Payment of arrears of pension in cases where valid nomination has not been made: PCDA Circular No. 194
Circular No. 194
Sub:(i) Payment of arrears of pension in cases where valid nomination has not been made under the payment of arrears of pension (Nomination) Rules, 1983;
(ii) Payment of arrears of family pension-regarding.
Difficulties being faced by the defence pensioners in obtaining the legal heir-ship-certificate, for payment of arrear of pension Where valid nomination has not been made under payment of arrear of pension (Nomination) Rules, 1983 and payment of arrear of family pension, were drawing attention of the Govt. since long.
2. To obviate the above difficulties of the defence pensioner, GOI, Ministry of Defence department of Ex-Servicemen Welfare, vide letter No. 1(10)/2013-D(Pen/Policy) dated 29th August 2017 (copy enclosed) has decided that in the absence of nominee or any “will” of the deceased pensioner, the arrear of pension will be paid as under-
(i) Under the order of the Pension Disbursing Authority to the heir Without production of legal authority, if the gross amount of arrears of pension claim does not exceed Rs. 25,000/-, provided he is otherwise satisfied about the right of the claimant.
(ii) If the gross amount of arrears of pension claims exceeds Rs 25,000/- but does not exceed Rs 2,50,000/-, under the orders of Principal Controller of Defence Accounts(Pension) on execution of an Indemnity Bond in Form IAFA-642 duly stamped for gross amount due for payment with such sureties as may be deemed necessary and accepted on behalf of the President by an officer duly authorized under article 299(i) of the Constitution.
(iii) In case of any doubt and also in cases where the amount of arrear exceeds Rs 2,50,000/- payment shall be made only to the person producing the legal authority.
3. Normally there should be two sureties both of known financial ability. However, in case the amount of claim is less than Rs 75,000/- the authority accepting the Indemnity Bond for and on behalf of President of India should decide on the merits of each case whether to accept only one surety instead of two. The obligor as well as the sureties executing the Indemnity Bond should have attained majority so that the bond has legal effect or force. The Bond is required to be accepted on behalf of the President by an Officer duly authorized under Article 299(i) of Constitution.
4. This Ministry letter No. 1(16)/2009-D(Pen/Policy) dated 15.03.2010 stipulates that in the event of death of family pensioner, the right to receive any arrears of family pension would automatically pass on to the eligible member of the family next in line. The requirement of succession certificate for payment of any arrears occurs only where there is no member in family who is eligible to receive family pension after the death of the family pensioner. Therefore, it has been decided that the provision of this letter will also apply to the payment of arrears of family pension where no member of family is eligible to receive family pension.
All the Pension Disbursing Authorities are, therefore, advised to regulate the payment of life time arrears of pension and family pension in terms of instructions mentioned above.