CHAPTER VIII

^[(1) Every Head of Department shall have a list prepared every three months, that is, on the 1st January, 1^st April, 1st July and 1^st October each year, of all Government servants who are due to retire within the next twelve to fifteen months of that date.

(2) A copy of every such list shall be supplied to the Accounts Officer concerned not later than 31st January, 30^th April, 31^st July or 31^st October, as the case may be, of that year.]

(3) In the cae of a Government servant retiring for reasons other than by way of superannuation, the Head of Office shall promptly inform the Accounts Officer concerned, as soon as the fact of such retirement becomes known to him.

(4) A copy of intimation sent by the Head of Office to the Accounts Officer under sub-rule (3) shall also be endorsed to the Directorate of Estates if the Government servant concerned is an allottee of Government accommodation.

^ Substituted/inserted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

^[57. The Head of Office shall write to the Directorate of Estates at least one year before the anticipated date of retirement of the Government servant who was or is in occupation of a Government accommodation (hereinafter referred to as the allottee) for issuing a `No demand certificate' in respect of the period preceding eight months of the retirement of the allottee.]

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) Issue of 'No Demand Certificate'. - 1. The existing procedure for the issue of "No Demand Certificate" by the Directorate of Estates had been incorporated in Rules 57 and 72 of the CCS (Pension) Rules, 1972. With a view to expediting the issue of `No Demand Certificate', the question of simplifying and rationalising the existing procedure was further examined and supplementary instructions were issued. Briefly, the Administrative Ministries/Departments concerned are required to furnish a list of Government servants in occupation of Government accommodation, along with applications from the individual, on the prescribed form, for issue of `No Demand Certificate', to the Directorate of Estates at least two years before the date of superannuation of the official concerned. Under the existing orders, the Directorate of Estates in its turn would issue an Advance `No Demand Certificate' to the Department concerned with a copy endorsed to the individual concerned eight months before the date of superannuation informing -

(i)	the amount of licence fee due up to that period, i.e., eight months prior to the date of superannuation ;
(ii)	the monthly rate of recovery of licence fee for the rest of the service, i.e., eight months ; and
(iii)	the amount of licence fee recoverable for two months (now four months) period of retention allowed after retirement.

2. On receipt of such an intimation from the Directorate of Estates, the Department concerned is responsible for the recovery of the amounts as indicated above. Thereafter, it is at liberty to finalise the pension account of the individual without any further certificate from the Directorate of Estates. After permissible period of retention, i.e., from the date of cancellation, the occupant is to be dealt with by the Directorate of Estates as if it were a private party. Thus, the Department concerned is no longer required to correspond with the Directorate of Estates about that individual for the period beyond the cancellation of allotment. This procedure has been brought to the notice of all Ministries/Departments, etc., again by the Directorate of Estates vide their OM No. 3/28/82-(P-I)/RCS, dated the 4th May, 1983 (copy reproduced below).

3. From the position explained above, it is very clear that after ensuring recoveries mentioned in para. 1, the Departments are at liberty to finalise the accounts of the retired Government servants. Besides, if the Directorate of Estates, for certain reasons, fails to inform the Department concerned about the dues eight months prior to his date of retirement, they are free to assume that nothing is due on account of rental dues in the books of the Directorate of Estates and they can finalise the pension papers of the individual concerned without waiting for any certificate from the Directorate of Estates, provided the Department had forwarded the application for No Demand Certificate two years in advance and had obtained an acknowledgement for the same.

4. It has been brought to the notice of this Department that most of the Ministries and their attached and subordinate offices do not adhere to these instructions and insist for a final "No Demand Certificate" from the Directorate of Estates to enable the retired Government servant to get back his withheld amount of the Retirement Gratuity. Scores of such retired Government servants visit the Directorate of Estates for this purpose which entails unavoidable work all round apart from harassment to the Government servants by their own Departments. It is, therefore, impressed on all the Ministries/Departments that the existing prescribed procedure should be strictly and scrupulously followed by all concerned so that the retiring and retired Government servants do not experience any hardship due to delays in the settlement of their pension cases.

[G.I., M.H.A., Dept. of Per. & A.R., O.M. No. 41/6/84-Pension Unit, dated the 18th July, 1984.]

COPY OF DIRECTORATE OF ESTATES, O.M. No. 3/28/82 (PI)/RCS, DATED THE 4TH MAY, 1983.

1. Attention is invited to the Directorate of Estates' Office Memo. No. 3/3/76-RCS, dated 23-6-1977, followed by another O.M. No. 3/28/81-RCS, dated 23-8-1982, according to which the Department concerned are required to furnish a list of Government servants along with application from the individuals, on the prescribed form for issue of No Demand Certificate to the Directorate of Estates at least 2 years before the date of superannuation of the officials in occupation of General Pool Accommodation.

2. The Directorate of Estates in its turn would issue an Advance No Demand Certificate to the Department concerned with a copy endorsed to the individual concerned 8 months before the date of superannuation informing the amount of licence fee due up to that period, i.e., 8 months prior to the date of superannuation besides the rate of monthly recovery of licence fee for the rate of the service, i.e., 8 months. The amount of licence fee recoverable for 2 (now 4) months period of retention allowed after retirement, is also to be intimated simultaneously. Thereafter the Departments are at liberty to finalise the pension account of the individual. The Department has to ensure full recovery of the amount shown as due in the advance "No Demand Certificate". At the time of sanctioning pension, PPO No. and the particulars of Treasury/Bank on which it is issued, is to be intimated to the Directorate of Estates along with the permanent residential address of the retiring officer. After the permissible period of retention, i.e., from the date of cancellation, the occupant is to be dealt with by the Directorate as if it were a private party. The Departments concerned are no longer required to correspond with Directorate of Estates about that individual for the period beyond the cancellation of allotment. However, it is seen that at the time of releasing the withheld amount of DCRG, many of the offices insist for another certificate from the Directorate of Estates on this account. As explained above, no such further certificate is normally required to be issued by the Directorate of Estates.

3. All the Ministries/Departments are requested to adhere to the time-schedule of informing the Directorate of Estates the date of superannuation of an allottee two years before his retirement and after the receipt of advance Final Demand Certificate issued by this Directorate, they should not normally ask for any further certificate on this account.

(2) Issue of `No Demand Certificate' in case of Interpool exchange of Government accommodation. - 1. Interpool exchange of the General Pool accommodation with Departmental or other Autonomous Bodies accommodation is occasionally made in certain cases so that an Officer occupying a particular quarter does not have to shift unnecessarily at a particular station. In such cases, the Department concerned is required to deposit the licence fee collected from the allottee with the Directorate of Estates. Sometimes the Department fails to deposit the licence fee even though they have actually recovered the same from the officer occupying the accommodation in question. The amount remains in arrears in some cases even after termination of interpool exchange. Meanwhile if the allottee retires, he is not issued the `No Demand Certificate' on the ground that some dues for the period of exchange have not been settled, not withstanding the fact that the allottee had paid the licence fee to the department. As a result the allottee suffers, because part of his gratuity is withheld pending issue of `No Demand Certificate'.

2. After due consideration it has been decided that the `No Demand Certificate' should not be withheld in respect of retired officer merely on the ground that some adjustment of dues between two organisations is pending for the period the quarter remained exchanged with departmental pool, provided there are no other dues to be recovered from the officer for other period and it has also been certified by the department concerned that the officer had actually paid the licence fee to the department, where he remained posted during the period the quarter was exchanged with department pool.

[G.I., Dir. of Estates, O.M. No. 12035 (18)/90-Pol. II, dated, the 5th November, 1990.]

(3) Directorate of Estates to be informed forthwith regarding retirement/death of occupants of quarters. - As per present practice, all the Ministries/Departments are required to intimate this Directorate about the transfer/retirement/death of a Government servant working under their administrative control to enable this Directorate to cancel the quarter, if any, in the name of that Government servant. However, it has been observed that this practice is not being followed scrupulously by most of the Ministries/Departments with the result that the Government servants who are transferred out of Delhi or retired, continue to retain Government accommodation unauthorisedly for considerably long periods. The Comptroller and Auditor-General in his report ending 31st March, 1989, have taken a serious view of the situation and have pointed out 734 such cases where there was delay in cancellation of quarters due to retirement/transfer/death of the Government servant.

