Internal Check of Pension Payments PDF

* CHAPTER X * INTERNAL CHECK OF PENSION PAYMENTS Pensionary Benefits. 1001. Definition, 1002. Delay in Payment, 1004. Statement of Service, 1005. Verification of Service by Head of the Office, 1008. Check of Accounts Inspection Party, 1010. Check by Accounts Department, 1011....

* CHAPTER X * INTERNAL CHECK OF PENSION PAYMENTS Pensionary Benefits. 1001. Definition, 1002. Delay in Payment, 1004. Statement of Service, 1005. Verification of Service by Head of the Office, 1008. Check of Accounts Inspection Party, 1010. Check by Accounts Department, 1011. Verification of Service in case of non-availability of records, 1014. Check of Foreign Service Contribution, 1017. Completion of Pension Papers, 1018. Last Pay Certificate, 1020. Memorandum of Average Emoluments, 1021. Check of Pension Application, 1022. Check of S. R. P. F. Ledgers, 1024. Average Emoluments, 1025. Issue of Pension Payment Authority, 1031. Amount of Pension to be in whole Rupees, 1034. Check Register of Pensions, 1035. Payment of D. C. R. G., 1040. Family Pension, 1042. Death of Pensioner, 1043. Non-drawal of Pension, 1044. Check of Paid Pension Bills, 1045. Payment of Provisional Pension and Gratuity, 1048. Deduction from Gratuity, 1049. Provisional Pension to become Final, 1051. Last Pay Certificate, 1052. Revision of Pensionary Benefits, 1055. Commutation of Pension, 1056. Payment of arrears of Pensionary Benefits, 1066. Transfer from one Treasury to another, 1068. Transfer from one Accountant General to another, 1070. Payment through Post Offices, 1072 Annexure I, Payment of Pension through Nationalised Banks, 1072. Annexure II.,,1073 annexure III  CHAPTER X INTERNAL CHECK OF PENSION PAYMENT 1001. Pensionary benefits granted to Railway servants in respect of their service generally fail under one or the other of the following categories.- (i) Superannuation Pension (ii) Retiring Pension (iii) Compensation Pension (iv) Invalid Pension (v) Commuted Pension (vi) Ex-gratia Pension (vii) Death-cum-retirement Gratuity (viii) Service Gratuity (ix) Other (extra-ordinary) Gratuity (x) Compassionate allowances/grants (xi) Family Pension (xii) Terminal Gratuity (xiii) Death Gratuity. The detailed rules regulating the grant of pensionary benefits are contained in the Indian Railway Establishment Code Vol. II, in the Manual of Railway pension Rules, 1950 and extant orders issued from time to time. The instructions contained in this Chapter relate to internal check on such payments. 1002. The term 'Pension' used in this Chapter includes the pensionary benefits and the term 'Manual' used in this Chapter refers to the Manual of Railway Pension Rules, 1950, issued by the Ministry of Railways (Railway Board). 1003. The internal check of pension consists in verifying that the qualifying conditions governing the grant of a pension are fulfilled, the calculation of amount of pension is correct and the incidence and allocation is correct. 1004. Delay in payment of pension involves pecuniary hardship. It is, therefore, imperative that the pension cases are dealt with expeditiously. Objections, if any, should be raised on the first occasion and not piecemeal and settled expeditiously so that the beneficiary receives his dues without delay. 1005. Statement of Service Non-gazetted Staff.-On receipt of the application for pension in the prescribed form the head of the Office/Department immediately prepares a statement of the applicant's services in accordance with the instructions contained in form No. 30A RII to enable the Accounts Officer to verify the service. 1006. Statement of Service-Gazetted Staff.-As the Service Records and leave accounts of Gazetted Officers are maintained by the Accounts Officer, the concerned Accounts Officer will send the service record and leave account of the Officer to the head of the Department to enable the head of the Department to prepare the Statement of Service. In addition, a statement showing the pay drawn during the last ten months of service by the officer will be sent by the Accounts Officer to the head of the Department for preparing the Memorandum of average emoluments (see paragraph 1021).  1007. The Statement of Service shows all the important events; the temporary and officiative service or those affecting the emoluments, of the Railway servant. It should be clearly seen that:- (a) The statement shows not only the periods which count as qualifying service but also all periods of leave, suspension, overstayal etc., which do not so count. The latter is entered in red ink in order to clearly distinguish them, and reasons for their rejection are given in the remarks column. (b) If the date of confirmation has been determined in terms of para 411 of the Manual i. e. deemed date of confirmation, the fact should be clearly mentioned in the statement, the details of the case being given in the remarks column; The (c) statement shows date, month and year of the various appointments, promotions and reversions. For the purpose of adding together broken periods, a month is reckoned as thirty days. (d) Periods which count as qualifying service, in terms of Chapter IV of the manual are clearly indicated and that full details of the nature of posts/service and the relevant para under which the same qualifies is indicated in respect of each period in the remarks column; (e) If the emoluments drawn in an officiating appointment count in full for pensionary benefits under para 501 of the Manual, all details regarding the officiating appointment are given; (f) The total of the periods of the qualifying service shown in the statement tallies with the total service less the non-qualifying service shown in the statement tallies with the total service less the non-qualifying periods shown in the statement; (g) In the column "how verified" the particulars of records such as verification certificate in the service book/pay bills, acquittance rolls/office orders, collateral evidence/affidavit, etc., are mentioned. 1008. Verification of Service by Head of the Office/Department.-The head of the Office/Department is required to verify the service of Non-Gazetted staff recorded in the Statement of Service, as indicated in Paras 1016 to 1021 of the Manual. The head of the Office/Department will also verify the portion of service, if any, of a Gazetted Officer rendered in Non-Gazetted capacity in the manner laid down in Paras 1016-1021 of the Manual. The service of a Gazetted Officer rendered in the Gazetted capacity should be verified by the Accounts Officer himself. 1009. Check of Service by the heads of Offices.-The heads of offices are required to verify service annually and record a certificate regarding the service verified, in the Service Book as prescribed in para 1200 of Indian Railway Administration and Finance-an Introduction. In regard to past service (prior to 01.04.1957 i. e. the date from which pension scheme has been introduced on Railways) only one consolidated certificate is recorded for the whole service in the Service Book. Where it may not be possible to verify the entire past service due to non-availability of office copies of pay bills etd. From which service is verified, the verification id done in the manner laid down in paras 1018-20 of the Manual i. e. from the application of the employee supported by collateral evidence of contemporary employees etc. These documents relied upon by the Head of the Office in verifying the service may be accepted in Accounts Office. 1010. Check by Accounts Inspection Party-The verification of service by the head of office as indicated in para 1009 should be supplemented by a test check by the Accounts Inspection Party during their local inspection of the Executive Offices annual, bi-ennial or tri-ennial as the case may be. The test check should be conducted by the Accounts inspection Party in the manner indicated below :- (a) It should be seen that the annual certificate (consolidated certificate also for past service, in the case of staff who entered service prior to 01.04.1957) has been recorded in every service book and the certificate has been signed by the head of the office. The Inspection Party should sign the certificate in token of having exercised this check. (b) The entries in the Service Books should be test checked to see that they are correct. For this purpose the Service Books of employees who are due to retire within three years from the date of inspection should all be test checked while in other cases the entries regarding qualifying service in the service books should be test checked in a percentage of the employees, the percentage being so regulated that each service book comes under the test check at least thrice or four times before the employee attains the age of 55 years i. e. three years before the age of Superannuation. (c) A percentage of the entries relating to past service (prior to 01.04.1957 or prior to the year of date of option) for which a consolidated certificate is recorded by the head of office should also be test checked preferably with the paid pay bills etc., if available (in the case of offices located at the headquarters of the Railway/Division) or office copies there of and other available establishment records e. g. office orders. The percentage of entries to be test checked should be fixed by the Financial Adviser and Chief Accounts officer. The test check should be so regulated that all service books containing the consolidated certificate are subjected to test check in the course of two to three inspections. (d) Besides the above, the first year of permanent service and all previous qualifying service should be checked in the case of employees who are confirmed in the period intervening between two inspections (the last inspection and the one on Hand). This check, should be however, cover all employees who entered service on or after 01.04.1957. The inspection party should record in every service book inspected by them a clear certificate to the effect that "Entries Nos.…….covered by the certificate by the head of office for the period ending ……….. have been checked". 1011. Check by Accounts Department of Qualifying Service.- In Accounts Office the qualifying service is checked in the following manner :- Category of Employees Check to be applied at the time Check to be applied in the of local inspections A/cs Office at the time of verification of pension application 1 2 3 1. Employee who (i) To see that the consolidated (i) To check first year of entered service certificate for service from the permanent qualifying prior to 1/4/57 date of appointment to the service and all previous last date of the financial year qualifying service.  