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.

CPAO’s Latest Announcement

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.

Key Changes in NPS Pension Processing

✔ Reduction in Documentation:

• Previously, PAOs submitted three copies of the Provisional Pension Payment Orders (PPO).
• Under the new rules, only two copies (one for the pensioner and one for the disbursing authority) will be required.

✔ Strict Compliance Orders:

• The Chief Controllers of Accounts (CCAs) and Controllers of Accounts (CAs) have been instructed to ensure all subordinate PAOs implement the updated guidelines.
• Central Pension Processing Centers (CPPCs) of authorized banks must also comply with the new system.

Why Was This Change Introduced?

🔹 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).