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-11, BHIKAJI CAMA PLACE,
NEW
DELHI-110066
PHONES 25174596. 26174456, 26174438
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.
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.
Signed copy