preceding the date of option & the annual certificate of verification of service is recorded by the head of Office (including temporary staff). (ii) To test check accuracy of (ii) To check last one year consolidated certificate qualifying service. recorded by head of office Where however it brings relating to past service from to light any the date of appointment to discrepancies or where the last date of the financial there has been year preceding the date of variations in the scale of option. pay of the applicant during the last three years an intelligent scrutiny of the service book for the period should be conducted in addition to the verification of last year's service. (iii) To test check accuracy of (iii) To look for the certificate certificate relating to service of test check vide items from the year of date of (ii) & (iii) in column 2 option onwards particularly in recorded by the case of staff due to retire Accounts inspection within three years. party in the service book. 2. Employee who (i) To see that annual certificate (i) To check last one year entered service on of verification of service is qualifying service. or after 1/4/57. recorded by the head of Where however it brings office (including temporary to light any staff). discrepancies or where there has been variations in the scale of pay of the applicant during the last three years, an intelligent scrutiny of the service book for the period should be conducted in addition to the verification of last year’s service. (ii) To check fully the first year of (ii) To look for the certificate permanent qualifying service of check/test check vide and all previous qualifying items (ii) and (iii) in service. column 2, recorded by the Accounts Inspection Party in the service books.  (iii) To test check accuracy of certificate relating to service after the first year of permanent service in such a manner that each service book comes under test check at least three or four times before the employee attains the age of 55 years, service books of employees due to retire within three years from the date of inspection being invariably rest checked. WHERE THE CERTIFICATES OF TEST-CHECK ARE NOT AVAILABLE 1012. Where, however the certificate of test check vide items (ii) and (iii) in column 2 of para 1011 (1) and (2) required to be recorded by the accounts in inspection party in the service book are missing for any reason e. g. in reconstructed records the following checks should be exercised in the Accounts Office at the time of verification of Pension application:- (1) first year of permanent qualifying service and all previous qualifying service. (2) the last three years of qualifying service. (3) One or two intermediate years selected at random. The check over these periods of service should be exercised in accordance with the provision laid down in para 1013 to 1016 1013 (a) The details of service as given in the statement of Service should be checked in the Accounts Office for the periods laid down in para 1012 with paid vouchers.P. F. ledger cards copies of Office Orders and any other documents that may be available in the Accounts Office In the absence of these records for any period selected in terms of para 1012 the various documents e. g. personal files, office order books, Gradation Lists, Records of Selection Boards, Pass Records, Grain Shop Records, applications for loans from Co- operative Credit Societies etc. (or attested extracts there from) that have been used by the Executive Offices for the verification of service in terms of para 1016 of the Manual may also be relied upon in the Accounts Office. (b) Regarding periods of qualifying service, the check should be conducted for the periods specified in para 1012 with reference to the available records e. g. paid vouchers which would help to verify continuity of service, appointment held, periods of leave etc. during the selected period. Similarly, a perusal of the Provident Fund Ledger Accounts would reveal the continuity of service and also periods of extraordinary leave, if any, taken since no contributions are recoverable during such leave. 1014. Verification of service in the case of non-availability of records.-If paid vouchers or other documents are not available in the Accounts Office for the selected period. The verification may be made from the documents made use of by the Executive Offices. If it be impossible to verify (a portion of the) service otherwise, the facts determined in terms of para 1017 to 1020 of the Manual should also be accepted for the purpose of check in the Accounts Department relating to the particular period of service.  1015. The date of birth, and the date of beginning of service, as shown in the Application Form and the service Statement may be checked with the Office Order containing the appointment of the employee or old Gradation Lists etc. and in the absence of these with the Service Book Register. 1016. Whenever the Service Book/Roll sent with the pension application, contains entries relating to important events such as alteration in date of birth, suspension, dismissal resignation etc. these entries may be verified with copies of orders furnished to the Accounts Office. 1017. Check of Foreign Service contribution- In cases when a railway servant has rendered any foreign service, the Accounts Officer should verify from his records that foreign service contributions have been duly recovered for the periods in question. In cases where verification is not possible in the normal manner action may be taken on the basis indicated in para 1014. 1018. (i) After completing the pension papers in all respects these would be received alongwith the documents mentioned in para 1026 of the Manual in the Accounts Office with the forwarding letter in Form 30 A/R-lI not later than 6 months before the date or retirement. The amount to be withheld out of the Gratuity till the outstanding dues are assessed should be indicated in the Form. (ii) In case of a deceased Railway servant, the name, address and relationship to the deceased Railway servant of the person or persons to whom the payment is to be made and the amount to be paid to each of them should be indicated. When the Death-cum-Retirement Gratuity is payable to a minor, the name of the natural guardian to whom the payment is to be made on his behalf and in the absence of the natural guardian, the name of the person who furnishes the Guardianship Certificate should also be clearly indicated. (iii) In the case of Family pension payable under para 801 of 802 the Manual the period upto which it is payable and the event, if any, on the happening of which payment will be stopped should also be specified. 1019. The Service Book should show the date of appointment, the date of confirmation, the cause of retirement, and the date of retirement, It should also contain a clear record of: (i) Periods of service counted as qualifying service in terms of para 413 of the Manual. (ii) If the Railway servant has been on foreign service, reference to the orders of transfer to foreign service and the fact of recovery (or waiver) of the Foreign Service Contributions; (iii) all non-qualifying periods, which should be entered in red ink; (iv) Periods of strikes, suspension and breaks in service, and how each such periods has been treated, supported by reference to the orders of the competent authority; and (v) Periods of service verified from collateral evidence/affidavit duly accepted by the competent authority. 1020. Last Pay Certificate.- In the case of ordinary pension, the Last Pay Certificate, with a clear certificate of “No Demand” it no dues are outstanding, or a list of outstandings, as the case may be, should be attached. As Pension papers are sent in advance of the date of retirement, the Last Pay Certificate should follow as early as possible. The Gratuity payment Order will include a provision for the withholding of 10% of the gratuity or Rs. 1000/- whichever is less, pending the receipt of the Last Pay Certificate. 1021. (i) Memorandum of Average Emoluments. – The Memorandum of Average Emoluments of the Railway servant should be prepared in Form No. II. The Memorandum should be prepared with reference to the provisions of Chapter V of the Manual, a separate memorandum being prepared in connection with each subpara of that para, if more than one sub-para is applicable in any case. The calculation of average emoluments should be based on the actual number of days contained in each month. (ii) The Memorandum of Average Emoluments should be supported by a statement of all periods of leave/foreign service, suspension during the last two years of qualifying service, In the case of a Railway servant who proceeded on such leave/foreign service or was placed under suspension while officiating in a post higher than his substantive post, a certificate to the effect that he would have continued to officiate in the higher post but for being on leave or foreign service or suspension during such periods, should be recorded on the statement. The emoluments that the Railway servant would have drawn but for being on leave/foreign service/suspension during such periods should also be clearly indicated against the respective periods. (iii) In case the Service Registers have been subjected to checks at various stages i.e. by Head of Office by according annual certificate of verification and test checked by the Accounts Office in accordance with paras 1010 and 1011 the check of emoluments drawn during the last ten months of service may be conducted with reference to the entries in the Service Register. 1022. Check of Pension application.- The pension on receipt in Accounts Office should be entered in the Register of Applications for Pensions Form A. 1022. The serial number assigned to it in the register should be noted in red ink on the application. The register should also have an alphabetical index too facilitate reference. The Pension application should be carefully scrutinized to see that these are complete in all respects. If the pension papers are plainly incorrect or incomplete, the Accounts Officer should return them promptly for correction or completion. He should also detail the nature of the discrepancy. The authority submitting the pension papers shall settle such discrepancy to the satisfaction of the Accounts Officer. The Register of Pension Application should be reviewed periodically by the Accounts Officer in order to ensure that the payments are made as early as possible and no undue delay occurs in dealing with them in the Accounts Office. Form A 1022 1023. The following checks should be exercised on the Pension Applications:- (i) The statement of qualifying service as compiled by the departmental officer should be checked in the manner laid down in the paragraph 1011. (ii) The date of retirement shown in the printed Application Form, the Service Records and the Last Pay Certificate should agree. (iii) The Last Pay Certificate should be examined to see the last pay drawn, outstanding dues etc.  (iv) The statement of average emoluments and the last pay drawn should be checked with the service records etc. (v) The instructions regarding the period upto which the pension is payable and the event, if any, on the happening of which payment has to be stopped should be taken note and specified on the Pension Payment Order. (vi) It should be verified from the Service Records, SRPF Ledger Account or the Register of Pension Application, Check Register of pension etc. that Pension/DCRG has not previously been passed for payment. Note:- The work involves not merely an arithmetical calculation of the average emoluments but also a check of the correctness of the emoluments which enter into that calculation. The correctness of the emoluments on the first date of the ten month period would naturally depend on the correctness of the emoluments prior to this date. However, any such check of the correctness of past emoluments should not become an occasion for an extensive examination going back into the distant past, the check should be minimum which is absolutely necessary and it should in any case not go back to a period earlier than a maximum of 24 months preceding thew retirement. 1024. (a) Check of SRPF Ledgers. – The SRPF card of the employee should be consulted to ensure that Government contribution is not being allowed to him. In case it is being allowed it should be written back to the Pension Fund. The fact of issue of payment authority for pension, DCRG etc. should be noted on the PF ledger card. (b) Remarks of payment on all Pension Documents. – A remark should be given on all the documents accompanying the pension application viz. Service Records, Leave Account, Personal File etc. showing conspicuously in red ink that the pension/ DCRG etc. have been passed for payment under Accounts Bill No…………. dated……….. (c) After exercising the requisite checks the endorsement on the third page of the application in form 30-R-II should be filled showing the total period of qualifying service which has been verified and accepted, the average emoluments of the last ten months of service, the last pay drawn the amount of pension, family pension and DCRG etc. admissible in the case. A certificate and Report of the pension should be drawn out in Form A. 1024 and signed by the Accounts officer in-charge. (d) Cent per cent Check. – The pension papers should be put up to the Accounts Officer through Section Officer (Accounts) alongwith the Register of Application for pension (Form A.1022). These will be checked cent per cent by the Section officer (Accounts) and the Accounts Officer who will sign the certificate and Report (Form A.1024) and initial the entries in the Register. Form A. 1024 1025 Emoluments/Average Emoluments. – The following points should be seen in the Memorandum of Average Emoluments: (1) The “emoluments’ for pensionary benefits shall mean the “Pay” as defined in Rule 2003 (21)-R-II, which the Railway servant was receiving immediately before quitting service. The benefit of higher officiating pay for gratuity/death cum-retirement gratuity will, however, be given only if such pay was/would have been drawn Continuously for a period of not less than 22 days. In the case of running staff, emoluments for gratuity/death-cum- retirement gratuity will also include the monthly average of the allowance drawn during the 265 days of running duty immediately preceding the date of quitting service limited to 75 per cent of the emoluments as defined above. (2) The calculation of emoluments is subject to the following provisions:- (i) If immediately before quitting service a Railway servant has been absent from duty on leave with allowances (including leave preparatory to retirement) or on foreign service or having been suspended but reinstated without forfeiture of qualifying service, his emoluments should be taken at what they should have been had he not been on such leave or foreign service or suspension. (ii) The emoluments shall not be increased on account of increase in pay not actually drawn except as provided in this para and paras below. For example, where a Railway servant is allowed to count time retrospectively towards increase of pay but does not receive retrospectively the intermediate periodical increments, these intermediate increments shall not be reckoned in the calculation of average emoluments. (iii) In cases of wrongful reversion caused by administrative errors. Where on repromotion the pay of the Railway servant is fixed Performa, the emolument that the Railway servant would have drawn but for his reversion should be taken into account. (iv) If the Railway servant earns an increment, during privilege leave/leave on average pay not exceeding 4 months (120 days in the case of liberalized leave rules) or during the first four months (120 days in the case of liberalized leave rules) of any period of privilege leave/leave on average pay (including leave preparatory to retirement but excluding any kind of post-superannuation leave except in respect of staff governed by ex-Company Railway leave rules) the increment or the increase in pay will count as emoluments even though it is not actually drawn during leave. (v) Where the emoluments of a Railway servant have been reduced during the last 10 months of his qualifying service, otherwise than as a penalty, the average emoluments may, at the discretion of the authority competent to sanction the Pensionary benefits be treated as emoluments for the purpose of calculation of the gratuity or death-cum-retirement gratuity.  (vi) In cases of joining time falling under clauses (a) and (c) of Rule 2138-R-II- (F.R. 107), where the pay of a particular post is drawn, the actual emoluments (not the actual joining time allowance) drawn should be taken into account. In case of joining time falling under clause (b) (ii) of Rule 2138-R-II (F.R. 107) during which leave salary is drawn and in cases falling under clause (b) (i) of Rule 2138(F.R. 107) during which no leave salary is drawn the pay (i.e. emoluments) which would have been drawn (but for a rule or order not allowing it) if the Railway servant had not been on joining time, should be taken into account. (vii) In the case of workshop staff, for unpaid holidays, Sundays and short periods of leave for half-a-day or less which count as qualifying service for Pensionary benefits the emoluments for the whole day calculated at the monthly rate of pay should be taken into account for the purpose of calculating average emoluments. 1026. The term “ average emoluments” means the average of the emoluments drawn during the last ten months of qualifying service. Provided that if during last ten months of his service, a Railway servant is absent from duty on extraordinary leave (without leave salary) or has been under suspension, the period where of does not count as service, the aforesaid period of leave or of suspension should be disregarded in the calculation of the average emoluments, an equal period before the ten months being included. 1027. In the case of a member of running staff, the actual amount of running allowance, referred to in Para 1025 will include :- (a) For period of leave with allowances (including leave preparatory to retirement) or foreign service or suspension which does not result in forfeiture of service, the full average running allowances admissible for inclusion in the leave salary if the leave were on average pay not exceeding one month under the relevant rules; (b) For periods in which “mileage in lieu” of running allowance is drawn, “mileage in lieu” actually drawn. (c) For period of officiating running duty, running allowances actually drawn; 1028. (i) The term “monthly average of running allowances drawn during the three hundred and sixty-five days of duty immediately preceding the date of quitting service” used in Para 1025(1) should be interpreted to mean 1/12th of the total running allowances drawn during the three hundred and sixty-five days of duty immediately preceding the date of quitting service. (ii) For working out the average running allowances for the purpose of average emoluments, the limit of 75 per cent of other emoluments should be applied separately in respect of each of the 10 months, the excess of the actual over such 75 per cent being dropped monthly and the aggregate total should be divide by 10 to arrive at the average running allowances.  1029. The higher emoluments actually drawn by a Railway servant on deputation to another Ministry, Armed Forces or a State Government, will be taken into account for the purpose of calculation of emoluments/average emoluments. 1030. The following do not count as “emoluments” for Pensionary benefits and should not be taken into account for reckoning as emoluments: (i) Local allowances such as bad climate allowance when sanctioned as compensatory allowance and deputation (local) allowance or deputation (duty) allowance drawn on deputation to non-Government departments or bodies; (ii) Messing allowances; (iii) House rent allowance, or estimated value of rent free quarters; (iv) Travelling allowance; (v) Conveyance allowance; (vi) City compensatory allowance; (vii) Uniform allowance; (viii) Washing allowance; (ix) Any other part of a Railway servant’s emoluments which is specially intended to provide for expenses incidental to his duty; (x) Bonus; (xi) Honorarium; (xii) Fees; and (xiii) Overtime.1031. The Accounts Officer, after necessary scrutiny of the papers should issue the pension payment Authority/Pension Payment Order to the Accountant General, Director of Accounts (Postal) or public Sector Bank, as the case be may not later than one month in advance of the date of retirement. 