Without knowing the background, I'm presuming that whoever wrote the procedure felt that if the sole POD wanted to keep the funds in the account, they could just re-title it in the PODs name. If there were multiple PODs, re-titling would require all of them to agree to a joint account with the others.
Our philosophy has always been, pay the beneficiaries and close the account. If any of them chooose to keep the money with us, we'll open a new account under their name(s). This avoids a host of problems.
I hear and I forget. I see and I remember. I do and I understand.--Confucius