Pension account to become inoperative on verification failure: Finance Division

ISLAMABAD: Bank account of a pensioner shall become inoperative if the person drawing pension fails to undergo biometric verification or is not drawing pension for consecutive six months.

The Finance Division in a letter to the governor of State Bank of Pakistan (SBP) on Thursday informed that that if a person drawing pension fails to submit a life certificate or fails to undergo biometric verification during the months of March and October or a pensioner does not draw pension for consecutive six months, the account shall become dormant.

The finance division said that following clarification for payment of pension through Direct Credit System (DCS):

(i) The pension shall be paid to a pensioner through a bank account either current or PLS maintained in his own name.

(ii) For payment of pension through bank account as mentioned at (i) above, a joint account shall not be valid.

(iii) Dedicated pension bank account shall not be mandatory for drawl of pension.

(iv) The requirement of indemnity bond from a pensioner, as laid down in para 3(f) and 9(xii) of the Revised SOP 2014 issued on July 14, 2014 is discontinued.

It said that the through a letter September 08, 2020 the finance division had already decided that no separate bank account is required for draw/disbursement of pension for all new retirees and that it may be ensured that the pensioner starts receiving pension payment on the date it falls due, in the same bank account, he or she was receiving the salary before retirement, if he or she desires so.

The finance division said that after necessary amendments in the relevant rules, the federal government is going to launch a system which would cater for all the requirements/documentations digitally to further facilitate the pensioners.

Salient features of the system are as under:

(a) A pensioner drawing pension under clause iii of sub rule (6) of Federal Treasury Rules shall be facilitated to undergo biometric verification from any branch of a bank maintaining his pension account, every year in the months of March and October. If the pensioner is unable to under biometric verification due to incapacitation by bodily illness, infirmity or if his fingerprints do not exist due to old or a genetic condition, he will provide a life certificate signed by a person authorized under rule 343 every six months.

(b) The declaration shall be obtained yearly from pensioner who pension is terminable by their marriage or remarriage and shall be attached to the pension bill paid in September instead of December and June.

(c) Further, submission of declaration regarding marriage or remarriage will be dispensed with after the widow or daughter of the pensioner attains the age of sixty year.

(d) If a person drawing pension fails to submit a life certificate or fails to undergo biometric verification during the months of March and October or a pension does not draw pension for consecutive six months, the account shall become dormant.

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