The government is set to offer significant relief to employees demanding the restoration of the Old Pension Scheme (OPS).
After two decades of protests against the National Pension System (NPS), the government has decided to introduce similar benefits within NPS.
To implement this, the Central Pension Accounting Office (CPAO) has instructed officials to process NPS pension cases just like OPS cases.
Earlier, 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 has now directed the Pay and Accounts Offices (PAOs) to strictly follow these guidelines.
Issues Identified in Pension Processing
The CPAO found that some PAOs were submitting three copies of pension-related documents for NPS cases instead of two, causing delays in pension distribution.
According to the latest instructions, only two copies should be submitted—one for the pensioner and one for the disbursing authority.
To address these issues, the CPAO has instructed Chief Controllers of Accounts (CCAs) and Controllers of Accounts (CAs) to ensure strict compliance with the updated rules.
New Instructions for Banks and NPS Rules
The CPAO has also directed all Chief CCAs, CCAs, CAs (with independent charge), and Account Generals (AGs) to ensure that PAOs follow the December 18, 2023 OM guidelines.
In addition, all Central Pension Processing Centers (CPPCs) of authorized banks must carefully review and implement these orders.
With the revised CPAO rules, NPS pension processing will now follow a system similar to OPS, ensuring faster and more transparent pension distribution.
Since NPS funds are managed by the Pension Fund Regulatory and Development Authority (PFRDA) and investment-linked fund houses, disbursements often take longer.
To streamline the process, the government is aligning NPS withdrawals with OPS rules, making it easier for retirees to receive their pensions on time.
