All banks to start pension disbursement from Jan 1

[Lahore_Real_Estate]

KARACHI: State Bank of Pakistan (SBP) on Thursday directed all banks to start payment of pension through their branch network from Jan. 1, 2011.

This arrangement will go a long way in mitigating the problems being faced by elderly pensioners, SBP said.

According to a circular, all banks have been advised by SBP to make necessary arrangements for disbursement of pension accordingly from the above-mentioned date.

It may be recalled that the Supreme Court of Pakistan had passed an order sometime back that all pensioners of the Federal, Provincial and Defence departments shall be allowed to open their accounts in any scheduled bank and the banks shall be instructed to transfer the amount of pension in their account on 30th of every month enabling them to draw the same as per their choice.

The State Bank had earlier directed all banks to comply with the Supreme Court Order. However, payment of pension through all banks required a number of steps including amendment in the Federal Treasury Rules.

The pension disbursement agencies also needed time to align their systems and procedures so that they are able to send the pension to the bank account of each pensioner by the 30th of every month.

Therefore, for implementing the Supreme Court of Pakistan’s order, a pension task force was constituted with representation from Employees Old-age Benefit Institution, Accountant General Pakistan Revenues, Controller General Accounts, Military Accountant General, Finance Division, SBP and Pakistan Banks’ Association to sort out the procedural formalities.

Accordingly, the task force recommended standard operating procedure (SOP) to disburse pension through all banks. The SOP clearly stipulates responsibilities of the Pensioners, Accounts Offices and the Banks.

According to the Circular, the State Bank will monitor compliance of the new instructions by all banks from January 1, 2011.