1032. (i) Where the payment of pension is to be arranged through Treasury the Accounts Officer will issue the pension payment order in the Form prescribed in Annexure I-H duly signed and embossed seal affixed on it to the concerned Treasury Officer alongwith the requisite documents as indicated in para 6 of Annexure I. The specimen special seal and specimen signatures of the Accounts Officers empowered to sign the Pension Payment Orders (special seal) should be sent to the Treasury Officers direct and any change in the incumbency should be intimated over the signature of an authorised officer preferably of the officer, whose authority is substituted. (ii) Where the payment is to be arranged through the post Offices the Accounts Officer will forward to the concerned Director of Accounts (Postal) the Pension payment Order along with the requisite documents as laid in para 6 of Annexure I. The Director of Accounts (Postal) will forward the documents to the Head Post Office concerned after keeping a record in his office of necessary particulars relating to the pensioner. The Head Post Master will send these documents to the Sub Post Master concerned authorising him to make the necessary payment through the saving bank account (Pension) in the name of the pensioner vide paragraph 7 of Annexure I. (iii) Where the payment is to be arranged through the public Sector Bank the Accounts Officer will issue the necessary Pension Payment Order alongwith the necessary documents to the Link Branch of the nominated Public Sector Bank in accordance with the instructions laid down in paragraph 6.3 of Annexure II.  1033. In the case of Railway servants governed by the family pension scheme for Railway employees, 1964 the amount of the family pension admissible to the widow/widower in the event of death of the pensioner should also be indicated on the Pension Payment Authority issued to the Accountant General so that the letter may indicate the same in the Pension Payment Order. The Pension Payment Authority should be signed by the Accounts Officer whose specimen signatures are on record with the Accountant General etc. concerned and it should be sealed with special seal. 1034. The amount of pension should be expressed in whole rupee and when the pension calculated according to the rules contains a fraction of a rupee, it should be rounded off to the next higher rupee. 1035. Check Register of Pensions. – A check Register of Pensions in Form A. 1035 should be maintained in the Accounts Office. Separate pages should be set apart for each Treasury, Bank/Post Office. All Pension Payment Authorities should be noted in the Register under the initials of the Accounts Officer. The debits received from the Accountant General concerned in respect of the pension paid at treasuries will be noted in this register. Form A. 1035 1036. On receipt of the intimation from the Accountant General concerned of the number and date of Pension Payment Order issued by him to the Treasury Officer concerned, the same should be noted in the Check Register of Pensions. (Form A.1035). When entries are transferred from an old Check Register to a new one, the entries so transferred to the new Register should be similarly attested by an Accounts Officer. When a pension cases to be payable, or is transferred to another place, the unused pages for dates of monthly payments should be cancelled and the cause noted across them. Note:- (1) If any pension have remained undrawn without any explanation being forthcoming regarding them for three years the entries may be omitted when opening New Pension Check Registers. (A) (i) In the Check Register of Family Pensions an additional column should show 'limitation of Pension, which must be stated as precisely as possible (ii) In all cases where the determination of the pension can not be fixed for a precise date, the payment can be admitted only upon a certificate in each case that the event (wherever it is) which terminates the pension has not happened. 1037. Death-cum-retirement Gratuity and Commuted Value of Pension are not liable to income-tax. Ordinary Gratuity which is payable to a person who has completed less that 10 years qualifying service, ordinary pension, and family pension are, however, subject to income-tax. All Pensionary benefits are exempted from the Gift-tax. 1038. A Pensionary benefit as also the commuted value of pension may be sanctioned in rupees only even when it is payable abroad. The rate of exchange for conversion, where the question of conversion arises, shall be such rate as may be prescribed from time to time.  1039. When necessary payments have been arranged, the Accounts Officer should promptly report the fact to the Personnel Branch, returning also the papers which are no longer required by him. 1040. Payment of Death-Cum-retirement Gratuity. - The DCRG Application should be checked in the Accounts Office with the last pay drawn and the length of service as verified. After exercising the requisite checks Pay Order should be drawn for the amount admitted in the Accounts Officer. It should be carefully seen that the recoveries of Railway dues, if any, indicated thereon, are made from the amount. Where, however, Provisional Payment is to be made pending receipt of the audited Last Pay Certificate, 10% of the gratuity or Rs. 1000/-, whichever is less, should be with held from the gratuity. Before issuing the Pay Order a reference should be given in the SRPF ledger card of the employee after making sure that no such remarks exist previously. The fact of the Pay Order having been issued should be intimated to the Personnel Branch and also to the applicant. The pay Order should be noted in the Register of Application for Pension under the signature of the Accounts Officer. 1041. Lump sum payment on account of every kind of gratuity and commuted value of ordinary pension unless the payment of pension has already commenced from the Civil Treasury, is made by the Accounts Officer. In cases where the payment of ordinary pension has commend from the Civil Treasury commuted value of pension will be paid by the disbursing officer on the authorization of the Accountant General concerned. FAMILY PENSION 1042. A Family Pension is granted to the widow/widower or to the minor children of a Railway servant in accordance with the rules laid down in chapter VIII of the Manual. On receipt of the Family Pension Application the Accounts Officer will check the particulars of service, verify the last pay drawn by the Railway, servant and calculate the Family Pension admissible to the beneficiary. He will then issue a Family Pension Authority in Form A.1042 to the Accounts General concerned for the payment of Family Pension at the specified Treasury indicating the event at the occurrence of which the payment of family pension ceases to be operative. The Family Pension Authority should be noted in the Check Register of Pensions Form A. 1035 under the initials of the Accounts Officer. Note. - Pension sanctioned to the minor children will be paid through their natural guardian, if any, otherwise through their de-facto guardian on production of Indemnity Bond. Form A. 1042 1043. Death of Pensioner. - Whenever the death of a pensioner/recipient of pension is intimated the facts should at once be noted both in the Check Register of Pension Form A.1035 and necessary action taken by the Accounts Officer. Similarly any other order or information which has the effect of authorizing or stopping payment of a pension should be noted in the Check Register of Pensions Form A.1035 and the entry attested by the Accounts Officer. 1044. Cases of non-drawal of pension. - Every pension disbursing officer shall submit through the Accountant General concerned, every six months, a statement of cases of failure to draw pensions for more than one year. The reason for non-drawal, if known, shall be stated against the name. Also when a pension ceases to be payable during the life time of a pensioner, both portions of Pension Payment Order should be returned by the Treasury Officer through the Accountant General after making the last payment and with a note recording the reasons for the cessation of the pension. On receipt of this report a note should be made in the Check Register of Pensions A. 1035 showing the date from which the pension has remained undrawan and the reason therefor so that the debits for the period after that are not accepted. 1045. Check of Paid Pension Bills. - After payment of pension to the Railway Pensioners the Treasury Officer/Postal Authorities/Banks are required to send the paid bills to the Railway Accounts Officer through proper channel in support of the debits raised by them against the Financial Adviser and chief Accounts Officer of the Railway concerned. After initial check of debits, the supporting paid bills will be sent to the Pension Section for necessary post audit of the bills. Besides the normal checks which are applied to all paid vouchers the following points should be seen.- (i) that the vouchers are in the prescribed form, payments made in cash or credited to the Account of the Pensioner etc. are certified by the Disbursing Officer; (ii) that the amount of pension paid is in accordance with the amount authorised by the Railway. (iii) that the vouchers are duly supported by prescribed Life Certificate etc. as per extant orders; (iv) that the prescribed certificate regarding Non-employment, Marriages etc. are furnished therewith in evidence of the continued title to pension; (v) that income tax has been correctly deducted. 1046. After exercising the above noted checks the following steps should be taken.- (1) The certificates and declarations received alongwith the paid vouchers should be noted in Check Register of Pensions (A.1035). (2) The payment should be recorded in the Check Register of Pensions (A.1035).and it should be ensured that the payment is in order. (3) The vouchers should be properly enfaced showing the detailed head of account to which the pension is chargeable. (4) The vouchers should be stamped as admitted or objected, as the case may be and thereafter properly bled. 1047. Percentage Check of Paid Vouchers. - The percentage check to be applied to the paid voucher relating to pension payment is left to the discretion of the Financial Adviser and Chief Accounts Officer who may lay down the down the suitable percentage in the light of the experience gained i.e. the incidence of errors and omissions detected by the Accounts Office. The selection should be made by the Accounts Officer at random in such a way so as to ensure that the vouchers received from the various Disbursing Officers are covered under the test-check. 1048. Payment of Provisional Pension and Gratuity. - If for any special reason it has not been found possible to complete and forward the pension papers to the Accounts Officer for issuing the Pension Payment Order within the prescribed time schedule in a particular case, or if the pension papers have been sent late to that office and/or that office has either returned the papers to the head of Office for eliciting further information or has not been able to issue the Pension Payment Order before one month prior to the date of retirement of the Railway servant, steps should be taken by the Head of the Office to authorize the payment of Provisional Pension and Gratuity by the first of the month in which it is due. For this purpose, such information as is available in the official records may be used and further the Head of Office should ask the retiring Railway servant for a simple statement giving his total length of service (from the date of joining duty to the date of retirement indicating the period of breaks, if any), and also the emoluments during the last ten months of service. The retiring Railway servant may also be asked to certify that the facts stated by him are correct to the best of his knowledge and belief. If complete information in regard to emoluments drawn during the last ten months is not available either with the Head of Office or with the Railway servant, the emoluments last drawn should be taken provisionally as average emoluments. The head of Office shall sanction 100 per cent of the pension calculated with reference to the information so obtained, as a Provisional Pension. The Death-cum-Retirement Gratuity should similarly be determined. The Provisional Pension and Gratuity will be authorized by the head of the office in respect of non-gazetted Railway servants after withholding the amount from the Gratuity (vide para 1049). 