Fwd: PENSION FUNDS MYTHS AND FACTS
Niranjan Cn
From: Niranjan Cn <niran...@gmail.com>
Date: Sun, Mar 22, 2026 at 6:06 PM
Subject: PENSION FUNDS MYTHS AND FACTS
To: Bankpensioner <bankpe...@gmail.com>
Sirs,
There is lot of discussion on pension funds and there are misinformation and gossips are widely circulated and even some of the retiree originations are also not sharing the correct information to members. An effort has been made to make a write up on factual position and I am sharing the same.. highlighting the various issues. Many figures and details are not shared in social media or groups for sure. Hope the write up brings more clarity to the issue.. and at the same time new questions may come up. Please inform for any e & o if any.
PLEASE READ THE ATTACHMENT - PDF TWO PAGES - FOR ALL THE WORKINGS/DETAILS.
The Synopsis and the Charts submitted by ARISE/AIBPARC in Supreme Court (Singlas Case) came handy in culling out good part of the data/figures.
Niranjan
FACTS / TRUTH ABOUT PENSION FUND :
|
As per Pension Regulations
7. Composition of the Fund head. 7(a) the contribution by the Bank at the rate of ten per cent Per month of the pay of the employee;
11. Actuarial investigation of the Fund:- The Bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund every financial year, on the 31st day of March, and make such additional annual contributions to the Fund as may be required to secure payment of the benefits under these regulations
As per the above 7 (a) Bank has to contribute at the rate of 10% per employee of the pay and also provide for the shortfall if any at the end of each year as per Acturial investigation. |
One can observe that Banks have contributed Rs.1.76 lakh crores towards the Pension fund during the last four years, as per above mentioned both Regulations against the Pension Payment of Rs.1.33 lakh crores during the same period.
|
YEAR |
OPENING Balance |
INCOME INT/INVEST |
BANK CONTRIBUTION |
ACTURIAL |
TOTAL INCOME |
PENSION PAID |
CLOSING BALANCE |
|
21-22 |
309944 |
21208.00 |
33740.00 |
118 |
55066.00 |
30480.00 |
334610.00 |
|
22-23 |
334610 |
24013.92 |
50232.83 |
0 |
74246.75 |
30877.75 |
377979.00 |
|
23-24 |
377979 |
27126.00 |
56537.00 |
0 |
83663.00 |
33994.00 |
427644.00 |
|
24-25 |
427644 |
30690.68 |
36147.70 |
0 |
66838.38 |
38058.08 |
456424.30 |
|
TOTALS |
|
103038.60 |
176657.52 |
118 |
279814.13 |
133409.83 |
|
(figures from Synopsis/charts submitted to Supreme Court by ARISE/AIBPARC)
Accordingly all banks contributing to Pension Fund as per the above the Regulations. So far, there is no material evidence to show that any bank has not complied with the above.
The Bank Contribution of Rs.1.76 lakh crores during the last four years are broadly towards the following heads :
Mandatory contribution 7238 crores
Family Pension 18400 crores
100% DR + 40 to 50% DR in SBI 16000 crores
Towards the shortfall crores 135019 crores
TOTAL CONTRIBUTION BY BANKS 176657 CRORES
Please also note the contribution towards NPS (ie 14% of basic + DA) of the workings employees under NPS (nearly 85% of working staff) is only Rs. 18786.71 crores for four years in total , by all the Banks.
Please find the detailed workings in the attachment.
Note :
Figures are taken from the submissions by ARISE/AIBPARC to the Supreme Court and also from the Annual Report of the Banks. For calculation of mandatory contribution, staff figures are taken from RBI Website, and 15% of present staff are pension optees. The Basic Pay (considered for pension) for each category considered at a higher level.
Kindly inform for any corrections/omissions to niran...@gmail.com
Niranjan
Ex Canara