It is, therefore, impressed upon all the Ministries/Departments once again to intimate this Directorate about the transfer of Government servants from one office to another or to outstation and about retirement or death of the Government servant immediately on the occurrence of such events to enable this Directorate to take further necessary action in respect of Government accommodation, if any, allotted to that Government servant.

[G.I., Dir. of Estates, O.M. No. 23011/4/89/Pol. III, dated the 28th December, 1990.]

Every Head of Office shall undertake the work of preparation of pension papers in Form 7 ^[one year] before the date on which a Government servant is due to retire on superannuation, or on the date on which he proceeds on leave preparatory to retirement, whichever is earlier.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

^[59. Stages for the completion of pension papers on superannuation. � The Head of Office shall divide the period of preparatory work of one year referred to in rule 58 in the following three stages, namely:�

(i) The Head of Office shall go through the service book of the Government servant and satisfy himself as to whether the certificates of verification for the service subsequent to the service verified under rule 32 are recorded therein.

(ii) In respect of the unverified portion or portions of service, he shall verify the portion or portions of such service, as the case may be, based on pay bills, acquittance rolls or other relevant records such as last pay certificate, pay slip for month of April which shows verification of service for the previous financial year and record necessary certificates in the service book.

(iii) If the service for any period is not capable of being verified in the manner specified in sub-clause (i) and sub-clause (ii), that period of service having been rendered by the Government servant in another office or Department, the Head of Office under which the Government servant is at present serving shall refer the said period of service to the Head of Office in which the Government servant is shown to have served during that period for the purpose of verification.

(iv) On receipt of communication referred to in sub-clause (iii), the Head of Office in that office or Department shall verify the portion or portions of such service, in the manner as specified in sub-clause (ii), and send necessary certificates to the referring Head of Office within two months from the date of receipt of such a reference:

Provided that in case a period of service is incapable of being verified, it shall be brought to the notice of the referring Head of Office simultaneously.

(v) If no response is received within the time referred to in the preceding sub-clause, such period or periods shall be deemed to qualify for pension.

(vi) If at any time thereafter, it is found that the Head of Office and other concerned authorities had failed to communicate any non-qualifying period of service, the Secretary of the administrative Ministry or Department shall fix responsibility for such non-communication.

(vii) The process specified in sub-clauses (i), (ii), (iii), (iv) and (v) shall be completed eight months before the date of superannuation.

(viii) If any portion of service rendered by a Government servant is not capable of being verified in the manner specified in sub-clause (i) or sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v), the Government servant shall be asked to file a written statement on plain paper within a month, stating that he had in fact rendered service for that period, and shall, at the foot of the statement, make and subscribe to a declaration as to the truth of that statement.

(ix) The Head of Office shall, after taking into consideration the facts in the written statement referred to in sub-clause (viii) admit that portion of service as having been rendered for the purpose of calculating the pension of that Government servant.

(x) If a Government servant is found to have given any incorrect information willfully, which makes him or her entitled to any benefits which he or she is not otherwise entitled to, it shall be construed as a grave misconduct.

(i) The Head of Office while scrutinising the certificates of verification of service, shall also identify if there are any other omissions, imperfections or deficiencies which have a direct bearing on the determination of emoluments and the service qualifying for pension.

(ii) Every effort shall be made to complete the verification of service, as specified in clause (a) and to make good the omissions, imperfections or deficiencies referred to in sub-clause (i).

(iii) Any omission, imperfection or deficiency which is incapable of being made good and the periods of service about which the Government servant has submitted no statement and the portion of service shown as unverified in the service book which it has not been possible to verify in accordance with the procedure laid down in clause (a) shall be ignored and service qualifying for pension shall be determined on the basis of the entries in the service book.

(iv) For the purpose of calculation of average emoluments, the Head of Office shall verify from the service book the correctness of the emoluments drawn or to be drawn during the last ten months of service.

(v) In order to ensure that the emoluments during the last ten months of service have been correctly shown in the service book, the Head of Office may verify the correctness of emoluments only for the period of twenty-four months preceding the date of retirement of a Government servant, and not for any period prior to that date.

(c) Third Stage. - As soon as the second stage is completed, but not later than eight months prior to the date of retirement of the Government servant, the Head of Office shall �

(i) furnish to the retiring Government servant a certificate regarding the length of qualifying service proposed to be admitted for the purpose of pension and gratuity and also the emoluments and the average emoluments proposed to be reckoned for retirement gratuity and pension.

(ii) direct the retiring Government servant to furnish to the Head of Office the reasons for non-acceptance, supported by the relevant documents in support of his claim within two months if the certified service and emoluments as indicated by the Head of Office are not acceptable to him.

(iii) forward to the retiring Government servant Form 5 advising him to submit the same duly completed in all respects so as to reach the Head of Office not later than six months prior to his date of retirement.]

(a) ^[59-A. A Government servant, retiring for reasons other than superannuation may, submit Form 5 before such retirement but after the competent authority has approved such retirement or the retirement has become effective, as the case may be.]

Footnote : 1. Substituted by G.I., Dept. of Pen. & P.W., Notification No. 38/84/89-P. & P.W. (F), date the 3rd September, 1993.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) Staff dealing with pension matters to be trained properly in pension procedures. - The Study Team has pointed out that staff responsible for processing pension cases were found to be not fully aware of the urgency of maintaining the time-schedule for obtaining and processing of pension papers. It was also found that staff dealing with pension had not undergone any training on the subject. The Ministries/Departments are advised to ensure that staff dealing with pension matters are trained properly in pension procedures and they should be sent for in-service training from time to time.

(2) Periodical co-ordination meeting between Administrative Heads and Accounts Offices. - The Study Team has highlighted the need for co-ordination and periodical meetings between Adminsitrative Head and Accounts office to sort out any shortcomings in the service record of retiring persons. Such meetings should be monitored at the highest level.

[G.I., Dept. of Pen. & P.W., O.M. No. 38/116/93-P. & P.W. (F), dated the 2nd May, 1994. - Paras. 6 and 8.]

60. Completion of pension papers. � ^[In cases under rule 59, the Head of Office shall complete Part I of Form 7 not later than four months before the date of retirement of a Government servant and in cases under rule 59-A, the Head of Office shall complete Part I of Form 7 within three months after submission of Form 5 by a Government servant.]

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) After complying with the requirement of Rules 59 and 60, the Head of Office shall forward to the Accounts Officer Form 5 and Form 7 duly completed with a covering letter in Form 8 along with service book of the Government servant duly completed, up-to-date, and any other documents relied upon for the verification of service.

(2) The Head of Office shall retain a copy of each of the Forms referred to in sub-rule (1) for his records.

(4) ^[The papers referred to in sub-rule (1) shall be forwarded to the Accounts Officer not later than four months before the date of superannuation of a Government servant and in cases other than retirement on superannuation not later than three months after the date of submission of Form 5.]

^ Omitted/substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) Pension Calculation Sheet to be given to Pensioner. - 1. Representations have been received from Pensioners' Associations about reforming the pension payment procedures. One of the suggestions made is that Pension Payment Order should contain a Pension Calculation Sheet detailing therein the period of service rendered, date and rate of last increment with scale of pay, etc.

2. The matter has been examined in consultation with the Comptroller and Auditor-General of India and the Controller-General of Accounts and it is felt that there is need for the pensioner to be supplied with details leading to the computation of pension. With this end in view it is proposed that the Head of Office preparing the pension case of a Central Government employee should prepare in triplicate a certified calculation sheet, as in the pro forma attached (see revised format under Form 7), certify the sheet at the bottom and pass it on to the concerned PAO/Accounts Officer along with the pension case.

3. The PAO/Accounts Officer, while issuing the pensionary authorization, countersign the calculation sheet as certified by the Head of Office, retain one copy (out of the three received by him from the Head of Office) and forward one copy as countersigned by him to the pensioner, along with the intimation of his having sent the pension payment authority PPO to the AG/PAO, etc. The third copy of the certified calculation sheet as countersigned by the PAO/Accounts Officer of the Ministry/Department concerned, and the latter would record those calculation sheets as certified by the Head of Office and countersigned by the PAO/AO, in a guard file with a proper index.

4. Ministry of Agriculture, etc., are requested kindly to furnish the calculation sheet in the revised format to all pensioners simultaneously with the issue of the pension payment order by the respective Pay and Accounts Officers.

