All central government employees who are about to retire soon, need to pay attention to a few things to avoid any pension woes that may arise after retirement. According to "Master Circular - Disbursement of Government Pension by Agency Banks" released last year, "The Reserve Bank of India had issued some instructions to banks disbursing pension. One of these is related to the joint account with the spouse."
Central government employees must follow these directions in the Master Circular so as to avoid pension woes in future. According to the RBI document, "CG employees can receive the pension in a joint account with their spouse. Many central Government Ministries and State Governments have modified the scheme for payment of pension allowing 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 PPO.
The RBI mentioned, 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 stated following conditions:
After the pension is 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 can be paid 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.
If in the 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, then 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. However, this facility is applicable to existing/future pensioners.
