Sunday, 28 September 2014

Payment of Life Time Arrears of Pension

IMPORTANT

What happens when moneys by way of arrears (like DA, enhancement of Pension etc) are due to a Pensioner who expires before getting the amount? Govt has issued revised instructions last year, attached for your reference, which may be gone through.

A doubt may arise whether a separate Nomination is required, when Pension a/c is already there in joint names of Pensioner and his wife with the Bank. The above OM makes it clear that a separate Nomination for Life Time Arrears of Pension is required. Since the OM is of recent origin, even Banks may not be aware of the correct position and they may not be clear about this.

This Nomination is under Central Govt. Pension Rules and is entirely different from the ones we make for our SB accounts which are made under the Banking Laws. Banks are required to collect such Nomination forms even at the time of opening of Pension Acct. Many Banks have not done this.

Remember that Pension and arrears of Pension can be credited to the Joint a/c only as long as the pensioner is alive and not beyond. On the death of the Pensioner, the Joint a/c becomes a “single account” on intimation by the spouse to the Bank and Family Pension is credited automatically to this account in spouse’s name.

Life Time Arrears of Pension etc due to the Pensioner when he was alive can be paid only to his Nominee. Form-A is attached. Fill it in triplicate, go to Pension paying branch of the Bank and obtain acknowledgement in one copy for your record.

The above OM issued by Deptt of Pension and Pensioner’s Welfare deals with action by the Bank in the absence of a valid Nomination for Life Time Arrears and we need not allow this situation to arise. Take necessary action to avoid hardship to the spouse later.
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No.1/22/2012-P&PW (E)
Government of India
Ministry of Personnel, P.G. and Pensions
Department of Pension & Pensioners' Welfare

3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi - 110003.
Dated the 10th July, 2013

OFFICE MEMORANDUM

Sub:- (i) Payment of arrears of pension in cases where valid nomination has not been made under the Payment of Arrears of Pension (Nomination) Rules, 1983;
(ii) payment of arrears of family pension — reg.

