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Union of India - Section

Section 23 in State Bank of India Employees Pension Fund Regulations, 2014

23. Computation of pension.

(1)Subject to the provisions of sub-regulations (2) and (3), the pension payable under regulation 22 shall be the amount calculated at the rate of one-sixtieth part of every year's pensionable service of the average monthly substantive salary drawn during the last twelve months' pensionable service.
(2)The maximum pension shall not exceed one-half of the average monthly substantive salary drawn during the last twelve months pensionable service or rupees two thousand four hundred per month (pro-rata in the case of part time employees) whichever is less:Provided that the maximum amount of pension shall be increased for the members who retired or retire on or after the 1st November, 1993 from rupees two thousand four hundred per month to rupees four thousand two hundred fifty per month (pro-rata in the case of part-time employees) after adjustment of dearness allowance on the basic pay upto 1148 points in the quarterly average of the All India Working Class Consumer Price Index (General) Base 1960=100:Provided further that with effect from the 1st March, 1999 the maximum amount of pension for the members who retired or retire drawing substantive salary in the Pay Scales effective from the 1st November, 1992 (Award Staff) or the 1st July, 1993 (Supervising Staff) and thereafter shall be computed till further amendments in this regard, as under-
(a)where the average of monthly substantive salary drawn during the last twelve months' pensionable service is upto rupees eight thousand five hundred per month, fifty per cent. of the average of monthly substantive salary drawn during the last twelve months' pensionable service (pro-rata in the case of part-time employees); and
(b)where the average of monthly substantive salary drawn during the last twelve months' pensionable service is above rupees eight thousand five hundred per month, forty per cent of the average of monthly substantive salary drawn during the last twelve months' pensionable service subject to minimum of rupees four thousand two hundred fifty (pro-rata in the case of part-time employees):
Provided also that with effect from the 1st May, 2005, the maximum amount of pension for the members who retired or retire drawing substantive salary in the Pay Scales effective from the 1st November, 2002 shall be computed till further amendments in this regard, as under-
(a)where the average of monthly substantive salary drawn during the last twelve months' pensionable service is up to rupees twenty one thousand forty plus Professional Qualification Pay plus Fixed Personal Pay per month, fifty per cent of the average of monthly substantive salary drawn during the last twelve months' pensionable service (pro-rata in the case of part-time employees); and
(b)where the average of monthly substantive salary drawn during the last twelve months' pensionable service is above rupees twenty one thousand forty plus Professional Qualification Pay plus Fixed Personal Pay per month, forty per cent of the average of monthly substantive salary drawn during the last twelve months' pensionable service subject to minimum of rupees ten thousand five hundred twenty plus half of Professional Qualification Pay plus half of Fixed Personal Pay wherever applicable (pro-rata in the case of part-time employees):
Provided also that with effect from the 1st November, 2007, the maximum amount of pension for the members who retired or retire drawing substantive salary in the pay scales effective from the 1st November, 2007 shall be computed till further amendments in this regard, as under:
(a)Where the average of monthly substantive salary drawn during the last twelve months’ pensionable service is up to rupees thirty one thousand five hundred per month at fifty per cent. of the average of monthly substantive salary drawn during the last twelve months’ pensionable service plus half of Professional Qualification Pay plus half of increment component of Fixed Personal Pay, 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 rupees thirty one thousand five hundred per month at forty per cent. of the average of monthly substantive salary drawn during the last twelve months' pensionable service subject to minimum of rupees fifteen thousand seven hundred fifty plus half of Professional Qualification Pay plus half of increment component of Fixed Personal Pay, wherever applicable (pro-rata in the case of part-time employees).
(3)The amount of pension payable under sub-regulation (2), if it contains element of paise, shall be rounded off to the next higher rupee.
(4)The minimum pension payable to a regular employee (Pro-rata in case of part-time employees) shall not be less than three hundred rupees per month.
(5)
(a)The employees of the banking institution who have become the members of the Fund, pursuant to clause (a) of regulation 9, shall be entitled to receive such pension, as may be decided by the Central Board of the Bank.
(b)The decision of the Central Board, as regards eligibility of such employees to become members of the Fund and benefit of pension to which they are entitled, shall be final, conclusive and binding on such employees.
(c)The employees of the banking institution, who have retired, prior to the date of such acquisition or amalgamation, but have become members of the Fund, pursuant to clause (b) of regulation 9 or clause (c) of regulation 9, shall be entitled to receive such pension including enhancement and family pension, if any, as may be determined by the Central Board of the Bank, pursuant to the settlement, industry level or otherwise and the pension rules and regulations by which they were governed prior to the date of acquisition or amalgamation.
