Pension Rules Change: Pension stopped from banks from January 1, now know from where you will get the money. – StudyToper

Changes in pension rules:An important news has come out for pensioners. It is being claimed in some reports that the distribution of pension from banks will stop from January 1, 2024. This news has created concern among pensioners. But is it true? Will pension really not be paid through banks? Let us know the whole truth of this matter.

First of all, it is important to understand that pension is an important financial assistance that is given to government employees after retirement. This is a major basis of their life. Therefore, any change in pension payment directly impacts lakhs of pensioners. In such a situation, it is very important to know whether any big change is really going to happen.

Changes in pension rules: at a glance

Will pensions be stopped from banks?

First of all, let us make it clear that the distribution of pension from banks is not stopping. This is a rumor which is spreading on social media. In fact, the government has not made any major changes in the pension distribution system. Banks will still remain the main medium of pension distribution.

Actual changes in pension rules

Although there have been no major changes in the pension delivery system, the government has made some important amendments that are in the interest of pensioners:

1. Increase in dearness relief: The rate of dearness relief (DA) for central government pensioners has increased from 46% to 50% from January 1, 2024. This increase will increase the income of pensioners.
2. Increase in the maximum limit of gratuity: The government has increased the maximum limit of retirement gratuity and death gratuity from Rs 20 lakh to Rs 25 lakh. This change is effective from January 1, 2024.
3. New Pension Application Form: A new single pension application form 6A has been introduced for Central Government civil employees. This form will make the pension process simple and fast.
4. Digital Life Certificate Campaign: The government has issued comprehensive guidelines for the nationwide Digital Life Certificate Campaign 3.0. This will ease the process of submitting life certificate for pensioners.
5. Rules for women employees: From January 1, 2024, women government employees/women pensioners are allowed to nominate their children even if their husbands are alive.

Improvement in pension payment process

The government is continuously working towards making the pension payment process simple and transparent. Many new steps have been taken for this:

1. Online Pension Tracking System: Pensioners can now track their pension status online. With this, they will continue to get up-to-date information about their pension.
2. Digital Life Certificate: Pensioners no longer need to go to the bank every year and submit the life certificate. They can submit this certificate digitally sitting at home.
3. Grievance Redressal Mechanism: CPENGRAMS, an online portal has been launched for redressal of pension related grievances. Till January 2024, 8,484 complaints were registered on this portal.
4. Bhavishya Portal: It is an online platform that digitalizes pension processing. As of January 2024, 831 pension payment orders (PPOs) were pending on this portal.

Important tips for pensioners

1. Stay updated: Get regular information about changes in pension rules. Pay attention to government websites and official information.
2. Digital Literacy: Learn basic digital skills to avail online pension services. This will help you in pension management.
3. Submit Life Certificate on time: Do not forget to submit your Digital Life Certificate in the month of November every year. This will prevent any interruption in pension payment.
4. Keep your bank account updated: Always keep your bank account information up-to-date. Immediately inform the concerned department of any change.
5. Grievance Redressal: If there is any pension related issue then use CPENGRAMS portal. Here you can register your complaint and check its status.

Possible future changes in pension rules

The government is continuously working towards improving the pension system. There may be some more changes in the future:

1. Age limit for auto-enrolment: The government has proposed to reduce the eligibility age limit for auto-enrolment from 22 years to 18 years. This will give young employees a chance to join the pension scheme quickly.
2. Digitization: The entire process of pension management can be made more digital. This will reduce paperwork and make the process faster.
3. Flexible Pension Options: In future, employees may have the option to customize their pension plan as per their needs.
4. Pension Portability: The facility to easily transfer pension on changing jobs can be worked out.
5. Green Pension: Pension schemes with environment-friendly investment options can be introduced.

Benefits available to pensioners

1. Medical Facilities: Central Government pensioners get medical facilities under CGHS (Central Government Health Scheme).
2. Travel Concession: Pensioners get travel allowance to visit their home town once every two years.
3. Income tax exemption: Some amount received on pension is exempt from income tax.
4. Banking Facilities: Many banks offer special facilities to pensioners like loans at low interest rates, free chequebooks, etc.
5. Additional Allowance: After the age of 75 years, pensioners get additional allowance of 10% of the basic pension/family pension.

Disclaimer: This article has been written for information purposes only. The information given in it has not been confirmed from official sources. Please consult relevant authorities or experts before taking any decision. It is necessary to confirm the accuracy and relevance of the changes in pension rules.