Sl. No. : 1167/2015 - 16
Circular No. : CDO/P&HRD-PM/77/2015 - 16
30 Margshirsha 1937 (S).
All Branches / Offices of
State Bank of India,
Madam / Dear Sir,
STATE BANK OF INDIA EMPLOYEES’ PENSION FUND REGULATION-2014:
REVISION IN PENSION OF ELIGIBLE MEMBERS OF THE FUND WHO
RETIRED/RETIRE ON OR AFTER 1.11.2012
REVISION IN FAMILY PENSION IN RESPECT OF ELIGIBLE MEMBERS OF THE FUND WHO RETIRED/RETIRE ON OR AFTER 1.11.2012
The Executive Committee of Central Board in its meeting dated 16th December, 2015 have accorded approval for release of revised basic pension and dearness relief thereon to the eligible members of the fund, who retired/retire on or after 1.11.2012, pending amendments in State Bank of India Employees Pension Fund Rules now Regulations-2014 and for revision in family pension in respect of eligible members of the fund, who retired/retire on or after 1.11.2012.
2. In this connection, the details of revision in pension and effective dates are set out as under:--
(i) Amount of Basic Pension:-
The maximum amount of pension for members of the Fund eligible for pension, who retired/retire while in service or otherwise cease to be in employment on or after 1.11.2012, shall be computed as under:
a. Where the average of monthly substantive salary drawn during the last twelve months’ pensionable service is up to Rs 51,490/- p.m. (the maximum pay scale of JMGS-I)
at 50% of the average of monthly substantive salary drawn during the last twelve months’ pensionable service plus ½ of Professional Qualification Pay (PQP) plus ½ of increment component of Fixed Personal Pay (FPP), wherever applicable (pro-rata in the case of part-time employees)
b. Where the average of monthly substantive salary drawn during the last twelve months’ pensionable service is above Rs 51,490/- p.m. (the maximum pay scale of JMGS-I)
at 40% of the average of monthly substantive salary drawn during the last twelve months’ pensionable service subject to minimum of Rs 25,745/- p.m. plus ½ of Professional Qualification Pay (PQP) plus half of increment component of Fixed Personal Pay (FPP), wherever applicable (pro-rata in the case of part-time employees).
(ii) Amount of Dearness Relief:-
With effect from 01.11.2012, dearness relief on pension shall be granted at the same rate as is applicable in the industry i.e. dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every four points over 4440 points in the monthly average of All India Consumer price index for Industrial Workers in the series 1960=100 at the rate of 0.10 per cent per slab on the basic pension.
(iii) Commutation of pension:-
a) The commutation of pension on the revised pension may be allowed with effect from 01.11.2012.
b) The pensioners who have opted for commutation, on or after 01.11.2012, shall be eligible for commutation up to lump sum payment of the fraction not exceeding 1/3rd of the revised pension. However, if a pensioner had availed of commutation up to a particular fraction of the pension within the overall ceiling, as above, he will be entitled to avail of the additional amount of commutation to the extent of the difference on the basis of the fraction so specified. Accordingly, the pensioners eligible for additional commutation value would be advised of their eligibility and be further advised that they have to inform the bank about their option for such commutation within 90 days from the date of receipt of the advice about their eligibility. If the pensioner does not inform the Bank about his option within the stipulated period as above, he will forgo his right to claim commutation.
c) In case of deceased pensioner eligible for additional commutation, the legal heirs are eligible to receive the commutation value of specified portion of the enhanced pension that the pensioner had specified in his original application for commutation. So the legal heirs would be advised to receive arrears of pension payable to the deceased pensioner with the request to receive it after completion of usual formalities.
(iv) Fixation of pension in respect of retirees whose past 12 months fall partly in pre-revised scale and partly revised pay scale:-
Several pensioners have retired drawing partly pre-revised (pre 01.11.2012 salary scales) and partly revised pay (effective from 01.11.2012) consequent to last salary revision w.e.f. 01.11.2012. For these pensioners, existing instructions shall continue which provide for calculation of average pay in past 12 months prior to retirement on the basis of salary as per the 9th Bipartite for the period prior to 01.11.2012 and for the remaining months on the basis of 10th Bipartite pay scales. A sample calculation is given as Annexure-I.
(v) The payment of pension as above will be provisional, pending amendments to the State Bank of India Employees’ Pension Fund Regulations, 2014. After amendments to the Pension Fund Regulations,
if there is any difference in the actual payment which should have been made, the said difference will be adjusted from the future amount of Pension payable to the retirees.
