REVISION OF FAMILY PENSION - RBI ISSUES INSTRUCTIONS.

[mohan p]

For Information:

Instructions for revision of Family Pension and payment of arrears in RBI

Members may refer to our earlier post wherein we informed that with effect from March 01, 2019, the ordinary rate of family pension shall be 30% of pay uniformly, subject to a minimum of Rs. 9,000/- per month and a maximum of 30% of the highest pay per month in the Bank.
As expected, bank has now given instructions to revise/recalculate family pension in terms of GOI approval. The required details are here.
In nutshell, the revised pay calculated as per the office instructions is to be reckoned for determining revised family Pension. For example, If Revised Pay = X, Revised family Pension = X*30%.
Revised family Pension (X*30%) is further to be multiplied by factors 3.63, 2.44, 1.76 as applicable to the category of family Pensioner as detailed for calculations effective March 1,19. Dearness Relief (DR) shall be paid from March 01, 2019, as applicable on pay scales-based on CPI=4440.
The family pension revised as above shall be further multiplied by a factor 1.63 from June 23 and DR shall be paid at the rate applicable on pay scales-based on CPI=6352 except for those who Retired / deceased post November 01, 2017, and are already getting DR on CPI=6352.
Minimum Family Pension shall be 9000/- per month and maximum Pension shall be 30% of highest pay per month.

The recalculation and revision of family pension shall be completed in a time bound manner. Arrears of family pension shall be paid to the family pensioner or his /her legal heirs in terms of extant instruction.

_airbiopf.

[Ramani Konnayar]

Dear Shri.Mohan Sir,

With reference to what is contained in the instructions, please clarify the following.

Prior to updation, family pension was fixed on the basis of the BASIC PAY drawn by the pensioner at the time of retirement. Now, the family pension is to be revised and fixed at 30% of the updated BASIC PENSION of the pensioner at the time of his death. Is this inference correct?

The process of updation involves merger of DR with basic pension.

Suppose, the DR merger is done for PSB pensioners without any updation, will the Family Pensions be revised automatically as 30% of the new basic pension after such DR merger or such revision has to be permitted by government?

Thanks 

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[mohan p]

Dear Shri.Ramani,

You are right sir.

In this case, on updation of pension for RBI retirees on 1^st March,2019(up to CPI level 4440) BPS),naturally  Family Pension  of spouses of deceased pensioners, too have to undergo a hike  @30% of revised Notional Basic Pay.On subsequent revision (up to CPI 6352 points)further hike at above rate on new revised notional B.pay also allowed as per GOI approval.

All deserve, a big salute:RBI  Employees Unions , Retirees Associations as well as RBI management for their consistent/joint fight to secure Updation of Pension/improvement in family pension.

Updation of pension can only be done on a principle.RBI has done it. 

Central/State Govts are doing the same thing to their retirees.

 For this,different Multiple Factors are arrived  to bring all segments of pensioners to current level.Our wage revision process in 5^th to 12^th BPS/JN is also continuing the  merger of  certain portion of CPI with Basic Pay,before adding further load factor.Naturally same process is extended in case of RBI pensioners too on allowing  updation of pension,with load factor of 10%.

In the case of banks, the enhancement of Family Pension at uniform rate of 30% was done last time on old basic pay(at the time of retirement of  each one) of deceased retirees.

Coming to other  point of extending merger of CPI at 8088 points, under 12th BPS,to pensioners too as in the case of   serving employees,even without updation of pension,  certainly Family Pension too should be revised on the basis of revised Notional Basic pay.

But it may not happen automatically and same process of submitting a proposal on this aspect by IBA to MOF and approval of the same is necessary for its implementation.To incorporate the same under BEPR,1995 an agreement between UFBU-IBA too may have to take place.

Unfortunately when we try to discard all principles, result of such drastic actions may be crucial to bank pensioners/family pensioners.

Even,while, suggesting  to pay few hundreds/thousands of rupees to poor bank pensioners,in their sunset years,  instead of updation of pension, (still not decided the quantum!)  same people at helm of affairs have  no hesitation to write of lakhs of crores of rupees under bank loans to big corporates!

Regards,

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[Ramani Konnayar]

Dear Shri Mohan, 

Thanks for your detailed reply. By the way, I think, for pensioners, it is Basic Pension and DR while for those in service, these are Basic Pay and DA. 

Am i  right? In the RBI Pensioners' communication, the term Basic Pay was used in place of Basic Pension. 

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[JSOMA SHEKARA]

At the cost of getting labelled as SOCIAL MEDIA PROFESSOR I would like to present my feelings as a Pre 2002 retiree.

Ex gratia is a retrograde decision and grossly disadvantageous and unfair to pre 2002 retirees irrespective of the quantum. When huge amounts of big loans are written off it is highly unfair to cry that pension updation cannot be afforded.

DA LOSS

During Corona period Govt of India imposed DA freeze for its pensioners for 18 months, Then our UFBU leaders though not concerned wrote strong letter to govt objecting DA freeze claiming DA is paid as compensation for inflation and curtailing it is anti labour policy. But the same leaders have signed Ex gratia minutes depriving senior pensioners DA on ex gratia for lifetime.

NEXT EIGHT YEAR THERE WILL BE NO PENSION REVISION

Due to pressure from Hon.FM both IBA and UFBU have completed BPS within 13 months.  But this cannot be expected to repeat in the next BPS. Next BPS is due on 1.11.27 and will be completed within 2029-30

So after signing the next BPS during 2029, pension revision issue will be taken up.

So for Pre 2002 retirees it is a closed chapter as faras updation is concerned.

LOSS OF FAMILY PENSION

Though Family pension is revised it is still based on old basic. If atleast Updation is  done as one time measure bringing all pensioners 8088 DA level Pensioners as well as family Pensioners would have been

benefited.Since Pension Regulations would have amended at least that would have been guaranteed if not renewed in next BPS.

NOW UPDATION IS RESIDUAL ISSUE

After signing XI BPS during 2020 Updation was pushed to residual issues list. Plenty of false promises, circulars updation issue was not even discussed by UFB  had no clarity on formula. So nothing was discussed.

So UFBU  claim that pending updation ex gratia is planned has  no value. Next updation discussion will come only during 2029-30.

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[mohan p]

Dear Mr Ramani,

No doubt use of Basic Pay and DA for serving employees and Basic Pension and DR for pensioners is correct.

RBI has used Basic Pay in right term,and not instead of Basic Pension.

Because here they have referred on improvement in Family pension consequent of Updation of Pension.

Family pension is calculated on Basic Pay last drawn(ie:30% on revised Notional Basic Pay.)

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