Commencement of Pension in favour of retired Railway employees: Railway Bord

Government of India
Ministry of Railways
Railway Board

New Delhi Dated:17.08.2015

The undersigned is directed to refer to your letter ibid and state that Board has taken various steps to streamline the pension payment system to ensure that payment of pension is commenced from the month following the month of retirement and the grievances, if any, are redressed promptly, as indicated below:

i. Single Window System has been implemented with banks to do away with delays in commencement of pension payments inherent in the earlier system. In brief, the scheme envisages that Railways will hand over the PPOs issued during a month to the nominated nodal branch of the respective banks (located at the HQ of PPO issuing Railways) by 5th of the following month. The nodal branch is responsible to forward it to their concerned Centralised Pension Processing Centre (CPPC) by 1oth of the following month so that the CPPC can commence pension w.e.f. last day of the following month. The scheme has already been implemented with 22 banks and remaining banks are under process of implementation.

ii. Further, at present, the pensioner is called to the bank for submission of an undertaking about recovery of excess/overpayments before commencement of pension. In order to obviate delays in the process of commencement of pension on this account, Board , vide letter no. F(E)III 2008/PN1/13 dated 17.3.2015 , has issued instructions that requisite undertaking may be obtained by HOD from the retiring employee before his retirement and forwarded to pension disbursing bank along with PPO by the Accounts Officer. The pensioner would no longer be required to visit the bank to activate his first payment of pension.

iii. In addition, it is planned to issue e-PPOs to the banks under the centralised Pension application (ARPAN) which would do away with the delays altogether. The same is being tested and is expected to be rolled out by end of this year. Railways are being advised to strictly follow the instructions and monitor timely commencement of pension to the staff.

iv. RBI was also addressed to direct the banks to put in place a sound grievance redressal mechanism for pensioners at CPPC/ Pension Paying Branches of the Banks . RBI has since issued the advisory to the banks to ensure expeditious redressal of pensioners’ grievances.

v. Zonal Railways have been advised to scrupulously follow the instructions issued by Board in this regard.

Yours faithfully,
sd/-
for Secretary, Railway Board

Source: NFIR

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