VETERANS - MUST ACT WHILE IN GOOD HEALTH

ACTIONS TO BE TAKEN BY VETERANS WHILE STILL IN GOOD HEALTH

JUST DONOT POSTPONE THEM EVEN FOR A DAY

1.              While in service, we planned for all contingencies which might occur, whether in official or personal matters. However, after retirement many of us do not display the same meticulousness in our personal affairs. We feel that we still have plenty of time to go and will place our affairs in order In due course of time. When the unexpected happens, the NOK are left to clear an unimaginable tangle of legal and financial issues. It is obviously our responsibility towards our loved ones to organise our personal affairs, while we are still in good health, so that our NOK can receive assets as smoothly as possible. Some measures to ensure this are enumerated in succeeding paragraphs.

PART  A - SERVICE /PENSION ISSUES

NOTE : The Appces mentioned in the following paragraphs can be viewed by opening this link on your computer  -   http://1drv.ms/1hrfNPl.  In most cases ready made draft letters in word formats can also be obtained / downloaded from the relevant URLs mentioned there in. 

2.              Endorsement Details of NOK and Family Pension in PPO. Presently, the name of NOK and amount of enhanced family pension and family pension due are notified in the PPOs of retirees to enable immediate payment by Pension Disbursing Authorities (PDAs). Prior to t989, there was no procedure to mention the details of NOK and amounts of family pension in the PPO. Please check your PPO to ensure that it contains an endorsement of amount of Enhanced Family Pension, Family Pension and the name of NOK. The complexity of getting the name of an NOK included in a PPO after demise of the pensioner needs no elaboration. Affected veterans are required to forward "Application for Endorsement of Family Pension Entitlement in the PPO of living Armed Forces Pensioners" in triplicate, duty attested by PDA, to Army HQ , AGs Branch, MP 5 (b) for necessary action. They will, in turn, forward it to PCDA (P), Allahabad for implementation, (Appendix ‘A’ refers).

            Docu -   http://1drv.ms/1fVLRho  

            Sample format http://1drv.ms/1fVLzXY

3.              Endorsement of Date of Birth of NOK in the PPO. After 6CPC, very senior citizens beyond 80 years of age are entitled to additional family pension. This would not be admissible till the date of birth of the spouse is clearly established in the PPO.  Currently, depending on the year of retirement, the year of birth of NOK may, at most, be mentioned. Endorsement of date of birth of NOK can be done by filling the form issued for the purpose by Army HQ and forwarding it with required proof to Army HQ , AGs Branch, MPS(b), (Appendix B refers}. Action to publish a revised LPC - cum - Data Sheet will be taken by Army HQ and necessary amendment will be issued by PCDA (P), Allahabad.

4.              Correctness of Wife's Name in PPO. The spelling of the wife's name in the PPO should be checked for correctness. The same name can be written with different spellings in English. For example, a name can be written as  Samira" or "Sameera". However, if there is a variation in spellings between the names as spelled in the PPO original certificates of NOK and bank accounts, then these will cause numerous problems when the time comes. It will be advisable to check the PPO and all supporting documents and if required, amendment to PPO be carried out through Army HQ, AG’s Branch, MP 5 (b).

 5.              Joint Bank Account.   It is possible that some senior veterans, who started drawing pension before the provisions of joint bank account were introduced, continue to draw pension through a single pension bank account. If so, immediate action must be taken to convert this into a joint bank account with the spouse. It is also advisable to hold all bank accounts jointly with the spouse, incorporating the “Either or Survivor'" provision for operation. This will mitigate problems in future when one of the spouses is no more.

6.              Change of Pension Disbursing Branch, Some senior veterans are drawing pension from a bank located in a city other than their present place  of  residence. This, was   probably  that the bank conveniently located when  they  retired, but  after  subsequent  relocation,  they  have not changed  the bank, since they are facing no  problem  in drawing  their  pension  through online banking.  Such veterans would be well advised to transfer their accounts  to a location close to their present place of residence. The procedure to do so is very simple. It involves giving an application on  the  specified  form  to  their  present  bankers  (PDA), who  will  be  responsible to carry out the remaining formalities. The form for change of PDA can be downloaded at http://pcdapension.nic.in/forms/disburseform7.pdf . Application for transfer of PDA can be downloaded from this URL     http://1drv.ms/1fVN5cD.

