The Central Pension Accounting Office (CPAO) has issued fresh instructions to banks regarding the return of Pension Payment Orders (PPOs) after the death of a pensioner or family pensioner.
In an office memorandum dated 24 December 2025, the CPAO clarified that Centralised Pension Processing Centres (CPPCs) of authorised banks must return the PPOs only to the CPAO, and not directly to the concerned Pay and Accounts Offices (PAOs) or departments. The PPOs should be sent along with the death certificate and other required documents as prescribed under existing pension rules.
The CPAO said it has noticed that some banks were returning PPOs directly to PAOs or departments after the death of pensioners, which is against the prescribed procedure. Such actions are not in line with the pension payment scheme issued by the government.
To prevent further lapses, the CPAO has directed all authorised CPPCs and bank branches handling Central Government civil pensions to strictly follow the instructions. The office warned that any deviation from the guidelines will be taken seriously and may invite suitable action.
The guidelines have been issued with the approval of the Chief Controller of Pensions and are aimed at ensuring a uniform and transparent process in pension-related matters.