1049. Deduction from Gratuity. - Before disbursing the provisional Gratuity, all known dues such as long term advances still outstanding, over payment of pay and allowances etc. and other recoveries due, should be adjusted. Where no such adjustments are due, a deduction of 10 per cent of gratuity or Rs 1,000/- whichever is less, should be made partly to cover unassisted dues, if any, and partly as a margin for adjustment in the light of the final determination of the Gratuity. 1050. Similarly, in the case of gazetted Railway servant, if the final pension payment order has not been issued by the Accounts Officer one month before the retirement date, the Railway servant may ask the Head of the Office for the drawal and disbursement of provisional Pension and Gratuity in accordance with para 1048. 1051. Provisional Pension to become final after six months. - The provisional pension is not intended to be continued on provisional basis beyond a period of six months from the date of retirement. If the office responsible for issuing the Pension Payment Order has not finalized the pension case by that time, the Provisional Pension shall be deemed to have become final and it will be obligatory for the office concerned to issue the final Pension Payment Order for the amount of pension and gratuity already calculated on a provisional basis; and the deduction made from the gratuity as per para 1049, should also be released subject to para 1052. 1052. Last Pay Certificate. - The issue of the 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, it should be possible for the head of the Office or other office concerned to issue the Last Pay Certificate to a Railway servant. In cases in which the Last Pay Certificate has not been issued by the time, the formal Pension/Gratuity payment order are received (whether this happens prior to the retirement of the Railway servant or after his retirement and after the grant of provisional pension) the Gratuity Payment Order will in any case include a provision for with-holding 10 per cent of the Gratuity or Rs. 1,000/- whichever is less, pending the production of Last Pay Certificate. 1053. Release of with-held Gratuity. - Every effort should be made to assess the Railway dues recoverable from the Railway servants prior to the prescribed deadline. In case where major recoveries are due, but 10 per cent of the Gratuity of Rs. 1,000/- has been with held because there might be unassessed Government dues or because the Gratuity has been provisionally paid or because Last Pay- Certificate has not been received, the with-held amount shall automatically become payable on the expiry of six months after retirement. The Head of Office (or the office issuing the Pension and Gratuity Orders) should indicate in the orders granting a provisional Gratuity (or the final Gratuity Payment Order) itself, the amount of gratuity with-held and add further that the with-held amount shall be released by the office disbursing 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. 1054. A special Check Register should be opened in the Accounts Office in which should be entered the orders for Anticipatory Pensions passed under the relevant services rules and the dates of payments noted against it. The orders should be entered in consecutive orders and when final adjustment of the payment is made against the final order granting the pensions, full note of it should be made in the Register. This check Register must be reviewed by the Accounts Officer personally every month in order to see that no undue delay has occurred in the final settlement of the cases. Note. - 1.When the final pension is sanctioned, it should be dealt with in the Pension Check Register as covering the anticipatory order and not as being in continuation o it, and the cancellation of the order issued for payment of anticipatory pension ensured. 2. It is not necessary that an Anticipatory Pension Payment Order should be cancelled before the final order is issued. All final pension payment orders must, however be forwarded to the Disbursing Officers concerned under cover of special letter. The subsequent cancellation of the Anticipatory Pension Payment Order should be carefully watched through the Special Check Register of anticipatory pensions in which the date of issue of the final and the date of cancellation of the anticipatory orders should be noted over the initials of the Accounts Officer. REVISION OF PENSIONARY BENEFITS 1055. In cases where a Pensionary benefit already sanctioned has to be enhanced as result of fresh facts coming to notice at a later date, or a fresh order taking retrospective effect, neither a fresh formal application, nor a fresh printed application is necessary. In such cases, only an attested copy of the first and third pages of the original printed application in Form No. 30R-II is received in the Accounts Office with revised figures filled in against entries No. 10,11,12 only (average emoluments, proposed gratuity/pension and/or death-cum-retirement gratuity) of first page so as to enable the Accounts Officer to record the revised report at the proper place on the third page of the application. COMMUTATION OF (ORDINARY) PENSION 1056. Calculation of Commutation value. - Application for commutation of pensions will be received in Accounts Office in Part I of Form No. XL(A)-R-II, for lump sum payment of a portion not exceeding one third of the pension which has been or is about to be granted to him. The amount of pension to be commuted should be in whole rupees but where the maximum amount that can be commuted consists of rupees and paise, the amount to be commuted shall be rounded off to the rupee below. The Accounts Officer should complete Part II of Form No. XL(A)-R-II showing the calculations of commutation values expressed as number of year's purchase on age next birthday in accordance with the prescribed table (see para 1214 of the Manual). It should be transmitted to the authority competent to sanction the commutation. 1057. In cases where medical examination is not necessary application for commutation of pension will be made by the Railway Servant after the date of retirement but within one year of the date of retirement on superannuation. The Commutation in such cases becomes absolute on the date on which his application is received by the Administration and the Railway Servant has no option to withdraw his application. The commuted value should be paid by the Accounts Officer in accordance with paragraph 1065. Where, however, medical examination is necessary the Railway servant has to appear before the Medical Authority within the specified date. 1058. After medical examination the medical authority transmits Form No., XL(A)-R-II and SC(C)-R-II in original and copy of the photograph attested by it to the Accounts Officer who save the certificate contained in Part II of Form No. XL(A)-R-I a certified copy of the completed Form No. XL(C)-R-II to the sanctioning authority and a certified copy of Part III of Form No. XL(C)-R-II to the applicant. 1059. Option to withdraw the application.- If the medical authority directs that his age for the purpose of commutation shall be assumed to be greater than his actual age, the applicant may withdraw his application by written notice dispatched within two weeks from the date on which he receives intimation of the revised sum payable in commutation. Note. - If the medical certificate prescribes that more than five years should be added to the applicant's actual age, the Accounts Officer shall forthwith inform the applicant of the revised sum payable on commutation. 1060. Commutation becomes absolute. - Where medical examination is not necessary the Commutation becomes absolute on the date on which the application for commutation is received by the administration after the date of retirement and where medical examination is necessary on the date on which the medical authority signs the medical certificate. Accordingly, the title to receive the commuted portion of the pension ceases and the title to receive the commuted value of pension accrues on that date. 1061. Death of a pensioner. - If a Railway servant dies after the commutation becomes absolute (see para 1060) but before receiving payment, the commuted value will be paid by the Accounts Officer to his legal heir if the payment of ordinary pension has not commenced. If, however the payment of ordinary pension has commenced, the commuted value of the pension will be paid through the Paying Officer to the legal heir of the deceased Railway servant. 1062. Where medical examination is not necessary the lump sum payable on commutation shall be calculated assuming the age net birthday in accordance with table of present values laid down in para 1214of the Manual. Where medical examination is necessary, the age in the case of impaired lives shall be assumed to be such, not being less that the actual age, as the certifying medical authority may direct. 1063. Payment of the commuted value shall be made as expeditiously as possible. In cases in which commutation becomes absolute before pension or anticipatory pension is sanctioned, the payment of commutation should not be authorized until formal sanction to pension or anticipatory pension is received. If a portion of anticipatory pension is commuted, before authorizing payments the Accounts Officer should see that the pensioner has executed a declaration in Form No. 21 of the Manual. 1064. Whatever the date of actual payment, the amount paid and the effect upon the pension shall be the same as if the commuted value were paid on the date on which commutation became absolute. If the commuted portion of the pension has been drawn after the date on which the commutation became absolute, the amount drawn shall be deducted from the amount payable in commutation. While issuing the Authority for Payment of Commuted value of Pension (Form A.1065.) the date of effect of commutation should be clearly indicated. 