Department of Expenditure has issued
an OM regarding Opening of joint Account by pensioner with first name of
pensioner
GOVERNMENT
OF INDIA
MINISTRY
OF FINANCE
DEPARTMENT
OF EXPENDITURE
CENTRAL
PENSION ACCOUNTING OFFICE
TRIKOOT-II,
BHIKAJI CAMA PLACE,
NEW
DELHI-110066
CPAO/IT & Tech/Bank
Performance/37( Val-II)/2016-17/14
19.04.2017
Office
Memorandum
Subject:- Opening of joint Account
by pensioner with first name of pensioner.
Attention is invited to Correction
Slip No.1 dated – 08.02.2006 of Scheme for Payment of Pensions to Central
Government Civil Pensioners by Authorized Ranks on crediting of pension in the
Joint Account of Pensioners with spouse (copy enclosed).
It has been reported that in some
cases Banks are allowing the pensioners to open their pension account as Joint
Account with first name of his/her spouse which may create difficulties for
pensioner at the time of filing the Income Tax Returns as the income tax is
assessed on the income of the pensioner and not of the spouse.
Heads of CPPCs/Government Account
Divisions of all the banks are advised to instruct their bank branches to
facilitate the retiring employees approaching them for opening their pension
accounts before their retirement. In case of Joint Account, the same may be
opened with first name of pensioner only.
This issues with the approval of
Competent Authority.
Encl:-As above
(Vijay
Siingh)
Sr.
Accounts Officer (IT & Tech)
Amendment to the Scheme for Payment
of Pensions to Central Government Civil Pensioners by Authorised Banks (Fourth
Edition, 3rd December, 2004)
Correction
Slip No. I
The following lines may be added at
the end of existing pars 4.1
Para 4.1
Page-2
Paying branch may also credit in his
or her joint account operated by pensioner with his I her spouse in whose
favour an authorization for family pension exists in the Pension Payment Order
(FPO). 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 drawn the account
(b) As pension is payable only
during the life of a pensioner, his I 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 I 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 1953 would continue to be applicable to a Joint Account with
Pensioner’s spouse. This In-plies 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 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.
“Annexure-XXIX”
The Branch Manager,
_______________ (Bank)
_______________ (Branch and Address)
_______________
Sub:- Payment of pension under PPO
No. __________ through you 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/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
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
to fund 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 Rules 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
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