All Addl. CPFCs, ZO
All RPFC-I /OICs, ROs
Sub: Payment of Pension to EPS ’95 pensioners on the last working day of the month.
Ref: RBI Circulars dated 17.03.2016 and 01.07.2020.
Madam / Sir,
EPFO has executed agreements with numerous pension disbursing banks for credit of pension to its pensioner. The current bank agreement with pension disbursing banks states that:
“Pension will be credited on the 1st working day of the month to which the pension relates or in any case not later than 5th day of the month”.
However, it has been observed that payment of pension to pensioners are not credited in the account on the due date as a result of which EPS pensioners face difficulties.
Further, RBI regularly issues guidelines / directions to pension disbursing agencies for crediting pension by these banks (referred above). The manual provisions on pension disbursement by EPFO has by and large been modeled on RBI circulars issued from time to time.
The matter has been reviewed by Pension Division and keeping in line with RBI instructions, it has been decided that all field offices may send the monthly BRS to banks in such a way that pension gets credited to pensioners account on or before last working day of the month (except for the month of March that shall continue to be credited on or after 1st April). Further, it may simultaneously be ensured that actual pension is sent to pension disbursing banks not earlier than two days before it is to be credited in pensioners’ accounts.
Accordingly, while taking note of the above instructions for strict compliance, all offices are advised to issue necessary guidelines / directions to pension disbursing banks under their respective jurisdiction to ensure proper implementation of the above.
[This issues with the approval of CPFC.]