Fwd: Payment of Life Time Arrears of pension

[Gadepally Kameswara rao]

Life time arrears pf pension dues can be paid to legal heirs without the rigmarole of proving their credentials as to being legal heirs when no nomination was made by the pensioner, subject to monetary limits of the arrears laid down by the government-- the existing limits have been increased now in this OM. 

But it is better to make the nomination and give it to the pension paying bank or treasury or pension disbursing officer and get an acknowledgement, preserve it and also let the family including the nominee know  that a nomination has been made and that it is on record with the chaps who pay the pension, so that they need not go through all sorts of hassles.

Also keep a copy of this OM in ur pension file / folder in the computer as well as hard copies of ur pension file.

kamu

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From: S Sambandam
Date: Fri, Jul 19, 2013 at 11:45 AM
Subject: Fwd: Payment of Life Time Arrears of pension
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From: "Col. Krishnaswami Ananthanarayanan" 
Date: 18 July 2013 1:36:43 PM IST
To: undisclosed-recipients:;
Subject: Fwd: Payment of Life Time Arrears of pension

---------- Forwarded message ----------
From: K. Parasuraman 
Date: Thu, Jul 18, 2013 at 12:48 AM
Subject: Payment of Life Time Arrears of pension
To: "

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 recently
issued revised  instructions, which may be gone through:

F.No. 1I22/2012-P&PW (E)
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners' Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi
Dated:  10 July, 2013

                                                    Office Memorandum

Sub: (i) Payment of arrears of pension in cases where valid nomination
has not been
made under the Payment of Arrears of Pension (Nomination) Rules, 1983;
(ii) payment of arrears of family pension - reg.

Attention is invited to the Payment of Arrears of Pension (Nomination)
Rules, 1983
which provide that after the death of the pensioner, all moneys
payable to the pensioner on
account of pension will be paid to the nominee of the deceased
pensioner. In the absence of
any nomination made by the pensioner, the arrears of his/her pension
are paid to the legal heir
as per the procedure indicated in para 4 of part A of annexure to
Ministry of Finance OM No.
1(3)-E.V/83, dated 11.10.1983. However, dependents of some pensioners expressed
difficulties in obtaining the legal heir-ship certificates and
represented that the necessity of
production of legal heir-ship certificates may be waived where the
amount of arrears payable
is small.
2. The matter had been examined in Ministry of Finance, D/o Expenditure vide OM
dated 04/06/1985 and it was decided that in case where a valid
nomination does not exist
under the Payment of Arrears of Pension (Nomination) Rules, 1983 and
the dependent of
pensioner is unable to produce the legal heir-ship certificate, the
Payment of Lifetime Arrears
of Pension accruing to the deceased pensioner may be authorized on the
basis of any
documentary proof regarding the relationship and heir-ship of the
claimant if the gross
amount of arrear does not exceed Rupees 25,000. In such cases, if the
gross amount did not
exceed Rupees 5,000 and case represented no peculiar features, the
accounts officer was
authorised to make the payment on his own authority.
3_ The Government has further looked into the matter and decided to
increase the limits
of Rupees 5000 and 25000 as indicated in Department of Expenditure OM,
dated 4.6.85 to
Rupees 50,000 and 2,50,000 respectively. The conditions and the
procedure of payment as
indicated in Department of Expenditure OM, dated 22.1 0.1983 and
04.06.1985 will remain
the same, which are reiterated hereunder.
4. The Pension Disbursing Authority (PDA) may receive application along with any
documentary proof regarding the relationship and heir-ship of the
claimant. In case the
claimant is the recipient of family pension, the disbursing Officer
will verify the identity of
the claimant with reference to the disburser's half as well as
pensioner's half of the PPO and
give a certificate of having done so. PDA will duly attest the
documents received from the
applicant and forward these along with the application to the Accounts
Officer. The Accounts
Officer, on receipt of application along with a copy of PPO of the
pensioner and other
documents from the PDA, will calculate the amount of arrears and issue
necessary authority
for payment of life-time arrears to the disbursing authority if the
case does not present any
peculiar features and the amount does not exceed Rs.50,000. In case
the amount exceeds
Rupees 50,000 but does not exceed Rupees 2,50,000, the Accounts
Officer will obtain the
orders of the Head of Department or Administrator or the CAG in the
case of pensioners from
Indian Audit & Accounts Department or any Officer of that Department
declared as an HOD.
Payment will be made on execution of a duly stamped indemnity bond in Form T.R.
14/G.A.R. 26, with such sureties as necessary in terms of para 7
below. In case of any doubt
and also in cases where the amount of arrears exceeds Rupees 2,50,000,
payments shall be
authorized to be made only to the persons producing the legal authority.
5. This department's OM No. 43/4/95-P&PW(G), dated 30.10.1995
stipulates that in the
event of death of a family pensioner, the right to receive any arrears
of family pension would
automatically pass on to the eligible member of the family next in
line. The requirement of
succession certificate for payment of any arrears occurs only where
there is no member in the
family who is eligible to receive family pension after the death of
the family pensioner.
Therefore, it has been decided that the provisions of this office
memorandum will also apply
to the payment of arrears of family pension where no member of family
is eligible to receive
family pension.
6. The Head of Department here means the Head of Department as defined
in rule 2 (xvi)
of the General Financial Rules, 2005. However, in order to ensure that
the citizens do not
have to face unnecessary hardships, it has been decided that in the
case of field
establishments, the Administrative Ministries/Departments may delegate
the power of Head
of Department to the Head of Office in the rank of Deputy
Secretary/Director, if felt
necessary by them. It is also clarified that this OM will cover all
such past cases.
7. Normally, there should be two sureties, both of known financial
stability. However, in
case the amount of claim is less than Rs.75,000/-, the authority
accepting the indemnity bond
for and on behalf the President of India should decide on the merits
of each case whether to
accept only one surety instead of two. The obligor as well as the
sureties executing the
indemnity bond should have attained majority so that the bond has
legal effect or force. The
bond is required to be accepted on behalf of the President by an
officer duly authorised under
Article 299 (1) of the Constitution.
8. These orders will not be applicable in cases where a valid
nomination exists under the
Payment of Arrears of Pension (Nomination) Rules, 1983. In such cases,
the payment of
arrears will be authorised to be made to the nominee (s).
9. As regards pensioners/family pensioners belonging to the Indian
Audit and Accounts
Departments, these Orders issue after consultation with the
Comptroller and Auditor General
of India.
10. This issues with the concurrence of Ministry of Finance,
Department of Expenditure,
vide their ID Note No.568/E.V/2013, dated zs" June, 2013 and 0/0
Controller General of
Accounts vide their ID No. 1(7)/TA-I1I/2011-12/Miscl/I16, dated 13.02.2013.

(Sujatha Choudhury)
Deputy Secretary to the Govt. of India

1. All MinistrieslDepartments of the Government of India
2. 0/0 The Comptroller & Auditor General oflndia
3. 0/0 The Controller General of Accounts, Lok Nayak Bhavan, New Delhi.
4. Pensioners' Associations as per mailing list maintained in this department.


Hope you have gone thro’ the abovesaid OM.
A doubt will 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 reqd 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. Download the prescribed Form-A
from the Pensioners’ Portal of CPAO. Fill it in triplicate, go to
Pension paying branch of the Bank and obtain ack in one copy for ur
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.

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courtesy: Jagdish