Pension New Update: On retirement, employees can convert their salary account or savings account into a pension account in which they can receive their monthly pension.
After retirement from service, employees often have to visit banks to start their pension. After retirement, people have to open a new bank account every month to get pension and do all the steps afresh. In this matter people have to run around a lot. To avoid this, you can convert your salary account into a pension account. Its process is very easy. If you want a pension account in the same bank as the salary account, then you will not even need documents. If a retiree already has a current or savings account, they are not obliged to open another pension account in the bank.
You can also open a new account-
If you are not satisfied with your current bank, you can also open your new bank account. According to the SBI website, to avail pension through State Bank of India (SBI), retired employees can open an account in any branch of State Bank of India. Aadhaar number, PAN number, mobile number and email_id (if available) are the basic requirements for opening an account. If the pension sectioning authority/department has started issuing e-PPO, then in most of the cases the pension will start automatically, as all the formalities are completed digitally. If the printed PPO is issued, it is sent directly to the Centralized Pension Processing Center along with the undertaking and other related documents.
What is pension account?
On retirement, employees can convert their salary account or savings account into a pension account in which they can receive their monthly pension. When a state or central government employee retires, they get retirement benefits and monthly pension in their account. Converting your existing account to a pension account eliminates the need for a new account. If a retired person already has a savings account in a bank, they are not required to open another pension account in the same bank. Pension can be deposited into the existing savings account every month.
How to convert savings account into pension account?
Saving account can be converted into pension account with some easy steps. The option of converting a savings account into a pension account should be chosen because it is a simple process for both the bank and the pensioners. Banks follow a very convenient process for account conversion. Account holders can request to convert their existing account into pension account at their home branch.
Which documents are required
To convert to a pension account, pensioners may need to submit certain documents such as Pension Payment Order (PPO) along with the application. Account holders will have to complete KYC verification. For pension account, two passport photographs and address proof will be required. Two copies of passport or Aadhar card will have to be submitted. Also, the holder will have to provide information about his address.
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