(6)No pension shall be paid to a member unless it has been sanctioned by the trustees under these regulations.
(7)In the event of death of a member-
(a)while in service of the Bank after completion of pensionable service of one year; or
(b)after retirement, the trustees may sanction family pension to the dependent(s) of the employee on the terms and conditions approved by the Central Board.
(8)
(a)In the case of members who ceased to be in the Bank's pensionable service prior to the 1st November, 1987 (excluding 1st November, 1987), dearness relief shall be payable for every rise or be recoverable for every fall as the case may be, of every 4 points over 600 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100, subject to necessary adjustment suitably up to 600 points.
(b)Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below :-
Scale of basic pension per month The rate of dearness relief as a per cent. of basic pension
(a) upto Rs. 1250 0.67 per cent
(b) Rs 1251 to Rs. 2000 0.67 per cent of Rs. 1250 plus 0.55 percent of basic pensionin excess of Rs. 1250.
(c) Rs. 2001 to Rs. 2130 0.67 per cent of Rs. 1250 plus 0.55 per cent. of thedifference between Rs. 2000 and Rs. 1250 plus 0.33 per cent. ofbasic pension in excess of Rs. 2000.
(d) above Rs. 2130 0.67 per cent of Rs. 1250 plus 0.55 per cent of the differencebetween Rs. 2000 and Rs 1250 plus 0.33 per cent. of thedifference between Rs. 2130 and Rs. 2000 plus 0.17 per cent ofbasic pension in excess of Rs. 2130.
(9)
(a)In the case of members who ceased to be in the Bank's pensionable service from the 1st November, 1987 to the 31st October, 1993, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 600 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100.
(b)Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below :-
TABLE
Scale of basic pension per month The rate of dearness relief as a per cent. ofbasic pension
(a) upto Rs. 1250 0.67 per cent
(b) Rs. 1251 to Rs. 2000 0.67 per cent. of Rs. 1250 plus 0.55 per cent ofbasic pension in excess of Rs. 1250.
(c) Rs. 2001 to Rs. 2130 0.67 per cent of Rs. 1250 plus 0.55 per cent ofthe difference between Rs. 2000 and Rs. 1250 plus 0.33 per cent.of basic pension in excess of Rs. 2000.
(d) above Rs. 2130 0.67 per cent. of Rs. 1250 plus 0.55 per cent ofthe difference between Rs. 2000 and Rs. 1250 plus 0.33 per centof the difference between Rs. 2130 and Rs 2000 plus 0.17 per centof basic pension in excess of Rs. 2130.
(10)
(a)In the case of members who retire from the Bank's service on or after 1st November 1993, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1148 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100.
(b)Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below :-
TABLE
Scale of basic pension per month The rate of dearness relief as a per cent. of basic pension
(a) up to Rs. 2400 0.35 per cent.
(b) Rs. 2401 to Rs. 3850 0.35 per cent of Rs. 2400 plus 0.29 per cent of basic pensionin excess of Rs. 2400
(c) Rs. 3851 to Rs. 4100 0.35 per cent of Rs. 2400 plus 0.29 per cent of the differencebetween Rs. 3850 and Rs. 2400 plus 0.17 per cent of basic pensionin excess of Rs. 3850
(d) above Rs. 4100 0.35 per cent of Rs. 2400 plus 0.29 per cent of the differencebetween Rs. 3850 and Rs. 2400 plus 0.17 per cent of thedifference between Rs. 4100 and Rs. 3850 plus 0.09 per cent ofbasic pension in excess of Rs. 4100.
(11)
(a)Dearness relief shall be payable for the half year commencing from the 1st day of February and ending with the 31st day of July on the quarterly average of the index figures published for the months of October, November and December of the previous year and for the half year commencing from the 1st day of August and ending with the 31st day of January on the quarterly average of the index figures published for the months of April, May and June of the same year.
(12)The Dearness relief shall be allowed on full basic pension even after commutation.
(13)In respect of retirees of the period the 1st November, 2002 to the 30th April, 2005, the dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 2288 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100, at the rate of 0.18 per cent of basic pension and dearness relief shall be payable with effect from the 1st May, 2005 and not prior to that.
(14)In respect of employees who retired on or after the 1st May, 2005, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 2288 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100, at the rate of 0.18 per cent of basic pension.
(15)In respect of employees who retired or retire on or after the 1st November, 2007, dearness relief on pension shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 2836 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100 at 0.15 per cent of the basic pension.
