Monday, December 10, 2007

Pension Account by Joint holders

No. 113 – 10/2004-SB (Pt.) 20.7.07
Sub: - Amendment to Rule 4 of Post Office Saving Account Rule 1981 regarding opening of Pension Account.
This office is receiving number of references for allowing opening of Pension Account by Joint holders. The matter was referred to Min. of Finance. Now, item 3 of the table below Rule 4 (Pension Account) of Post Office Saving Account Rules, 1981 has been amended by MOF vide its notification dated 11.7.2007 issued vide File No. 2/5/2006-NSII. Copy of this amendment is enclosed.
2. As a result of this amendment, a pensioner can now open pension account either individually or jointly with his or her spouse in whose favor an authorization for family pension exists in the Pension Payment Order. In case of withdrawal from Joint Pension Account, either of the joint account holders can make withdrawals.
3. At present the retired employees of Railways, Telecom and Postal departments can draw pension through pension account opened for this purpose. With this amendment, this restriction has been withdrawn. Now, retired employee of any govt. department can draw pension through pension account. For this purpose, the department concerned will have to approach this office for acceptance of terms and conditions as laid down for Railways and Telecom departments.
4. The existing Railway, Telecom and Postal pensioners can also convert their existing pension account into joint account. For this, the procedure laid down for conversion of single saving account into joint saving account may be followed with the exception that the concerned Postmaster/Sub Postmaster will verify the name of joint holder (spouse) mentioned in revised SB 3 with that of PPO and ensure that this joint holder is authorized person to draw family pension as mentioned in the PPO.
5. It is requested that this may kindly be brought to the notice of all Post Offices immediately for information, guidance and necessary action.
This issues with the approval of DDG (FS)
GOI MOF No. 2/5/2006 – NS II dated 11.7.2007
GSR. (E) :- In exercise of the powers conferred by section 15 of the Government Savings Banks Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Post Office Savings Account Rules, 1981, namely :-
(1) These rules may be called the Post Office Savings Account (Amendment) Rules, 2007.
(2)They shall come into force on the date of their publication in the official Gazette
2. In the Post Office Savings Account Rules, 1981, in rule 4, in the Table, in iterm No. 3 (Pension Account)

(i) Under column 2, for the entry, the following entry shall be substituted, namely:-
“A pensioner either individually or jointly with his or her spouse in whose favor an authorization for family pension exists in the pension payment order”.

(ii) Under column 5, for entry (b), the following entry shall be substituted, namely:-
“(b) In case of individual accounts, the pensioner and in case of joint account, either of the joint account holders, for making withdrawals”