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Kerala Govt to withhold pension of retired employees who default on loans
['Our Special Correspondent']
Mathrubhumi English
Thiruvananthapuram: The Finance Department has decided to withhold the pension of government employees who retire without repaying loans taken during service, leaving the liability to their guarantors.
Accepting the recommendation as an interim measure, the government sought an explanation from the retired officer.
Finding the explanation unsatisfactory, it ordered that the pension be withheld until the officer clears the loan dues and produces a no-liability certificate.
Once the liability is settled, the withheld pension will be released with interest.
Under the Kerala Service Rule, pension is subject to the condition that a pensioner's future conduct remains satisfactory.