Payment of arrears of Pension & Family Pension in cases where valid nomination has not been made: DeSW Order

No.1 (10)/2013-D(Pen/Policy)
Government of India
Ministry of Defence
Department of Ex-servicemen Welfare

New Delhi-110011
Dated: 29th August 2017

To

The Chief of the Army Staff

The Chief of the Naval Staff

The Chief of the Air Staff

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.

Sir,

Attention is invited to provisions for payment of Arrears of Pension under Regulation 90 of Pension Regulation Part-II (2008), which provide that after the death of the Armed Force Pensioner, all money payable to the pensioner on account of pension due to the estate of a deceased pensioner may be paid to the nominee of the deceased Armed Forces Pensioner. In the absence of any nomination made by the Armed Forces Pensioner, the arrears of his/her pension are paid as per the “Will” if such a “Will” has been made by the deceased Armed Force Pensioner. In case neither nomination nor ‘Will” has been made by the deceased Armed Forces Pensioner, the arrears of his/her pension are paid under the orders of the Pension Disbursing Authority to the heir without production of usual legal authority, if the gross amount of arrears of pension claim does not exceed Rs. 10,000=00, provided he is otherwise satisfied about the right of the claimant. If the gross amount of arrears of pension claim exceeds Rs. 10,000=00, the arrears of his/her  pension are paid under the orders of Principal Controller of Defence Accounts  (Pension) on execution of an Indemnity Bond in Form IAFA-642 duly stamped  for the 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. In case of any doubt,  payment is made only to the person producing the legal authority.

2. Considering difficulties in obtaining the legal heir-ship-certificate it has been 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 orders 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 the 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 a 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. 

5. These orders will not be applicable In the cases where valid nomination
exist under GOI, MOD letter No.4(2)84/868/B/D(Pens/Services) dated
09.05.1984. 

6. This issue with the concurrence of Ministry of Defence
(Finance/Pension) vide their ID No. 10(04)/2017/Fin/Pen dated 03 August 2017

Yours faithfully

(Manoj Sinha)

Under Secretary to the Government of India