FAMILY PENSION
When Family Pension is Payable
1. Where an employee deceases after completion of one year of continuous service or before completion of one year of continuous service who was examined by a medical officer approved by Company prior to appointment.
2. When a Former Employee dies After retirement from service.
3. When a Retiree/spouse dies leaving behind
Dependent Children
Rate of revised Family Pension (on Proposed Rate):
Revised Ordinary Family Pension is calculated based on the last pay drawn by the employee at the time of retirement at 30% without
ceiling (at Prosed Rate).
Pay- Basic pay including Stagnation increment and all allowances counted for the purposes of making contribution to the Provident Fund.
Family Pension will commence from the date following the date of death of the employee/pensioner.
ENHANCED RATE OF FAMILY PENSION:
Where the employee has completed 7 years of continuous service at the time of death family pension may be paid at the Enhanced Rate of 50% of last drawn or twice the ordinary rate of family pension whichever is less for a period of 7 years or till the deceased employee attains the age of 65 years had he survived.
PERIOD OF PAYMENT:
The period for which the Ordinary Family pension Pyable is.
a) In case of widow/widower, up to the demise or re-marriage whichever is earlier.
b) In case of son, until he attains age of 25 or until he gets married whichever is earlier.
c) In case of unmarried daughter, until she attains age of 25 years or until she gets married whichever is earlier.
d) The total income of the children should not
exceed Rs. 2550/- per month and for parents wholly dependent on him should not exceed 2550/- provided he has left no widow/widower or child after him.
e) However, a son or daughter shall continue to get family pension if he or she suffers from any mental or physical disability irrespective of attaining 25 years of age.
After the demise of the employee the family pension will be paid in the following order:
a) Widow or widower (if not remarried).
b) Children in order of birth. Youngest one will
become eligible only if elder ones become ineligible.
c) Disabled child will receive family pension for
life, if nobody else is Eligible.
Payment to twins and widows: It will be paid in
equal shares in case of twins and to widows in case there is more than one.
Receipt of two-family pensions: In case of demise of both husband and wife who were employees of the bank, the child will get two
family pensions subject to ceiling on the total amount of pension
METHOD OF CALCULATION OF FAMILY PENSION ON THE BASIS OF PROPOSED UNIFORM RATE OF 30%
Ordinary Pension:
The eligible ordinary family pension will be
generally at 60 % of the existing Basic pension ie. before commutation. (For those who drawn increment during last 10 months of their service, their last drawn pay would be more than their average emoluments. In such cases their eligible FP would be slightly more than 60 % of their basic pension). In such cases they have to refer their Pension calculation sheet where in last pay drawn particulars are available). Ordinary eligible family Pension is at 30% of last drawn pay. The revision is effective from 01.04.2021.
Dearness relief on family pension will be as
appliable for the period of retirement. It is at the current rate that the retiree is drawing. For example, Current DR for those who retired between 01.11.2007 to 31.10.2012 is at187.35%
Sample calculation:
An Employee retired during 2009, drawing
basic pension of Rs 18,805/- (before commutation). Last drawn pay and Average
emoluments are same. Last drawn Pay-Rs 37,610/-
Now revised FP is calculated as follows
Family Pension at 60% of Rs18,805/-(present basic pension)=Rs11,283/-( this is same as 30% of Rs 37,610/-)
DR at 187.35% =Rs 21,139/-
Total Eligible family pension with DR = Rs 32,422/-
Enhanced Family Pension:
It will be the same as the Service pension of the pensioner.
The enhanced eligible Family pension would be at 50% of average emoluments drawn by the deceased/retired employee. (This is
because that the twice the rate of ordinary pension i.e. 60% should not exceed
the service pension sanctioned to the pensioner. Service pension is sanctioned
based on average emoluments and not on last drawn pay)
How long the Enhanced Rate of Family Pension shall bepayable.
In the event of death of an employee after
retirement, enhanced rate of family pension shall be payable for a period of seven years or for a period up to the date on which the retired deceased employee would have attained the age of sixty-five years had he survived, whichever is less; in short applicable enhanced family pension will be payable will be payable maximum for 7 years or till the date that the pensioner/employee would have attained 65 years of age whichever is earlier.
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