If you are a retired person, then you must have faced the problems related to a bank account that comes post-retirement. When you get retired, you need to make changes to certain things.
Things are not the same anymore. You have to fine-tune some changes so that your personal finance runs smoothly. If you are going to get retirement soon? Then, read on, this post might get you a few ideas as well on post-retirement financial matters.
In this article, we are going to discuss Pension Accounts and let’s see how to convert an existing SBI savings bank account to a pension account.
When you get retired, you have got two options;
- Either you have to open a new pension account or,
- You convert the existing salary account into a pension account.
Either way, it is possible and you can proceed as per your requirement.
Also, read how to open a savings account in SBI
If you want to open a new pension account!
For opening a new account you will have to visit the bank of your choice. As of now, SBI does not have an online account opening facility for a pensioner.
Visit the branch along with your KYC (Know your customer) documents. Make sure to carry along your PPO (Pension Payment Order).
Get the account opening form, fill it up and submit it to the concerned staff. Due verification of documents will be done by the concerned official.
Make sure to mention the pension account opening request as it has a different product code.
The rest will be handled by the bank. It does not take much time. Your request for a pension account will be done sooner than you expect.
Convert your existing account to a pension account!
Conversion to a pension account is possible. It is easy and more convenient. If one has to choose then it should be the conversion of a savings bank account to a pension account as it is a hassle-free process for both the bank as well as for you.
There is a format available in the bank for conversion of account. You may obtain it by visiting the branch. Or simply writing an application, may also serve the purpose.
Along with the application put the supporting documents such as PPO, KYC etc.
Bank will handle the rest. Within a few minutes, your request will be processed.
What is a pension-paying branch?
Irrespective of the bank, the pension-paying branch is the branch of that particular bank that disburses your monthly pension. Usually, the pension-paying branch is the branch where you maintain your account, but vice-versa is not true.
You can maintain a pension account in one branch but the pension-paying branch can be another. It is possible because of the Core Banking System which empowers you to access accounts from any branch.
Though there is a pension-paying branch actual processing and disbursal of monthly pensions are done at CPPC (Central Pension Processing Centre)
By the time when you get retirement, you may get the option to choose banks and which branch you would prefer to get your pension.
Where To Maintain Your Pension Account?
Of course not! It is not a mandate that you should maintain your account only in the pension-paying branch.
The pension-paying branch and account maintenance branch can be different. You may keep the account wherever you want at your convenience.
But, the logical thing is- if you could keep your account to a nearby branch, it would ease your accessibility. You have got to consider this, as times go by, you will only get older and there will moments when visiting the bank is a problem.
So, it makes sense that you keep both pensions paying branch and account maintenance in the same branch which is near to you.
When To Submit Your Life Certificate?
A life Certificate is a certification of a pensioner of his/her well-being. It certifies that the person is alive and eligible for a pension.
In layman’s terms, every year a pensioner has to declare to the pension disbursing authority that he/she is alive and continues getting his/her monthly pension.
Disbursing authority can be a bank Or treasury department. Online facilities to submit life certificates can be done through Jeevan Pramaan.
It’s an online platform where a digital life certificate is accepted through Aadhaar OTP or biometric authentication. Another online mode is SPARSH which is especially for retired defence personnel.
Life certificates, unemployment certificates, and re-marriage certificates are to be submitted every year in November.
Make sure you submit your certificate timely, otherwise, you will stop getting your pension furthermore.
You can either submit by visiting the branch or submit online on the pension site.
The official website for SBI pensioners is here.
Personal loan for pensioners?
Yes, a personal loan is available to both the self-pensioner and the family pensioner. No third-party guarantor is required. The spouse will be considered a guarantor.
Quantum of loans differ from the types of pensions. Normal pensioners can avail of a maximum of 14 lakhs provided the pensioner can repay and be eligible as per the bank’s guidelines.
As per the age of the pensioner, the eligible loan term and the amount will differ. For more details please visit your home branch or visit the SBI Official website.
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