ISLAMABAD: The Ministry of Finance has introduced a revised digital system for federal government pensioners.
The new system changes how proof-of-life verification is completed for pension payments. It also removes commercial banks from routine biometric verification duties.
The ministry issued a revised Standard Operating Procedure (SOP) for Digital Proof of Life and Pension Disbursement. The procedure was introduced on the directives of Prime Minister Shehbaz Sharif.
The system applies to retired federal civil servants receiving pension under federal rules. It covers pensioners governed by the relevant Civil Services Regulations.
Under the revised system, commercial banks will mainly handle pension disbursement. They will no longer verify, collect, retain or validate proof-of-life certificates in normal cases.
The ministry has connected the National Database and Registration Authority (NADRA) with the Controller General of Accounts (CGA). The Military Accountant General (MAG) has also been integrated into the system.
The connection uses a secure application programming interface (API). This allows NADRA to send a pensioner’s Digital Life Signal directly to CGA or MAG.
The new process removes the need to route routine life verification through commercial banks.
Life verification required every six months
Federal pensioners must complete proof-of-life verification at least once every 180 days.
The government has ended the previous fixed verification schedule for March and September. Pensioners can now complete verification at any time during the 180-day period.
Verification can be completed through the NADRA Pak-ID mobile application. Pensioners can also use authorised NADRA Registration Centres and mobile units.
The e-Sahulat franchise network will also facilitate the process. Some authorised bank branches may provide proof-of-life services through NADRA.
However, these branches will operate only as authorised NADRA centres. They will not independently store or verify pensioners’ biometric information.
Pension accounts will not become dormant
The revised SOP also protects pension accounts from being marked dormant for pension processing.
If NADRA does not provide a valid Digital Life Signal for six months, the pension record will enter suspense status.
Pension payments will then be temporarily stopped. However, the bank account itself will not be closed or declared dormant.
Once NADRA provides a valid life signal, the pension record will be restored. The pensioner will also receive the withheld payments under the new procedure.
Paper-based process abolished
The government has also ended the previous paper-based “Disburser’s Half” procedure.
All federal pension payments will now use the Direct Credit System (DCS). Under this system, pension amounts will go directly into designated bank accounts.
The move is expected to simplify pension disbursement. It will also reduce paperwork and routine visits to banks.
Physical verification facility available
The government has provided an alternative for elderly and vulnerable pensioners.
Those unable to use digital services can visit a District Accounts Office. They can also approach a Pension Facilitation Centre.
They can submit Form-10, known as the Life Certificate, for physical verification.
Officials will enter the submitted information into the centralised digital system. This will allow eligible pensioners to continue receiving their payments.
Family pensioners may also have additional requirements. Those with marital-status conditions must submit Form-12 when applicable.
The form covers declarations related to non-marriage or re-marriage.
Key changes for federal pensioners
The revised system introduces several important changes.
Pensioners will no longer need routine bank visits for biometric proof-of-life verification. Life verification will instead be required once every 180 days.
The March and September verification schedule has also been removed. Digital verification is available through NADRA’s authorised channels.
Commercial banks will primarily remain responsible for pension disbursement. Pension accounts will not be marked dormant for processing purposes.
The paper-based “Disburser’s Half” process has also been abolished. Payments will now be made through the Direct Credit System.
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The revised pension system is designed to make verification easier for federal retirees. It also provides a physical option for pensioners who cannot use digital services.
