Payment of Retirement benefits

1/30/2019 CHAPTER VIII http://persmin.nic.in/pension/rules/pencomp8.htm#Preparation%20of%20list%20of%20Government%20servants%20due%20for%20retirement 30/58 (1) Payment of Retirement benefits through demand draft to outstation payees. - Doubts have been expressed in certain quarters as to whether payments of retirement benefits can be arranged to retired Government servants by bank drafts, wherever necessary or only by cheques. Attention in this connection is invited to Clause (d) of para. 1.12.1 of Civil Accounts Manual according to which payment by bank drafts to outstation payees by Pay and Accounts Offices is permissible in cases, inter alia, of individuals. The term `individuals' will cover cases or payment for retirement benefits to retirees, which are to be routed through the DDO [i.e., payments other than those of monthly pension). The Pay and Accounts Offices can, therefore, arrange payment of retirement benefits (other than payments of monthly pension) to retired Government servants where the concerned DDOs are situated at a station different from the one where the concerned Pay and Accounts Office is located and also to such other retired employees who stay after retirement at a station other than that of their DDO/PAO. [G.I., M.F., O.M. No. G. 19011/2/83/MF/CGA/CTR/1206, dated the 6th February, 1985.] poTOP (2) Retirement benefits up to Rs. 10,000 can be paid through uncrossed cheque/demand draft. - According to paragraph 2 of O.M. No. G.19011/1/77-MF/CGA/5035, dated the 29th March, 1979 (not mentioned), payment of Retirement/Death Gratuity, withheld amount of Retirement/Death Gratuity will be made by cheque/demand draft to be 1/30/2019 CHAPTER VIII http://persmin.nic.in/pension/rules/pencomp8.htm#Preparation%20of%20list%20of%20Government%20servants%20due%20for%20retirement 31/58 drawn in favour of the pensioner. Such cheques/demand drafts being usually in excess of Rs. 250 are requested to be crossed and marked "Account Payee" in accordance with para. 1.8.1 of the Civil Accounts Manual. It has been represented that most of the staff of industrial organizations like Government of India Mints, etc., are not having bank accounts. They consequently face difficulty in encashing the crossed cheque/demand draft. Keeping in view the hardship being faced by staff having no bank accounts, it has been decided that in cases where a retiring employee makes a specific request in writing for not crossing the cheque/demand draft in the above form, the amount of retirement gratuity/withheld amount of retirement gratuity, which does not exceed Rs. 10,000 may be paid by an "Open cheque" instead of by crossed and marked "Account Payee" cheque/draft, subject to the condition that the payment will be made only to the payee on identification, or to a person holding letter of authority from the payee whose signatures must be verified and after identifying the messenger as laid down in para. 1.8.1 of the Civil Accounts Manual. In the case of death of a Government servant while in service or after retirement, but before receiving amount of retirement/death gratuity, the payment thereof, to the legal heir(s) will, however, invariably be made by crossed cheque/demand draft marked "Account payee" drawn in favor of the payee(s). [G.I., M.F., O.M. No. G. 19011/1/77/MF/CGA/709, dated the 24th September, 1982.]