Are you a Central government employee about to retire soon? You need to pay attention to a few things to avoid any pension woes that may arise after retirement. In "Master Circular – Disbursement of Government Pension by Agency Banks" released last year, the Reserve Bank of India had issued certain instructions to banks disbursing pension. One of these related to the joint account with the spouse. Following the directions in the Master Circular will help you avoid many pension woes in future.
As per the RBI document, you can receive the pension in a joint account with your spouse. The circular noted that several Central Government Ministries and State Governments have modified the scheme for payment of pension permitting the credit of pension also to a joint account operated by pensioner with his/her spouse in whose favour an authorisation for family pension exists in the Pension Payment Order (PPO).
The RBI said that the joint account of the pensioner with the spouse could be operated either on 'Former or Survivor' or 'Either or Survivor' basis. It also puts certain conditions:
– Once pension has been credited to the pensioner's bank account, the liability of the government/bank ceases. No further liability will arise, even if the spouse wrongly draws the amount.
– Pension is payable only during the life of a pensioner, his/her death should be intimated to the bank at the earliest and in any case within one month of the demise, so that the bank does not continue crediting monthly pension to the joint account with the spouse, after the death of the pensioner.
– In case, any amount has been wrongly credited to the joint account, it is recovered by the bank from the joint account and/or any other account held by the pensioner/spouse either individually or jointly. The liability of returning the money wrongly credited to the joint account falls on the legal heirs, successors, executors, etc.
If you are an existing pensioner and want to get the pension credited to a joint account, you should submit an application to the bank branch, from where you are presently drawing a pension in the prescribed form. The application should also be signed by your spouse. The RBI document says that this facility is applicable to existing/future pensioners.