1065. Payment of Commuted Value. – (i) the Accounts Officer, on receipt of the completed Forms No. XL(A)-R-II and XL(C)-R-II shall arrange forthwith for the payment of the appropriate commuted value in lump sum and for the corresponding reduction of ordinary pension. If, however, the payment of the ordinary pension has already commenced from a Civil Treasury/Post Office/ Bank, he shall issue an authority in Form A. 1065 to the Paying authority to arrange payment of the commuted value. The Payment Authority for Commutation of Pension and consequential reduction of monthly pension will be noted in the Check Register of Pensions Form 1035 under the initials of the Accounts Officer. (ii) Payment outside India. – If the pensioner is drawing his pension outside India the commuted value of pension will be payable at the office through which the pension is drawn, the rate of exchange for conversion of the lump sum, where the question of conversion arises, shall be such rate is the President may by order prescribe. Form A. 1065 1066. (i) Arrears due to deceased Railways servant himself – The payment of arrears of Pensionary benefits actually due to a deceased Railway servant may be made to the beneficiary indicated below provided that he or she applies for such payment with in one year of the date of death of the Railway servant. Such arrears cannot be paid thereafter without the sanction of the authority by whom the pension was sanctioned which should be obtained by the disbursing Treasury Officer through the Accountant General concerned. If, however, the arrears do not exceed Rs.500 and the case presents no peculiar features, the Accountant General concerned is empowered to pass the arrears on his own authority. The arrears of payment due to the deceased Railway servant will be made to the persons as shown below (whether death occurs before or after sanction of the benefits). Nature of benefit To whom payable (a) Ordinary gratuity The nominee, or if no nomination exists or subsists, to the legal heir of the deceased employee. (b) D.C.R. Gratuity/Residuary The nominee or, if no nomination exists or Gratuity subsists, to the surviving members of the family of the deceased employee at the time of payment, in equal shares in terms of para 702 of the Manual (see also para 1032 of the Manual). (c) Ordinary pension. The legal heir of the deceased employee. Ordinary gratuity and death-cum-retirement gratuity/Residuary gratuity will be paid, by the Railway Accounts Officer. Regarding ordinary pension, if the sanction for a pension has not been communicated by the Railway Accounts Officer to the Accountant General concerned, the arrears of pension will be paid by the Railway Accounts Officer himself. However, the payment of arrears of ordinary pension will be arranged by the Treasury Officer, if the payment authority for ordinary pension has been issued by the Railway Accounts Officer to the Accountant General. The Treasury Officer as soon as he comes to know of the death of pensioner shall report the matter to Accountant General who will in turn communicate the same to the Railway Accounts Officer concerned. After the payment of the arrears of ordinary pension, the Treasury Officer shall return the pension payment order to the Accountant General concerned, except in the case of pensioners governed by the Family Pension Scheme for Railway Employees, 1964, in which case the pensioner's portion of the Pension Payment Order will be returned to the widow/widower. (ii) Arrears due to a deceased beneficiary of a deceased Railway Servant. - The arrears in such cases are payable as indicated below:- Nature of benefit To whom payable (a) Ordinary gratuity The legal heir of the beneficiary. (b) Death-cum-retirement The surviving members of the family of the gratuity deceased employee at the time of payment in equal shares (see para 702 & 1032 of the Manual) (c) Arrears of family pension Person next eligible to receive family pension.. Arrears in (a) and (b) above will be payable by the Railway Accounts Officer and arrears in regard to (c) by the Treasury Officer. 1067. (i) When the arrears of Pensionary benefits are payable to the nominee/other family member/legal heir of the Railway servant, it will be the responsibility of the sanctioning authority to satisfy himself that the claimant is the nominee/other family member/legal heir. The disbursing officer will be responsible only for the identification of the person/persons to whom payment is authorised. (ii)A payment claimed on behalf of a deceased recipient by a person other than a nominee should be supported by the necessary legal documents. Arrears of pension to the extent of Rs 500 may, however, be paid without the production of the usual legal authority under the orders of the Collector or other officer responsible for the payment after such inquiry into the right and title of the claimants may as be deemed sufficient. Any excess above Rs. 500 may also be paid without the production of the usual legal authority under the orders of the General Managers or Heads of Offices or Projects directly under the Railway Board, in respect of Railway servants employed under them. Other cases should be referred to the Railway Board. Where the amount of death-cum-retirement gratuity is payable to a minor the payment to the extent of Rs.5,000 (or the first Rs. 5,000 where the amount payable exceeds Rs. 5,000) may be made to his/her guardian, in the absence of a natural guardian, without the production of a formal guardianship certificate but subject to the production of an indemnity bond with suitable sureties to the satisfaction of the sanctioning authority. The balance in excess of Rs. 5,000 if any, would become payable on the production of a certificate of guardianship. It is essential however, that there should be prima facie grounds for making this payment to the person claiming it. Such ground can exist only if he is shown by a sworn declaration to be a de facto guardian and his bona ides have been ascertained. Even if a guardian has not yet been appointed by the Court, if the minor and his property are in custody of some person, such a person is in law a de facto guardian. The authorities making the payment should therefore, require the person who comes forward to claim payment on behalf of the minor to satisfy them by an affidavit that he is in charge of the property of the minor and is looking after it or that, if the minor has no property other than the gratuity, the minor is in his custody and care. The affidavit so to be produced is in addition to the indemnity bond with suitable sureties.  The indemnity bond mentioned above should be executed in Form No. 24 of the Manual. The stamp duty payable on the indemnity bond will be borne by the Government. The indemnity bond should be executed on any durable plain paper. REQUEST FOR TRANSFER FROM ONE TREASURY TO ANOTHER 1068. On request from a pensioner a Treasury Officer may authorise payment in any of the outlying treasuries subordinate to his district treasury, of a pension payable under proper authority at his headquarters, and may transfer the payment of a pension from such subordinate treasury to the district treasury or from one subordinate treasury to another in the same district. 1069. The Accountant General under whose jurisdiction the disbursing treasury is situated may on application and on sufficient cause being shown, permit transfer of payment one, treasury to another under his jurisdiction. 1070. Procedure of transfer from one Accountant General to another, in the case of Pension Payment orders issued by the Accountant General prior to 1-1-79. 1. On receipt of an application from Railway pensioner (alongwith Pensioners half of the pension Payment Order) for transfer of Payment of Pension to a treasury situated in another state, the Treasury Officer in whose jurisdiction the pension is being drawn will send both halves of the Pension Payment Order alongwith the application to the Accountant General who issued the Pension Payment Order. 2. The Accountant General will score through the entries in the Pension Payment Order register and the Audit register, cancel both halves of the original Pension Payment Order and forward both cancelled halves of the Pension Payment Order to the Accountant General of the state in which the Pension Payment is to be made, with a covering letter under intimation both to the Railway Accounts Officer who issued the Pension Payment Authority quoting reference to the Pension Payment Authority and the Pensioner. 3. The new Accountant General on receipt of the letter, alongwith cancelled halves of the Pension Payment Order will issue fresh Pension Payment Order to the Treasury Officer where he Railway Pensioner desires pension disbursement under intimation to Railway Accounts Officer who issued the Pension Payment Authority and the Pensioner. Railway Accounts Officer who issued the Pension Payment Authority will correct his records and watch receipt of debits for pension disbursement from the new Accountant General. 1071. Procedure of transfer from one treasury to another in the case if PPO's issued by the Railway Accounts Officers on after 01.01.1979 – 1. On receipt of an application from the Railway Pensioner (along with pensioner's half of the Pension Payment Order) for transfer of payment of pension to a treasury situated in another state, the Treasury Officer in whose jurisdiction the pension is being drawn will send both halves of the PPO along with the application the Railway Accounts Officer who originally issued the PPO. 2. The Railway Accounts Officer will cancel both the halves of the PPO received from the Treasury Officer and issue a fresh Pension Order after correcting his records in the Pension register and forward the same to the new treasury officers with a covering letter under intimation to the pensioner.  1072. Payment of Pension through Post Officer and Nationally Banks. – Schemes for disbursement of pensions to Railway pensioners through Post Offices and Nationalized Banks have been introduced to cover all over the country. The details of the Schemes are laid down in Annexure I & II to this Chapter. 