The government is set to give a major relief to lakhs of employees demanding the restoration of the Old Pension Scheme (OPS). In response to two decades of protests over the National Pension System (NPS)
and the push for OPS, the government has decided to introduce similar benefits in the NPS. The Central Pension Accounting Office (CPAO) has instructed all officials to process NPS pension cases in the same way as OPS cases.
Previously, on December 18, 2023, the CPAO had issued guidelines to ensure timely pension payments for retired employees under NPS. A new Office Memorandum (OM) dated March 12 directed the Pay and Accounts Offices (PAOs) to follow these guidelines strictly.
The CPAO noted that some PAOs were submitting three copies of documents for NPS cases instead of two, which was delaying pension disbursement. As per the latest instructions, only two copies should be submitted—one for the pensioner and the other for the distributor.
What Deficiencies Were Found?
The CPAO observed that some PAOs were not following the updated guidelines when handling NPS cases as OPS cases. Specifically, PAOs were submitting three copies of the Provisional PPO, a practice used earlier for NPS cases, instead of two copies.
Only two booklets—one for the pensioner and one for the disbursing authority—should be sent to the CPAO.
To streamline the process, the CPAO has instructed Chief Controllers of Accounts (CCAs) and Controllers of Accounts (CAs) to ensure strict compliance with the revised guidelines.
Instructions Issued to Banks
The CPAO has also directed all Chief CCAs, CCAs, CAs (with independent charge), and Account Generals (AGs) to instruct their PAOs to follow the guidelines issued in the December 18, 2023 OM.
Additionally, all Central Pension Processing Centers (CPPCs) of authorized banks have been asked to carefully review these orders and act accordingly.
What Are the New NPS Rules?
Under the revised CPAO rules, the pension process for NPS retirees will now follow a system similar to OPS, ensuring faster and more transparent distribution.
The aim is to eliminate delays and ensure that pensioners receive their money on time without difficulties. Currently, NPS pension disbursement takes longer because funds are managed by the Pension Fund Regulatory
and Development Authority (PFRDA) and investment-linked fund houses. To simplify the process, the government is aligning NPS withdrawals with OPS rules to provide a smoother experience for retirees.