5. Formal amendments to the CCS (Pension) Rules, 1972, will be issued separately.

[G.I., Dept. of Pension and Pensioners' Welfare, O.M. No. 38/19/85-PU, dated the 2nd September, 1985 and corrigendum, dated the 7th February, 1986 and O.M. No. 38/24/91-P. & P.W. (F), dated the 22nd November, 1991.]

(2) Entitlement to family pension in the case of employees going on permanent absorption in PSU/Autonomous Bodies should be indicated in the pension calculation sheet. - In accordance with Decision (1) above, every retiring employee is required to be supplied with a pension calculation sheet inter alia indicating the amount of pension, gratuity and family pension. It has been decided that the entitlement to family pension in the case of employees going on permanent absorption in PSU/Autonomous Bodies should also be indicated in the said calculation sheet with an explanation that the benefit of family pension will be admissible in such case subject to -

(a)	The employee seeking permanent absorption is not entitled to family pension benefit from the Public Sector Undertakings/Autonomous Bodies or under the Employees' Provident Fund and Miscellaneous Provisions Act.
(b)	Where the employee concerned is governed by the Family Pension Scheme under the Employees' Provident Fund and Miscellaneous Provisions Act, he opts to be governed by the Family Pension Scheme of the Central Government after obtaining exemption from the provision of Employees' Provident Fund and Miscellaneous Provisions Act from the Regional Provident Fund Commissioner concerned.

For this purpose, the format of the calculation sheet has been further amplified. A revised format (Form-7) is enclosed (Annexure). This calculation sheet should be got printed on fairly heavy paper to ensure its durability and entries therein should as far as possible be typed. In the event of the asborbees becoming eligible for the benefit of family pension under the Central Government rules, the pension calculation sheet can be relied upon by the members of the family for claiming family pension as and when the contingency for the same arises in future.

Ministry of Agriculture, etc., are requested kindly to bring these revised instructions to the notice of all Heads of Office/Pay and Accounts Offices under their administrative control. It is also requested that the pension calculation sheets may be supplied in all past cases of absorption in PSU/Autonomous Bodies (confined to details regarding entitlement to family pension) where the family pension has not so far already commenced.

In their application to the persons serving in the Indian Audit & Accounts Department, these orders issue in consultation with the Comptroller & Auditor-General of India.

[G.I, Dept. of P. & P.W., O.M. No. 29/4/91-P. & P.W. (F), dated the 13th January, 1993.]

If, after the pension papers have been forwarded to the Accounts Officer, [ ]^ any event occurs which has a bearing on the amount of pension admissible, the fact shall be promptly reported to the Accounts Officer by the Head of Office.

^ Omitted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

^[(1) The Head of Office shall, after ascertaining and assessing the Government dues referred to in rule 71, furnish the particulars thereof to the Accounts Officer in Form 8.]^

(2) If, after the particulars of Government dues have been intimated to the Accounts Officer under sub-rule (1), any additional Government dues come to the notice of the Head of Office, such dues shall be promptly reported to the Accounts Officer.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

^[64. Provisional pension for reasons other than Departmental or Judicial proceedings.� (1) Where in spite of following the procedure laid down in rule 59, it is not possible for the Head of Office to forward the pension papers referred to in rule 61 to the Accounts Officer within the period specified in sub-rule (4) of that rule or where the pension papers have been forwarded to the Accounts Officer within the specified period but the Accounts Officer may have returned the pension papers to the Head of Office for eliciting further information before issuing pension payment order and order for the payment of gratuity and the Government servant is likely to retire before his pension and gratuity or both can be finally assessed and settled in accordance with the provisions of these rules, the Head of Office shall rely upon such information as may be available in the official records, and without delay, determine the amount of provisional pension and the amount of provisional retirement gratuity.

(2) On receipt of Form 5, in a case of retirement otherwise than on superannuation, the Head of Office shall sanction provisional pension and also provisional retirement gratuity till issue of Pension Payment Order.

(3) Where the amount of pension and gratuity cannot be determined for reasons other than the Departmental or Judicial proceedings, the Head of Office shall �

(a) issue a letter of sanction addressed to the Government servant endorsing a copy thereof to the Accounts Officer authorising �

(i) 100 per cent of pension as provisional pension for a period not exceeding six months to be reckoned from the date of retirement of the Government servant ; and

(ii) 100 per cent of the gratuity as provisional gratuity withholding ten per cent of gratuity.

(b) specify in the letter of sanction the amount recoverable from the gratuity under sub-rule (1) of rule 63 and after issuing the letter of sanction referred to in clause (a), the Head of Office shall draw �

(ii) the amount of provisional gratuity after deducting therefrom the amount specified in sub-clause (ii) of clause (a) and the dues, if any, specified in rule 71,

(4) The amount of provisional pension and gratuity payable under sub-rule (2) or sub-rule (3) shall, if necessary, be revised on the completion of the detailed scrutiny of the records.

(5) (a) The payment of provisional pension shall not continue beyond the period of six months from the date of retirement of a Government servant or from the date of submission of Form 5 by the Government servant, whichever is later, and if the amount of final pension and the amount of final gratuity had been determined by the Head of Office in consultation with the Accounts Officer before the expiry of the said period of six months, the Accounts Officer shall -

(ii) direct the Head of Office to draw and disburse the difference between the final amount of gratuity and the amount of provisional gratuity paid under sub-clause (ii) of clause (b) of sub-rule (3) after adjusting the Government dues, if any, which may have come to notice after the payment of provisional gratuity.

(b) If the amount of provisional pension disbursed to a Government servant under sub-rule (3) is, on its final assessment, found to be in excess of the final pension assessed by the Accounts Officer, it shall be open to the Accounts Officer to adjust the excess amount of pension out of gratuity withheld under sub-clause (ii) of clause (a) of sub-rule (3) or recover the excess amount of pension in instalments by making short payments of the pension payable in future.

(c) (i) If the amount of provisional gratuity disbursed by the Head of Office under sub-rule (3) is more than the amount finally assessed, the retired Government servant shall not be required to refund the excess amount actually disbursed to him.

(ii) The Head of Office shall ensure that chances of disbursing the amount of gratuity in excess of the amount finally assessed are minimized and the officials responsible for the excess payment shall be accountable for the over-payment.

(6) If the final amount of pension and gratuity have not been determined by the Head of Office in consultation with the Accounts Officer within a period of six months referred to in clause (a) of sub-rule (5), the Accounts Officer shall treat the provisional pension and gratuity as final and issue pension payment order immediately on the expiry of the period of six months.

(7) As soon as the pension payment order has been issued by the Accounts Officer under clause (a) of sub-rule (5) or sub-rule (6), the Head of Office shall release the amount of withheld gratuity under sub-clause (ii) of clause (a) of sub-rule (3) to the retired Government servant after adjusting Government dues which may have come to notice after the payment of provisional gratuity under sub-clause (ii) of clause (b) of sub-rule (3).

Footnote : 1.Substituted by G.I., Dept. of P. & P.W., Notification No. 2/18/87-P. P.W. (PIC), dated the 20th July, 1988, published in the Gazette of India as S.O. No. 2388, dated the 6th August, 1988.
2. Substituted by G.I., Dept. of P. & A.R., Notification No. 30/11/80-Pension Unit, dated the 22nd October, 1981.
3. Inserted by G.I., Dept. of Per. & A.R., Notification No. 30/11/80-Pension Unit, dated the 22nd October, 1981.

* Substituted vide D/o.P&PW's Notificatin No.20/16/1998-P&PW(F) dated 7th April 2010 published in Gazette of India under SO 829(E) dated 12.4.2010.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) Issue of Last Pay Certificate. - The issue of a Last Pay Certificate should not be insisted upon before the payment of provisional pension. During the period of six months after retirement which has been provided for various purposes above, it should be possible for the Head of Office or other office concerned to issue the Last Pay Certificate to a Government servant. In cases in which the Last Pay Certificate has not been issued by the time the formal Pension/Gratuity Payment Orders are received (whether this happens prior to the retirement of the Government servant or after his retirement and after the grant of a provisional pension), the Gratuity Payment Order will in any case include a provision for withholding 10% of the gratuity or Rs. 1,000, whichever is less, pending the production of the Last Pay Certificate.

[G.I., M.F., O.M. No. F. 11 (3)-E. V (A)/76, dated the 28th February, 1976-Paragraph 9.]

