Thursday, 11 June 2015

Clarification of Pension Reduction for those retired from Nov 2012 to July 2013

INDIAN BANKS' ASSOCIAITON

HR & INDUSTRIAL RELATIONS

No.CIR/HR&IR/G2/2015-16/874  dt.June 8, 2015

Designated Officers of Banks which are parties to the 10th Bipartite Settlement/ Joint Note dated 25.05.2015

 Dear Sirs/Madam

Pay for the purpose of Pension in terms of  Bank Employees’ Pension Regulations

We have been receiving queries from Banks as to how the average emoluments of employees retired between 1-11-2012 and 31-7-2013 has been arrived at as these employees were governed by the pay scales prevalent during 1-11-2007 to 31-10-2012 and 1-11-2012 onwards during the 10 months preceding their retirement.

The calculation of average emoluments and Basic Pension in respect of the employees retired between 1.11.2012 and 31.7.2013 is as given in Annexure A.  This adjustment is required as the employees who retired from services on or after 1.11.2012, the Dearness Relief they will be getting along with basic Pension shall be the Dearness Relief payable over and above 4440 points in the All India CPI 1960=100.

Yours faithfully,
  
K S Chauhan
Senior Vice President

Annexure A
(Enclosure to Circular No.CIR/HR&IR/G2/2010-11/874 dated June 8, 2015)
Computation of Average Emoluments for calculating pension of employees retired between 1.11.2012 to 31.7.2013  for the preceding 10 months of retirement
 (Model Calculation for an officer employee retired on 31.3.2013 having 33 years of qualifying service with Basic Pay of Rs.42,020/- as on the date of retirement)

1. For the period of service prior to 1.11.2012
(i.e. from 1.6.2012 to 31.10.2012 (5 months)

(a) ‘Pay’ as in Bipartite Settlement / Joint Note dated 27.4.2010
25700   x   5   =128500.00
(b) 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 X 0.15=60.15%)  =77292.75                                   
Total of (a) and (b) above
                 =  205792.75... (A)
2. For the service rendered on or after 1.11.2012
up to the date of retirement, Corresponding revised
i.e. 31.3.13 (5 months)
(a) ‘Pay’ as in Bipartite Settlement/Joint Note dated 25.5.2015
42020 x 5 = 210100.00 (B)
Total of (A) and (B) =415892.75 (C)
 3. Average emoluments for the preceding 10 months of retirement
    415892.75/10 = 41590.00 (D)

 4. 
Basic Pension in terms of Regulation 35(2) of the Bank Employees’ Pension Regulations
=50% of 41590 x 33/33 =20795
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Example:        A Clerk retired in March, 2013 at the Basic Pay of Rs. 24900           
                                ( his revised Basic Pay under 10th BPS is Rs. 40,710)


Basic pay under             9th BPS
DA at 4440 points i.e. 60.15%
Notional
Basic Pay
JUNE 2012
24900
14977
39877
JULY 2012
24900
14977
39877
AUGUST 2012
24900
14977
39877
SEPT. 2012
24900
14977
39877
OCT. 2012
24900
14977
39877
NOV. 2012/10th BPS


40710
DEC. 2012


40710
JAN. 2013


40710
FEB. 2013


40710
MARCH 2013


40710

402935
10 month Average
40294
Revised Basic pension – 50 %  Rs. 40294
20147
Basic pension under 9th BPS – 50 %  Rs.  24900 
12450
Commutation under 9th BPS (1/3)
488540
Commutation after wage revision
790570

Note:  Those drawing Special Pay, PQP, FPP, etc. the same method is to adopted by including those items under Pay and adding 60.15 % of DA to arrive at notional Pay

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