Pensioners Benefit Account

Pensioners Benefit Account

Keeping in view the hardships faced by the pensioners, this ten years’ maturity scheme was launched by the Government on 19th January, 2003. The deposits are maintained in the form of accounts and the profit is paid on monthly basis reckoned from the date of opening of the account / deposition.

The pensioners of Federal Government, Provincial Governments, Government of Azad Jammu & Kashmir, Armed Forces, Semi Government and Autonomous bodies and in case of death Pensioner’s eligible member of the family are allowed to invest.

Only one account can be opened at the National Savings Centre (NSC) all over Pakistan, Azad Kashmir and Gilgit Baltistan at a time by filling in a prescribed form called DA-1, which is available at the NSCs free of cost. A copy of the Computerized National Identity Card (CNIC)/NICOP and the copy of Pension Payment Order or any document evidencing ones retirement / Golden Hand Shake / Voluntary separation schemes etc as the case should be attached with the application form.

The account can be opened by depositing cash at the issuing office or by presenting a cheque / draft / pay-order. The account shall immediately be opened on receipt of cash. However, in case of deposit through cheque / draft / pay-order the account shall be opened with effect from the date of realization of the cheque / draft / pay-order after receipt of the clearance advice

The minimum investment limit is Rs.10,000/, whereas, the maximum limit is Rs.5,000,000/-. An investor can invest only seven subsequent deposits in the account. However, under no circumstances more than, (i) eight operative units, (ii) prescribed limit of investment i.e. Rupees five million (iii) one account all over Pakistan at a time is allowed to be maintained. In case of breach of any of above said condition, such account shall be treated as irregular with zero profit. Already collected  amount of profit thereon would be irregular and shall be liable to be recovered/deducted from the account holder/recipient of profit / deposited amount.

In the event of death of account holder, if the nominee(s) is not eligible member of the family, he/she/they would be entitled to profit @ prevailing rate of Savings Account for a maximum period of three months reckoned from the date of death of the holder or withdrawal of amount by the nominee whichever is earlier. However, if nomination is among the eligible members of the family, the account shall be transferred to his/her name by fulfilling the codal formalities and after transfer he/she shall be entitled to receive / earn profit at the rates as were being earned by its original holder provided that there is no litigation in court or order issued otherwise from the court of law.

The deposits can be withdrawn at any time after date of deposit subject to deduction of service charges at the following rates:
If withdrawn before completion of one year from the date of deposit @1% of the principal amount
If withdrawn after 01 year but before completion of 02 years from the date of deposit @0.75% of the principal amount
If withdrawn after 02 years but before completion of 03 years from the date of deposit @0.5% of the principal amount
If withdrawn after 03 years but before completion of 04 years from the date of deposit @0.25% of the principal amount
If withdrawn after completion of 04 years from the date of deposit. No Service Charges

Payment from accounts may be allowed through a person duly authorized (in writing) by the investor on authority letter under his signatures provided that:-
(a). The signatures of the authorized person are also attested by the investor on the letter of authority;
(b). The Officer Incharge is personally satisfied that the authorized person is genuine and the Withdrawal Slip and the letter of authority bear genuine signatures of the investor;
(c). The receipt of the amount is got acknowledged from the authorized person on reverse of the withdrawal slip personally by the Officer Incharge.
(d). The monthly accrued profit may also be collected through the scheduled banks by depositing duly filled in & signed profit coupon in the bank account of investor concerned.
A receipt of the service charges so deducted, duly signed by the Officer Incharge and the cashier, shall be issued to the investor.

For rates click here.The continued re-investment on maturity of Deposits in PENSIONERS BENEFIT ACCOUNT is available but so reinvested amount will earn profit at the rates prevailing on the date of re-investment.

The withholding tax is not collected on the profit earned on the deposits made in this scheme. The investment made in the scheme is also exempt from Zakat.