(2) Adjustment of dues other than pertaining to Government accommodation. - In respect of other Government dues steps should be taken to ascertain or assess the outstanding dues when the processing of pension papers is taken up two years prior to the retirement date. As the next stage of the actual preparation of pension papers is reached only after a year and four months, there is ample time for ascertaining all kinds of Government dues. Once that stage is reached, i.e., eight months before the retirement of the Government servant, any further probing of records for recoveries due shall cover only a limited period, i.e., not more than two years before the date of retirement. It should thus be quite possible for the Head of Office, or the Office which is to issue the Pension Payment Order, as the case may be, to ascertain or assess all the dues particularly those pertaining to long-term advances such as house-building or conveyance advances, over-payment of pay and allowances, and such other dues, prior to the prescribed deadline for the issue of the Pension payment/ Gratuity payment orders or the Provisional pension/Gratuity order. The pension papers should clearly indicate the total amount of outstanding dues which should be recovered out of the retirement gratuity before authority for the payment of gratuity (whether final or provisional) is issued ; and if, after the pension papers have been transmitted to the office responsible for issuing the Pension Payment Order, additional recoveries to be made from the gratuity come to notice, the fact shall be promptly reported to that office. In a case where no major recoveries are due, but 10% of the gratuity or Rs. 1,000 has been withheld because there might be unassessed Government dues, or because gratuity has been provisionally paid or because last pay certificate has not been received, the with held amount automatically become payable on the expiry of the six months after retirement. The Head of Office (or the office issuing the pension and gratuity payment orders) shall indicate in the orders granting a provisional gratuity (or the final Gratuity Payment Order) itself the amount of gratuity withheld and add further that the withheld amount shall be released by the officer disbursing the pension without further instructions on the expiry of the period of six months from the date of retirement, unless instructions for the recovery of a specified sum or sums from the withheld amount are issued within the aforesaid period.

[G.I., M.F., O.M. No. F. 11 (3)-E. V (A).76, dated the 28th February, 1976, paragraph 10 (f).]

(3) Provisional pension to be paid by Head of Office in the absence of intimation from Accounts Officer. - 1. The CCS (Pension) Rules, 1972 and the corresponding rules applicable to All India Services Officers, Armed Forces personnel and Railway employees provide for advance action to be taken by the Heads of Offices and the Audit/Accounts Officers to ensure that the amount of pension and gratuity due to a retired Government employee is assessed well in time and the Pension Payment Order issued not later than one month in advance of the date of retirement. In cases where pension and gratuity cannot be settled as contemplated above, the Rules provide for the payment of provisional pension and provisional gratuity [e.g., Rule 64 of the CCS (Pension) Rules, 1972]. If the Head of Office is of the opinion that the Government servant is likely to retire before his pension or gratuity or both can be finally assessed and settled in accordance with the relevant rules, he shall take expeditious steps to sanction up to 100 % of pension as provisional pension and up to 100 % of gratuity as provisional gratuity, in accordance with the rules.

2. Representations have been made to the Ministry of Personnel, Public Grievances and Pension that provisional pension and provisional gratuity are not being sanctioned by the Heads of Offices as provided for in the rules. This is causing a great deal of avoidable hardship to retiring employees.

3. Government have taken a serious view of these complaints that the provisions of the statutory rules are not being observed. Heads of Offices are advised to ensure that there is no occasion for complaints in future from the retiring employees and to follow the prescribed procedure in letter and spirit. Accountability in this regard will rest with the Head of the Office concerned.

4. If any Central Government employee, on retirement, is not sanctioned provisional pension and provisional gratuity, pending a final determination of his/her pension and issue of the Pension Payment Order, he/she may send a complaint to the Department of Pension and Pensioners' Welfare for taking immediate action. The Government would like to ensure that retiring employees should on their retirement normally receive the final sanction of pensionary benefits. If delay in issuing a final Pension Payment Order is unavoidable, at least the benefits of provisional pension and provisional gratuity should be allowed as prescribed in the rules.

5. These instructions do no apply to cases falling under Rule 9 of the CCS (Pension) Rules, 1972 and corresponding provisions in the rules applicable to All India Services Officers, Armed Forces Personnel and Railway employees, etc.

[G.I., Dept. of P. & P.W., O.M. No. 38/9/87-P. & P.W., dated the 23rd January, 1987.]

(4) Head of Office should ensure that retiring person gets his provisional pension in time. - Rule 64 stipulates that Head of Office is empowered to sanction provisional pension and gratuity for a period of six months to a retiring employee, if he is of the opinion that the Government servant is likely to retire before his pension and gratuity or both can be finally assessed. The Study Team has observed that this option has not been exercised at all in many cases and the retiring person could not get his pension in time due to one or the other objection. In this connection, attention is also invited to Decision (3) above, whereby Heads of Departments/Offices were made accountable for strict compliance of Government orders for issuing authorization of Pension and Gratuity, provisional or final, at the date of retirement on superannuation.

[G.I., Dept. of Pen. & P.W., O.M. No. 38/116/93-P. & P.W. (F), dated the 2nd May, 1994. - Para. 9]

(5) Clarification regarding non applicability of Rule 64 to the case of voluntary/invalid/compulsory retire.

"From a reading of the Rule 64 with Rules 58 and 59 of the CCS (Pension) Rules, 1972, it is clear that Rule 64only deals with the cases of superannuation pension. Therefore, pension cases of voluntary retirement (Rule 48), invalid retirement (Rule 38) and compulsory retirement (Rule 40) are not covered by Rule 64 of the Pension Rules."

^[(1) (a) On receipt of pension papers referred to in rule 61, the Accounts Officer shall apply the requisite checks, record the account enfacement in Part II of Form 7 and assess the amount of pension, family pension and gratuity and issue the pension payment order not later than one month in advance of the date of the retirement of a Government servant on attaining the age of superannuation.

(b) In the cases of retirement otherwise than on attaining the age of superannuation, the Accounts Officer shall apply the requisite checks, complete Part II of Form 7, assess the amount of pension, family pension and gratuity, assess dues and issue the pension payment order within three months of the date of receipt of pension papers from the Head of Office.

(c) The Accounts Officer shall indicate in the Pension Payment Order, the name of the spouse of the Government servant, if alive, as family pensioner.

(d) The Accounts Officer shall also indicate in the Pension Payment Order, the names of the permanently disabled child or children and dependent parents and disabled siblings as family pensioners if there is no other member of family to whom family pension may become payable before such disabled child or children or dependent parents or disabled siblings.

(e) On receipt of a written communication from the Head of Office on an application from an existing pensioner or family pensioner, the Accounts Officer shall also indicate in the Pension Payment Order, the names of the permanently disabled child or children and dependent parents and disabled siblings as family pensioners if there is no other member of family to whom family pension may become payable before such disabled child or children or dependent parents or disabled siblings.

(f) The Pension Disbursing Authority shall authorise family pension to the members of family referred to in clause (c), (d) or (e) in accordance with the provisions of rule 81 in the order indicated in rule 54.]

(2) The amount of gratuity as determined by the Accounts Officer under Clause (a) of sub-rule (1) shall be intimated to the Head of Office with the remarks that the amount of the gratuity may be drawn and disbursed by the Head of Office to the retired Government servant after adjusting the Government dues, if any, referred to in Rule 71.

(3) The amount of gratuity withheld under sub-rule (5) of Rule 72 shall be adjusted by the Head of Office against the outstanding licence fee intimated by the Directorate of Estates and the balance, if any, refunded to the retired Government servant.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

Attention in this connection is invited to Clause (d) of para. 1.12.1 of Civil Accounts Manual according to which payment by bank drafts to outstation payees by Pay and Accounts Offices is permissible in cases, inter alia, of individuals. The term `individuals' will cover cases or payment for retirement benefits to retirees, which are to be routed through the DDO [i.e., payments other than those of monthly pension).

The Pay and Accounts Offices can, therefore, arrange payment of retirement benefits (other than payments of monthly pension) to retired Government servants where the concerned DDOs are situated at a station different from the one where the concerned Pay and Accounts Office is located and also to such other retired employees who stay after retirement at a station other than that of their DDO/PAO.

[G.I., M.F., O.M. No. G. 19011/2/83/MF/CGA/CTR/1206, dated the 6th February, 1985.]

