Procedure for determination and authorisation of the amounts of pension and gratuity are governed byRule 56 to 76 of the CCS (Pension) Rules, 1972. Wherever delays are anticipated, provisional pension is required to be sanctioned under Rule 64 and 69 of the CCS (Pension) Rules.

The process of preparation of pension papers start at least 24 to 30 months prior to the due date of retirement of the Government servant by the Head of Department/Head of Office/Accounts Officer. The retiring Government servant is to be provided with the application Forms for processing pension papers 2 years prior to the date of his superannuation. Eight months prior to the retirement date, the retiring official is required to furnish certain information (for example joint photograph with spouse, family details, name of bank through which pension is to be drawn etc.) to the Head of Office in the prescribed Form. The Head of Office is required to send complete pension papers to the Account Officer not later than 6 months before the date of retirement.

The Head of Office/Accounts Officer is expected to complete the processing of pension papers well in time so that the pensioner is able to draw his pension immediately after his retirement. Pension can be drawn either through the Branch of a Public Sector Bank or through Treasury. The Accounts Officer after going through all the procedures will issue the Pension Payment Order to the Central Pension Accounting Office who will issue the Special Seal Authority to the concerned Bank/Treasury. In fact the PAO is required to dispatch the PPO to the CPAO not later than one month in advance of the retirement date. In case the pensioner wants to change the bank/treasury/place of drawal of pension, he will have to apply to the concerned Accounts Officer/PAO for making necessary correction in the PPO.