Issues raised by Pensioners Associations & Pensioners for redressal/ action by banks – CPAO Orders

Issues raised by Pensioners Associations & Pensioners for redressal/ action by banks – CPAO Orders

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT – II BHIKAJI CAMA PLACE
NEW DELHI- 110066

CPAO/Tech/Banks Performance/2015-16/45

Dated 02.06.2016

Office Memorandum

Subject:- Issues raised by Pensioners Associations & Pensioners for redressal/ action by banks.

CPAO has been administering the Scheme for Payment of Pension to Central Civil Pensioners through Authorized Banks. Under the scheme, CPAO authorizes the banks for arranging the payment of pensions to Central Government Civil Pensioners. While making the payment, banks are required to follow the instructions/guidelines given in the Special Seal Authority (SSA)/ Digitally Signed Authority scrupulously.

However, many instances are reported to CPAO where banks are not giving due attention’ to the instructions/guidelines given in the SSA.

In this context, Pensioners Associations and Pensioners have communicated their feedback/ grievances/ inputs on not following the instructions/guidelines by banks and also for improvement in banks services to pensioner.

The main points and action to be taken thereon by the banks alongwith CPAO’s instructions/ guidelines are given in the following table for strict compliance by all the authorized banks:-

Sl.No. / Points raised by Associations/ Pensioners / Instructions/ Guidelines for Banks

i) a) “Joint Account with spouse” system a 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.

a) As per the instructions issued 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 pensioner.

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.

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 Instructions/ Guidelines for Banks out that the date of restoration of commuted amount is normally indicated in the 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.

Unnecessary delays in the payment of dues to the pensioners have been viewed seriously. To avoid pensioners grievances Heads of Govt. Business Department /CPPCs of all banks are advised to streamline their internal systems and ensure timely credit of pensions/ family pensions.

This issues with the approval of Competent Authority.

sd/-
(Vijay Singh)
Sr. Accounts Officer (IT & Tech)

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT – II BHIKAJI CAMA PLACE
NEW DELHI- 110066

CAPO/Tech/Banks Performance/2015-16/60

Dated: 14.06.2016

Office Memorandum

Subject:- Issues raised by Pensioners Associations & Pensioners for redressal/ action by banks.

Attention is invited to CPAO’s OM No. CAPO/Tech/Banks Performance/2015-16/45 dated- 02.06.2016 whereby points of action to be taken by the banks were sent reiterating instructions/guidelines of CAPO. In order to have better pensioner services by banks and minimize grievances/complaints from pensioners related to pension payments, banks are advised to take quick action on following further points:-

Sl.No / Points raised by Pensioners Associations/ Pensioners / Instructions/Guidelines of CPAO for Banks

1. Details of pension payment by banks to be provided.
2. Yearly break up of arrear payment be provided to the pensioner which is required for assessing the total taxable income.

Para 4.6.7 of CPPC guidelines provides that “the CPPC software will display on the computer screen, options and view of the details of calculation of pension and its breakup of the pension paid to the pensioner/family pensioner.

The Home Branch will act as intermediary with the CPPC and, besides providing accounts statement, provide to the pensioners the payment of TDS details, pension slip, the Due and Drawn Statement in respect of each arrears and the Annual Income Statement.”

These guidelines are required to be enforced by all the banks immediately. Accordingly, Banks must streamline their internal system to provide above facilities to pensioners.

3. Reasons for stopping payment of pension by the bank be provided with the e-scrolls from banks to CPAO to take corrective measures in consultation with the pensioner concerned.

Banks should make a provision to provide the information regularly through SMS on pensioners telephone numbers.

4. An SMS alert be given to the pensioner by the bank that his/her life certificate has not been received & the same may be provided to continue pension payment.

The SMS alerts may be given between 1st December to 10th December of each year to pensioners to minimize the number of cases of stoppage of pension payments in December due to non receipt of life certificate in November as stipulated as it is expected that pensioner will provide the life certificate at the earliest after receipt of SMS alerts.

5. SMS alert on type of variation in payment with reference to last payment may be given by the bank to the pensioner to provide him/her a chance to check its correctness. The pensioner may check this variation if he/she is provided the pension slip by the bank.

As at Sl.No. 1&2 above. Facility of SMS alert as suggested may be provided to the pensioners by banks.

This issues with the approval of Competent Authority.

sd/-
(Vijay Singh)
Sr. Accounts Officer (IT & Tech)