7.              Issue of Duplicate PPO. In some cases, where senior veterans tried to change their PDAs, they were told that the original PPOs were not traceable. In such cases, action to issue duplicate PPOs can be taken in accordance with PCDA(P) Circular No 137 dated 11.05/2009 .  The circular can be seen at http://pcdapension.nic.in/6cpc/Circular-137.pdf.     CIRCULAR can be viewed or downloaded from this URL ---   http://1drv.ms/1fVNwUc

8.              Nomination for Payment of Life Time Arrears of Pension / Gratuity. With the long lead time taken in processing dues of salary and pensions, there will be payments of such arrears  which come about after the demise of the pensioner. These are treated differently from family pension and are not automatically paid to the NOK. Their disposal is in accordance with nomination filed by the pensioner. Para 114 of  "Defence Payment lnstructions,2005"  requires all pensioners to nominate a person to receive, after death of the pensioner, all moneys payable to the pensioner, or which may become payable in due course (e.g. arrears) . The nomination on Form ‘A’ to Appendix 21 of PPl, 2005 is to be submitted in quadruplicate to the Pension Disbursing Authority (PDA) and  a receipt obtained, (Appendix ‘C’ refers).  Modification to an earlier nomination can be carried out by submitting Form ‘B’ to Appendix 21 of PPl, 2005 (Appendix ‘D’ refers).  This can ALSO be downloaded from this URL --       http://1drv.ms/1fVNP1e

9.              Grant of Family  Pension  for  Life to  Handicapped  Children.  A son or a daughter of an officer suffering from any disorder or disability of mind or physically crippled or disabled which renders him or her, unable to earn a livelihood even after attaining the age of 25 years is eligible for grant of family pension for life, after the death of widow of the officer and where there are no other eligible children. This provision has been extended to Handicapped children even after their marriage. Auth :-   http://pcdapension.nic.in/6cpc/Circular-505.pdf  . This can also be downloaded from Signals Family website URL   http://1drv.ms/1esoRkJ  .   Necessary action must be taken by veterans to ensure that they complete the necessary documentation while in good health. They need to take up a case with Army HQ, AG’s Branch  MP 5 (b) , which, after verification, will forward intimation to PCDA (P) to the effect that details of the handicapped child have been taken on record. The acknowledgement should be preserved by parent / guardian for production at the time of consideration of family pension to handicapped child, when contingency arises. The documents to be forwarded to Army HQ, AG’s Branch, MP 5 (b) are as under :-

(a)          A certificate from competent medical authority (a Medical Board comprising of Medical Superintendent or a Principal or Head of Institution as Chairman) specifying  the nature of physical or mental disability and degree of disorder.

(b)          A certificate from the medical authorities to the effect that the handicapped child is not in position to earn his livelihood.

(c)           In case of mentally retarded son or daughter, the family pension shall be payable to a  person  nominated  by the  Armed  Forces  personnel/pensioner  and in case  no  such nomination has been furnished by the Armed Forces personnel/pensioner during his life time, the person nominated by the spouse of the deceased personnel/pensioner. The requirement of appointment of guardian by a Court of Law has been dispensed with, for pension.

10.            Updating of  Personal  Occurrences . In case changes in family status  eg Marriage /remarriage /  birth of child have taken place after retirement, action must be taken to publish the personal occurrences through Part II Order and have the changes incorporated in PPO, if required.  Publication of Personal Occurrences would be carried out through Army HQ, AGs Branch, MP 5(b).  Changes in permanent address should also be intimated, on occurrence to Army  HQ MP(5),  PCDA (Pension),  PCDAO (Archives), Army Officers Benevolent Fund and AGIF directorates.

