Brief History : Military Pension Branch / PPO Kathmandu

Pension payment to the Indian Army pensioners and Indian civil pensioners of Nepal is in practice since the establishment of British Legation in Nepal prior to India's Independence. Till 1955, the Pension Section was integral part of the Chancery and assistance was received from Chancery staff for dealing with Pension Branch activities. During the initial post-independence period, complete work pertaining to pension disbursement was being done by the Treasury Officer who was also the Vice Consular and Customs Officer in the Embassy. Subsequently, owing to increase in strength of Pensioners and related welfare issues, Military Pension Branch (MPB) was established in the year 1955. The then Military and Air Attaché also suggested the posting of an officer of the rank of Lieutenant / Captain to perform all pension related duties and Captain MK Menon of 5th Gorkha Rifles (Frontier Force) was posted to MPB as the first Pension Payment Officer. MPB comprises of a Headquarters at Kathmandu and Pension Paying Offices (PPOs) at Pokhara and Dharan which were established in 1960 and 1968 respectively.

To streamline the pension payment system in Nepal and to make it more efficient, biannual & quarterly cash payment system was advanced to monthly bank payment system from Jun 2018. The MPB Headquarters at Kathmandu is responsible for the overall functioning and implementation of the pension payment scheme. The MPB not only caters for the pensioners of the Armed Forces, but is also responsible for payment of pensions to all Nepal Domiciled Gorkha pensioners who have served in more than 200 various Central / State Government departments in India.

One Rank One Pension-II (OROP-II). OROP-II implementation for Nepal Domiciled Gorkha pensioners of Nepal drawing their pension from three Pension Paying Offices (PPOs) at Kathmandu, Pokhara and Dharan is being carried out since March 2023. In addition to pension payment at the PPOs, payment of OROP-II arrears and revised pension is also being done through Banks viz NSBL and Everest Bank.

Collection of Life certificate. Pensioners are asset for Pension Branch. Keeping this motto as prime factor, life certificate are being collected by visiting pensioners home town through different Seasonal Pension Camps (SPC) on yearly basis. After receiving the Life certificate, pension are being continued for further one year.

Construction of PPO Butwal. After concerted efforts by Defence Wing, Embassy of India, Kathmandu (Nepal), Government of Nepal had sanctioned the additional land (0.70 Hectare) for establishment of PPO Butwal on 20 Mar 2017 and the same has already been transferred/taken over & fenced on 15 Aug 2017. His Excellency Shri Manjeev Singh Puri, Ambassador of India to Nepal laid the foundation stone for the proposed Pension Paying Office (PPO) at Butwal on 04 Sep 2017. The further course of action for construction of the PPO at Butwal is under progress.