Credit of pension to Joint bank account operated by a pensioner with his/her spouse

No. CPAO/Tech/Amendments/Sch.Book/2005-06/

Government of India

Ministry of Finance

Department of Expenditure

CENTRAL PENSION ACCOUNTING OFFICE

Trikoot-II, Bhikaji Cama Place,

New Delhi.

OFFICE MEMORANDUM

 Dated:-

Sub:- Payment of pension through Authorized Banks-Credit of pension to Joint bank

                        account operated by a pensioner with his/her spouse.

 Under the facility of disbursement of pension through authorized Banks available to pensioners, a pensioner is entitled to receive his/her pension by getting it credited to a saving/current bank account operated individually by him/her. Paras 4.1, 4.2 and 12.9 of the “Scheme for Payment of Pension for Central Government Civil Pensioners Through Authorized Banks” outline the present procedure for credit of pension to Bank Account of the pensioner.

However, operation of a joint account is not permitted under the existing scheme.

2. The matter whether pensioners should be given an option to receive pension by getting

it credited to their saving or current bank accounts operated jointly with their spouse, has

been under consideration. It has now been decided to permit credit of pension also to a

joint account operated by pensioner with his/her spouse in whose favour an authorization

for family pension exists in the Pension Payment Order (PPO). The joint account of the

pensioner with the spouse could be operated either by ‘Former or Survivor’ or ‘Either or

Survivor’ basis subject to the following terms and conditions:

(a) Once pension has been credited to a pensioner’s bank account, the liability of the

Government/Bank ceases. No further liability arises, even if the spouse wrongly

draws the amount.

(b) As pension is payable only during the life of a pensioner, his/her death shall be

intimated to the bank at the earliest and in any case within one month of the

demise, so that the bank does not continue crediting monthly pension to the joint

account with the spouse, after the death of the pensioner. If, however, any

amount has been wrongly credited to the joint account, it shall be recoverable

from the joint account and/or any other account held by the pensioner/spouse

either individually or jointly. The legal heirs, successors, executors etc. shall also

be liable to refund any amount, which has been wrongly credited to the joint

account.

(c) Payment of Arrears of Pension (Nomination) Rules 1983 would continue to be

applicable to a Joint Account with the pensioner’s spouse. This implies that if

there is an ‘accepted nomination’ in accordance with Rules 5 and 6 of these

Rules, arrears mentioned in the Rules shall be payable to the nominee.

3. Existing pensioners desiring to get their pension credited to a joint account as

indicated above are required to submit an application to the branch bank, from where

they are presently drawing pension in the enclosed form. This would also be signed

by the pensioner’s spouse in token of having accepted the terms and conditions laid

down in this Office Memorandum. These instructions are also applicable to the Govt.

servants who will be retiring after the issue of this Office Memorandum.

(4) The existing Scheme shall stand modified to the extent indicated above Formal

correction to the Scheme will be issued in due course by the Central Pension

Accounting Office.

 (5) All Ministries/Departments and all Authorized Banks are requested to give publicity

to the Office Memorandum so that pensioners may avail of this benefit.

 (Vandana Sharma)

 Chief Controller (Pensions)

To,

The Branch Manager

 _________________ (Bank)

 _________________ (Branch and Address)

 _________________

Sub :- Payment of pension under PPO No.___________ through your bank branch.

Dear Sir/Madam,

 I wish to receive my pension under PPO No. ______________________ by getting it

credited to the saving/current bank account No. ________________ which is operated jointly in

your branch by me and my spouse, Mr./Mrs. ____________________ in whose favour an

authorization for family pension exists in the Pension Payment Order (PPO).

 I have read and understood the contents of the Government of India, Ministry of Finance,

Department of Expenditure, Central Pension Accounting Office OM No. CPAO/Tech/ Amendment/ Sch.Book/ 2005-06/69 dated 09.06.2005 which contains the following  terms and conditions: Once pension has been credited to a pensioner’s bank account, liability of  the government/bank ceases. No further liability arises, even if the amount is wrongly drawn by  the spouse.

(a) As pension is payable only during the life of a pensioner, his/her death shall be

intimated to the bank at the earliest and in any case within one month of the demise,

so that the bank does not continue crediting monthly pension to the joint account

with the spouse, after the death of the pensioner. If, however, any amount has been

wrongly credited to the joint account, it shall be recoverable from the joint account

and/or any other account held by the pensioner/spouse either individually or jointly.

The legal heirs, successors, executors etc., shall also be liable to refund any amount,

which has been wrongly credited to the joint account.

(b) Payment of Arrears of Pensions (nomination) Rules, 1983 would continue to be

applicable to the joint account with pensioner’s spouse. Thus. If there is an ‘accepted

nomination’ in accordance with Rule 5 and 6 of these Rules, arrears mentioned in the

Rules will be payable to the nominee.

I accept the above terms and conditions. My spouse too, in token of having accepted

those terms and conditions, has put his/her signature below.

                                                                                            

                                                                                              1. Signature of Pensioner

                               

                                                                                               2 Signature of Spouse