*Important points a PSB retiree needs to know on Pension and Family Pension*
*By Vijayaraghavan R*
*(Retired IOBian)*
*Question: What is the main difference in calculation of Pension and Family Pension?*
Pension is calculated based on the average emoluments.
Average emoluments mean average of pay drawn by an employee during the last 10 Months of his/her service in the Bank.
Family Pension is calculated based on the last pay drawn by the employee at the time of retirement (if died while In service as at the time of death).
*Question: Would there be any benefit in family pension, if the employee drawn any increments with in the last 10 months of his/her service?*
Yes. As Family pension calculation is based on the last drawn pay that would be higher than the average emoluments, which is based on 10 months average pay. Pension is based on average emoluments, which will be lesser than the last pay drawn in cases where increment was drawn by the employee during the last 10 months period.
*Question: What is the definition of average emoluments, pay for the purpose of calculation of pension?*
“Average emoluments” means the average of the pay drawn by an employee during the last ten months of his service in the Bank:
Pay-Generally Pay includes the basic pay including stagnation increments, if any
+FPA+PQA+OA
(which count for PF drawn by member during last 10 months).
*Question: What is the qualifying Service required for getting maximum Pension on retirement?*
Normal qualifying Service required is 33 Years to be eligible for maximum pension. As there is a provision to add maximum of 5 More years (subject to conditions,) those who completed 28 Years can get maximum Penson, if eligible to get 5 more years of addition for calculating qualifying Service. Those who opt VRS can also get full pension on completion of 28 Years of Service if they are eligible to get addition of years (Maximum 5 Years) in the calculation of qualifying service.
Maximum Pension-50% of average emoluments.
*Question: What is the difference between ordinary Family Pension and Enhanced Family pension?*
Ordinary family pension rate is presently 15% of last pay drawn, which is likely to be increased to 30% of last pay drawn. (Official approval from MOF is awaited)
Enhanced Family Pension- Normally it will be twice the amount of ordinary family pension. (Once the Family pension rate is enhanced to 30% of last pay drawn, the enhanced Family pension would be equal to the Pension of employee on Superannuation/VRS/on death)
Enhanced Family Pension eligibility: Family pensioner will be eligible for enhanced pension in the following cases:
(i) in cases where employee dies while in service after having rendered not less than seven years' continuous service,
(ii) in the event of death of an employee immediately after retirement, the family pension as determined under clause (a) of this sub-regulation 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;
How long the Enhanced Family Pension Will be payable?
(i) Higher family shall be payable from the date following the date of death of the employee for a' period of seven years- or for a period up to the date on which the deceased employee would have attained the age of sixty-five years had he survived, whichever is less
(ii) in the event of death of an employee after retirement, the higher 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;
What is the rate of Enhanced Family pension?
The enhanced family pension payable to the family shall be equal to fifty per cent. of the pay last drawn or twice the ordinary family pension admissible, whichever is less.
In no case the amount of family pension determined under this clause shall exceed the Service pension authorised on retirement from the Bank. If the pension authorised to the employee on his retirement is less than the amount of family pension at the ordinary rates, then, the family shall be allowed family pension at the ordinary rates.
*Question: Whether Dearness Relief is admissible on Family pension where the family pensioner is employed or in receipt of another Service pension?*
Yes. A family pensioner drawing Salary on employment or Service pension after retirement can draw DR on Family Pension /DR on both the pensions (DoP &W O.M. No. 45/73/97-P&PW(G) dated 2nd July,1999).
*Question: In the PPO the Pay Last drawn, Average Emoluments, Basic Pension, Ordinary family pension and enhanced family pension will be given as at the time of retirement. If there is subsequent revision of pay due to BPS covering the retirement period, amended PPO if not given, how to keep track?*
It is always advisable to keep the last 10 months Salary slips along with the PPO. Whenever arrears are paid on account of BPS after retirement, it is better to note down in a separate sheet of paper revised Last pay drawn, revised average emoluments, Revised Basic Pension, Revised Commuted portion, ordinary family pension and revised family pension. In absence of amended PPO this would help the retiree in future in case of need.
Always it is advisable to keep the original PPO along with last drawn salary slips/ details of Revision in a separate file and to be kept in a safe place easily accessible.
It is preferable to keep the format for claiming family pension and Funeral Expenses along with the PPO in the same folder as that would be helpful to the family in the absence of the pensioner.
*Question: Is there any short cut to calculate the eligible ordinary Family Pension as and when approved by GOI at 30% of last drawn pay without Ceiling? What would be the enhanced pension?*
For the old pensioners where ceiling on FP exist this may not work. Generally, for those family pensioners who are drawing ordinary family pension at 15% of last pay drawn, it will be double the amount now. In all such cases relevant PPO has to be referred to know the last pay drawn and to arrive at the revised family pension at 30% of last pay drawn.
The eligible ordinary family pension, as and when revised, will be generally at 60 % of the existing Basic pension. (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). Dearness relief on family pension will be as appliable for the period of retirement.
Once the ordinary family pension is revised to 30% of last drawn pay, the enhanced Family pension would be at 50% of average emoluments drawn by the deceased/retired employee.
*Question: What are the other records that the pensioner should keep to meet any medical emergency?*
It is advisable that the pensioner should keep a separate folder containing Health insurance Id cards, Details of health insurance for self and spouse, Details of TPA contact numbers for sending intimation for hospitalization, emergency contact numbers, Details and contact number of family Doctor/Specialist Doctors /Hospital.
Also, it is advisable to keep the list of health history and the details of current medicines etc.
It is important to keep separate Health files and Spouse and Self. Health file should contain details of current ailments and medication.
It is advisable to keep copies of Aadhar card, TPA id cards and Pensioner id card in the bfolder which should be readily accessible.
*Vijayaraghavan r*
👆 Received in another whatsapp group. SENT TO YOU FOR INFORMATION 🙏
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