(2) Retirement benefits up to Rs. 10,000 can be paid through uncrossed cheque/demand draft. - According to paragraph 2 of O.M. No. G.19011/1/77-MF/CGA/5035, dated the 29th March, 1979 (not mentioned), payment of Retirement/Death Gratuity, withheld amount of Retirement/Death Gratuity will be made by cheque/demand draft to be drawn in favour of the pensioner. Such cheques/demand drafts being usually in excess of Rs. 250 are requested to be crossed and marked "Account Payee" in accordance with para. 1.8.1 of the Civil Accounts Manual.

It has been represented that most of the staff of industrial organizations like Government of India Mints, etc., are not having bank accounts. They consequently face difficulty in encashing the crossed cheque/demand draft. Keeping in view the hardship being faced by staff having no bank accounts, it has been decided that in cases where a retiring employee makes a specific request in writing for not crossing the cheque/demand draft in the above form, the amount of retirement gratuity/withheld amount of retirement gratuity, which does not exceed Rs. 10,000 may be paid by an "Open cheque" instead of by crossed and marked "Account Payee" cheque/draft, subject to the condition that the payment will be made only to the payee on identification, or to a person holding letter of authority from the payee whose signatures must be verified and after identifying the messenger as laid down in para. 1.8.1 of the Civil Accounts Manual.

In the case of death of a Government servant while in service or after retirement, but before receiving amount of retirement/death gratuity, the payment thereof, to the legal heir(s) will, however, invariably be made by crossed cheque/demand draft marked "Account payee" drawn in favor of the payee(s).

[G.I., M.F., O.M. No. G. 19011/1/77/MF/CGA/709, dated the 24th September, 1982.]

It has been decided that Identity Cards will be issued by various Ministries/Departments/offices to its retired/retiring employees and the expenditure on providing a laminated Identity Card will be borne by the pensioner. This Department has devised a format in which Identity Cards are to be issued to pensioners (specimen enclosed). It will be the responsibility of the concerned Ministry/Department to work out the expenditure that may be involved in issuing a laminated Identity Card to pensioner and the card may be issued at the request of the pensioner on cost recovery basis.

3. Ministry of Agriculture, etc., are requested to take urgent necessary action in this regard.

If the provisional pension or gratuity or both sanctioned under sub-rule (4) of Rule 64, is desired to be paid by the pensioner through money order or bank draft, the same shall be remitted to him through money order or bank draft at his cost :

Provided that in the case of any pensioner who has been authorized payment of provisional pension ^{1{^}[not exceeding three thousand five hundred rupees] per mensem exclusive of the amount of relief on pension} that amount shall, at the request of the pensioner, be remitted to him by money order at Government expense.

Footnote : 1. Substituted by G.I., Dept. of P. & P.W., Notification No. 2/18/87-P. & P.W. (PIC), dated the 20th July, 1988, published in the Gazette of India as S.O. No. 2388, dated the 6th August, 1988.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) In the case of Government servant who retires while on deputation to another Central Government Department, action to authorize pension and gratuity in accordance with the provisions of this Chapter shall be taken by the Head of Office of the borrowing Department.

(2) In the case of a Government servant who retires from service, while on deputation to a State Government or while on foreign service, action to authorize pension and gratuity in accordance with the provisions of this Chapter shall be taken by the Head of Office or the Cadre authority which sanctioned deputation to the State Government or to foreign service.

(1) Acceptance of evidence regarding payment of pension contribution. - (a) There are some cases in which, in accordance with the terms of deputation/`foreign service', it is the responsibility and liability of the Government servant himself to maintain the continuity of pensionable service by the payment of pension contributions. In such cases, it will be necessary to ascertain whether the recoveries have been made, before the period of foreign service is sometimes put to considerable difficulty because of defective or incomplete record maintenance by the administrative/accounts offices. In such cases, while he could be reasonably asked to show that he had indeed made the contributions, the administrative authority should show a spirit of reasonableness and accommodation in evaluating and accepting such evidence as he is able to put forward, and not insist rigidly on formal proof with reference to service or accounts records for the maintenance of which the Government servant is not responsible.

(b) Where, however, the responsibility for making pension contributions is that of the borrowing organization and where either some of the contributions have not been recovered or the records in respect of the recoveries of such contributions are incomplete, while the authorities concerned should pursue the matter with the borrowing organization separately for appropriate action, this should have no bearing on the processing and finalization of pension papers.

[G.I., M.F., O.M. No. F. 11 (3).E, V (A)/76, dated the 28th February, 1979-paragraph 5]

^{^}[(1) In all cases where the payment of gratuity has been authorised later than the date when its payment becomes due, including the cases of retirement otherwise than on superannuation, and it is clearly established that the delay in payment was attributable to administrative reasons or lapses, interest shall be paid at the rate applicable to General Provident Fund amount in accordance with the instructions issued from time to time:

Provided that the delay in payment was not caused on account of failure on the part of the Government servant to comply with the procedure laid down by the Government for processing his pension papers.]

²(2) Every case of delayed payment of gratuity shall be considered by the Secretary of the Administrative Ministry or the Department in respect of its employees and the employees of its attached and subordinate offices and where the Secretary of the Ministry or the Department is satisfied that the delay in the payment of gratuity was caused on account of ^[administrative reasons or lapse], the Secretary of the Ministry or the Department shall sanction payment of interest.

²(3) The Adminsitrative Ministry or the Department shall issue Presidential sanction for the payment of interest after the Secretary has sanctioned the payment of interest under sub-rule (2).

²(4) In all cases where the payment of interest has been sanctioned by the Secretary of the Administrative Ministry or the Department, such Ministry or the Department shall fix the responsibility and take disciplinary action against the Government servant or servants who are found responsible for the delay in the payment of gratuity ^[on account of administrative lapses].

(5) Deleted by G.I., Dept. of P. & P.W., Notification No. 7/10/89-P. & P.W. (F), dated the 28th November, 1991, published as G.S.R. 677 in the Gazette of India, dated the 7th December, 1991 and takes effect from the date.

^ Substituted/inserted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

Footnote : 1. Substituted by G.I., Dept. of P. & P.W., Notification No. 7/10/89-P. & P.W., (F), dated the 28th November, 1991, published as G.S.R. 677 in the Gazette of India, dated the 7th December, 1991, and takes effect from the date.
2. Substituted by G.I., Dept. of P. & P.W., Notification No. 7 (13)/85-P. & P.W., dated the 12th March, 1986 and published in the Gazette of India, dated the 29th March, 1986.

2. Where disciplinary or judicial proceedings against a Government servant are pending on the date of his retirement, no gratuity is paid until the conclusion of the proceedings and the issue of the final orders thereon. The gratuity if allowed to be drawn by the competent authority on the conclusion of the proceedings will be deemed to have fallen due on the date of issue of orders by the competent authority.

3. In order to mitigate the hardship to the Government servants who, on the conclusion of the proceedings are fully exonerated, it has been decided that the interest on delayed payment of retirement gratuity may also be allowed in their cases, in accordance with the aforesaid instructions. In other words, in such cases, the gratuity will be deemed to have fallen due on the date following the date of retirement for the purpose of payment on interest on delayed payment of gratuity. The benefit of these instructions will, however, not be available to such of the Government servants who die during the pendency of judicial/disciplinary proceedings against them and against whom proceedings are consequently dropped.

[G.I., Dept. of Per. & A.R., O.M. No. F. 7 (1)-P.U./79, dated the 11th July, 1979 and No. 1 (4)/Pen. Unit/82, dated the 10th January, 1983.]

2. Certain administrative authorities have drawn attention to the fact that in cases of retirement on superannuation, the work of assessment of the demands outstanding against them commences two years in advance whereas in other cases of retirement, assessment of Government dues, etc., can begin only after the retirement has been approved by Government and have raised a doubt whether the provisions of Rule 68 are also applicable to those who retired otherwise on superannuation and if so whether the time-limit of three months is to be observed in such cases. The position has been reviewed in consultation with the Minsitry of Finance. It has been decided that if the payment of gratuity has been delayed due to administrative lapses for no fault of the retiring employee in cases of retirement other than superannuation, the payment of interest may be regulated in the following manner :-

Such cases of retirement will be either under clause (j) or clause (k) of FR 56 or Rules 38, 39, 40 ,48 or 48-A of the CCS (Pension) Rules, 1972. In such cases the pension sanctioning authority does not get adequate time for processing pension papers, as is available to it in the case of retirement on superannuation. Instructions have already been issued from time ot time that the work relating to verification of service should be done on year to year basis and should not be kept in arrears. Provisions also exist that on completion of 25 years qualifying service or on one being left with five years service before the date of retirement, whichever is earlier, the Head of Office should verify the service rendered by such Government servant and communicate to him the period of qualifying service as determined vide Rule 32 of the CCS (Pension) Rules, 1972. It is, therefore, expected that even in cases of retirement other than on superannuation it should not take unduly long time for all Heads of Offices to prepare pension papers of retiring employees. It has, therefore, been decided that where the payment of gratuity in such cases is delayed beyond six months from the date of retirement, interest should be paid for the period of delay beyond six months from the date of retirement.

