Good news for KVS Employees! Now pension will be disbursed directly in Bank Account

Kendriya Vidyalaya Sangathan (KVS) has announced a significant enhancement to its pension disbursement system, aimed at streamlining the process and ensuring timely payments. Effective April 1, 2025, pensioners will receive their commuted pension and gratuity amounts directly in their bank accounts through the upgraded e-Pension portal.

Key Changes in Pension Disbursement

As part of its initiative to automate pension processing, KVS has introduced a direct disbursement system to eliminate delays and improve transparency. Under this new system, Indian Bank will directly transfer the commuted pension and gratuity to pensioners, replacing the earlier practice of routing funds through regional offices.

This update is expected to accelerate pension payments, minimize manual errors, and enhance efficiency in disbursement.

Enhancements in the e-Pension Portal

To facilitate this transition, the e-Pension portal now includes two additional fields:

• “Commutation value to be paid” – Displays the commuted pension amount for lump-sum payment.
• “Gratuity to be paid” – Indicates the final gratuity amount to be received.

Regional offices will be responsible for verifying and approving these amounts before submitting pension cases, ensuring accuracy and compliance with the updated process.

Direct Payment Mechanism

From April 1, 2025, all Pension Payment Orders (PPOs) generated on or after this date will include provisions for direct remittance to pensioners.

• Gratuity and commuted pension will be transferred directly to the pensioner’s bank account.
• Regional offices and ZIETs will no longer receive these funds, except in cases involving arrears or court-mandated settlements.
• Leave encashment disbursements will continue under the existing procedure.

This transition is designed to enhance efficiency, eliminate intermediary delays, and ensure pensioners receive their benefits without administrative hurdles.

Guidelines for Pensioners and Regional Offices

To ensure a smooth implementation, KVS advises pensioners to keep their bank details updated in the e-Pension portal to prevent any payment disruptions.

Regional offices have been instructed to:

• Verify pension and gratuity details thoroughly before submission.
• Ensure compliance with the new direct disbursement framework.
• Provide necessary assistance to pensioners regarding the updated system.

KVS, in coordination with Indian Bank, is committed to ensuring a seamless transition to this modernized pension disbursement process, reinforcing its commitment to efficiency and transparency in handling retirement benefits. For further information, pensioners may refer to the official KVS notification or contact their respective pension processing units.