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,
PHONES : 26174596, 26174456, 26174438
CPAO/IT & Tech/Bank Performance/37( Vol-II)/2016-17/14
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 Authorised Banks 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.
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 para 4.1
Page-2 Paying branch may also credit 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 (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 / 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 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.
The Branch Manager
__________________ (Branch and, Address)
Sub:- Payment of pension under PPO No.________ through your bank branch.
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/Amendrnents/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 ease 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. lf, 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 refund 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 Rule 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 Pensioner