The Central Pension Accounting Office (CPAO) has issued a new guideline to ensure timely pension to retired employees. Under this, all concerned officials have been instructed to process pension matters under the National Pension System (NPS) like Old Pension Scheme (OPS). This means that now retired employees will get their pension on time, as it was in the old pension scheme. This decision will be a major relief for retired employees, who often worried due to delay in pension. CPAO has taken this step towards making pension distribution process transparent.
CPAO instructions to officers
CPAO has reminded the authorities that the National Pension Scheme (NPS) pension matters should be settled like the Old Pension Scheme (OPS), as stated earlier on 18 December 2023. Although instructions had already been given in this regard, CPAO has found that some offices are still dealing with pension cases incorrectly. Especially, where two PPO booklets are required, some offices are depositing temporary PPOs with three copies in the old way, which is delaying the work.
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To make pension distribution smooth and faster, the CPAO has appealed to all concerned officials, Principal CCA, CCA, AG and authorized bank CPPC to strictly follow the guidelines prescribed. The purpose of these steps is to ensure that NPS retired people get their pension on time and without any obstruction.
The difference between OPS and NPS for government employees has always been a matter of discussion. In January 2004, the Central Government closed OPS and replaced the NPS pension system. However, many states later resumed it after trade unions and employee representative bodies started the agitation and protests against the new pension scheme. So far, when the Integrated Pension Scheme has been announced and it is to be implemented from April 1 this year, many employees are demanding the union center to restore OPS.
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Under the OPS, employees used to get a certain monthly pension after retirement, which was a certain part of their final salary. In this, the government used to give full guarantee of pension, which provided financial security after retirement.
On the other hand, NPS is an contribution -based (defined contribution) scheme, in which both employees and employers invest a certain amount. Pension amount completely Market In investment performance depends on, that is, the amount received after retirement is not fixed. Because of this, many retired employees are confused about this.
Now the CPAO has taken the initiative to simplify the NPS pension process by issuing new guidelines. For a long time, retired employees were having trouble due to delay in pension acceptance, causing them to face financial uncertainty. Under the new rules of CPAO, the pension process of the employees retiring under NPS will be made similar to the OPS process. This will not only accelerate pension distribution and transparency, but will also ensure that NPS beneficiaries get their pension on time and without any hassle.