Such cases may be considered on the same lines as mentioned in clause (ii) above. Detailed procedure for processing the payment of death gratuity is explained in Rules 77 to 80 of the CCS (Pension) Rules, 1972. It is felt that in these cases also it should be possible for the respective offices to process the payment of death gratuity within a reasonable time. It has, therefore, been decided that where the payment of death gratuity is delayed beyond six months from the date of death, interest should be paid for the period of delay beyond six months from the date of death. If in any case the payment of death gratuity is held up on account of more than one claimant staking his/her claim to the same, such cases will not automatically qualify for payment of interest in terms of these orders. These will be examined separately in consultation with this Department on the merits of each.

At present, no interest is paid in such cases. Representations have been received that the payment of difference in gratuity in such cases is unduly delayed. It is expected that once the orders relating to revision of emoluments reckoning for gratuity or liberalisation of rules relating to entitlement of gratuity is issued, the difference in gratuity should be paid within a reasonable time. Taking into account all aspects, it has now been decided that if the payment on account of arrears of gratuity is delayed beyond a period of three months from the date of issue of the orders revising the emoluments or liberalisation in the rules, interest may be allowed for the delay beyond the period of three months from the date of issue of the said orders.

Payment of interest on delayed payment of gratuity in these cases may also be decided in the same manner as prescribed in clause (ii) above. If the payment of gratuity has been delayed beyond six months from the date of permanent absorption the interest may be allowed for the period of delay beyond six months.

3. As far as retirement on superannuation is concerned, the existing procedure for grant of interest if the payment of gratuity is delayed due to administrative reasons/lapses for no fault of the retiring employee will continue to be applicable. In other words, interest will be allowed for the period of delay beyond three months from the date of retirement.

4. It has also been observed that there is a general impression among the administrative authorities that interest is to be paid only after disciplinary action being taken against the defaulting staff found responsible for the delay in payment of gratuity is concluded. It is hereby clarified that this impression is not correct. In all cases in which it is established that the delay in payment of gratuity was attributable to administrative lapses and for no fault of the retiring employee concerned, the interest should be paid without waiting for the outcome of the disciplinary proceedings against the defaulting staff. The disciplinary cases should be proceeded with separately. This may kindly be borne in mind while regulating cases under paragraphs 2 and 3 above. Wherever interest becomes payable in terms of these orders, the same shall be allowed up to the end of the month preceding the month in which gratuity/arrears of gratuity is paid.

5. These orders shall take effect from the date of issue of this OM. The cases of those Government servants who retired/died while in service before this date would also be covered if gratuity has not been paid as on the date of issue of this Office Memorandum and there has been delay in its payments beyond three months/six months, as the case may be, of the date of their retirement/death but the interest would be payable in such cases only from the date of the issue of this OM, or three months/six months, as the case may be, from the date of retirement/death, whichever date is later. Past cases of retirement otherwise than on superannuation and on death already settled before the issue of this OM, however, need not be reopened.

[G.I., Dept. of P. & P.W., O.M. No. 7/20/89/P. & P.W. (F), dated the 22nd January, 1991.]

(1) (a) In respect of a Government servant referred to in sub-rule (4) of Rule 9, the Accounts Officer shall authorize the provisional pension equal to the maximum pension which would have been admissible on the basis of qualifying service up to the date of retirement of the Government servant, or if he was under suspension on the date of retirement up to the date immediately preceding the date on which he was placed under suspension.

(b) The provisional pension shall be authorized by the Accounts Officer during the period commencing from the date of retirement up to and including the date on which, after the conclusion of departmental or judicial proceedings, final orders are passed by the competent authority.

(c) No gratuity shall be paid to the Government servant until the conclusion of the departmental or judicial proceedings and issue of final orders thereon :

¹Provided that where departmental proceedings have been instituted under Rule 16 of the Central Civil Services (Classification, Control and Appeal) Rules, 1965, for imposing any of the penalties specified in Clauses (i), (ii) and (iv) of Rule 11 of the said rules, the payment of gratuity shall be authorized to be paid to the Government servant.

(2) Payment of provisional pension made under sub-rule (1) shall be adjusted against final retirement benefits sanctioned to such Government servant upon conclusion of such proceedings but no recovery shall be made where the pension finally sanctioned is less than the provisional pension or the pension is reduced or withheld either permanently or for a specified period.

Footnote : 1. Inserted by G.I., Dept. of Per. & A.R., Notification No. 30/2/80-Pension Unit, dated the 13th February, 1981.

Grant of cent per cent provisional pension under Rule 69 mandatory even if departmental or judicial proceedings are continued. - It has come to the notice of Finance Ministry that some of the administrative authorities are not following Rule 69 of the CCS (Pension) Rules, 1972, which provide that Government servant who has retired and against whom any departmental or judicial proceedings are instituted or are continued, shall be paid provisional pension. The payment of provisional pension under these rules is mandatory. But some adminsitrative authorities appear to be under the impression that in cases where the departmental proceedings instituted against a Government servant were for a major penalty and in which ultimately no pension might become payable on the conclusion of the proceedings after his retirement under Rule 9 of the CCS (Pension) Rules, 1972, even the provisional pension need not to be sanctioned. This view is against the letter and spirit of the rule. The Ministry of Home Affairs, etc., are, therefore, requested to bring to the notice of administrative authorities under them the correct position under the rules so that the provisional pension under Rule 69 ibid is not denied to the retired Government servants.

(1) Subject to the provisions of Rules 8 and 9 pension once authorized after final assessment shall not be revised to the disadvantage of the Government servant, unless such revision becomes necessary on account of detection of a clerical error subsequently :

Provided that no revision of pension to the disadvantage of the pensioner shall be ordered by the Head of Office without the concurrence of the Department of Personnel and Administrative Reforms if the clerical error is detected after a period of two years from the date of authorization of pension.

^[(1-A) The question whether the revision has become necessary on account of a clerical error or not shall be decided by the administrative Ministry or Department.]

(2) For the purpose of sub-rule (1), the retired Government servant concerned shall be served with a notice by the Head of Office requiring him to refund the excess payment of pension within a period of two months from the date of receipt of notice by him.

(3) In case the Government servant fails to comply with the notice, the Head of Office shall, by order in writing, direct that such excess payment, shall be adjusted in instalments by short payments of pension in future, in one or more instalments, as the Head of Office may direct.

^ Inserted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) It shall be the duty of the Head of Office to ascertain and assess Government dues payable by a Government servant due for retirement.

(2) The Government dues as ascertained and assessed by the Head of Office which remain outstanding till the date of retirement of the Government servant, shall be adjusted against the amount of the ¹[retirement gratuity] becoming payable.

(a)	dues pertaining to Government accommodation including arrears of licence fee * [as well as damages for the occupation of the Government accommodatin beyond the permissible period after the date of retirement of the allottee )] if any ;
(b)	dues other than those pertaining to Government accommodation, namely, balance of house building or conveyance or any other advance, overpayment of pay and allowances or leave salary and arrears of income tax deductible at source under the Income Tax Act, 1961 (43 of 1961).

Footnote : 1. Substituted by G.I., Dept. of P. & P.W., Notification No. 2/18/87-P. & P.W. (PIC), dated the 20th July, 1988, published as S.O. No. 2388 in the Gazette of India, dated the 6th August, 1988.

* Substituted vide D/o. P&PW Notificatin No.20/16/1998-P&PW() dated the 7th April 2010 published in Gazette of India under SO 829(E) date the 12th April 2010.

