Chief Minister Neiphiu Rio highlighted the rise of ghost pensioners as Nagaland Police overhauled pension processes, clearing pending cases and improving support for retiring personnel.
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KOHIMA— Chief Minister Neiphiu Rio on Friday said that the state is facing a serious problem of ‘ghost employment and ghost pensioners,’ pointing out that in many cases pensioners’ deaths are not reported. He termed it a “very bad practice.”
The chief minister was speaking at the programme for handing over Pension Payment Orders (PPOs) to retired police personnel and disbursing group term life insurance benefits to nominees under the Police Salary Package (PSP) at Phesama in Kohima.
Director General of Police (DGP) Rupin Sharma recalled that between 2004 and 2006, he investigated a pension scam amounting to nearly INR 160 crore, where fake pension documents were created to defraud the state.
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Recommendations were made to strengthen checks and balances, he said, but over time, processes again became “mechanical,” leading to delays, tout networks and harassment of pensioners.
He added that earlier this year, multiple departments again traded allegations over delays and corruption.
Early pension processing
Sharma informed that after taking charge again, he identified key loopholes and re-engineered the process within three to four weeks.
While pension papers are typically processed six months before retirement, the Police department now requires all prospective retirees to be attached to their unit headquarters nine months ahead.
Their paperwork is to be completed in the first three months and forwarded to PHQ six months before retirement, he said.
However, delays persisted because, under certain instructions, GPF was processed early but leave encashment and superannuation benefits were processed only after retirement, he said.
As a result, papers remained idle at PHQ for five to six months, “naturally leading to delays and creation of a system with vested interests,” Sharma said.
Following discussions with Varun Ahluwalia and Kahoto from the AG office, the DGP said it was agreed that pension and gratuity documents would be processed during this five- to six-month period.
Sharma said that nearly 500 cases were pending across PHQ and the AG office, but within the next six months, 91% of pension cases were settled, including almost 95% of superannuation cases till November 2025.
“We have even been able to settle about eight cases for employees retiring in December 2025,” he added.
The DGP expressed confidence that the system is now workable, with a manageable workload of 45–50 cases per month.
2. 23k accounts shifted
On leave encashment, Sharma clarified that it is admissible for up to 300 days, with no more than 30 days added per year.
In the last six months before retirement, personnel can take only 180 days of leave at a personal financial loss. He urged the Finance department to streamline the system so that leave encashment can also be released at the time of retirement.
According to him, fraud in leave encashment is not possible in the last six months if service records are properly maintained.
To address other procedural issues, discussions can be held with the AG office and Finance department to adopt best practices from the government of India, he added.
Sharma also said that police personnel often stay away from their families for long periods and face physical hardships, resulting in a higher mortality rate.
To support them, the department partnered with the State Bank of India (SBI) for the Corporate Salary Package, converting “about 23,000 salary accounts” in just two months.
INR 10L death cover
The SBI Group Insurance Package ensures that all police personnel who die in harness—whether on duty or not—are eligible for INR 10 lakh. However, at least one month’s salary must be credited into the account after joining the CSP package.
“Almost 50 personnel have passed away; we have processed 30 cases so far, and about 10 cases have been settled,” Sharma said.
He maintained that these measures have provided much-needed relief to pensioners and families of personnel dying in harness.
Chief Minister Rio thanked SBI for supporting the Police department and encouraged other departments to adopt a similar “bank culture” for pension processing.
He acknowledged persistent issues faced by widows and families in accessing pension benefits and expressed confidence that cooperation among bankers, AG office and departments would ensure smoother post-retirement privileges.