Bank Account for Pension

Bank Account for Pension

If you are drawing your pension through a single bank account in your name and if, at the time of your retirement or within one year thereafter, you have not made a nomination in favour of your spouse, please do so immediately. This will enable your spouse to receive, after your time, any balance left in that account as well as any arrears of pension due to you during your lifetime. Consult your bank on the procedure for the nomination. 

It is now permissible to convert your single bank account for pension into a joint account with your spouse/person mentioned in your PPO as the one entitled to receive family pension. If you have not already done so, please submit an application to your bank to this effect. After your time the joint account will become a single account in your spouse’s name into which the family pension and any lifetime arrears (LTA) can be credited. It is desirable to make a nomination as indicated in Para 4 above even if the pension account has been converted into a joint account so as to ensure trouble-free payment of your (LTA) to the spouse/nominee after your time.

If you do not wish to take action as per above, open a joint account in the name of yourself and your spouse, preferably in the same bank, if you have not already done so. This will automatically become a single account after your lifetime and the family pension can be credited to this account. Alternatively, open a single account in the same bank in the name of your spouse so that, when the time comes, on advice to the bank, the family pension can be credited to this account. Also ensure that your spouse makes a nomination in favour of a child/ family member or any other person of her/his choice for this single account so that when the need arises, the nominee can get the amount left in that account without any further formality. 

Make sure that the nominations/ conversions into the joint account as applicable as per above and/ or are duly reflected in the bank records and also keep the relevant copies of such endorsements in the master folder for your spouse.