PENSION DISBURSEMENT THROUGH BANKS

Extracts of the Circular No. 1374 dated 31.12.2010

1. Facility will be applicable to both retiring as well as existing Government Pensioners.

2. Old pension account will not be used for direct credit facility of pension disbursement.
3. Current or PLS Account may be opened for pension disbursement purposes.
4. Opening of Joint Account will not be allowed.
5. Third party mandate cannot be given.
6. Pensioner accounts shall be exempted from levy of service charges related to collection
of pension & low balance charges.
7. Record of copies of Option Forms (submitted to Accounts/pension disbursement offices)
will be retained by the branch.
8. All account opening formalities shall be completed, ensuring compliance to M-1 and
CDD requirements. Basic document will include Valid proof of pensioner like copy of
pension book, retirement notification etc.
9. Accounts Offices/Pension giving agencies will provide consolidated amount of cheque
to the main branches of each district along with the branch wise detail of pensioner’s
accounts at least 2 days before the month end.
10. For the above collection purpose main branch will open account in CD Ledger (AOF not
required) for each pension giving agency/accounts office.
11. After collection of proceeds through clearing, main branch will transfer funds to
respective pensioner accounts maintained in concerned branches through online. In case
of problem in online connectivity, the main branches may raise IBCA.
12. It must be ensured that the pension amounts are credited into the respective accounts by
last working day of the month.
13. Pensioner account shall be marked as “Dormant”, if the pensioner does not draw his/her
pension for 6 months or fails to provide life/non-marriage certificate after expiry of every
6 months.
14. Branch will maintain record of life/non marriage certificate. Prior to One month of
expiry of life/non marriage certificate, the branches must notify the respective pensioners
to submit the certificate well before due date, otherwise account will be marked as
dormant.
15. Upon receipt of life/non marriage certificate issued by an authorized person (e.g. a
gazette officer or bank manager of the scheduled bank) shall be forwarded to
accounts office, so that pension may continue to be credited in pensioner’s account.
Accounts office should be intimated if the certificate has not been submitted by the
pensioner.
 16. Upon receipt of response from the accounts office, the amount of undrawn pension will
be Debited to the pensioner’s account and Credited to respective head of account and
pension will cease to be credited to his/her account.
17. Written request by the pensioner along with life/non marriage certificate will be required
for activation of account. (other formalities shall apply)
18. In case of transfer new account to be opened in the desired branch.
19. In case of death of pensioner, the account be marked deceased and communicated to the
accounts office for further instructions.
20. The main branches, which are dealing with collection of proceeds of pension cheques,
shall provide to the respective accounts office a monthly statement showing the
pension credited into pensioners account mentioning therein the date of transfer.
21. All branches are required to prepare “Accounts Office” wise statement regarding new
pension issued, transferred to heirs, transferred to other places, pension stopped/restored,
discontinued, amended, on basis of full details and particulars of pensioners. Same is to
be sent to main branch for onward submission to accounts offices.
22. Notation to be affixed at a prominent place in clear bold words that “Facility for
Opening Pensioner’s Account is available”.

Extracts of the Circular No. 1380 dated 15.02.2011

1. Pensioners are no more required to hold their amount equivalent to 6 months pension
under lien in their accounts or deposit of securities of equivalent amount.
2. Indemnity Bond for aggregate amount equivalent to 6 months pension, jointly with a
person, who is also an account holder of the branch and marking of lien on the account of
indemnifier or deposit of securities of indemnity bond’s amount, is not required to be
obtained.
3. Specimen of Indemnity Bond and letter of authorization for marking of lien provided
with the above referred circular stands invalid.
4. If any pensioner has already placed deposit under lien or executed third party
indemnity duly supported by lien or deposit of securities may be asked to execute a
new indemnity (Specimen enclosed at Annexure B) along with a co-indemnifier on
non-judicial stamp paper. Thereafter, the deposit already held under lien may be
released.
5. Option Form to be obtained as per revised specimen.
6. Indemnity Bond countersigned by co-indemnifier/nominee/successor. Copies of CNICs
of co-indemnifier/nominees/successor & witnesses duly verified from NADRA Verisys
shall be obtained and held on record for future reference.