Timelines for Finalization of Pension Cases: CGA Issues Strict Guidelines to Avoid Pay Fixation Errors
The Controller General of Accounts (CGA), under the Ministry of Finance, has released an important Office Memorandum (OM) dated 31 October 2025 regarding timelines for the finalization of pension cases. The circular aims to prevent delays, discrepancies, and recoveries at the time of retirement, which often cause unnecessary hardship to government employees.
Background of the OM
This OM refers to the earlier memorandum dated 24 June 2025, which instructed all offices to strictly follow the prescribed timelines for pension finalization and disbursement. Despite repeated directions, it was observed that errors in pay fixation are still being detected at very late stages—sometimes just before retirement—leading to large recoveries from employees.
Such recoveries, arising from wrong pay fixation or incorrect grant of increments, create financial stress for employees nearing retirement. The CGA has therefore emphasized the need for early detection and correction through regular audits and internal checks.
Rule 63(1)(c) of CCS (Pension) Rules, 2021
As per Rule 63(1)(c) of the Central Civil Services (Pension) Rules, 2021, the Pay & Accounts Officer (PAO) is responsible for verifying the correctness of emoluments only up to 24 months before the retirement date. However, this rule must be read in conjunction with the DoPT’s OM dated 03 October 2022, which provides guidelines for the recovery of wrongful or excess payments made to government servants.
Key Instructions Issued by the CGA
The Office Memorandum dated 31.10.2025 lays down the following key directions for Ministries, Departments, and Offices:
- Exercise Extreme Caution:
Departments must handle pay fixation and other payment-related matters carefully to avoid errors and overpayments. - Audit of Pay Fixation Orders:
Pay fixation orders issued due to MACP, ACP, financial upgradation, increment, or promotion must be audited by the Internal Audit or Pay & Accounts Office within 3 months of issuance. - Priority Audit for Employees Nearing Retirement:
For employees who are due to retire within the next four years, all previous pay fixations and service verifications should be audited on priority.
Reference to Civil Accounts Manual 2024
These provisions are also mentioned in para 2.16.3.2 and 2.16.3.3 of the Civil Accounts Manual, 2024, reinforcing the importance of timely verification and audit in maintaining financial discipline within the government accounting system.
Compliance and Reporting
All Principal CCAs, CCAs, and Dy. CAs (In-Charge) are directed to ensure compliance with the above instructions. They must submit a detailed compliance report to the CGA by 31 March 2026, confirming that all mandatory audits have been completed.
This OM was issued with the approval of the competent authority and signed by Ms. Sanchita Shukla, Joint Controller General of Accounts.
Why This Matters for Government Employees
This new directive is a significant step toward reducing last-minute pension complications. Regular audits will ensure that pay anomalies are detected early, preventing large recoveries or pension delays at the end of service.
Government employees, especially those nearing retirement, are advised to ensure that their pay fixation records are accurate and verified well in advance.