Issues raised by pensioners Associations & Pensioners for redressal/action by banks

Sl.No

Point raised by Associations/Pensioners

Instructions/Guidelines for Banks

i)

a) “Joint Account with Spouse” system was introduced with a view among other things, to avoid delay in commencement of payment of family pension after the death of pensioner even after having joint account. It has been observed that in most of the cases commencement of payment of family pension takes 4/5 months after submission of death certificate of pension to the bank. Moreover, recovery for excess credit of pension and adjustment of family pension for the intervening period are done by the banks in a cryptic manner and not in a transparent way.

b) Further, delay in first credit of family pension due to non-uploading of undertaking of excess /overpayment by family pensioner by the paying branch to its CPPC has also been reported.

a) As per the instructions issues by DP&PW OM No.1/27/2011-P&PW (E) dated-20.09.2013 conveyed to GMs of all CPPCs by CPAOs OM No.CPAO/Tech/Simplification/2014-15/595-96 dated 14.10.2014 banks are supposed to commence the family pension to the spouse immediately on receipt of death certificate of the pensioner, proof of his/her own age/date of birth and undertaking of recovery of excess payment. Banks are advised to arrange payment of family pension latest within a month of submission of above documents and provide detail of transaction for the intervening period to the family Pensioners.

b) Banks are advised to streamline their internal systems to ensure timely credit of family pension and also issue suitable instructions to their branches.

ii)

Non-restoration of commuted value of pension (CVP).

As a practice the disbursing banks pay these amounts months after submission of claim by the pensioner. It is pointed out that the date of restoration of commuted amount is normally indicated in PPO. In exceptional cases, where it is not mentioned, the same should be restored after 15 years of retirement or date of payment of commutation value.

As per Guideline No.13 on the reverse of the SSA, it has clearly been stated that Full value of pension is to be restored automatically by the bank after 15 years from the date of payment of commuted value as indicated in the PPO. There is no need to make a reference to CPAO. Therefore, restoration should be arranged by the banks as and when due without requiring the pensioners to submit application.

iii)

Delay on payment of Additional pension on attaining the age of 80 years.

As per Sl.No.6 of the SSA additional pension on attaining the age of 80 Years is payable as applicable. Bank (CPPC) should flag in their system due date of payment of the additional pension based on the date of birth of the pensioner/family pensioner to ensure its timely payment.

iv)

Disposition of PPO booklet after the death of pensioner having no spouse.

Sl.No.14 of the guidelines on the reverse of the SSA clearly mention that ‘In the event of the death of pensioner or the family pensioner or the dependent or whenever pension ceases to be payable, both the copies of PPOs must be returned to CPAO.’ Banks must follow these guidelines strictly.

v)

Requirement of life certificate at the time of crediting the first pension.

Instructions to all CPPCs have already been issued vide CPAOs OM.No.CPAO/Tech/Life Certificate/2014-15/99-175 dated-28.07.2014 for not insisting for the pensioners to provide life certificate at the time of first credit of pension. CPPCs are required to adhere to these instructions strictly.