KARACHI: The federal government has decided to conduct biometric verification of pensioners through banks twice in a year to ensure the transparency. As per new directives, the bank account of the pensioner will become dormant, if pensioner failed to undergo biometric verification during March and September or does not draw a pension for consecutive six months.
In order to bring transparency and ease in pension payment process, the Government of Pakistan has made some amendments into the Standard Operating Procedure (SOPs) for pension payments through Direct Credit System (DCS) with immediate effect.
The State Bank of Pakistan (SBP) has advised all banks to disseminate the fresh instructions widely to branches and ensure compliance in letter and spirit and any violation of the instructions would be dealt with under the relevant provisions of the Banking Companies Ordinance, 1962.
According to the federal government directives, pensioner will be 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 incapacitation by bodily illness, infirmity, or if his/ her fingerprints do not exist due to old age or a genetic condition, he/she will provide a life certificate as per the SOPs.
In case of family pension, non-marriage declaration will be obtained from pensioners on or before 30th Sep of each year instead of March and September. Submission of non-marriage declaration will be dispensed with after the widow/ daughter/ sister of the pensioner (family pension recipient) attains the age of sixty years. As per the new directives, if a pensioner fails to submit a life certificate or fails to undergo biometric verification during March and September or a pensioner does not draw a pension for consecutive six months, the account shall become dormant. In addition, the requirement of submission of indemnity bond by a pensioner is also discontinued.
The Finance Division has also clarified that the pension will be paid through a bank account either current or PLS maintained in the pensioner’s name and a pension account will not be a joint account.
A bank account dedicated to pension transactions only will not be mandatory for the pension.
Copyright Business Recorder, 2021