FAQ Category: Retirement Planning & Succession

Individuals can ensure a secure financial future by investing in mutual funds, fixed-income securities, and government-backed securities to diversify their retirement portfolio. Starting early is crucial to enjoy the benefits in later years.

Yes, the banks should not insist on opening of a new account in case of Central Government pensioner if the spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO) is the survivor. The family pension should be credited to the existing account without opening a new account by the family pensioner for this purpose.

The pension paying banks credit the pension amount in the accounts of the pensioners based on the instructions given by the Pension Paying Authorities.

1. Agency banks are requested to seek guidance from respective Pension Sanctioning Authorities regarding the process to be followed for recovery of excess pension paid to the pensioners, if any.
2. Where excess pension payment has arisen on account of mistakes committed by the bank, the amount paid in excess should be refunded to the Government in lump-sum immediately after detection of the same and without waiting for recovery of any amount from the pensioners.

There have been complaints that life certificates submitted over the counter of pension paying branches are misplaced causing delay in payment of monthly pensions. In order to alleviate the hardships faced by pensioners, agency banks were instructed to mandatorily issue duly signed acknowledgements. They were also requested to consider entering the receipt of life certificates in their CBS and issue a system generated acknowledgement which would serve the twin purpose of acknowledgement as well as real time updation of records.

The pension paying bank is responsible for deduction of Income Tax from pension amount in accordance with the rates prescribed by the Income Tax authorities from time to time.

While retirement planning safeguards an individual’s retirement years. The company’s future is safeguarded through succession planning.

Succession planning can cultivate a new generation of leaders, thereby providing an exit strategy for existing business owners/ team leaders. It supports firms or companies in long-term planning and growth. The development of quality candidate pools that are ready to fill vital or crucial roles.

The succession planning process ensures that an organization recruits and develops employees to fulfil each key role within the company. It is a systematic method of identifying and developing future leaders who will be able to fill in for current leaders when they leave the company due to retirement, resignation, termination, transfer, promotion, or death. It is a modern approach that assures that a company’s most critical personnel move on to new opportunities, retire, or pass away without lowering the efficiency of the company.