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The Government of Andhra Pradesh has issued a significant update to the rules governing the settlement of pension and gratuity for retired government employees. Through G.O.MS.No. 59, dated October 7, 2025, the state has introduced revised orders to ensure the timely disbursement of pensionary benefits and the payment of penal interest in case of delays.
Key Highlights of the New Order
1. Interest on Delayed Payments
If there is a delay in the payment of pension or gratuity due to administrative lapses, interest will be paid on the arrears. The rate of interest will be the same as that applicable to the General Provident Fund (GPF) on the date the payment is sanctioned.
2. Conditions for Interest Payment
· Interest must be approved by the administrative department with the concurrence of the Finance Department.
· If disciplinary or judicial proceedings are pending, interest will be payable only after the conclusion of such proceedings.
· The delay must be due to administrative reasons or circumstances beyond the control of the retiring employee.
3. Accountability for Delays
Where delays are not justified, responsibility will be fixed, and disciplinary action will be taken against the government servants responsible.
Timeline for Pension Processing
To avoid delays, the government has reiterated strict adherence to the pension processing timeline:
· Pension application forms must be sent to employees 18 months before retirement.
· Employees must submit the forms within 2 months of receipt.
· Pension papers must be prepared 6 months before retirement and sent to the Accountant General or Audit Officer.
· Service records and dues must be verified and updated annually.
Special Cases: Disciplinary or Judicial Proceedings
· Gratuity: Generally withheld until proceedings are concluded, except in certain cases where up to 80% of the gratuity may be released.
· Provisional Pension: Retired employees under proceedings are entitled to a provisional pension of not less than 75% of their normal pension.
Why Thiorder aims to protect retired employees from financial hardship due to administrative delays. By linking penal interest to the GPF rate and enforcing strict timelines, the government is ensuring greater accountability and promptness in the settlement of retirement benefits.
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