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Recovery of excess payments made to pensioners

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Recovery of excess payments made to pensioners


March 17,2016
The Chairman/chief Executive Officer
All Agency Banks

Dear sir,
Recovery of excess payments made to pensioners

We have been receiving complaints from pensioners stating that the recovery of excess/wrong pension payments are being made in a manner that is not in keeping with the extant guidelines. In this connection, the instructions contained in circular Nos. CO.DGBA (NBS) No.44/GA.64 (11-CVL) 90/91 dated April 18, 1991 and CO.DGBA (NBS) No.50/GA.64 (11-CVL) 90/91 dated may 6, 1991 laying down a uniform procedure in consultation with the controller General of accounts and various non- civil ministries for recovery are reiterated below:

a) As soon as the excess/wrong payment made to a pensioner comes to the notice of the paying branch, the branch should adjust the same against the amount standing to the credit of the pensioner’s account to the extent possible including lumpsum arrears payment.

b) If the entire amount of over payment cannot be adjusted form the account, the pensioner may be asked to pay forthwith the balance amount of over payment.

c) In case the pensioner expresses his inability to pay the amount,the same may be adjusted from the future pension payments to be made to the pensioners. For recovering the over-payment made to pensioner from his future pension payment in instalments 1/3rd of net (Pension + relief) payable each month may be recovered unless the pensioner concerned gives consent in writing to pay a higher installment amount.

d) If the over payment cannot be recovered from the pensioner due to his death or discontinuance of pensioon then action has to be taken as per the letter of undertaking given by the pensioner under the scheme.

e) The pensioner may also be advised about the details of overpayment/wrong payment and mode of its recovery.

The above uniform procedure may be strictly adhered to while effecting recovery of excess/wrong pension payments made to pensioners.

2. As regards the issue of refund of excess/wrong payments to the government, banks may be guided by the guidelines laid down in our circulars Nos. DGBA.GAD.H-10450/45.03.001/2008-09 dated June 1, 2009 and DGBA.GAD.H.4054/45.03.001/2014-15 dated March 13,2015 which have been incorporated in our master circular on disbursement of government pension by agency banks dated july 1, 2015.

Yours faithfully

(Manish Parashar)
Deputy General Manager

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1 comment:

  1. Supreme court has ruled that the responsibility for wrong fixation off pension cannot be laid at the retiree and no recovery can be made from the pension nor the pension can be reduced reduced retrospectively and prospectively


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