OPA At Your Service

Questions and answers

Re Issue of National Identity Card

Question: I lost my identification certificate 190950697V while travelling in a bus in November 2006.

I submitted all the necessary documents and stamps with the application to the Grama Niladari on 7.1.2006 for onward transmission. It was sent under registered cover No. 7114 of 9.1.2007 to Colombo.

Against wanted information by letter No. 6750 of 15.6.2007 and that too was supplied. I drew their attention on 16.7.2008 and there is no reply. Please help me.

C. B. Kobbekaduwe

Answer: The usual procedure in applying for a National Identity Card (NIC) is to handover the application from duly completed along with the photograph and photocopies of other relevant documents such as birth certificate and copy of police report in the case of lost NIC etc. to the Grama Niladari. The Grama Niladari accepts the application and returns to the applicant a tear off reference number from the application form. This reference number is the only and important reference, for checking up with the Department of Registration of Persons. The Grama Niladari has to hand over the application to the Divisional Secretary for onward forwarding to the Department of Registration of Persons for the issue of the NIC.

In your case you have not provided this reference number. Also you don't appear to have forwarded your application through the Divisional Secretary as you have provided a letter registration number which is not the correct procedure. In any case after two years from the date of application (as in your case) the relevant papers cannot be traced at the NIC issuing office. Suggest you make a fresh application following the correct procedure. Alternatively if you can provide the previous application number and the details or the (area) Divisional Secretary it may be possible to trace it if it is within two years.

Pension anomaly of SLT pension No. 728890

Question: While thanking for the utmost and prompt action taken 'many times' with Pension Heads also published in the Daily News on 13.11.2008 and 15.1.2009 re my humble request, I am extremely sorry to mention, I have not received the results to my query except to say note my papers have been forwarded to the Internal Audit Branch. My very first registered letter was sent on 4.4.2008, the second letter on 17.5.2008, fax on 4.7.2008, all three were received by the Pension Head Office (Maradana) and this was confirmed by the Subject Clerk (Planning and Policies) and also by the Head of the Branch. The second Daily News publication on 15.1.2009, for which the reply by Pension Head says that I will receive the reply within 2 weeks. I also wish to thank the Department of Pensions for the reply sent on 2.12.2008 saying matters are referred to the Internal Audit Branch. It is two months and two weeks but no reply, and I strongly feel it's too late and high for such, after all self given all the relevant data with necessary photocopies for their easy reference. (Mine and other two similar cases).

If you consider the period from the very first registered letter sent on 4.4.2008 uptoday. Its 10 (ten) months gone still no action yet. In short if I could narrate my problem, we three of us along with others at SLT retired from (SLT) on 24.9.1996 and we three are drawing the same pension throughout (exactly same up to the cent) until the implementation of Circular 2/2006 of March 2006 issued by the Director of Pensions. This implementation came into effect from January 2006, (for all) whereas my pension differs by Rs. 267/03 cents (less) compared to the other two who are drawing pension from Moratuwa and Dam Street (their pension No. 728891 and 728892).

Mine is a MLTS service.

a) I am on MLTS Special Grade (maximum).

b) My length of service at the time of retirement is '360 months'.

c) Ours is an abolition of post and we all were compelled to retire on 24.9.1996 by Department of Telecom, since SLT going for privatisation.

As a guide please refer circulars:

a) PN 4042 E dated 17.2.1999 issued by Director of Pensions by Mr. P. M. P. Jayawardena to add (5) five years to pensioners retired between 18.10.1990-23.12.1996.

b) Refer 6/2004-2/2006 of 12/6/2008 issued by the present Director of Pensions K. A. Thilakaratne to look into the differences of SLT pensioners. (This circular specially meant for SLT pensioners only.

V. Niles Natcunam, Wellawatte

Answer: Even without your writing to us, we have been following up your case with the Pensions Department. As there are enough and more work for the Pensions Department on a daily basis, pension anomaly appeals take lower priority. Your matter has now been attended to by the Audit Department and passed on to the Director General for his approval. By this we don't mean that you are getting the anomaly corrected. The outcome of the Audit Department will not be disclosed to us as a third party. You will soon (within the next 3 to 4 weeks) hear from the Pensions Department. If not do not hesitate to revert.

 BoC Customer Pension Scheme (1981)

Question: We refer to your questions and answers column in DN of 22.10.2009 about BoC Customer Pension Scheme (1981).

The comments by OPA published in reply to my question were misleading the General Public. We received the said communique (which is an unofficial document) from S. K. Mahalingam but it appears that the contents of it are contradictory to the original terms and conditions of the scheme published by the Bank of Ceylon.

