Corruption in pension accounts: Govt issues new guidelines for drawing pensions

KARACHI: After reports of large scale corruption and embezzlement in various district accounts offices in the head of pension, the Finance Division has devised some new Standard Operating Procedures (SOPs) to bring transparency and ease in the pension payment process.

The State Bank Director, Asif Mehmood, in his letter conveyed the amendments in previous SOPs of Finance Division for the Direct Credit System of pension to all the presidents and chief executives (copy of which is available with The News).

According to the directive in order to bring transparency and ease in the pension payment, the Government of Pakistan has amended the SOPs for Direct Credit System with immediate effect.

According to the new SOPs, a pensioner shall be required to undergo biometric verification from any branch of a bank maintaining his or her pension account, every year in March and September. If he is unable to undergo biometric verification due to incapacitation by bodily illness, infirmity, or if his or her fingerprints do not exist due to old age or a genetic condition, he or she will provide a life certificate. According to the new SOPs in case of family pension, non-marriage declaration shall be obtained from pensioners on or before September 30 each year. The submission of the non-marriage declaration will be dispensed with after the widow, daughter or sister of the pensioner (family pension recipient) attains the age of 60 years. According to the current SOPs, if a pensioner fails to submit a life certificate or undergo biometric verification during March and September or he does not draw a pension for consecutive six months, the account shall become dormant. The requirement of submission of indemnity bond by a pensioner has been discontinued. Besides, the Finance Division, Government of Pakistan, issued further clarifications including that the pension shall be paid through a bank account either current or PLS maintained in the pensioner's name. The account shall not be a joint account. A bank account dedicated to pension transactions only shall not be mandatory for the pension.

The National Accountability Bureau is investigating corruption in the head of pension of many district accounts offices, mainly Hyderabad, Dadu, and Nausheroferoze, where according to the NAB’s initial assessment millions of rupees were embezzled.