Payment of Life Time Arrears of Pension

Indian Military Veterans

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.