Who is pension disbursing authority?

The Pension Disbursing Authority is the agency or body responsible for actually paying out pension amounts (monthly pension, family pension etc.) to eligible pensioners. So, exactly, who is pension disbursing authority? According to the Central Pension Accounting Office (CPAO) website, this responsibility lies with the Paying Branch of the bank, or other specified disbursement channel, opted by the pensioner.

Here’s a clearer picture of how this works in the central government (civil) pension framework:

• When someone retires from a central government service (non-Railways, non-Defence, etc.), their Head of Office initiates their pension case, preparing all documents and pension calculations.

• The Pay & Accounts Officer (PAO) processes the pension papers, ensures compliance with pension rules, calculates the pension amount, and issues a Pension Payment Order (PPO).

• The CPAO comes in next: once the PAO issues the PPO (or any PPO amendments / revision authorities), CPAO issues a Special Seal Authority (SSA

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  to the bank’s relevant Central Pension Processing Centre (CPPC). This authorizes that bank branch or processing centre to disburse pension.

• The CPPC of the bank maintains records, processes the pension payment, calculates any arrears etc., based on the SSA and PPO.

So, the Pension Disbursing Authority in effect is the branch or bank‐account branch (or sometimes treasury / payoff channel) selected by the pensioner for receiving the pension. That branch acts under direction of CPPC, after SSA is issued by CPAO. Pensioners have the option to choose which bank branch (or paying branch) will disburse their pension.

The disbursing authority also handles tasks like crediting the pension in the pensioner’s bank account, disbursing family pension or arrears, and is involved in periodic maintenance of pension payment such as updating life certificates etc.

Hi,

My grandfather gets a pension every month, so I know who is pension disbursing authority. "Pension disbursing authority" is the authority through whom the pension is drawn and includes:

• Accounts Officer, or

• Treasury including sub-treasury or

• Branch of a nominated public sector bank

Let me also tell you about the role of the Central Pension Processing Centre (CPPC) of the bank

CPPC acts as single point access to process pensions and access the info on every pension account maintained by them. The CPCC of the banks is responsible to process pension payments, pension disbursement and creating pensioners database on the basis of special seal authority received from CPAO (Central Pension Accounting Office). The CPCC of the concerned bank calculates pension/family pension arrears and credits them to the bank account pensioner's bank account. Central Pension Processing Centres are also responsible for handling the grievances of pensioners.

Let me tell you what a CPAO is. It’s an intermediary link between pension sanctioning authority (i.e. the office from which a government employee died/retired) and the pension disbursing bank and pension paying authority (Pay and Accounts Office).

On the basis of pension cases received from PAO, Central Pension Accounting Office issues SSAs (Special Seal Authorities) authorising payment of pension in fresh as well as revision of pension cases to the CPPCs of pension disbursing Banks.

This is all about the central pension disbursing authority.

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I hope now you know who is pension disbursing authority.