11.            Preservation of Documents. Army HQ,  AG’s Branch  MP (5) and PCDA(O) destroy their records after 15 years. It is therefore advisable to maintain your own set of important documents, especially those pertaining to important Casualties and pay fixation. The problem of payment of arrears in the "Rank Pay Case" to senior veterans by PCDA(O), has highlighted this important aspect.

12.            Assured Decent Last Rites Scheme (ADLR). The ADLR Scheme has been implemented by the Indian Army since 2006. Under this scheme, all veterans / widows holding valid canteen cards and registered with the ADLR Office of the Canteen on which they are dependant, will be provided with assistance by the ADLR staff,  in organising and assuring a decent funeral, when requested.  Expenditure of up to Rs 2,500 can be incurred by the ADLR staff.  In case veterans feel that this contingency might be required, then registration should be carried out at the dependent URC.

PART-1 B  – VETERAN’S PERSONAL ISSUES

13.     Writing The Will.  It is said that when a deceased leaves no Will, lawyers become his heirs. A frequent error is in presuming that on the death of an individual, his property is automatically inherited by the living spouse.  Property can only be inherited by Will or law of intestate,  which means division of property according to the religion based personal laws applicable to the deceased. We are all aware of the importance of a Will, but keep leaving it for another day because of some inhibitions.  Some salient issues pertaining to Wills are :-

a.       There is no particular form prescribed by law for a Will. It can be hand written or typed with each page signed by the testator and the attending witnesses. The only legal requirements are that the testator should be of sound mind at the time of executing the Will and should have signed in the presence of two attending witnesses , each of whom has also signed in the presence of the testator and an endorsement to this effect is made. Since the witness may be called upon, someday , to authenticate the Will, it would be prudent to use friends neighbours who are younger in age and will be available when required. Witnesses cannot be beneficiaries under the Will. In case there is any possibility of the Will being contested, then it would also be advisable to have the family doctor certify that the testator is of sound mind and health. It may be noted that witnesses are only to certify the fact that the Will was voluntarily signed by the Testator while of sound mind and health and are not required to read the contents of the Will.

b.      Only wealth accumulated by the testator can be willed. Ancestral property must be distributed  as per the applicable personal laws. In case of assets  being bequeathed are considerable,  the Will should be drafted by a lawyer and checked by an accountant. The Will  should be reviewed periodically to cater or changes in financial or family circumstances.

c.       The existence of  any pin holes in the Will is likely to give rise to an inference that some documents were attached to the Will, which may cause difficulty at the time of proving the legality of the Will and obtaining a probate in the court of law, if the necessity arises. Thus, there should be no tags or attachments

d.      If some points are required to be settled, or corrected in the original Will, a supplementary or document of  'Codicil" can be prepared. It would be necessary to "attach" the Codicil along with the Will and give necessary information / intimation to those holding copies of the Will.

e.      Both spouses should consider executing separate Wills to cover contingencies such as either one predeceasing the other. The remaining spouse should make a fresh Will on demise of one partner.

f.        Nominations made for various accounts should be consistent with those mentioned in the Will.

g.       The Will must be kept securely and its location known to the NOK. Copies may be given to the Executor, if deemed necessary.

h.      All Wills are revocable, however, in case a Will is revoked especially so a registered Will, it should be clearly stated in the latest Will that, "All previous Wills. whether registered or un-registered, whatsoever and wherever , stand revoked and cancelled". This will avoid any controversies.

i.         No stamp duty is required to be paid by heirs on registration of property.

NOTE    All aspects of writing a Will   can be accessed on Signals family URL -                http://1drv.ms/1fVOtvQ

 14.            Choice of The Executor.  Execution of any Will rests with the Executor of the Will. Hence it is imperative that the executor be an honest, trustworthy and reliable person. Obviously, he should be implicitly trusted by the Testator. It is advisable to have a younger person in good health as an Executor, to try and ensure that he/she does not pre-decease the Testator of the Will. In case an Executor does predeceases the Testator, then a fresh Will should be executed. Where the property has to be divided amongst different heirs, or if a Will gives only life interest to any one person and thereafter the ownership rights vest with someone else, appointment of a reliable lawyer as an Executor may be considered. The Executor must know the contents of the Will and be willing to execute the Will according to the wishes of the Testator. Preferably, the Executor should be a resident of the same town as the Testator, to enable him to execute the concerned Will, legally and expeditiously.

