ISLAMABAD: The Ministry of Finance has introduced a revised digital pension system for federal government pensioners, eliminating the role of commercial banks in biometric verification and the collection or validation of proof-of-life certificates under the new procedure.
According to a notification issued by the Ministry of Finance, the revised Standard Operating Procedure (SOP) for Digital Proof of Life and Pension Disbursement has been introduced on the directives of Prime Minister Shehbaz Sharif.
The new system applies to federal government pensioners who are retired civil servants under the relevant Civil Services Regulations and receive pensions under the federal pension rules.
Under the revised procedure, commercial banks will now serve solely as pension disbursement agencies and will no longer have a statutory or administrative role in verifying, collecting, retaining or validating proof-of-life certificates (POLC) or biometric data in ordinary circumstances.
The notification said that the National Database and Registration Authority (NADRA) has been integrated with the Controller General of Accounts (CGA) and Military Accountant General (MAG) through a secure application programming interface (API).
As a result, a pensioner’s Digital Life Signal will be transmitted directly from NADRA to the CGA or MAG, bypassing commercial banking channels.
Life verification every six months
Under the new system, pensioners will be required to complete proof-of-life verification at least once every six months, or 180 days.
The previous fixed verification schedule for March and September has been abolished, allowing pensioners to complete their verification at any point within the 180-day period.
NADRA shares online process to reobtain ‘Proof of Life’ certificate
Pensioners will be able to complete the verification through the NADRA Pak-ID mobile app or through authorised NADRA channels, including NADRA Registration Centres, mobile units and e-Sahulat franchises.
Bank branches that have been authorised to operate as NADRA proof-of-life verification centres may also facilitate the process. However, such banks will act strictly as authorised NADRA operational centres and will not independently verify or retain pensioners’ biometric data.
Pension accounts cannot be marked dormant
The revised SOP also states that pension disbursement accounts will not be marked dormant by banks for the purpose of processing or disbursing pension payments.
If no valid Digital Life Signal is received for six consecutive months, the pensioner’s record will be placed in suspense status in the centralised pension system.
In such a situation, pension payments will be temporarily paused, but the bank account itself will not be declared dormant or closed.
Once a valid life signal is received from NADRA, the pension record will be restored and the pensioner will be entitled to receive the withheld amount, according to the notification.
Paper-based system abolished
The revised SOP has formally abolished the previous paper-based “Disburser’s Half” process.
All federal pension payments will now be made through the Direct Credit System (DCS), under which pension amounts are directly credited to designated bank accounts.
Alternative facility for elderly pensioners
The government has also introduced a fallback mechanism for pensioners who are unable to use the digital system, particularly elderly or otherwise vulnerable pensioners.
Such pensioners can visit a District Accounts Office or Pension Facilitation Centre and submit Form-10 (Life Certificate) for physical verification.
The relevant staff will enter the information into the centralised digital system, according to the notification.
Family pensioners whose entitlement is subject to marital-status conditions will also be required to submit Form-12, relating to non-marriage or re-marriage declarations, where applicable.
What has changed for pensioners?
Under the new system:
Pensioners will no longer need to visit a bank simply for routine biometric proof-of-life verification.
Life verification will be required at least once every 180 days.
The fixed March and September verification schedule has been abolished.
Digital verification can be completed through the NADRA Pak-ID app and other authorised NADRA channels.
Commercial banks will primarily be responsible for pension disbursement.
Pension accounts cannot be marked dormant for pension processing purposes.
The paper-based “Disburser’s Half” system has been abolished.
Pension payments will be made directly through the Direct Credit System.
Pensioners unable to use the digital system can use the physical verification facility at District Accounts Offices or Pension Facilitation Centres.
