Introducing a new restructured defined contribution pension system for new entrants to Central Government Service, On 23rd August 2003 Government of India approved the proposal to implement the budget announcement of 2003-2004 relating to instructions of Finance Minister, a new restructured defined contribution pension system for new entrants to Central Government service, replacing the existing defined benefit pension system. The effective date for operationalization of the new pension system shall be from 1 January 2004. The scheme is applicable to all new entrants to the central Government except the Armed forces.

(G.I.,M.F.Notfn. No.5/7/2003-ECB &  PR,  Dated  22-12-2003 - Published  in  Gazette  of  India,  Extra-ordinary, Part-I, Section 1, dated 22-12-2003 )

About I-CRA

Until setting up of a regular Central Record Keeping Agency, Central Pension Accounting Office will function as the Interim-Central Record Keeping Agency(I-CRA) for the above scheme.

(G.I., M.F., F.No. 1(7)(2)/2003/TA/11, dated 7-1-2004 read with O.M. No. 1(7)(2)/2003/TA/67-74, dated 4-2-2004)

About CPAO

The Central Pension Accounting Office (CPAO) was set up as an administrative unit of the Ministry of Finance, Department of Expenditure under the Controller General of Accounts. The office started functioning with effect from 1 st January 1990 . Consequent to the establishment of this office the Comptroller and Auditor General of India was relieved of the work of payment and accounting of Central Civil Pensions.

This office is administering the ‘Scheme for Payment of Pension to Central Government Civil Pensioners by Authorised Banks'. Its functions inter-alia includes:

• Preparation of budget under the Grant and accounting thereof.

• Issue of Special Sea Authorities (SSAs) to Authorised Banks .

• Internal Audit of Banks.