15.            Registration  of  the  Will.  Registration of a will is not obligatory.  However, where it is apprehended that the genuineness of the Will is likely to be challenged, it may be advisable to either  consider notarization of the Will before a notary public or registration before  the registrar.  Registration offers two distinct advantages - the procedure for probate is simplified and in case the original will is lost / misplaced, the duplicate held with the registrar can be obtained. At the time of Probate, both the witnesses are required to be present, which is not the case when the Will is registered. It should be noted that a registered Will takes precedence over an un-registered Will. Hence in case of any revocation or alteration of an earlier Will, the latest Will must be registered.

16.            When the Will Can Be Declared as Void

a)      If it is established that the Will itself, or some portion of it, has been written under duress.

b)      If there is over writing and there are tangles which are not authenticated by the maker of the Will and the witnesses.

c)       If the Will is not duly signed by the witnesses.

d)      If the provisions made in the Will are impossible to comply with, or not legal, or are derogatory to social harmony.

Go through various articles of WILL - http://1drv.ms/1fVOtvQ

NOMINATIONS.

17.            A nominee is a trustee and not the owner of assets. In other words, he is only the caretaker of the assets and is legally bound to transfer it to the heirs, in accordance with the wishes expressed by the testator in the Will. Nominations must be regularly updated after any changes in family status e.g. marriage, death etc. The following types of accounts / instruments must have nominations :-

a.       Bank Accounts. (If not filled at the time of Account opening, Form DA 1 is to be used for nomination,  Form DA 2, for cancellation of nomination and Form DA 3 for change in nomination. The forms can be obtained from your Bank or downloaded from their sites .

b.      Fixed Deposits. (If not filled at the time of Account opening, same forms as for Bank Accounts to be used for nominations).

c.       Post Office instruments like NSC, KVP,MIS, and Recurring Deposit etc. (Nomination  or Cancellation / Changes to be filled on Form SB 55. (Placed at Appendix  E). Download available at   http://www.indiapost.gov.in/pdfForms/SB55-AppinforNominationofPOSB.pdf  

d.      PPF Account. (Nomination / Changes to be made on Form E. (Placed at Appendix F). Download available at   http://www.indiapost.gov.in/pdfForms/PPFNomination.pdf    

e.      Bank Lockers. (Nomination is by single hirer is to be made on Form SL 1, by joint hirers on Form SL 1A,  Cancellation of . Nomination on Form SL-2, Change in nomination by single hirer on Form SL3 and by joint hirers on Form 3A. Forms can be downloaded from     http://thebankingbible.com/wpontent/uproads/2012/08/NOMI NATION-LOCKERS.pdf

f.        Demat Accounts. The Demat A/c Custodian bank normally gets the nomination done while opening the account. However. if this has not been done, or details cannot be located,  then  a  fresh  nomination can  be  filed  by  filling  up the  documentation  provided  by  the Custodian.

18.            A detailed note on understanding the importance of Nominations is placed at Signals family BLOG and can be accessed and downloaded in word format  from  URL -----    http://1drv.ms/1cVlmZg

ADHAAR CARD

19.            The Adhaar Card is increasingly being used to associate an individual's identity with various financial issues. It is already being used to pay subsidy on Cooking Gas in most parts of the country. Most veterans have taken necessary action to register themselves for the card under the UID Scheme. Those who have not done so, due to laziness, or other reasons, need to complete this formality urgently. There is no knowing what this card may be required for when one is no longer around.

Maintenance of Documents.

20.            The originalcopies  of following documents should be kept securely, (preferably in a joint locker with the spouse),and photocopies kept accessible at home:-

a)     Will.

b)    Original and Corrigendum PPOs,

c)     Insurance Policies (Life, Car, House, Medical etc.).

d)    Financial Instruments. (FOs, NSC,KVP etc.)

e)     Share I Mutual Fund Certificates.

f)     Registration papers of Home I Flat .

g)    Vehicle Registrations.

h)     AGIF Certificate of Extended Insurance.

i)        Loan documents of house I vehicle.

j)        Any commitment made towards organ donation.

