IESM: Credit of pension to joint account

It has been decided in the year 2005 to permit credit pension also to a joint account operated by the pensioner with his/ her spouse in whose favour an authorization for family pension exists in the PPO. Still there are many pensioners operating single account.

The joint account of the pensioner with spouse could be operated either by “Former OR Survivor” or “Either OR Survivor” basis subject to certain conditions. It is better that all the pensioners (Specially aged above 60) convert their single account to joint account on “E or S” basis immediately, have one ATM card and use it safely. The Govt. order had been issued as early as 09.06.2005 by Central Pension Accounting Office, New Delhi under No.CPAO/Tech/Amendments/Sch.Book/2005-06/69 dt.09.06.05.

The pensioner should visit the Bank personally with his spouse and two sets of joint photographs, the pension book and a Xerox copy of the PPO where the spouse’s name is endorsed. On submitting the enclosed application with signature of the spouse, the Bank will convert your single account into a joint account with the joint photograph attested and affixed on the first page of the Pass Book with full details of the pensioner name and his spouse name in the reprinted first page.

Simultaneously, the pensioner can apply for ATM Card, if not done earlier. In an E or S account both the account holders can have ATM Cards. But it is advisable to have only one ATM card in this case.

This process of converting a single a/c to a joint a/c is separate from the nomination rules. Therefore all pensioners must give nomination to their Pension accounts separately in addition to this E or S a/c conversion.

Most of the readers may be aware of these rules, but they don’t take the pain of taking their spouses to the bank one day for this purpose. I therefore request all the defence pensioners to please convert their single pension a/c to joint a/c and help others also to do the same. This will help the entire ex-servicemen community in the long run.

Joint Operation- Application
From
(Address)
To
The Manager
(Bank Address)

Dear Sir,
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 Savings/Current bank account No.....which is operated jointly/E or S basis 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 Govt. 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 pensioners 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 refund any amount, which has been wrongly credited to the joint account.
(b) Payment of arrears of Pension (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 Spouse.....
Place:
Date:

Posted By Sgt Muthukrishnan (Retd)