(1) The Directorate of Estates on receipt of intimation from the Head of Office under sub-rule (1) of Rule 57 regarding the issue of No Demand Certificate shall scrutinize its records and inform the Head of Office ^[within two months], if any licence fee was recoverable from him in respect of the period prior to eight months of his retirement. If no intimation in regard to recovery of outstanding licence fee is received by the Head of Office by the stipulated date, it shall be presumed that no licence fee was recoverable from the allottee in respect of the period preceding eight months of his retirement.

(2) The Head of Office shall ensure that licence fee for the next eight months, that is up to the date of retirement of the allottee, is recovered every month from the pay and allowances of the allottee.

(3) Where the Directorate of Estates intimates the amount of licence fee recoverable in respect of the period mentioned in sub-rule (1), the Head of Office shall ensure that outstanding licence fee is recovered in instalments from the current pay and allowances of the allottee and where the entire amount is not recovered from the pay and allowances, the balance shall be recovered out of the gratuity before its payment is authorized.

(4) The Directorate of Estates shall also inform the Head of Office the amount of licence fee for the retention of Government accommodation for the permissible period ^{^}[ ] beyond the date of retirement of the allottee. The Head of Office shall adjust the amount of that licence fee from the amount of the gratuity together with the unrecovered licence fee, if any, mentioned in sub-rule (3).

(5) If in any particular case, it is not possible for the Directorate of Estates to determine the outstanding licence fee, that Directorate shall inform the Head of Office that *[ten per cent of the gratuity] may be withheld pending receipt of further information.

(6) *[The recovery of licence fee (where it is not possible for the Directorate of Estates to determine the outstaning license fee) as well as damages (for occupation of the Government accommodation beyond the permissible period after the date of retirement of allottee) shall be the responsibiity of the Directorate of Estates and the withheld amount of gratuity under sub-rule (5) above, the retiring Government employee, who are in occupation of Government acommodation, shall be paid immediately on production of 'No Demand Certificate' from the Directorate of Estates ater actual vacation of the Government accommodation;

(7) The Directorate of Estates shall ensure that "No Demand Certificate" shall be given to the Government employee within a period of fourteen days from the actual date of vacation of the Government accommodation and the allottee shall be entitled to payment of interest (at the rate applicable to General Provident Fund deposit determined from time to time by the Government of Indai) on the excess withheld amount of gratuity which is required to be refunded, after adjusting the arrears of license fee and damages, if any, payable by the allottee and the interest shall be payable by the Directorate of Estate through the concerned Accounts Officer of the Government Employee from the actual date of vacation of the Government accommodation up to the date of refund of excess withheld amount of gratuity;

(8) On account of license fee or damages remaining upaid after adjustment from the withheld amount of gratuity mentioned under sub-rule (5) above, may be ordered to be recovered by the Directorate of Estates through the concerned Accounts Officer from the Dearness Relief without the consent of the pensioners and in such cases no Dearness Relief shall be disbursed until full recovery of such dues has been made.]

NOTE. - For the purpose of this rule, the licence fee shal also include any other charges payable by the allottee for any damage or loss caused by him to the accommodation or its fittings.

Footnote : 1. Substituted by G.I., Dept. of P. & P.W., Notification No. 42 (30)-P. & P.W./89-E, dated the 22nd January, 1991, published as S.O. No. 409 in the Gazette of India, dated the 9th February, 1991.

2.Inserted by G.I., Dept. of P. & P.W., Notification No. 42 (30)-P. & P.W./89-E, dated the 22nd January, 1991, published as S.O. No. 409 in the Gazette of India, dated the 9th February, 1991.

* Inserted/Substituted by D/o.P&PW's Notification No.20/16/1998-P&PWF) dated the 7th April 2010 published in S.O No.829(E) dated 12.4.2010.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) For the dues other than the dues pertaining to occupation of Government accommodation as referred to in Clause (b) of sub-rule (3) of Rule 71, the Head of Office shall take steps to assess the dues ^[one year] before the date on which a Government servant is due to retire on superannuation ; or on the date on which he proceeds on leave preparatory to retirement, whichever is earlier.

(2) The assessment of Government dues referred to in sub-rule (1) shall be completed by the Head of Office eight months prior to the date of the retirement of the Government servant.

(3) The dues as assessed under sub-rule (2) including those dues which come to notice subsequently and which remain outstanding till the date of retirement of the Government servant, shall be adjusted against the amount of ¹[retirement gratuity] becoming payable to the Government servant on his retirement.

^ Substituted vide GSR 628(E), dated 1st September, 2014, Government of India, Department of Pension & Pensioners' Welfare Notification No.1/19/2013-P&PW(E), dated 29th August, 2014

(1) Dues to Municipality and Co-operative Societies not treated as Government dues. - The arrears of water and electricity are dues of the Municipal Committees, etc., which are local bodies and are, therefore, not Government dues. Similarly Co-operative Societes are not Government organizations and any dues to them cannot be treated as `dues to Government'. No recovery of such dues can be made from the death-cum-retirement gratuity.

Family pension is like any other pension and recoveries of dues whether Government or non-Government are not permissible from it without obtaining the consent of the pensioner.

[G.I., M.F., U.O. No. 2896-ETA/60, dated the 31st August, 1960, in File No. 10 (14)-E. V/60.]

It has been decided in consultation with the Ministries of Finance and Law, Justice and Company Affairs, New Delhi, that in case the prematurely retired official gives a declaration to his disbursing officer for recovery of outstanding dues of the Co-operative Societies from his DCRG payable to him under the rules, the same may be deducted in cash from the DCRG of the official and remitted to the society.

(2) 'Government dues' does not include dues while on deputation. - The term `Government dues' referred to covers only the dues payable to the Government and does not include dues while on deputation. In other words, the sum due from the officer to an autonomous organization is not `Government dues' and so cannot be recovered out of death-cum-retirement gratuity payable by the Government to the officer, except where the Government servant has given his consent in writing to such a recovery being made from his gratuity, which has become payable to him.
[G.I., M.F., O.M. No. F. 14 (9)-E. V/66, dated the 2nd September, 1967.]

(3) Write off of dues. - In some cases, an amount due from a person has to be written off on the ground that he/she is no longer in Government service and no recovery is, therefore, possible. In such cases the orders sanctioning write off should invariably contain a clause that any sums which are subsequently found due to the person concerned will be adjusted against the amounts written off.

(4) Procedure for the refund of excess recovery of licence fee to retired Government servants. - In order to ensure that the amounts of over-payments written off on the ground of Government servant being no longer in service are set off against any sums which are subsequently found due, it has been decided that the following procedure be adopted in regard to refund of excess recovery, if any, of licence fee to retired Government servants :-

(5) Whether Government dues written off after retirement can be recovered from pay during subsequent re-employment. - 1. A question has been raised whether the expression "any sums which are subsequently found due" occurring in Ministry of Finance's O.M. No. 18(9)-E-II(A)/59 dated 14th May 1960 (See Decision 4 above) cover only the dues relating to the period when the person concerned was originally in Government service or also covers any dues which may accrue to him as a result of his subsequent re-employment under Government ; in other words, whether an amount of overpayment made to a Government servant and written off on the ground that the person concerned is no longer in Government service, can be recovered from him by adjustment of the pay and allowances earned by him in the course of his re-employment under Government. It has been decided that in cases where the amount of over-payment is written off merely because the person concerned is no longer in Government service and not on any other ground, as for example, that its recovery would cause hardship to the individual concerned, the dues which may accrue to him during the period of his re-employment under Government may be adjusted against the amount written off.

2. In the terms of re-employment of a retired Government servant, a condition should invariably be inserted to the effect that any amount of overpayment pertaining to the pre-retirement period including the amount written off on the ground that he was no longer in Government service would be recoverable by adjustment of the pay and allowances admissible to him during the period of re-employment.

3. It will be the duty of the office re-employing a retired Government servant to make an enquiry from the office where he was formerly employed whether any amount is recoverable in terms of paragraph 1 above. Such an enquiry will have to be made immediately after a person is re-employed. The final payment of the re-employed person on the termination of his re-employment should not be made unless the re-employing office has ensured that no amounts are adjustable in terms of paragraph 1 above.

(6) When a pensioner refuses to pay Government dues. - The failure or refusal of a pensioner to pay any amount owed by him to Government cannot be said to be `misconduct' within the meaning of Article 351 of the CSR [Now Rule 8, CCS (Pension) Rules, 1972]. The possible way of recovering/demanding Government dues from a retiring officer who refuses to agree in writing, to such dues being recovered from his pension is either to delay the final sanction of his pension for some time which will have the desired effect for persuading him to agree to recovery being made thereform or take recourse to Court of Law.

