FAQs related to Pension
Is it possible to keep a joint pension account going after a member of the family has passed away? If the spouse in whose favour a family pension permission exists in the Pension Payment Order (PPO) is the survivor, banks should not insist on creating a new account in the event of a Central Government pensioner. The family pension should be credited to the existing account rather than the family pensioner creating a new account for this reason. Is it possible for the pension paying bank to retrieve the extra amount deposited to the pensioner's account? Where an excess pension payment has been made as a result of bank errors, the excess shall be reimbursed to the government in full promptly upon detection and without waiting for any money to be recovered from pensioners. When does the payment brach credit the pensioner's account with the pension? Pension payment banks credit pensioner's accounts according to the pension authorities' orders. Who is responsible for deducting income tax from pension payments at the source? The bank is responsible for deducting income tax from the pension amount at the rates specified by the income tax department from time to time. Should pension-paying banks recognise receipt of Life Certificates from pensioners? Frequently, seniors complain about delays in receiving their pensions as a result of their bank misplacing their life certificates. To resolve the issue, the RBI has directed banks to give legally signed acknowledgements of obtaining life certificates on a mandatory basis. Banks are also obliged to record the receipt of life certificates in their CBS and to give a system-generated acknowledgement that serves as both an acknowledgement and a mechanism for real-time record updating. Is it possible for a senior to withdraw their pension if they are unable to physically present at the bank? Wherever a pensioner's thumb or toe impression is collected, it should be verified by two independent witnesses known to the bank, one of whom should be a competent bank officer. If a retiree is unable to put a thumb or toe impression and is also unable to physically present at the bank, a mark can be produced on the check or withdrawal form that must be identified by two independent witnesses, one of whom must be a responsible bank official. Agency banks have been ordered to post the guidelines on their branches' notice boards to ensure that ill and handicapped pensioners may take full use of these services.