The settlement of family pension circumstances by banks is anticipated to develop into significantly smoother. As of now, there have been circumstances exactly where on the death of a pensioner, the spouse or family members of the deceased pensioner are asked by the Pension Disbursing Banks to submit information and documents, which are otherwise not necessary for the commencement of family pension. This amounts to harassment of the spouse and family members and generally leads to avoidable delay in commencement of family pension by banks.
The Department of Pension and Pensioners’ Welfare beneath Ministry of Personnel, Public Grievances and Pensions has taken note of the scenario and issued a note to all banks for Expeditious settlement of family pension circumstances by them.
The spouse or family member, whose name is incorporated in the PPO issued to the deceased pensioner, is necessary to submit only the following information or documents for the commencement of family pension to him or her:
I. In circumstances exactly where the deceased pensioner and spouse had been holding a joint account:
- A straightforward letter/application for commencement of family pension
- Death certificate in respect of the deceased pensioner
- Copy of PPO issued to the pensioner, if obtainable
- Proof of age/date of birth of the applicant
- The spouse/family members is not necessary to submit the information in Form 14 to the Bank for commencement of the family pension.
II. In circumstances exactly where the spouse did not have the joint account with the deceased pensioner:
- Application in Form 14 bearing the signatures of two witnesses
- Death certificate in respect of the deceased pensioner
- Copy of PPO issued to the pensioner, if obtainable
- Proof of age/date of birth of the applicant
- Form 14 is not necessary to be attested by a Gazetted officer, and so forth. The paying bank will determine the spouse/family member based on the facts provided in the PPO and its personal ” know Your Customer” procedures.
III. In circumstances exactly where, on death of the pensioner and spouse, family pension has to pass more than to an additional family member:
- If the other family member has been co-authorized for family pension in the PPO, the exact same process as above will be followed.
- If the name of the other family member is not incorporated in the PPO, he/she might be advised to strategy the workplace which the Government Servant/Pensioner last served, for challenge of a fresh PPO.
- The division has asked banks to challenge appropriate guidelines to the pension paying branches and to receive only the minimum vital information, documents from the claimants of family pension, and to make sure that they are not subjected to any harassment by searching for unnecessary information and documents.
- The information of family members, other than the Applicant, are not relevant for commencement of family pension by the bank and the exact same should really not, thus, be sought from the Applicant beneath any situations.