3. Further, revision in family pension in respect of eligible members of the Fund, who retired/retire on or after 1.11.2012 are set out, as under:
(i) Amount of monthly family pension:-
other than part-time employees):
Scale of pay per month
Amount of monthly family pension Up to Rs 11,100
30 per cent of the ‘pay’ subject to a Minimum of Rs 2,785 per month.
Rs 11,101 to Rs 22,200 20 per cent of the ‘pay’ subject to a Minimum of Rs 3,422 per month.
Above Rs 22,200, 15 per cent of the ‘pay’ subject to a Minimum of Rs 4,448 per month and Maximum of Rs 9,284 per month.
Note:- In the case of part-time employees, the minimum amount of family pension and the maximum amount of family pension shall be in proportion to the rate of scale wages drawn by the employee.
(ii) Minimum Pension:-
In respect of employees other than part-time employees, who retired on or after 01.11.2012, the amount of minimum pension shall be Rs 2,785 p.m. In respect of part-time employees who retired on or after 01.11.2012, the minimum pension payable shall be Rs 932 p.m. in respect of part-time employees drawing 1/3 scale wages, Rs 1,397 p.m. in respect of part-time employees drawing ½ scale wages and Rs 2,096 p.m. in respect of part-time employees drawing ¾ scale wages.
(iii) A letter of undertaking will be taken from the pensioner/ member(s) of the family pension in the prescribed format as per
‘Annexure-II’, to enable the Pension Fund to make adjustments, if any, at a later date.
4. PPG Department of all Local Head Offices should calculate the revised pension/ family pension and dearness relief thereon in all eligible cases and send their recommendations to PPG Department, Corporate Centre for approval of individual cases by the Trustees.
5. Please arrange to bring the contents of this circular to the knowledge of all concerned.
For the calculation of average emoluments and Basic Pension in respect of the employees retired between 01.11.2012 and 30.09.2013, following adjustment is proposed (in terms of IBA letter no. CIR/HR&IR/G2/2015-16/874 dated 08th June, 2015):
a. For the period of service prior to 01.11.2012, average emoluments will comprise ‘Pay’ as per 9th Bipartite pay scales plus Dearness Allowance payable @ 0.15% for every slab of 4 points over and above the Index numbers 2836 points and up to 4440 points in All India CPI 1960=100 i.e. 60.15% (A)
b.. For the service rendered on or after 01.11.2012 up to the date of retirement, ‘Pay’ as per 10th Bipartite pay scales (B)
c. Average emoluments for the preceding 12 months of retirement: (A+B)/12
2. Model calculation for an officer employee retired on 31.05.2013 having 33 years of qualifying service with Basic Pay of Rs. 42,020/- as on the date of retirement):
1For the period of service prior to 01.11.2012 i.e. from 1.06.2012 to 31.10.2012 (5 months):
‘Pay’ as per 9th Bipartite Wage Settlement
Dearness Allowance payable @0.15% for every slab of 4 points over and above the Index numbers 2836 points and up to 4440 points in All India CPI 1960=100 (4440-2836=1604/4=401 slabs * 0.15 i.e. 60.15% 15,458.55*5=77,292.75
Total of i. + ii. above 2,05,792.75 (A)
2. For the service rendered on or after 01.11.2012 up to the date of retirement, corresponding revised i.e. 31.05.13 (7 months):
‘Pay’ as per 10th Bipartite Wage Settlement 42,020*7=2,94,140.00
Total of (A) and (B) 4,99,932.75 (C)
3. Average emoluments for the preceding 12 months of retirement: 4,99,932.75 / 12 = 41,661.06
The Branch Manager/Manager
State Bank of India,
Revision in Pension in respect of those employees of SBI who
retired/retire on or after 1.11.2012
I am presently drawing Pension/Family Pension through your _____________ Branch/Office in __________________________Circle and my pension reference No. is _________________________.
I am eligible to get increase in monthly pension/family pension being paid to me on account of the recent revision of pension in respect of those employees who retired/retire on or after 1.11.2012, w.e.f. 1.11.2012. I request you to pay me such revised pension at your earliest. I understand that you are agreeable to release such revised pension, pending amendments in SBI Employees’ Pension Fund Regulations, 2014.
In this connection, I hereby irrevocably authorize you to make any recoveries/adjustments out of my future pension, if it is revealed at any time that I have been paid such increased pension wrongly or inadvertently. I undertake to repay the amount immediately on demand, in lump sum. In the event, I do not repay the said amount when demanded; the Bank will be entitled to recover the said amount by debit to my/our account/pension account. This undertaking/authority is irrevocable and binding upon me/my legal heirs/nominees as well.
I am also aware that revised pension being paid to me shall be effective from 1.11.2012 and that no arrears prior to said date are payable to me.
Date: (name of the pensioner/member(s)