Sanctioning Authority and issue orders for recovery of the penal
amount from the salary of the responsible officer and shall
communicate to the Treasury Officer / Pay and Accounts Officer,
Vijayawada, which should be honored by them. The operation of the
penal interest provision shall come into force after 3 months from the
date of issue of the Order.
The drawing officer shall affect the recovery of the amounts from
salary of the responsible and credit to the claimants Account.
 (b) The Executive Instructions II under Rule 52 of AP Revised Pension Rules,
 1980 shall be substituted with the following:
“the provisional pension shall be sanctioned by respective
authorities competent to sanction the normal pension
admissible under rules and to forward to the Accountant
General for authorization duly furnishing the sanction order
from competent authorities”.

iii. Annual attestation of Service (Annexure-II Part-III )of Fundamental Rules :

It shall be the duty of every Head of the Office to initiate action to

show the service books/rolls to Government servants under his/her
administrative control every year and to obtain their signature therein in
token of having inspected the service books/rolls. A certificate to the effect
that he has done so in respect of the preceding financial year should be
submitted by him to his next superior officer by the end of every September.
All Heads of Offices should issue notices to all the government employees
under their control to get personally their service books/rolls verified and
brought up-to-date. The government employees shall inter-alia ensure
before affixing their signature* that their service has been properly
recorded. In the case of a Government servant on Foreign Service his/her
signature shall be obtained in his service books/rolls after the Head of the
Department has made therein necessary entries connected with his foreign
service.Therefore, the Pension Sanctioning Authority (PSA) shall update duly
obtaining signature of the government employee to the effect that the
entries made in the service book has been verified and found correct and
send it to A.G. (A&E), A.P./ District Audit Officer at least 90 days prior to the
date of retirement of the employee basing on the available information in the 
3Service Register. The existing pension application form prescribed in G.O. 4th
read above and Annexure-I under the G.O. fifth read above, shall be
substituted with Part - 12 namely pension proposals in the revised S.B.
format. The PSA shall send the proposals to the A.G. (A&E), A.P. three
months in advance of the retirement of the Government servant along with
“No Dues Certificate”.

iv. In the case of long term of loans/advances like HBA and conveyance
advance, the sanctioning authority while sanctioning such long term
loans/advances shall ensure that the installments of principal and interest
be fixed in the manner which will be recovered (4) months before the
retirement of government employee, so as to enable the Pension
Sanctioning Authority for completing formalities with the A.G. (A&E), A.P. to
get clearance certificate and for processing the pension papers of before
their retirement for settlement of pensionary benefits on the next day of
retirement.
Therefore, the PSA shall initiate the process of obtaining “No Dues
Certificate” in respect of all government dues like HBA/Conveyance,
Government quarters, over payments of pay and allowances or leave salary,
audit objections, stores/ godowns shortages/ misappropriations/
embezzlements, advance of leave salary, advance salary on transfer,
telephone charges and ensure that these dues be recovered from the
government servant and send it to the A.G. (A&E), A.P. along with pension
papers 90 days in advance, so as to avoid delay in settlement of pensionary
benefits on the next day of retirement and thereby avoiding payment of
interest.
v. Pension Payment Authorities or Sub Treasury Officers shall not necessarily
call for personal appearance and pensioner’s copy of the A.G.s Pension
Payment Order. The Authorization received from the A.G. shall be sufficient
and it may be confirmed, if needed from A.G.'s website.
vi. First time physical verification shall also be done as in the case of digital life
certificate and pensionary benefits should be released. Personal appearance
may be insisted only when the retired employee is unable to digitally
authenticate his existence.
vii. For payment of pensionary benefits for which A.G.’s authorization is not
required, the Pension Sanctioning Authority shall take action for sanction of
leave encashment 15 days prior to the date of retirement of employee. The
DDO concerned shall take action for settlement of APGLI claim as per the
maturity date of policy of the individual. The Head of the Office/DDO shall
verify and update the group insurance entries in the Service Register six
months before retirement and accord sanction orders in the month of
retirement. For this purpose all DDOs/Pension Disbursing Authorities are
hereby permitted to prepare the bills relating to pensionary benefits between 
4 15th and 31st of the month in which the employee is going to retire and to
instruct all Treasuries to admit the bills and credit the amounts to the existing
salary bank account of the retiring employee on the next day of retirement.
*Till electronic submission of certificate and digital signatures are enabled, the
employees submit physical certificates which will be scanned and uploaded.

Click here to Download Complete G.O

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