Central government employees? Here is a list of facts you should know about your pension account

All central government employees are entitled to receive pension on their retirement. But, there is a eligibility criteria too. A central government employee should complete 10 or more years of service to receive the pension. There is also family pension given in times of demise. Note that, family pension is paid to one member of the family at a time. Children below 25 years of age can apply for pension. Currently, in India, pension is calculated at 50% of emoluments (last pay) or average emoluments (for last 10 months), whichever is more beneficial to the central government employees. However, there are certain rules and regulations in regards to how one should manage their pension account. It can be in case of withdrawals, transfer or any other services related to their bank account. Hence, if you are a central government employee, then note these important factors given by RBI on your pension. 

1. Government employees can draw their pension from bank branches. Also, even those employees who earlier used to draw their pension from treasury or from a post office, have the option to draw their pension from the authorized bank’s branches

2. The pensioner is not required to open a separate pension account. The pension can be credited to his/her existing savings/ current account maintained with the branch selected by the pensioner.

3. All pensioners of the Central Government Pensioners can open Joint Account with their spouses.

4. One can continue their family pension, even after the death of a pensioner. The banks should not insist on opening of a new account in case of Central Government pensioner if the spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO) is the survivor and the family pension should be credited to the existing account without opening a new account by the family pensioner for this purpose.

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5.  Individual banks have framed their own rules in this regards to maintaining a minimum balance in your bank account. This rule is different from bank to bank. Hence, you should always check with your bank about balance in your pension account.

6. The disbursement of pension by the paying branch is spread over the last four working days of the month depending on the convenience of the pension paying branch except for the month of March when the pension is credited on or after the first working day of April.

7. Pensioner can transfer his/ her pension account from one branch to another branch of the same bank and from one authorized bank to another authorized bank within the same centre or at a different centre;

8. The pensioner is required to furnish a Life Certificate / Non – Employment Certificate or Employment Certificate to the bank in the prescribed format in the month of November every year to ensure continued receipt of pension without interruption. 

9. A pensioner having Aadhar number can alternatively submit Jeevan Pramaan, a digital life certificate introduced by the Government of India. For obtaining this, he / she will have to enrol and biometrically authenticate himself / herself by downloading the application generating digital life certificate from the website jeevanpramaan.gov.in or other means described on the website.

10. The pension paying bank is responsible for deduction of Income Tax from pension amount in accordance with the rates prescribed by the Income Tax authorities from time to time. While deducting such tax from the pension amount, the paying bank will also allow deductions on account of relief to the pensioner available under the Income Tax Act. 

11. The paying branch, in April each year, will also issue to the pensioner a certificate of tax deduction as per the prescribed form. If the pensioner is not liable to pay Income Tax, he should furnish to the pension paying branch, a declaration to that effect in the prescribed form.

Hence, manage your pension account at your bank accordingly in order to avoid charges or fees. The government gives minimum pension of Rs 9,000, and it shall not be higher than  50% of the highest pay in Government  Rs 1,25,000.