1. Attention is invited to the Payment of Arrears of Pension (Nomination) Rules. 1983 which provide that after the death of the pensioner, all moneys payable to the pensioner on account of pension will be paid to the nominee of the deceased pensioner. In the absence of any nomination made by the pensioner, the arrears of his/her pension are paid to the legal heir as per the procedure indicated in para 4 of part A of annexure to Ministry of Finance OM No.1 (3)-E.V/83, dated 11.10.1983. However, dependents of some pensioners expressed difficulties in obtaining the legal heir-ship certificates and represented that the necessity of production of legal heir-ship certificates may be waived where the amount of arrears payable is small
2. The matter had been examined in Ministry of Finance, D/o Expenditure vide OM dated 04/06/1985 and it was decided that in case where a valid nomination does not exist under the Payment of Arrears of Pension (Nomination) Rules, 1983 and the dependent of pensioner is unable to produce the legal heir-ship certificate, the Payment of Lifetime Arrears of Pension accruing to the deceased pensioner may be authorized on the basis of any documentary proof regarding the relationship and heir-ship of the claimant if the gross amount of arrear does not exceed Rupees 25,000. In such cases, if the gross amount did not exceed Rupees 5,000 and case represented no peculiar features, the accounts officer was authorised to make the payment on his own authority.
3. The Government has further looked into the matter and decided to increase the limits of Rupees 5000 and 25000 as indicated in Department of Expenditure OM, dated 4.6.85 to Rupees 50,000 and 2,50,000 respectively. The conditions and the procedure of payment as indicated in Department of Expenditure OM, dated 22.10.1983 and 04.06.1985 will remain the same, which are reiterated hereunder.
4 The Pension Disbursing Authority (PDA) may receive application along with any documentary proof regarding the relationship and heir-ship of the claimant, in case the claimant is the recipient of fmily pension, the disbursing Officer will verify the identity of the claimant with reference to the disburser’s half as well as pensioner’s half of the PPO and give a certificate of having done so. PDA will duly attest the documents received from the applicant and forward these along with the application to the Accounts Officer. The Accounts Officer, on receipt of application along with a copy of PPO of the pensioner and other documents from the PDA, will calculate the amount of arrears and issue necessary authority for payment of Life-time arrears to the disbursing authority if the case does not present any peculiar features and the amount does not exceed Rs.50,000. In case the amount exceeds Rupees 50,000 hut does not exceed Rupees 2,50,000, the Accounts Officer will obtain the orders of the Head of Department or Administrator or the CAO in the case of pensioners from Indian Audit & Accounts Department or any Officer of that Department declared as an HOD. Payment will be made on execution of a duly stamped indemnity bond in Form T.R. 14/G.A.R. 26, with such sureties as necessary in terms of para 7 below. In case of any doubt and also in cases where the amount of arrears exceeds Rupees 2,50,000, payments shall be authorized to be made only to the persons producing the legal authority.
5. This department’s OM No. 43/4/95-P&PW(G), dated 30.10.1995 stipulates that in the event of death of a family pensioner, the right to receive any arrears of family pension would automatically pass on to the eligible member of the family next in line. The requirement of succession certificate for payment of any arrears occurs only where there is no member in the family who is eligible to receive family pension after the death of the family pensioner. Therefore, it has been decided that the provisions of this office memorandum will also apply to the payment of arrears of family pension where no member of family is eligible to receive family pension.
6. The Head of Department here means the Head of Department as defined in rule 2 (xvi) of the General Financial Rules, 2005. However, in order to ensure that the citizens do not have to face unnecessary hardships, it has been decided that in the case of field establishments, the Administrative Ministries/ Departments may delegate the power of head of Department to the Head of Office in the rank of Deputy Secretary/Director, if felt necessary by them. It is also clarified that this OM will cover all such past cases.
7. Normally, there should be two sureties, both of known financial stability. However, in case the amount of claim is less than Rs.75,000/, the authority accepting the indemnity bond for and on behalf the President of India should decide on the merits of each case whether to accept only one surety instead of two. The obligor as well as the sureties executing the indemnity bond should have attained majority so that the bond has legal effect or force. The bond is required to be accepted on behalf of the President by an officer duly authorised under Article 299(1) of the Constitution.
8. These orders will not be applicable in cases where a valid nomination exists under the Payment of Arrears of Pension (Nomination) Rules, 1983. In such cases, the payment of arrears will be authorised to be made to the nominee (s).
9. As regards pensioners/family pensioners belonging to the Indian Audit and Accounts Departments, these Orders issue after consultation with the Comptroller and Auditor General of India.
10. This issues with the concurrence of Ministry of Finance, Department of Expenditure, vide their ID Note No.568/E.V/2013, dated 28th June, 2013 and O/o Controller General of Accounts vide their ID No. 1(7)/TA-III/2011-12/Miscl/116, dated 13.02.2013.

sd/-
(Sujasha Choudhury)
Deputy Secretary to the Govt. of India

Source: DOPT [http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/PPWE_100713.pdf}

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FORM A 
[See Rule 5]
Pension Disbursing Authority/Head of Office
(Name of Bank/Treasury/Post Office/Accounts Officer, etc.)
Place...........................
I, ......................................... (Name of the Pensioner in capital letters) hereby nominate the person named below under Rule 5 of the Payment of Arrears of Pension (Nomination) Rules, 1983.

1 Name and address of the nominee




2 Relationship with the pensioner

3 If nominee is minor, Date of birth

4 Name and address of person who may receive the said pension during the nominee's minority

5 Name and address of other nominee in case the nominee under column (1) predeceases the pensioner

6 Relationship with pensioner

7 Date of birth if the other nominee is minor

8 Name and address of person who may receive the pension during the other nominee's minority

9 Contingency on happening of which nomination shall become invalid



Place: ..............................................                                                     Signature & name of pensioner
Date: ..............................................                         Address:

Witness:

Signature:

Name & address:



Signature of Pension Disbursing Authority/Head of Office

Acknowledgement to be sent by the Pension Disbursing Authority/ Head of Office

Certified that application/nomination has been received from ....................................................... (name of pensioner) whose address is ..................................

Place:
Date:

Signature of Pension Disbursing Authority Bank/ Treasury/ Post Office/ Accounts Officer/ Head of Office

Full Address:

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