The Central Pension Accounting Office (CPAO) has issued new directives instructing officials to process pension cases under the National Pension System (NPS) in a manner similar to the Old Pension Scheme (OPS). This move aims to streamline the pension disbursement process, ensuring that retired employees receive their pensions promptly and transparently.
On December 18, 2023, the CPAO had first issued an order emphasizing that pension processing under NPS should mirror OPS to accelerate payouts. Recently, in a new Office Memorandum (OM) issued on March 12, 2025, the Pay and Accounts Offices (PAOs) have been directed to strictly adhere to this order.
✔ Reduction in Documentation:
✔ Strict Compliance Orders:
🔹 Faster Pension Disbursement: By aligning NPS processing with OPS, delays in pension payments will be minimized.
🔹 Increased Transparency: The revised system ensures a smoother and more accountable pension distribution process.
🔹 Better Benefits for Retirees: Retired employees under NPS will now receive their pension more efficiently and without unnecessary complications.
The government’s decision to reform the NPS pension process is a significant step toward simplifying retirement benefits for employees. With these changes, NPS subscribers can expect a hassle-free and timely pension payout system, much like the Old Pension Scheme (OPS).