Alternatively, if govt is feeling so starved, they should let the client be charged requisite fees as it is they who are getting the service and we will advise that a well-oiled system should not be disturbed. You can see more about the new pension disbursement system for defence here.
Then my last question is that why this system is only followed for defence forces and why not for railways. Are they afraid of their trade unions or the fact that defence forces are more disciplined and will not question the wrong activities of the govt who is trying to be penny wise and pound foolish.