We attach herewith photocopies of the advertisement appeared in the Ceylon Daily News of 22nd January 1981 and the front page main news item published in the CDN of 13th January 1981. The Bank of Ceylon launches novel scheme 'Pensions for salaried and self employed' by Kris Rezel.

Both the news items clearly indicate the terms and conditions of the scheme. We checked all the internal circulars issued by the BoC for the continuance of the due payments to account holders under this scheme, and found that the Bank of Ceylon has made payments due to the pension account holders who maintained their accounts for making regular contributions. According to the original rules published in the media: "Substantial bonus payments will be made to account holders at the end of the 5th, 10th, 15th, 20th, 25th, 30th and 35th year until the payment of the monthly pension starts.

i.e. Pensions and bonuses will not be paid simultaneously, the account holder at his option can delay his monthly pension by five year terms and may enjoy the bonus at the end of the extended period.

We wish to point out that the OPA questions and answers column has published in the same newspaper, (Daily New) information contradictory to the original genuine terms and conditions of this scheme.

We insists that the OPA should correct this misrepresentation, and a public apology be made to the leading bank of our country, the Bank of Ceylon.

Eng. E. I. A. M. P.

Fernando, Wattala

Answer: Your question refers to the Q&A column in the Daily News of 22.10.2009. We haven't got there yet (October 2009) perhaps you are referring to DN of 04.10.2007. As per that Q&A, the person who raised the question had stated as quote "Even after 25 years they should pay the bonus" unquote.

In the answer we had thanked the person for sending us a copy of the 1981 Bank of Ceylon circular titled. "The unique National Pension (1981) scheme of Bank of Ceylon." We were told by Mr. Ponniah as well the BoC officers who attended the inquiry by the Financial Ombudsman that they could not trace a copy of the brochure or the circular which was subsequently forwarded by Mr. Mahalingam. However that circular does not clarify that the bonus payment is only up to the time of commencement of pension. We thank you for sending us a copy of the DN of 22.01.1981 and 13.01.1981 on this subject which clearly states that the bonus payment ceases when the payment of pension commences. In the DN of 22.01.09 in reply to your question, we have referred to the circular and its contents, on what basis are you referring to the circular as an unofficial document, whereas the same was tabled to the Financial Ombudsman for the inquiry accepted and filed with the inquiry papers.

At no state has the OPA in its reply to questions misrepresented any fact and therefore the question of an apology does not arise. It is the BoC circular and the paper release that are contradictory.

Nomination for a fixed deposit in bank

Question: I have some fixed deposits in banks. My wife is dead. I am old, I have four children. Three foreign citizens. Only one is in Sri Lanka. I have not appointed a nominee to my bank deposits. Upon my demise how would my deposits be disbursed. Is there a bank machinery to settle or will there be Courts intervention.

R. A. Jayaweera, Getahetta.

Answer: Even at this stage you can appoint a nominee. The banks have a nomination form which you can fill and get an acknowledgement from the banks. Hand over these acknowledgements to your nominee. We presume you will be nominating your child who is living in Sri Lanka as your other three children who are no longer Sri Lankan citizens cannot be nominated. On your demise the banks will pay your nominee with the amounts deposited plus the interest thereupon.

If you don't nominate anyone, on your demise, the proceeds will be divided equally amongst your four children as per the common law. If the total assets including the bank deposits exceed Rs. 500,000 in value, there has to be a testamentary case which means Courts intervention as stated by you.

Taxation on pension receipt

Question: Thank you for your valuable service rendered free of charge. I received arrears of pension from 1997 to September 2008 (total pension payment) a sum of over Rs. 20 lakhs. I had to live on the charity of others during those 11 1/2 years, as there was no salary or pension. Once I got a lump sum, I had to settle all my debts. I also gave some money to my children. I had only Rs. 600,000 left to open a fixed deposit. Please let me know how I will be taxed in the coming year.

Anxious Pensioner,

Wattala

Answer: Since you are left with only Rs. 600,000 you can deposit this amount in a fixed deposit in any bank without any fear of being taxed. Make sure you request for a form from the bank declaring that you are not liable for Withholding Tax (WHT).

WHT is payable (or deductible) only if total interest from all sources exceeds Rs. 300,000 per annum. The WHT liability for annual total interest received (from all sources) over Rs. 300,000 is 2.5 per cent up to Rs. 600,000. Over Rs. 600,000 will be 10 per cent.

However, for senior citizens (over 60 years) there is a waiver of WHT up to Rs. 500,000 only if you deposit with the National Savings Bank (NSB). For deposits with NSB over Rs. 500,000 and up to Rs. 600,000 WHT will be at 2.5 per cent. Over Rs. 600,000 it will be 10 per cent even at NSB, including senior citizens.