NSP Weapons

21.            Some veterans would have acquired NSP Weapons, while  in service, and obtained an Arms License for it.  The allotment under the provisions of SAO 4/S/2006 (or older SAOs) would have been made by the Standing Allotment Committee and approved by the MGO.  After demise of the veteran, the weapon can either be sold or retained by the heirs, provided a valid Arms Licence  can be obtained.The procedure to be followedisas under :-

a)     Resale ofWeapon. Resale of NSP weapon will be governedby Army Act 1959, ChapterII, with prior sanction of the Standing Allotment Committee. NSP weapon purchased ex-Ordnance will be sold at reasonable rates to entitled persons(i.e. Serving I retired Officer, JCO, and serving Civilian Gazetted Officer). If sanction to sell/transfer as mentioned above is not accorded by the Standing Allotment Committee, the weapon will be returned to COD Jabalpur by the allottee underinformation to the Civil Licensing Authority.

b) Retention of Weapon by Legal Heirs.   Ondemise of an Individual the legal heirs of the deceased weapon  holder may apply. to the Standing Allotment Committee for retention of theweapon  as family heirloom on sentimental reasons. If sanction for retention is not granted the weapon will be returned to COD Jabalpur.

22.       The  utility of retaining an NSP weapon should be reviewed by veteranswhile still in good health,  If it is not required for security, then it should be surrendered becauseits disposal will probably end up as one of the major problems for the heirs, especiallyif the weapon is ·of a prohibited bore.

23.           A detailedsummary of the relevant rules on NSP· weapons, including  the procedure I provisions  for  transfer  of  NSP  weapons  on  succession, can  be  read  at  the  website http://mha.nic.in/pdfs/AaAPolicylnd-080410.pdf

Registration of Car

24.            It is always advisable to have one's car registered locally. Many veterans have purchased cars at distant stations, while in service. Transferring the car in the name of NOK after succession will entail the additional step of first transferring the registration of the car to the local RTO, before it can be transferred in the name of the NOK. The first step will itself become complicated because the NOK cannot sign for the deceased. It is therefore prudent to transfer registration of cars to the station of retirement while still in good health.

Reverse Mortgage

25.            Reverse mortgage as a concept, is fairly new to India. It provides Senior Citizens who are asset  rich but require cash, the opportunity to enjoy the fruits of their hard work, invested in immovable assets, during their on lifetime, All that you need to do is to pledge your house for a reverse mortgage. The funds that you get will not only help you augment your retirement nest egg, but will also equip you to deal with financial emergencies.

26.            When one buys a house through a loan / mortgage, the lending institution funds 80% of the house cost and the borrower has to arrange for the balance 20%.  As repayment of the loan through EMls is carried out, the percentage of ownership of the buyer progressively increases and that of the lending institution decreases. In a reverse mortgage, the exact opposite happens. When one pledges a house, the lending institution, after arriving at its value, keeps a margin and depending on its rates of interest on the reverse mortgage, disburses the money according to the plan which is selected. With every payment made, the lending institutions ownership of the house increases. So, when one pledges his house for reverse mortgage, one basically unlocks its value in the form of payments from the lending institution in his life time.

27.            After the lending institution has taken over the possession of the house, the legal heirs are given the first chance to settle the loan and resume ownership of the property. However, if they are unable / unwilling to settle the loan, then the lending institution will sell the property and recover the loan and interest amount. The balance amount will be given to the legal heirs.

Organ Donation

28.            With increasing population and changing lifestyles, the number of persons with failed organs is increasing. It is estimated that in India over two lakh people are diagnosed to have end stage liver disease and can be saved only through a liver transplant. Due to non-availability of organs, only about 2000 liver transplants (from living related donors) are done. The numbers affected for other organs like eyes are much greater.

