Good News! Govt standardises rules to make things easy for pensioners

By: |
May 21, 2020 1:22 PM

The step is taken as different banks adopt different procedures while releasing pension/family pension or seeking declarations / certificates from pensioners / family pensioners at different periodicity.

retired government servant, pension, family pension, Central Pension Processing Centre, CPPC, Pension Payment Order, PPO, Know Your Customer, KYC, Life certificate, Jeevan PramaanPensioners are no longer required to visit bank branches in person for credit of their first pension.

As different banks adopt different procedures while releasing pension/family pension or seeking declarations/certificates from pensioners/family pensioners at different periodicity, the Department of Pension & Pensioners’ Welfare under the Ministry of Personnel, Public Grievances & Pension has issued consolidated guidelines with an objective to create awareness among Central Pension Processing Centre (CPPC) / bank branches on updated rules and instructions in this regard.

Among many guidelines issued to standardise the pension disbursement process, some of the pension/family pension rules are mentioned below.

Under the guidelines the requirement of pensioners to be present in person before the paying bank branch for credit of first pension has been relaxed, as a result, banks will not insist for the presence of pensioners in order to activate their pension account. So, pensioners are no longer required to visit bank branches in person for credit of their first pension.

Under the new rules, it is no longer mandatory for a family pensioner to submit form 14 on death of a pensioner, if the spouse was having a joint account with the pensioner and authorisation for payment of family pension exists in the Pension Payment Order (PPO) in his/her favour. In such cases, on providing a copy of the death certificate only to the pension paying branch, the pension disbursing bank will identify the family pensioners based on the information furnished in PPO and its own Know Your Customer (KYC) procedure without insisting him/her to physically present himself/herself in the paying bank to commence his/her family pension.

Under the new guidelines, for commencing family pension, no bank will insist for opening a new account when the spouse was having a joint account with the pensioner and authorisation for payment of family pension exists.

Life certificate/Jeevan Pramaan has to be submitted by every pensioner/family pensioners in the month of November every year, but old aged pensioners, who are 80 years and above, can submit life certificates in the month of October also. The Department has issued directions to all the Pension Disbursing Banks to send SMSs/Emails to all their pensioners on October 24, November 1, November 15 and November 25 every year reminding them to submit their Annual Life Certificates by November 30.

Additional pension is paid from the first day of the month in which a pensioner/family pensioner completes the age of 80 years and above and no bank will insist for any request application from pensioners /family pensioners in order to pay additional pension to them.

If a retiree Group A officer declares that he has taken up commercial employment within one year after retirement with the permission of the Government, the pension disbursing bank will continue to pay his/her pension.

As employment/re-employment of spouse does not affect his/her family pension, Dearness Relief (DR) will continue to be paid with family pension to the spouse who is employed/re-employed under the Central or State Government, or a Corporation/ Company/ Body/ Bank under them.

As per rule 54(6) of CCS (Pension) Rules, 1972, family pension is allowed to a son, daughter, disabled sibling or parents of a deceased pensioner or a deceased Government servant until he/she starts earning his/her livelihood. So, such persons need to submit a declaration of non-earning his/her livelihood every year in the month of November. However, this declaration is not required from the spouse for continuing his/her family pension.

A family pensioner needs to submit a declaration of non-marriage/non re-marriage every six months. However, the spouse, childless widow of a deceased Government servant and disabled child of a pensioner/Government servant will continue to get the family pension even if they get married/re-married.

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