Presently, over 138 regional offices of the Employees' Provident Fund Organisation (EPFO) disburse pensions to beneficiaries in their region separately.
The Pension Accounting Office has also warned of stringent action against officials who have the habit of sitting on pension-related complaints.
For those who do not submit the affidavit, the subsequent arrears would be withheld. The affidavits have to be submitted before June 30.
Only a maximum of five people will be allowed near the treasury cash/teller counters at a time.
A higher pension would carry a huge financial burden even if the unclaimed amount in the EPFO is used for this purpose, EPFO officials said.
The move will come into effect retrospectively from January 1, 2020.
The decision will cost the exchequer Rs 16,000 crore, Information and Broadcasting Minister Prakash Javadekar said while briefing media on the decisions taken by the Cabinet.
Bhaskaran had been included in the panchayat’s list of expired persons last year too.
The finance minister is set to meet the pensioners' organisations on September 22 with an 'open mind' and arrive at a consensus before going ahead with the move.