1073. The procedure for revocation of option from Public Sector Banks to Post Office or Treasury; Post Office to Public Sector Banks/Post Office to treasury is explained in Annexure III. *****  Annexure I SCHEME FOR THE DISBURSEMENT OF PENSION TO RAILWAY PENSIONERS THROUGH POST OFFICES (See Paragraph 1072) 1. Important features of the Scheme. - The Important features of the Scheme are as under : (i) The pension amount would be credited automatically to the Post Office Savings Banks Account of the retired employee on the first working day of every month. A separate series of Post Office Saving Bank Account will be operated for this purpose. From this account the pensioner can draw money as and when he requires in accordance with the rules of the Post Office Savings Bank Account. (ii) No bill for the pension will be required to be presented to be presented by the pensioner every month. (iii) The pensioner will be required to appear in person once a year before the Post Master concerned and in addition furnish a life certificate once again during the course of the year six months after personal appearance; in addition certificate of non - employment etc. will have to be furnished twice a year in June and December, failing which the automatic credit to Savings Bank Account will cease, and (iv) Under this Scheme, pensions will not be paid in cash or through a “Joint” or “Either or Survivor” account 2. Applicability. – The scheme will cover: - existing railway pensioners, drawing pension through Treasuries, who opt to draw pension through Post Offices under this Scheme ; and - All railway employees retiring from service hereafter, who opt to draw pension through Post Office Savings Bank Account instead of through Treasuries. 3. Disbursement of pension through Post Offices is an additional facility. Existing railway pensioners as also railway employees who retire from service hereafter will continue to have the option of drawing their pension from the Treasuries as per existing procedure. 4. The Scheme will cover payment of all types of pension. It will not, however, cover payment of Death-cum-Retirement Gratuity for which the existing procedure for payment departmentally by the Railways will continue. 5. The railway pensioner will apply in duplicate, as per Annexure I-A, to the Post Office through which he wishes to draw his pension after retirement, for a Savings Bank Account to be opened in his name in that Post Office with an undertaking that excess payment credited to his account can be recovered by the P & T Department. 6. The F.A. & C. A. O./Workshop/Divisional Accounts Officer will forward to the concerned Director of Accounts (Postal), under intimation to the pensioner, the following documents :- (i) Pension Payment Order (disburser’s portion).  (ii) Copy of photograph/joint photographs, (iii) Specimen signatures duly attested, (iv) An application from the pensioner as in Annexure I-A. 7. The Director of Accounts (Postal) will forward the documents referred to above to the Head Post Office concerned after keeping a record in his office of necessary particulars relating to the pensioner. The Head Post Master concerned will send these documents to the Sub-Post Master concerned after keeping a record in his office of necessary particulars relating to the pensioner and simultaneously authorise the Sub-Post Master concerned to open a Saving Bank Account (Pension) in the name of the pensioner. The Sub-Post Master shall handover the Pensioner’s portion of the PPO to the Pensioner when they present themselves for receiving first payment of pension. 8. In the case of an existing pensioner who opts for pension through the Post Offices, the pensioner will have to hand over the following to the Treasury Officer concerned :- (i) An application as in Annexure I-A in duplicate addressed to the Post Master of the Post Office from where he wishes to draw his pension. (ii) An application as in Annexure I-B in duplicate addressed to the Treasury Officer, and; (iii) The pensioner’s half of the P.P.O. 9. The Treasury Officer will forward these documents under his special seal, together with the disburser’s half of the P.P.O. (which has been in his custody), to the Director of Accounts (Postal) for arranging payment of pension under this Scheme. In the forwarding letter, the Treasury Officer will indicate clearly the month upto which pension has actually been paid to the pensioner, which should tally with the entries in the disburser’s half of the P.P.O. A copy of that letter will be forwarded by the Treasury Officer simultaneously to (i) his Accountant General and (ii) the Pensioner. In addition the Treasury Officer will also send to the Accountant General, every month alongwith the monthly accounts, a separate schedule in the Form at Annexure I-G giving particulars of P.P.Os., transferred to P. & T. Accounts Officers for payment through Post Offices in accordance with this Scheme. Each item shown in the schedule will be repeated in the schedules accompanying the monthly accounts for two consecutive months after the month in which the item first appears. It will also be certified by the Treasury Officer on the schedule itself that payment has been stopped in respect of the P.P.O mentioned in the schedule with effect from the dates mentioned therein and that no further payment will be made in respect of these P.P.Os. at his treasury. This schedule should invariably be sent with the month’s account even if in any particular month no entry has to be recorded in the schedule, in which case a ‘Nil’ schedule should be sent. 10. on receipt of this intimation from the Treasury Officer, the Accountant General will advise the concerned F.A. & C.A.O./Divisional/Workshop Accounts Officer about the pension payment having been transferred to the Postal Department. 11. On receipt of Pension Payment Order and other documents from the Treasury Officer in respect of an existing pensioner who now wants to draw his pension from a Post Office, the Director of Accounts (Postal) will send an intimation to the Railway Accounts Officer concerned who had issued the Pension Payment Authority (with a copy to F.A. & C.A.O. and A.G. concerned) stating that the payment of pension to the particular pensioner will here after be made by the Postal Department under this Scheme. While sending this intimation, the Director of Accounts (Postal) should clearly give the following details: -  (i) Name of the Pensioner. (ii) Pension Payment Authority no. (iii) Pension Payment Order No. (iv) Amount of pension. (v) Month from which payment of pension would be made by the Postal Department. 12. On receipt of such an intimation from the Director of Accounts (Postal), the Railway Accounts Officer will verify the correctness of the details and note the same in his records. He should also acknowledge the receipt of the intimation sent by the Director of Accounts (Postal), a copy of this intimation being endorsed to his F.A. & C.A.O. and the A.G. concerned. The procedure to be followed thereafter by the Director of Accounts (Postal) will be on the same lines as for new pensioners. 13. The personal identification of the pensioner will be the responsibility of the Post Master of the Post Office where the pension is to be paid. The identification will have to be done in accordance with the procedure laid down under Rule 356 of the Central Treasury Rules. 14. The pensioner will:– (a) appear in person once a year either in June or December before the Post Master Sub-post Master of the Post Office. (b) send a life certificate as per Annexure I-C to the Post Office once a year in June or December, (if he/she has appeared in person in June, he/she will then send the life certificate in December and vice-versa) : and (c) furnish to the Post Master a certificate of non-employment in the form at Annexure I-D twice a year in the months of June and December. Failing compliance with these requirements, the automatic credit to the Saving Bank account will cease. In such an event the Post Master would inform the Pensioner in writing the particular deficiency which has caused the cessation of the automatic credit to his/her Saving Bank Account. “It would be the responsibility of the pensioners to have the necessary entries made in the pensioners’ portion of the P.P.O., at the time of revision of pension/relief or when the paying Branch of the Post Office is to be changed.” 15. Receipt of Family Pension. – The amount of family pension payable to the widow/widower of the deceased pensioner is given in the Pension Payment Order. When she/he becomes entitled to receive family pension, the Head Post Office will on receipt of :- - death certificate of the pensioner, - application for grant of Family Pension, - application for opening a Savings Bank Account in the name of the widow/widower for this purpose with an undertaking for recovery by the P& T.  Department any excess credit to widow/widower’s account as per Annexure I- A. - a copy of her/his photograph. authorise the concerned Post Office to start paying family pension to the widow/widower as mentioned in the P.P.O. The Head Post Office will also send an intimation in this regard to the Director of Accounts (Postal) who will in turn send an advice to the F.A. & C.A.O. concerned. Declaration in form at Annexure I-E from the pensioner whose family pension is terminable on marriage/remarriage will have to be sent by her/him to the Post Office twice a year in June and December. The certificate contained in the declaration will be countersigned by a responsible officer or a well known person. 16. Commutation of Pension. – When a pensioner wishes to commute his pension he/she will apply to the railway authority concerned duly informing the Post Master concerned from where he is drawing his pension to this effect. The work relating to commutation of pension will continue to be the responsibility of the Railways and after commutation has become absolute as a consequence of the Railway Administration and the pensioner having observed all the formalities in accordance with the extant rules on the subject, the commuted value of pension so arrived at will be advised under special seal by the Accounts authorities to the Director of Accounts (Postal). Reduced amount of pension effective from the date of payment of commuted value or three months from the date of authorisation by the Accounts Officer, whichever is earlier, will also be communicated to the Director of Accounts (Postal). There after the Director of Accounts (Postal) will take further action to authorise the Post Office concerned through the Head Post Office for the payment of commuted value as also the reduced amount of pension. The reduced amount of pension falls due with effect from the date of payment of commuted value to the pensioner or three months from the date of authorization by the Railway Accounts Officer for payment of commuted value of pension, whichever is earlier. An intimation to the effect that necessary entries have been made in the Pension Payment Order under attestation by the Head Post Office, will have to be sent by the Director of Accounts (Postal) to the F.A. & C.A.O./Divisional/Workshop Accounts Officer concerned. The commuted value of pension will be credited to the account of the Post Office through which he/she draws pension. The amount of pension drawn in excess as a result of commutation from the date, the revised pension is payable will also be adjusted. 