What should a Government servant do to claim his pension?
The Head of Office is required to undertake the work of preparation of pension papers in Form No. 7 of Pension Rules two years before the date on which a
Government servant is due to retire on superannuation. Eight months prior to the retirement date, a Government servant is required to furnish certain information (e.g. joint photo with spouse, family details, name of the branch of the authorised bank through which he desires to draw his pension etc.) to his Head of Office in the prescribed Form No. 5. After complying with the requirements of CCS Pension Rules 59 & 60, the Head of Office has to forward to the Pay & Accounts Officer Form 5 and Form 7 duly completed with a covering letter in Form 8 along with service book of the Government servant duly completed up-to-date and any other documents relied upon for the verification of service, not later than six months before the date of retirement of the Government servant.

Is the Dearness Relief payable on original basic pension or on reduced pension after commutation?
The Dearness Relief is payable on original basic pension before commutation.
Is any authorization from PAO/CPAO required for payment of dearness relief on increased rates to

pensioners/family pensioners

No. Whenever any additional relief on pension/family pension is sanctioned by Government, an

 intimation to this effect is sent by the Ministry of Personnel, Public Grievances and Pension

(Deptt. of Pension and Pensioners’ Welfare) to the authorised representative of each nominated

Public Sector Bank. Each Link Branch will be responsible for ensuring that copies of the orders

sanctioning additional relief have actually been received by their paying branches and payment

of additional relief at the revised rates to the pensioners has been commenced by them without

 any undue delay. Whenever there is change in the rates of dearness relief on pension, paying

 branch will keep a note of rates along with the date from which relief would take effect in

disburser’s portion and the pensioner’s half of the PPO under attestation by the Branch Manager

or in-charge before commencing payment of relief at the revised rates and/or payment of

arrears, if any, due to the pensioner on this account.

Is there any restriction on commutation of pension?
Yes. No Government servant against whom departmental or judicial proceedings as referred to

in Rule 9 of the Pension Rules, have been instituted before the date of his retirement or the pensioner

 against whom such proceedings are instituted after the date of retirement, shall be eligible to

commute a fraction of his provisional pension authorised under Rule 69 of the Pension Rules or

the pension, as the case may be, during the pendency of such proceedings.

How does the period of 15 years for restoration of commuted portion of pension reckon?
The 15-year period for restoration may be reckoned from the date of retirement itself only in case

 where the payment of commuted value of pension was/is made during the first month of retirement

leading to appropriate reduction on account of commutation in the first pension itself. In all other

cases, where the commutation of pension led/leads to a reduction in the second or subsequent

month, the 15-year period will be reckoned from the date on which reduction in pension

became/becomes

Is any authorization for restoration of commuted portion of pension after 15 years required

from PAO/CPAO?
No. Restoration of commuted portion of pension after 15 years (from the date of crediting of

 commuted value) or as fixed by the Government from time to time is to be made automatically

 by bank on receipt of application in prescribed proforma from the eligible pensioner. In cases

where the date of commutation is not readily available in the PPO, the bank will obtain the

 information from the concerned PAO who issued the PPO through CPAO before restoring

 the commuted portion of pension.effective.
Whether retirement gratuity/death gratuity, commuted value of pension is taxable ?

Retirement/death gratuity and the lump sum amount received on account of commutation of

 pension is not taxable under Income Tax Act.

 Is the payment of pension in cash or through a joint account with or without

"EITHER or SURVIVOR" facility permitted in the Scheme for Payment of Pension to

branch may also credit the amount of pension in his or her joint account operated by pensioner with his/her spouse in w

Central Government Civil Pensioners by Public Sector Banks?

Payment of pension in cash is not permitted in the scheme. However, the pension payment

 is now permitted to be credited to a joint account operated by the pensioner with his spouse

(either by ‘Former or Survivor’ or ‘Either or Survivor’ basis) in whose favour an authorization

exists in the Pension Payment Order, subject to certain terms and conditions.

