Settlement of family pension cases by government: Let’s have a look

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Banks’ handling of family pension issues is anticipated to improve significantly. As of today, there have been situations when, upon the death of a pensioner, the spouse or family members of the dead pensioner are asked by the Pension Disbursing Banks to provide data and papers that are not normally necessary for the initiation of a family pension. This amounts to harassment of the spouse and family members, and it frequently results in needless delays in the start of family pensions by banks.

The Ministry of Personnel, Public Grievances, and Pensions’ Department of Pension and Pensioners’ Welfare has taken note of the situation and issued a note to all banks requesting that they expedite the settlement of family pension cases.

The spouse or family member whose name appears on the PPO granted to the dead pensioner is only necessary to provide the following information or papers for the family pension to be started for him or her:

I. In instances where the dead pensioner and his or her spouse had a joint account:

  • A simple letter/application for the start of the family pension 
  • Death certificate in respect of the dead pensioner
  • Copy of PPO granted to the pensioner, if available
  • Proof of age/date of birth of the applicant

II. In instances where the spouse did not share the deceased pensioner’s joint account:

  • Form 14 application with the signatures of two witnesses
  • Form 14 application with the signatures of two witnesses
  • If available, a copy of the pensioner’s PPO.
  • Proof of the applicant’s age/birthdate
  • Form 14 does not need to be attested by a Gazetted official, for example. The spouse/family member will be identified by the paying bank based on the information provided in the PPO and its own “Know Your Customer” procedures.

III. If the pensioner and spouse die and the family pension must be passed on to another family member, the following method will be followed: 

  • If the other family member has been co-authorized for family pension in the PPO, the same procedure as above will be followed.
  • If the other family member’s name is not included in the PPO, he or she may be encouraged to contact the office where the Government Servant/Pensioner last served for the issuance of a new PPO.
  • The department has instructed banks to give appropriate instructions to pension payment branches and to acquire just the minimum needed data and documentation from family pension claimants, ensuring that they are not harassed by requesting superfluous details and paperwork.
  • The details of family members other than the Applicant are not important for the bank’s initiation of family pension and, as a result, should not be obtained from the Applicant under any circumstances.

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