Pension payments will be made through a bank account that is either current or PLS maintained in the pensioner’s name, as per a circular from the State Bank of Pakistan (SBP) quoting the Finance Division.
A pension account will not be a joint account, and the account for the pension transactions could be used for different purposes as well. The SBP has issued more instructions for pensioners to maintain their bank accounts in the future.
Here are the updated guidelines:
A pensioner is required to undergo biometric verification from any branch of a bank maintaining his/her pension account every year in March and September. If the pensioner is unable to undergo biometric verification due to either incapacitation by illness, infirmity, or if his/her fingerprints have worn out due to old age or a genetic condition, he/she is to provide a life certificate as per the SOPs.
In the case of family pension, a declaration of Non-Marriage as required under paragraphs 4 and 9 of the SOPs will be obtained from pensioners on or before the 30th of September each year instead of March and September. The submission of the declaration will be dispensed after the widow/daughter/sister of the pensioner (family pension recipient) attains the age of sixty.
If a pensioner fails to either submit a life certificate or undergo biometric verification during March and September, or if he/she does not draw a pension for six consecutive months, the account will become dormant.
All the banks are advised to disseminate the instructions to their branches and to ensure compliance in letter and spirit. Any violation of the instructions will be dealt with under the relevant provisions of the Banking Companies Ordinance, 1962.
The incumbent government is working to bring reforms in the pay and pension system of the country which is a victim of corruption with hundreds and thousands of ghost pensioners robbing taxpayers of their money.
The new system will not only integrate the pension system into the banking system but it will bring transparency to prevent corruption. It will also provide convenience to pensioners who can withdraw their pension from the nearest ATMs or bank branches instead of standing in long queues in front of the post offices.