Frequently Asked Questions (FAQs)
(Central Civil Pensioners)
(Last updated/Reviewed: 04.11.2013)
PENSION DISBURSEMENT
E.5 Can a pension account be opened in any branch of any bank?
No, a pension account cannot be opened in any branch of any bank. There
is a list of public sector and private sector banks in each State in
which a pension account may be opened. For latest information about the
list please visit the website of Central Pension Accounting Office, www.cpao.nic.in.
E.6 Is the payment of pension in cash or through a joint account with or without "EITHER
or SURVIVOR" facility permitted in the Scheme for Payment of Pension to
Central Government Civil Pensioners by Public Sector Banks?
Payment of pension in cash is not permitted in the scheme. However, the
pension payment is now permitted to be credited to a joint account
operated by the pensioner with his/her spouse (either by ‘Former or
Survivor’ or ‘Either or Survivor’ basis) in whose favour an
authorization exists in the Pension Payment Order, subject to certain
terms and conditions.
Paying branch may also credit the amount of pension in his or her 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 pensioners with the spouse could be
operated either by 'Former or Survivor' or 'Either or Survivor' basis
subject to the following 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 from the account.
(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 pensioners/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 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.
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 that is i.e. Annexure XXIX. This would also be signed by
the pensioner's spouse.
E.7 Can a pension account be operated by a holder of Power of Attorney ?
The pension account cannot be allowed to be operated by a holder of
Power of Attorney except in case of the account of former President of
India/Vice President of India or the spouse of the deceased
President/Vice President.
E.8 Can the deduction of Income Tax at source be made from pension payments ?
Yes, the paying branch will be responsible for deduction of Income Tax
at source from pension payments in accordance with the rates prescribed
from time to time. While deducting such tax from pension payments the
paying branch will also allow deduction on account of relief available
under Income Tax Act from time to time on production of proper and
acceptable evidence of eligible savings by pensioners. The paying branch
will also issue the pensioner in April each year a certificate of tax
deducted in the form prescribed in the Income Tax Rules
E.9 Can the excess payment, if any, credited to the pensioner’s account be recovered by the bank?
Before commencing payment of pension, the paying branch is required to
obtain an undertaking in the prescribed form Annexure-XI of the Scheme
from the pensioner. On the strength of this undertaking the excess
payment, if any, credited to his/her account can be recovered by the
paying branch.
E.10 What is to be done if a pensioner/family pensioner desires to get his pension payment account transferred?
E.10.1 Application for transfer of pensions may fall under the following two categories;
(i) transfer from one paying branch to another of the same Authorised
Bank (AB) within the same station or at a different station;
(ii) transfer from one AB to another AB
E.10.2 The pensioner/family pensioner may make request falling under
both the categories above to either of the Branches. The paying branch
will forward the request along with the disburser’s part of PPO, where
applicable, to its CPPC for necessary action. Before forwarding the
disburser’s portion of PPO to the new paying branch/CPPC, it will be
ensured that the month upto which the payment has been made is
invariably indicated in the disburser’s portion of PPO. The receiving
CPPC on receipt of the pension documents will ensure forwarding the PPO
to the paying branch if it is for the same AB or to the concerned CPPC
if for a different AB within three days and intimate the facts to the
pensioner simultaneously.
Necessary intimation of effecting such transfer will be sent to CPAO by
the new as well as old CPPCs in the form as at Annexure XXI (page-49
Scheme Booklet) as well as the escroll for keeping a note of change in
their records.
(b) The new paying branch will commence the pension payment immediately
on receipt of letter of the last payment certificate as above.
Simultaneously, it will send an intimation to CPPC with full details of
the commencement of the pension.
(c) Pension will be paid for three months on the basis of the photocopy
of the pensioner’s PPO at transferee (New) branch, from the date of last
date of payment made at the transfer or (Old) branch. During this time,
it will be the joint responsibility of both transfer or (old) and
transferee (New) bank branches to ensure that all the documents under
the procedure, are received by the CPPC within the period of three
months.
E.10.4 To avoid the risk of overpayment at the time of transfer, the
following certificate is required to be recorded on the Disburser’s
portion of PPO by the paying branch of the AB:
Certified that payment of pension has been made up to the month
----------------- and that this PPO consists of ---------------------
E.10.5 Except as provided above, the transfer of a pension account from
one payment point to another will not ordinarily be permitted.
E.11 What is the procedure for switchover of pension payment from Pay & Accounts Office or treasury to Public Sector Bank ?
E.11.1 The applications for switch-over to authorised banks by the
existing pensioners will be made in the Form as given in Annexure IX of
Scheme Booklet in duplicate to the Pension Disbursing Authority.
E.11.2 The pensioners should first draw pension which has already fallen
due, before applying for transfer of their pension papers to the
Authorised Banks.
E.11.3 Transfer applications in duplicate shall be forwarded immediately
by the Pension Disbursing Authority along with the disburser's copy of
the PPO halves, duly authenticated and written up-to-date to the CPAO
for transmission to CPPC of the AB for arranging payment after keeping
necessary note in their records. Action will also be taken by Pension
Disbursing Authority to update the entries of payment made in the
pensioner’s portion of the PPOs, if not already done, before the
transfer application is sent to the CPAO.
E.11.4 If a PPO (disburser's portion) has got torn or mutilated, it will
be renewed by the CPAO with the help of PAO, if necessary, before
sending it to the CPPC.
Source: www.pensionersportal.gov.in