BANKS DENY PAYMENT OF LTA TO NOK/ LEGAL HEIRS.

BANKS DENY PAYMENT OF LTA TO NOK

 We all know what is Life Time Arrears  which is paid to / settled to the Next of KIN / Legal Heirs.

Now, when the Pensioner dies, his Bank account is settled/ closed after some time and the outstanding balance is paid to NOK/ Legal heirs.

There after, any DUE on subsequent revision of pension Like CDA circulars 547, 555 and 568, the eligible arrear due to the deceased pensioner is to be paid to the NOK/ Legal Heirs as per circulars. e.g.  CIR 430.

“  IF THE CLAIMANT HAS ALREADY RECEIVED LTA IN THE PAST IN RESPECT OF THE DECEASED  TO WHOM THE BENEFIT WOULD HAVE ACCRUED , THE LTA UNDER PROVISION OF THE LETTER SHOULD ALSO BE PAID TO SUCH CLAIMANT BY THE PDA ON THEIR OWN-

Now, we understand that some Banks are informing the Claimants that  as the account of the deceased is closed , the Arrears can not be credited .

We all know that no operation on the deceased person’s closed account .

But , all the CDA circulars clearly stat that the LTA shall be paid to the same person to whom the earlier LTA  settlement was made.

The LTA arrears shall be credited to the account of Spouse or the legal heir. If there is no account, a crossed Cheque may be issued in their name.

Many NOK are complaining the Non-payment of LTA due to non availability of accounts.

Our ESM Organizations are requested  that these issue may please be taken up with the Apex level of Banking Department  to comply with Circulars for payment of LTA with out harassing the Claimants.