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