Paying hose favour an authorization for family pension exists in the

Pension Payment Order(PPO). The joint account of the pensioners with the spouse could be

 operated either by 'Former or Survivor' or 'Either or Survivor' basis subject to the following

conditions :-

(a) Once pension has been credited to a pensioner's bank account, the liability of the

Government/Bank ceases. No further liability arises, even if the spouse wrongly

drawn the account.

(b) As pension is payable only during the life of a pensioner, his/her death shall 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 however, any amount has been wrongly

 credited to the joint account, it shall be recoverable from the joint account and/or

any other account held by the pensioners/spouse either individually or jointly.

The legal heirs, successors, executors etc. shall also be liable to refund any

amount, which has been wrongly credited to the joint account.

(c) Payment of Arrears of Pension (Nomination) Rules 1983 would continue to be

applicable to a joint account with Pensioner's spouse. This implies that if there is

an 'accepted nomination' in accordance with Rules 5 and 6 of these Rules, arrears

 mentioned in the Rules shall be payable to the nominee.

Existing pensioners desiring to get their pension credited to a joint account as indicated

above are required to submit an application to the branch bank, from where they are

presently drawing pension in the enclosed form that is i.e. Annexure XXIX. This would

also be signed by the pensioner's s

Can a pension account be operated by a holder of Power of Attorney ?pouse  

The pension account can not be allowed to be operated by a holder of Power of Attorney

 except in case of the account of former President of India/Vice President of India or the

 spouse o

Can the deduction of Income Tax at source be made from pension payments ?
Yes, the paying branch will be responsible for deduction of Income Tax at source from pension

 payments in accordance with the rates prescribed from time to time. While deducting such tax

from pension payments the paying branch will also allow deduction on account of relief available

 under Income Tax Act from time to time on production of proper and acceptable evidence of

eligible savings by pensioners. The paying branch will also issue the pensioner in April each year

a certificate of tax .

Procedure for Payment of Pension to NRI Pensioners

The Authorised Bank(AB) may credit the pension amount of non-resident to a non-resident (ordinary) account opened/maintained as per provision of the Exchange Control.  The amount of pension of a pensioner who has become non-resident may be credited to the said account after ensuring the personal identification and other requirements as stipulated under the Scheme (Para 12).

In case of the existing accounts, the pensioner should intimate the fact that he has become non-resident Indian, to the pension paying branch in India and on receipt of the same the paying branch in India should convert the account of the pensioner to Non-resident Ordinary (NRO) Account.

The pensioner has to furnish the life certificate issued by an authorised official of the Embassy/High Commission of India or Consul of Indian Consulates or a Notary Public or an Officer of an Indian Authorised Bank attached to its branch in the country where the pensioner is residing, once in a year, in November.

The pensioner has to furnish other certificate viz. non-employment/re-employment certificate, Re-marriage/Marriage certificate as prescribed in the pension scheme (Annexures XVIII & XXVI.)

The paying  branches will credit  the amount of pension due every month to the Non-resident Ordinary Account of the pensioner.

Withdrawals from the Non-Resident Ordinary Accounts will be governed by the instructions contained in the Exchange Control Manual and the paying branch should allow the withdrawal accordingly.

Pension credited to the Pensioner’s Non-Resident (Ordinary) Account may be remitted by the bank to the Pensioners outside India, in case the Non-Resident Pensioner so desires, by debit to his NR (O) Accounts either by remittance or by credit to his NR (E) Accounts.

The paying branch should return PPOs of such Non-Resident Indian pensioners who are drawing pension from them and are unable to furnish the prescribed life certificate to the pension sanctioning authority for arranging future payments to them.

The change in the citizenship by any Non-Resident Indian pensioner will not affect his entitlement to the pension.

Procedure for Endorsement of Family Pension Entitlement of Post-Retiral Spouses in the PPO