The treasury department has reviewed and revised its functioning after a scam was uncovered in Chitrakoot, where pension funds were transferred to ineligible beneficiaries.
It has issued a standard operating procedure (SOP) for the transfer of pensions and pension arrears recommending changes in both offline and online pension payment orders (PPOs) to ensure that only eligible individuals receive pension payments.
This is the first time that an SOP has been issued for pension payment.
“The SOP has been circulated and is being implemented,” said VK Singh, special secretary, department of finance and director, treasury.
In the event of the issuance of a revised PPO, the commencement of a family pension following the death of a pensioner, or a change in the bank account, the ‘Lock/Unlock’ procedure for data revision shall be executed only after recording the specific changes in the ‘Lock/Unlock Register’ and with the requisite signatures of the authorities concerned.
According to the new SOP, in cases involving PPO amendments, entries for additional gratuity/commutation, changes in bank accounts, the death of a pensioner, family pensions, age-related benefits, where changes are required within a pensioner’s database, the desk assistant shall record these changes in the ‘Lock/Unlock Register,’ prepare a case file containing the necessary supporting documents, and submit it to the assistant treasury officer.
The assistant treasury officer shall scrutinise the case and recommend the necessary amendments, specifically authorising the unlocking of the relevant fields within the database. The concerned desk assistant shall generate a printout of ‘Form-8,’ verify the entries contained therein, and attach it to the case file. The signatures of both the assistant treasury officer and the chief/senior treasury officer shall be obtained on ‘Form-8’.
{{/usCountry}}The assistant treasury officer shall scrutinise the case and recommend the necessary amendments, specifically authorising the unlocking of the relevant fields within the database. The concerned desk assistant shall generate a printout of ‘Form-8,’ verify the entries contained therein, and attach it to the case file. The signatures of both the assistant treasury officer and the chief/senior treasury officer shall be obtained on ‘Form-8’.
{{/usCountry}}The SOP laid down the procedure for incorporating death certificates both in offline and online mode.
In the event of a pensioner’s death and provided there is no subsequent eligibility for a family pension, the deceased pensioner’s file shall be scrutinised to determine whether any excess pension payment has occurred. If an excess payment is detected, the concerned bank shall be contacted to request a demand draft for the overpaid amount (inclusive of interest); this amount shall be deposited into the treasury.
In cases where no notification of death is received from the deceased pensioner’s relatives, or where the pension remains undrawn for a period exceeding one year due to the absence of a “Life Certificate,” a report shall be generated from the UPCTS system using the option “Unpaid Pensioner for more than One Year.”
Subsequently, contact shall be established at the concerned pensioner’s address to obtain a life certificate. If no response is received, a definitive report regarding the pensioner’s status—specifically whether they are alive, missing, or deceased—shall be procured from the local Tehsil (administrative subdivision) office.
This entire exercise ensures that there are no ineligible names added to the list as was discovered in the Chitrakoot scam. Scamsters had used fake life certificates and manipulated records to transfer excess funds into 93 pension accounts. Despite annual audits over the past seven years, embezzlement of pension funds worth ₹43.13 crore from the Chitrakoot treasury had gone undetected between August 3, 2018, and October 6, 2025.