29.            Organ donation in India is carried out under the provisions of  "Transplantation of Human Organs Act, 1994”.  Donation can be carried out through two categories of donors - living organ donors and deceased organ donors.  Living organ donation carries all the risks of a major surgery for the donor. The donation may be of a Kidney or half a Liver. The law is stringent on transplantation of organs from living persons. This act prohibits commercial dealing in human organs and thus limits the scope of living organ donation to living relatives only.

30.      Deceased organ donation does not disfigure a body while providing more types of organs for donation. The organ harvesting can be from a brain dead individual, ( where all functions which are governed by the brain are lost, which includes respiration as well, but at the same time,  other organs like liver, kidney and other viscera keep functioning), or a biologically dead individual.  In both categories, the commitment to donate must be made during the life time of the deceased. In a recent cadaver donation of a brain dead individual at PGI, Chandigarh, kidneys were transplanted to two terminal patients, a liver to a third and eyes to a fourth. What better way to perpetuate ones memory after death, than to give life and vision to others.

     NOTE --     GIFT LIFE TO SOME ONE AND  You still live after your death.

31.            The commitment to donate can be made at any major hospital  located near one's permanent residence.  Armed Forces Personnel can contact Army Hospital (R&R), Delhi Cantt,  or Command / Base Hospitals:  Do remember to Inform your NOK and keep the relevant documents readily available to enable fulfillment of your wish when the time arises. Following Pledge forms and brochures may be referred to for pledging your GIFT OF LIFE :-

a)      ORGAN DONATION DESCRIPTION  -    http://1drv.ms/1g2fqhg

b)      ORGAN RETRIEVAL BANKING ORG – AIIMS  -  http://1drv.ms/1g2fAFA

c)       ORGAN DONATION A GIFT OF LIFE  -  http://1drv.ms/1g2f5vd

d)      ORGAN DONATION PLEDGE - MIL PERSONNEL -  http://1drv.ms/1eJLRM8

Assets Register.

32.    In our society, financial and legal issues are generally handled by the male heads of the family and ladies refuse to take interest in such issues- and remain oblivious of documents / assets. With the existing nuclear families, when the unexpected happens, children come, at most  for a week or two by which time only the religious functions are completed.  Succession issues, including transfer of accounts have to be dealt alone by the widow. Thus, the requirement to maintain an Assets Register, wherein particulars,  locations and nominations  of all assets are recorded. Details of all loans and receivables should also be recorded. This can be just a register (or even an Excel file in your laptop duly backed up on a CD/Pendrive). However, to be useful, it has to be regularly updated. A useful format is placed at Appendix ‘H’. This can be printed  and placed in a separate file along with photo copies of the important documents.

NOTE – A detailed note on making your Assets Register together with the suggested format of your Register and connected aspects can be accessed at URL ---   http://1drv.ms/N0zAeP

Passwords and PINs.

33.    Today, everything on the computer has a password - email, bank  accounts, demat accounts and even the computer containing all vital records / correspondence. All the passwords need to be recorded and updated on occurrence of any change. The importance of safe custody of this record needs no elaboration. Debit and Credit Cards have a PIN to execute a multitude of actions Including withdrawal of cash. These too need to be recorded in the same manner as passwords.

Advice for Ladies.

34.  All over the world, ladies, on an average, live five years longer than their partners, meaning thereby that most ladles will live their last years without the support of their spouse.  Ladies must prepare for this eventuality. They must become aware of all financial and legal issues of the family. They must visit banks, municipal offices and other billing agencies like electricity and water to familiarise   themselves with procedures. Ideally, the method to undertake these transactions from home, through the internet, should be mastered.

Conclusion.

35.   With increasing years, it is desirable that veterans reduce their financial spread and resolve issues which are likely 'to create problems for their heirs. To start with, unnecessary bank accounts should be closed.  All existing accounts and bank lockers should be jointly operable with the Spouse.

36.      In case you are still not convinced about the need to prepare for the unforeseen, but inevitable contingency, please read the experience of a young spouse, in her article placed on the Internet to guide others at our Signals Family BLOG at URL ---   http://1drv.ms/OnCFa1.

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