(16)
(a)Notwithstanding anything contained in regulation 15 or sub-regulation (4) of regulation 23, in the case of a member against whom disciplinary proceedings under the Rules of Service applicable to him have been continued after he ceases to be in the Bank's service or where, for the purpose of considering whether sanction for retirement should be granted by the Executive Committee or the Local Board, as the case may be, any investigation or enquiry in respect of any act committed by the member while in service has been initiated or continued by the Bank after he ceases to be in the Bank's service, the member may be paid at the discretion of the Trustees a provisional pension of an amount not exceeding the maximum amount of pension which would have been admissible to such member under these regulations on the basis of qualifying service up to the date he ceases to be in the Bank's service or if the member was under suspension on such date up to the date immediately preceding the date of such suspension.
(b)The amount paid as such provisional pension shall be adjusted against the amount of final pension if sanctioned on conclusion of such disciplinary proceedings or investigation or enquiry but no recovery of such amount shall be made if the member is ultimately dismissed from the Bank's service and the retirement benefits are forfeited.
(c)If at any time in the opinion of the Bank, such member is found not co-operating with the conduct of such disciplinary proceedings or investigation or enquiry, the payment of the provisional pension may, at the discretion of the Trustees, be stopped.
(17)
(a)Commutation of pension.- An employee who retires from the Bank's service on or after the 1st January, 1986 shall be entitled to commute upto a lump sum payment of a fraction not exceeding one-third of his pension with effect from the 1st November, 1994 or on any subsequent date, from which he becomes eligible for commutation:
(b)An employee who retires from the Bank's service shall indicate the fraction of pension which he desires to commute and may either indicate the maximum limit of one-third pension or such lower limit as he may desire to commute;
(c)If fraction of pension to be commuted results in fraction of rupee, such fraction of a rupee shall be ignored for the purpose of commutation;
(d)the lump sum payable to an applicant shall be calculated in accordance with the table given below :-
TABLE
Commutation Value for a pension of Re One perannum
Age next birthday Commutation value expressed as number ofyear's purchase Age next birthday Commutation value expressed as number ofyear's purchase
17 18.21 18 18.07
19 17.93 20 17.78
21 17.62 22 17.46
23 17.29 24 17.11
25 16.92 26 16.72
27 16.52 28 16.31
29 16.09 30 15.87
31 15.64 32 15.40
33 15.15 34 14.90
35 14.64 36 14.37
37 14.10 38 13.82
39 13.54 40 13.25
41 12.95 42 12.66
43 12.35 44 12.05
45 11.73 46 11.42
47 11.10 48 10.78
49 10.46 50 10.13
51 9.81 52 9.48
53 9.15 54 8.82
55 8.50 56 8.17
57 7.85 58 7.53
59 7.22 60 6.91
61 6.60 62 6.30
63 6.01 64 5.72
65 5.44 66 5.17
67 4.90 68 4.65
69 4.40 70 4.17
71 3.94 72 3.72
73 3.52 74 3.32
75 3.13 76 2.94
77 2.75 78 2.56
79 2.38 80 2.20
81 2.02 82 1.84
83 1.67 84 1.50
85 1.33    
Explanation. - For the purposes of this sub-regulation-
(1)
(a)The table above indicate the commuted value of pension expressed as number of years purchase with reference to the age of the pensioner as on his next birthday.
(b)The commuted value in the case of an employee retiring at the age of fifty eight years is 7.22 years' purchase and, therefore, if he commutes rupee one hundred from his pension within one year of retirement, the lump sum amount payable to him works out to Rs 100 x 7.22 x 12 = Rs 8,664.
(2)An employee who had commuted the admissible portion of pension is entitled to have the commuted portion of the pension restored after the expiry of a period of fifteen years from the date of commutation.
(3)No medical examination shall be necessary, if the application for commutation is made within one year from the date of retirement:Provided that if an employee applies for commutation of pension after one year from the date of his retirement from the Bank's service, the same will be permitted, subject to medical examination, by a Competent Authority as designated by the Executive Committee of the Central Board of the Bank.
(4)The commutation of pension shall become absolute in the case of an employee,-
(a)who submits an application for commutation of pension before the date of retirement, on the date following the date of retirement;
(b)if he applied for commutation of pension after the date of retirement but before the completion of one year from the date of retirement, on the date the application for commutation is received by the competent authority;
(c)if he applies for commutation of pension after one year from the date of retirement, on the date of medical certificate given by a medical officer approved by the Bank;