(7) Only arrears of licence fee recoverable from pensioner's relief. - The Heads of Offices should ensure that all Government dues recoverable from retiring Government servants should be assessed well before retirement and recovered from the salary/retirement gratuity and that no Government dues other than arrears of Licence Fee can be recovered from Dearness Relief.

[G.I., M.F., C.G.A.'s U.O. No. M-23013/152/1/90/MF-CGA/Pension/Vol. II/286-87, dated the 23rd July, 1992, addressed to the Dept. of P. & P.W.]

(a)	a notification in the Official Gazette in the case of a Gazetted Government servant, and
(b)	an office order in the case of a non-gazetted Government servant shall be issued specifying the date of retirement within a week of such date and a copy of every such notification or office order, as the case may be, shall be forwarded immediately to the Accounts Officer :

Provided that where a notification in the Official Gazette or an office order, as the case may be, regarding the grant of leave preparatory to retirement to a Government servant is issued, a further notification or office order that the Government servant has actually retired on the expiry of such leave shall not be necessary unless the leave is curtailed and the retirement is for any reason ante-dated or postponed.

(1) Statements required to be maintained for proper mounitoring and reporting system. - In simplifying the procedure with a view to eliminate delays in the payment of superannuation pension and retirement gratuity Government have proceeded on the basis that in spite of every effort imperfections may remain in the records and procedures but that it would be unfair to a retiring Government servant if he had to suffer because of the lapses of those responsible for the proper maintenance of service records. The fact that under the new procedures the presumption will be in favour of the Government servant if the records are incomplete or deficient in any manner underlines the importance of ensuring the proper, regular and timely completion of all the service and accounts records by the offices concerned, so as to minimise the occasion for making such presumptions. It has, accordingly, been decided that if, in future, service records are found to be incomplete or imperfect at the time of processing and finalizing pension cases, those cases will not be delayed but the officials responsible for the maintenance of the records will be held accountable for any deficiencies, failure or omissions therein, and action will be initiated against them. The Heads of Departments will ensure that these directions are complied with.

(2) In order to ensure that the payment of pension should in all cases commence on the first of the month in which they are due, it has been decided that the progress of the pension cases should be watched by the Heads of the Offices and the Heads of the Departments by means of monthly and quarterly statements so that the various cut-off dates laid down are strictly followed. For proper monitoring and reporting system the Heads of Offices shall prepare the following statements. (A specimen each of the Statements is in section FORMS at the end.)

Statement No. 1 : This is monthly statement and should cover cases of all Government servants due to retire within the succeeding 8 months and indicate the progress of the pension cases with reference to the various stages and time-limit prescribed, i.e., whether action was initiated two years in advance and whether the pension papers are ready for being sent to the Audit Officer before 6 months of the retirement of the Government servant. The statement should be submitted by the Head of Office to the next higher officer.

Statement No. 2 : This is monthly statement having Part I and Part II and the statement should cover the cases of Government servants who became due for retirement in the previous calendar month. Part I and Part II of the statement should be submitted by the Head of Office to the next higher officer. The next higher officer will submit Part II of the statement to the Head of the Department.

Statement No. 3 : This is a quarterly statement and should cover the cases of those Government servants in whose cases provisional pension and provisional gratuity was authorized by the Head of Office but the provisional pension and gratuity had to be made final after the expiry of a period of 6 months. The statement is to be submitted to the Head of the Department.

Statement No. 4 : This is a quarterly statement and should indicate the particulars of those Government servants where presumptions have been made in favour of retired Government servant because of incomplete/improper maintenance of service records. The names of the persons responsible for improper maintenance of the record of service books and action taken against the Government servant concerned responsible for lapse should also be indicated. The statement is to be submitted to the Head of Department.

Statement No. 5 : This is a half-yearly statement to be submitted by the Head of Department to the Secretary of the Ministry concerned.

Any case, where payment of pension is delayed, has to be viewed seriously. The causes of delay in such a case have to be identified and remedial steps taken so that such delays should not occur in future. This can only be ensured if the Heads of the Departments will personally scrutinize the statements and issue such directions as they may consider necessary where payments of pensions have been delayed. Any deficiency in the procedure should be brought to the notice of this ministry at the appropriate level so that rules may be amended accordingly.

[G.I., M.F., O.M. No. F. 11 (3)-E. V (A)/76, dated the 28th February, 1976 and the 6th May, 1976 and O.M. No. F. 11 (14)-E. V (A)/76, dated the 30th October, 1976.]

1.	Name of the Pensioner
2.	Designation
3.	Date of birth
4.	Date of entry in the Govt. service
5.	Date of retirement
6.	Length of qualifying service reckoned for pension/gratuity (as indicated in PPO)
7.	Emoluments drawn during the last 10 months.
8.	(1)	Average emoluments for pension (as indicated in PPO)
	(2)	Pension admissible Calculations to be shown as follows :- (Avg. Emo./2 ) x [Q.S. (in completed 6 monthly period not exceeding 66)/66]
8-A.	Whether opted for commutation of 100% pension in case of permanent absorption in PSU/AB [Deleted vide notification No. 4/42/91-P&PW(D) dated 25-6-1997]
9.	(1)	Emoluments for gratuity (as indicated in PPO)
	(2)	Retirement gratuity admissible Calculation to be shown as follows :- (Emoluments/4) x [Q.S. (in completed 6 months period not exceeding 66)]
10.	(1)	Emoluments for Family Pension (as indicated in PPO)
	(2)	Family Pension admissible Calculations to be shown as follows :-
	*(a)	Ord. Family Pension : Pay last drawn x Prescribed %, subject to prescribed min. and max.
	*(b)	Enhanced Family Pension :
		Family Pension at ordinary rate as at (a) above x 2, subject to prescribed minimum and maximum as per Rule 54.
		*EXPLANATION : In case of permanent absorption in Public Sector Undertakings/Autonomous Bodies, whether the retiree opts for pro rata pension or commutation of 100% pension, the above-mentioned entitlement to family pension will be subject to the fulfilment of the following conditions, namely :-
		(a)	The employee seeking permanent absorption is not entitled to family pension benefit from the Public Sector Undertakings/Autonomous Bodies or under the Employees' Provident Fund and Miscellaneous Provisions Act, and
		(b)	Where the employee concerned is governed by the Family Pension Scheme under the Employees' Provident Fund and Miscellaneous Provisions Act, he opts to be governed by the Family Pension Scheme of the Central Government after obtaining exemption from the provision of Employees' Provident Fund and Miscellaneous Provisions Act from the Regional Provident Fund Commissioner concerned.
11.	PPO No.........................................

		Head of Office
Place.............................................
Date..............................................
Countersigned
	Pay & Accounts Officer
Place.............................................
Date..............................................

No....................................	Name of the Minsitry/Deptt./Office
	....................................................

(i)	In case of Government servants against whom disciplinary/judicial proceedings are pending on the date of retirement and in which gratuity is withheld till the conclusion of the proceedings :-
		(a)	In such cases if the Government servant is exonerated of all charges and where the gratuity is paid on the conclusion of such proceedings, the payment of gratuity will be deemed to have fallen due on the date following the date of retirement vide O.M. No. 1 (4)/Pen. Unit/82, dated the 10th January, 1983 If the payment of gratuity has been authorized after three months from the date of his retirement interest may be allowed beyond the period of three months from the date of retirement.
		(b)	In cases where the disciplinary/judicial proceedings are dropped on account of the death of the Government servant during the pendency of disciplinary/judicial proceedings, the payment of gratuity will be deemed to have fallen due on the date following the date of death and if the payment of gratuity has been delayed interest may be allowed for the period of delay beyond three months from the date of death.
		(c)	In cases where the Government servant is not fully exonerated on the conclusion of disciplinary/judicial proceedings and where the competent authority decides to allow payment of gratuity, in such cases, the payment of gratuity will be deemed to have fallen due on the date of issue of orders by the competent authority for payment of gratuity vide O.M. No. 7 (1) PU/79, dated 11-7-1979 . If the payment of gratuity is delayed in such cases interest will be payable for the period of delay beyond three months from the date of issue of the above-mentioned orders by the competent authority.