Instructions of PCDA (Pension), Prayagraj
Standing Orders on Opening of Joint Account – The pensioner may open a joint account with his/her spouse in whose favour an authorization for family pension exists in Pension Payment Order.
Types of Joint Account to be opened in bank for pension
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 Govt. Banks 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, executers 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 in an “accepted nomination in accordance with rules 5 & 6 of these rules, arrears mentioned in the rules shall be payable to the nominee. Existing pensioners desiring to get their pension credited to a Joint account are required to submit an application to the branch bank from where they are presently drawing pension in the form given below. This would also be signed by the pensioner’s spouse in token of having accepted the terms and condition laid down in this office memorandum.
Why joint account is necessary to draw pension from bank ?
In the SPARSH Pension system, you may draw pension in single account but it should be a joint account at your own interest. Family pension can be processed without any difficulty, if your account is jointly operated with your wife. On SPARSH Portal your family can initiate Family pension as and when the situation arises, just using the SPARSH Portal on mobile. No need to visit any office or submit any copy to bank. If Joint account exist, this system will work easily and Family pension can be sanctioned within 3 weeks. So, convert your existing single pension account to Joint with your wife. Moreover, if the existing account is DSP salary account, it must be converted to DSP Pension account to get all the benefit of the account including a coverage of PAI for Rs 30 lakh. Here is a model application for you. Modifiy it as per your requirement.
Model Application for conversion of Single account to Joint account with conversion of DSP Salary account to DSP Pension account
The Branch Manager
______________________ (Branch and Address)
Sub: – Conversion of DSP Salary Account/Savings Account to DSP Pension Account for drawing Defence Pension through Bank A/c No _________ held with your Branch.
With due regards, it is to state that I am drawing pension through my existing DSP Salary Account/Savings Account which is operated by me only.
I wish to operate this Bank account jointly with my wife Smt _________________ in whose favour an authorization for family pension exists in the Pension Payment Order (PPO).
Since my existing pension A/c No ____________ held with your branch is the DSP Salary Account/ Savings account, it may kindly be converted to DSP Pension account.
I wish to receive my pension under SPARSH PPO NO. ——————————– by getting it credited to the said account no. __________________________ which will be operated jointly in yourbranch by me and my spouse. Mr. / Mrs. ___________________________
I have read and understood the contents of the Government of India, Ministry of Finance, Department of Expenditure, and Central Pension Accounting Office OM No. CPAO/ Tech/ Amendments/ 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 back 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 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