Immediate settlement of family pension cases by banks – DoPPW

Family pension after death of pensioner – Immediate settlement of family pension cases by banks

No. 3(8)/2021- P&PW(H) -7246
Ministry of Personnel, Public Grievances and
Department of Pension and Pensioners Welfare

8th Floor, B-Wing,
Janpath Bhawan, Janpath,
New Delhi-110001
Dated: 16th June, 2021

To,
The CMDs /CPPCs of all Pension Disbursing Banks

Subject:- Expeditious settlement of family pension cases by banks.

Sir,
I am directed to say that instances have been brought to the notice of this Department where, on the death of a pensioner, the spouse/ family members of the deceased pensioner are asked by the Pension Disbursing Banks to submit details and documents, which are otherwise not required for commencement of the family pension. This amounts to harassment of the spouse and family members and often leads to avoidable delay in commencement of family pension by the Banks.

2. The spouse/ family member, whose name is included in the PPO issued to the deceased pensioner, is required to submit only the following details/ documents for commencement of family pension to him/her:

I. In cases where the deceased pensioner and spouse were holding a joint account:

• A simple letter/application for commencement of family pension
• Death certificate in respect of the deceased pensioner
• Copy of PPO issued to the pensioner
• Proof of age/date of birth of the applicant

The spouse/ family member is not required to submit the details in Form 14 to the Bank for commencement of the family pension.

II In cases where the spouse did not have the joint account with the deceased pensioner

• Application in Form 14 bearing the signatures of two witnesses
• Death certificate in respect of the deceased pensioner
• Copy of PPO issued to the pensioner
• Proof of age/date of birth of the applicant

Form 14 is not required to be attested by a Gazetted officer, etc. The paying bank will identify the spouse/family member based on the information given in the PPO and its own “Know Your Customer” procedures.

III In cases where, on the death of the pensioner and spouse, the family pension has to pass over to another family member;

• If the other family member has been co-authorized for family pension in the PPO, the same procedure as in sub-para II above shall be followed.
• If the name of the other family member is not included in the PPO, he/she may be advised to approach the office which the Government servant/pensioner last served, for the issue of a fresh PPO.

3. You are requested to issue suitable instructions to the CPPC(s) and the pension paying branches of your Bank to obtain only the minimum essential details/documents, as mentioned above, from the claimants of family pension, and to ensure that they are not subjected to any harassment by seeking unnecessary details and documents. The details of family members, other than the Applicant, are not relevant for commencement of family pension by the bank, and the same should not, therefore, be sought from the Applicant under any circumstances.
4. A half-yearly statement on the progress of sanction of family pension may be submitted to this Department latest by 15th of October and 15th of April, in the enclosed format.
5. This may be treated as MOST URGENT.

(Naresh Bhardwaj)
Deputy Secretary to the Government of India