17. Relief to Pensioners. – Whenever relief/ ad hoc relief to pensioners is sanctioned by Government, the Ministry of Railways would convey the same to all the Director of Accounts (Postal) for enabling them to instruct the Head Post Offices concerned to take necessary action for recording the necessary entries in the P.P.Os. at their end. Action would simultaneously be initiated by the Head Post Office for instructing the Post Offices under its jurisdiction for incorporating the necessary entries in the P.P.O. which is in the custody of the Post Offices concerned. Thereafter the revised pension amount inclusive of the reliefs would be credited to the Saving Bank Account alongwith arrears, if any, on this account as per procedure already laid down under the Scheme. 18. Income Tax deductions. – Income tax will be deducted by the Post Office wherever necessary from the monthly pension. The total amount of income tax to be deducted will be calculated by the Head Post Office and intimated to the Post Office concerned. Deductions will be made in monthly installments. The gross amount of the pension will be credited to the pensioners account and simultaneously, a debit entry of income tax deductions will be made. At the close of the financial year the Head Post Master will furnish a certificate in form at Annexure I-F to the pensioner showing the gross amount of pension payable in the year and the total amount of deduction made on account of income tax.  19. Transfer of pension. – When a pensioner desires to change the Post Office from where he is drawing his pension, he will have to apply to the Post Master of the Post office where he is drawing his pension. The Pension Payment Order and other documents would be transferred by the Post Master of the Post Office where pension was being paid to the Head Post Office. (a) In case the new Post Office, through which the pensioner now wants to draw his pension, falls within the jurisdiction of the same Head Post Office, the Head Post Master concerned will forward the P.P.O. and other papers to the Post Master for the New Post Office where the pensioner now wishes to draw his pension under intimation to the pensioner and to the concerned Director of Accounts (Postal). (b) If, however, the new Post Office from where the pensioner wishes to draw his pension falls within the jurisdiction of another Head Post Office under the control of the same Director of Accounts (Postal), the Pension Payment Order and other relevant documents would be transferred by the Head Post Office for onward transmission to the Post Office from which the pension is to be drawn by the pension is to be drawn by the pensioner hereafter with suitable advice to the Director f Accounts (Postal) and under intimation to the pensioner. (c) If the new Post Office from where the pensioner wishes to draw his pension falls within the jurisdiction of another Director of Accounts (Postal), the Pension Payment Order and other documents will be forwarded by the Head Post Office to the Director of Accounts (Postal). The Director of Accounts (Postal) will then arrange for the transfer of these documents to the other Director of Accounts (postal) under whose jurisdiction the new Post Office falls. The documents will then be transferred to the particular Post Office through the Head Post Office concerned, with intimation to the pensioner. In all cases of transfer of payment of pension from one Post Office to another the Director of Accounts (Postal) should send an intimation to the F.A.&C.A.O. concerned. 20. Accounting. – The Director of Accounts (Postal) will raise every month debits separately against each of the F.A. & C.A.Os. in respect of amounts paid as pension, family pension and commuted value of the pension, in respect of P.P.Os. issued from his side. The amount debited to each Railway should be supported by details containing the following information :- (i) Name of the Railway (ii) Name of the Pensioner (iii) Pension Payment Order No. (iv) Amount of Pension/Family Pension (v) Commuted value of pension (vi) Savings Bank Account No. (vii) Particulars of Post Office. 21. As far as possible separate consolidated lists pertaining to each Division/Workshop (falling within the jurisdiction of the same F.A. & C.A.O. from where the original P.P.O. has been issued should be prepared by the Director of Accounts (Postal) at the time of raising of debits. Details of all adjustments as a result of excess credits/erroneous credits or erroneous debits raised in the previous months should be clearly brought out at the time of raising debits by the Director of Accounts (Postal). 22. Arrears of pension on death. – Pension can be drawn for the day of the pensioner’s death. When a pensioner dies, the rightful claimant of the balance lying at the pensioners Savings Bank Account will have to furnish a death certificate to the Post Master concerned, on receipt of which the Post Master would work out any arrears due to the deceased or over payments, if any, made to him. The Post Master concerned will immediately take action for recovery/adjustment of the overpayments in accordance with the rules of Post Office Savings Bank Accounts (Pension). “The balance amount will be paid to the nominee(s). In case there is no nomination, the amount will be paid to the heirs of the deceased in accordance with the Post Office Savings Bank Rules.” 23.1 Cessation of Pension. – Where pension ceases to be payable to a pensioner/recipient of family pension on death etc. the Post Office concerned will make necessary entries in the Pension Payment Order and its records and return it to the pension sanctioning authority through the Head Post Office and the Director of Accounts (Postal). The latter will also amend the records. 23.2 “If all the columns for entering monthly payments in the disbursers/pensioners portion of the PPO get fully used up, the disbursing Post Office may add extra sheet(s) with similar columns for noting further payments. A suitable entry will be made by the Post Office on the PPO (disbursers/pensioners portion) whenever a continuation sheet is added, specifying the number of pages on the sheet”. 23.3 In cases in which pensioner’s portion of the PPO is lost, worn out or torn and is sought to be renewed, the disbursing post office will renew the PPO in its own authority. 23.4 In case both the halves of the PPO are reported lost in transit due to floods or any other natural calamity before commencement of payment of pension, the paying Post Office to which the matter is reported, will write to the Railway Accounts Officer, through the Director of Accounts (Postal) and request for issue of duplicate PPO in favour of the concerned pensioner. Before taking this action, the Paying Post Office will, however, verify from its records that no payment to the pensioner has already been made and it will confirm this fact to the Railway Accounts Officer, while writing for duplicate PPO. The Paying Post Office will also take the following further action before action before commencing payment in such cases on receipt of duplicate PPOs through the concerned Director of Accounts (Postal) :- (a) The fact that no payment is to be made against the original PPO will be prominently mentioned in the remarks column of the pension payment register while noting therein the particulars of duplicate PPO. (b) A confirmation will be obtained from the pensioner to the effect that he has not already received any payment against the original PPO and kept on record. He will also furnish an undertaking that he will surrender to the paying Post Office the original PPO if traced out late and will not claim any payment on its strength. (c) It will be verified that no payment has been made to the pensioner on the basis of the original PPO during the period following the report made to the Railway Accounts Officer as regards its reported loss.  The first payment of pension against the duplicate PPO shall in no case be authorised at an office other than the one mentioned in the original PPO. 24. As no bills will have to be presented by the pensioner the debit Schedules received from the P & T Department will not be supported by paid vouchers. The Debit Schedules will, however, contain the following details :- (i) Name of the Pensioner (ii) Pension Payment Order Number (iii) Amount of pension (iv) Post Office in which pension has been disbursed (v) Savings Bank Account Number. On receipt of the Debit Schedules in the F.A. & C.A.O.’s Office these will be checked with reference to the details quoted above. 25. Revocation of option. – A pensioner who has opted for this Scheme is free to revoke his option and to draw his pension otherwise, but before doing so he must give notice of a minimum period of three calendar months to the Post Master of the Post Office from where he has been drawing his pension. **************______________________************  Annexure I-A PENSIONER/GOVT. SERVANTS LETTER OF AUTHORITY AND UNDERTAKING (Paras 5,6,8 and 15) *1. I hereby authorise the Post Master/Sub-Post Master to receive my monthly pension on my behalf and credit the same to my Savings Bank Account (Pension) on the first working day of every month as per particulars given below: - (i) Name in full……………….……………………….. (ii) Particulars of Post Office/Sub-Post Office……….………. (iii) Particulars of Head Post Office concerned…………. (iv) Savings Bank Account (Pension) No…………………. (v) Amount of pension, per month (in words) ………… (vi) Designation, Office and Railway at the time to retirement….. ……………………………………………………………. * Para 1 is to be filled in by retiring Govt. Servant only. **2. I am a Railway pensioner drawing my pension from the Treasury at …………… I wish to draw my pension through Post Office and accordingly I hereby authorize the Post Master/ Sub-Post Master to receive my monthly pension on my behalf and credit the same to my Savings Bank Account (Pension) on the first working day of every month as per particulars given below :- (i) Name in full…………….………………. (ii) Designation, Office and the Railway at the time of retirement …………… (iii) Post Office/Sub-Post Office from where I want to draw the pension in future………………….………………… (iv) Particulars of the Head Post Office concerned………… (v) † Savings Bank Account (Pension) No. ………………. (vi) Pension Payment Order No……………….…………. (vii) Amount of pension per month (in words) ……………… (viii) Treasury from which it is now being drawn ………… ** Para 2 is to be filled only by existing Railway pensioners who opt for the Scheme. † To be filled in at the time of first personal appearance of the pensioner before the Post Master/Sub-Post Master. 3. I agree to undertake that any amount of excess/wrong payment of pension if credited to my above S.B. Account may be recovered or withdrawn from the said Savings Bank Account by the said Post Master/Sub-Post Master. 4. This authority shall remain inforce until due notice in writing of its revocation is given by me. ………………. …….. …………………………. Signature of witness Signature of the Govt.