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New NPS rule: Process NPS pension like OPS, pension accounting body tells authorities – key details

Posted on March 16, 2025 by admin

The Central Pension Accounting Office (CPAO) on March 12 issued instructions to all relevant authorities to stick to its new guidelines of processing NPS pension cases in the same manner as the Old Pension Scheme (OPS).

Earlier, on December 18, 2023, the CPAO had issued guidelines to implement the method in order to ensure timely pension disbursal to retired employees under the National Pension System (NPS). The March 12 Office Memorandum (OM) urges Pay and Accounts Offices (PAOs) to follow the order.

What CPAO has said

The CPAO noted that specifically in some cases, PAOs are submitting three copies of provisional PPOs while submitting NPS cases. The new instructions mandates them to submit two copies of PPO booklets, which are the pensioner portion and the disburser portion. This is causing unnecessary delays in disbursement of pension amounts.

“It has been observed that while submitting such cases to CPAO, few PAOs have not followed the guidelines in submission of NPS cases as OPS cases. To be more specific, it has been noticed that three (03) copies of Provisional PPOs (used earlier for submission of NPS cases to CPAO) have been submitted by PAOs, while submitting NPS cases as OPS cases whereas only two (02) copies of PPO Booklets (Pensioner Portion & Disburser Portion) should be submitted along with cases to CPAO,” the CPAO said in its memorandum.

The authority has urged CCAs and CAs to strictly adhere to the updated guidelines.

“In view of the above, all the Pr. CCAs/CCAs/CAs (with independent charge)/AGs are requested to instruct the PAOs under their control to strictly adhere to the guidelines issued in the previous OM dated 18.12.2023 by CPAO. Similarly, all the CPPCs of the authorised Banks are also requested to go through the OMs issued by this office and subsequent orders in this regard and act accordingly,” it said.

CPAO new pension rule

Under the new rules of the CPAO, the processing of pensions of of employees retiring under NPS will be made similar to the process of OPS. This is aimed to make the pension disbursement faster and transparent. It will also help NPS beneficiaries receive their pension on time in a hassle-free manner.

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