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Pensioners Benefit Account Rules, 2003 issued

ISLAMABAD (February 17 2003) : The government has issued 'Pensioners' Benefit Account Rules, 2003', carrying lucrative benefit for pensioners as the scheme offers handsome profit under the laid down procedure, says SRO 65(I)/2003.

National Saving Schemes in recent past introduced a new Pensioners' Benefit Account scheme offering 11.04 percent rate of return, 2 percent higher than the return on Regular Income Certificate (RIC).

According to the notification, retired officials of the federal government, provincial governments, armed forces, semi-government and autonomous bodies can operate only one account, while in case of death the pensioner's family's eligible member is authorised to carry out transactions.

The text of 'Pensioners' Benefit Account Rules, 2003', notified through SRO. 65(I)/2003:

In exercise of the powers conferred by Section 28 of the Public Debt Act, 19944 (XVIII of 1944) and all other powers in this behalf the federal government is pleased to make the following rules, namely:-

PENSIONERS' BENEFIT ACCOUNT RULES, 2003: 1. These rules shall be called the “Pensioners' Benefit Account Rules, 2003”.

2. These rules shall apply to the deposits received in Pensioners' Benefit Account.

3. The pensioners' benefit account shall be opened at the National Savings Centre only.

4. Only one account shall be opened by a retired official of the Federal Government, Provincial Governments, Armed Forces, Semi-Government and Autonomous Bodies and in case of death the pensioner's eligible member of the family.

5. The account shall be opened for a period of ten years with a minimum deposit of rupees ten thousand and in multiples of rupees one thousand, subject to the maximum limit of one million rupees. Provided that no subsequent deposits shall be accepted.

6. If through any cause, the total holding of any depositor is discovered to be in excess of the limits prescribed in rule 5 whether as a result of —

a) direct deposit; or

b) receipt by transfer; or

c) deposit on account holder's behalf by any other person; or

d) inheritance, or award:

the depositor concerned shall be bound immediately to discharge the excess holding and no profit shall be paid on amount in excess of the maximum prescribed limit.

7. Any profit or payment which may have been made in contravention of rule 6 shall be refunded to the Government on demand, and in the event of failure to refund, may (in addition to other remedies for the recovery thereof by the Government) be deducted from any money payable by the Government to the person who received the profit or payment or from his or her estate, or be recovered as arrears of land revenue.

8. Withdrawal from the principal amount shall be in multiples of rupees one thousand and profit shall cease to accrue in case the balance in the account reduces below the minimum prescribed limit.

9. Profit shall be payable on completion of each period of one month reckoned from the date of opening of an account till maturity or withdrawal whichever is earlier. No profit shall be paid for any period less than one month.

10. In the case of premature withdrawal before the completion of one, two, three and four years of the deposit, service charges at the rate of 2 percent, 1.5 percent, 1 percent and 0.5 percent of the principal amount shall be deducted respectively.

11. The rate of profit on these accounts shall be 11.04 percent per annum.

12. The principal deposit on completion of maturity period shall stand re-invested from the date following the date of maturity, if so requested by the depositor at the rate of return and terms and conditions prevailing on the said date.

13. The tax on profit from investment made on or after, the 20th January 2003, shall be deducted at source at the rate of ten percent of such profit, if such deposit exceeds one hundred fifty thousand rupees.

14. Any investment made under these rules and profit earned thereon shall be exempt from compulsory collection of Zakat at source.

15. The monthly profit, if not drawn on due date shall not earn any further profit.

16. In regard to the procedure for opening of an account, withdrawal of deposit, transfer of account from one centre to another, nomination of beneficiary and all other matters, the National Savings Deposit Accounts Rules, 1974 shall, if not inconsistent with these rules, apply to the accounts opened under these rules.

17. The depositors shall repay in lump sum any payment made by mistake or over-payment received by him.

18. A person who opens a Pensioners' Benefit Account shall be bound by these rules.

19. The Federal Government may by order, remove any difficulty arising in the operation of these rules.

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