Invalid Pension

Invalid pension may be granted to an employee who has rendered minimum ten years of service and retires from the service on account of any bodily or mental infirmity which permanently incapacitate him for the service. In this case an employee has to submit medical certificate of incapacity from a medical officer approved by the bank.

Compassionate Allowance

In the case of an employee who is dismissed or removed or terminated from the service, bank may sanction a compassionate allowance and it shall not be less than the amount of minimum pension payable under regulation.

Premature Retirement Pension

This type of pension is sanctioned to an employee who retires from the service on account of the orders of the bank to retire prematurely in the public interest or for any other reason. In this case minimum service required is 10 years.

Compulsory Retirement Pension

When an employee is retired from the bank compulsorily as a penalty, a competent authority may grant him a pension at a rate not less than two thirds and not more than full pension.

Qualifying Service

An employee who has rendered a minimum of ten years of service in the Bank on the date of his retirement or the date on which he is deemed to have retired shall qualify for pension.

1. Qualifying service of an employee commences from the date he takes charge of the post to which he is first appointed on a permanent basis
2. Service in probation period is counted in qualifying service.
3. All leave during the service in bank for which leave salary is payable shall count as qualifying service. Leave on loss of pay shall not count as qualifying service barring few exceptions given in pension rules.
4. If the period of service of an employee includes broken period less than one year, then if such a broken period is more than six months, it shall be treated as one year and if such broken period is six months or less it shall be ignored.
5. In the case of bank merger / amalgamation of any other bank with the bank and service of an employee permanently transferred to other bank, the continuous service rendered by such an employee on permanent basis, if any followed without interruption, shall qualify. This regulation shall not apply to any such employee who is appointed on contract basis or on daily wage basis or on consolidated wages.
6. Period of suspension of an employee pending enquiry shall count for qualifying service where on conclusion of such enquiry he has been fully exonerated. The period of suspension shall not count as qualifying service unless the Competent Authority passing the orders under the service regulations or Disciple and Appeal Regulations or Settlement.

Forfeiture of Service

Resignation, dismissal or removal or termination of an employee from the service of the bank shall entail forfeiture of his entire past services and consequently shall not qualify for pension benefits.

An interruption in the service of bank employee entails forfeiture of his past services except in the cases of authorized leave of absence and suspension followed by reinstatement.

Military Service

Military service rendered before appointment in the bank shall continue to draw military pension, if any and military service rendered by the employee shall not count as qualifying service for pension.

Pension & commutation amount Calculations

Basic pension and additional pension, wherever applicable is calculated as per the following formula

Basic Pension={(Average Pay drawn during the last 10 months) X ( No. of years of qualifying service (max 33 yrs)} /33 X 2

Calculation of Basic Pension Payable (Click to Calculate Your Basic Pension)

( Here pay includes - Basic pay including stagnation increments, increment component of FPA & all other component of pay counted for the purpose of making contribution to the provident fund and for the payment of dearness allowances)

In case of VRS five years are added to qualifying service subject to the maximum of 33 years. For example if qualifying service is 26 years, in case of vrs optees 5 years will be added to the qualifying service, (provided total service remaining 5 years or more than 5 years) will be taken as 31 years for pension calculation purpose.

Dearness relief is allowed on full basic pension even after commutation.

(Dearness relief is not allowed on additional pension.)

Calculation of DA on basic pension (Click to Use Bank Pensioners DA Calculator)

Amount of Monthly Pension=Basic pension (calculated as above) - commutation amount of basic pension + Dearness relief on full basic pension.

Commutation Amount

Maximum amount which can be commuted is 1/3 of the basic pension. Commutation value will be determined according to the commutation table, which gives rupee value of commuted pension according to the age on the next birthday after retirement. Following formula is used for calculating the commutation value.

Commuted amount of basic pension X 12 X commutation factor.

Click to view for Commutation Factor Table

Calculation of commutation amount payable (Click to Calculate Commutation Amount Payable)

Commutation is restored after 15 years i.e. deduction of commutation amount from pension will stop after 15 years and pensioner will get full basic pension.

Family Pension

When an employee dies -
(a) after completion of one year of continuous service; or
(b) before completion of one year of continuous service provided the deceased employee concerned immediately prior to his appointment to the service or post was examined by a medical officer approved by the Bank and declared fit for employment in the Bank; or
(c) after retirement from service and was on the date of death in receipt of a pension, or compassionate allowance; the family of the deceased shall be entitled to family pension, the amount of which shall be determined in accordance with Pension Rules

The period for which family pension is payable shall be -

(a) in the case of a widow or a widower, upto the date of death or remarriage, whichever is earlier;
(b) in the case of a son or daughter (including widowed/divorced) till he/she attains the age of twenty-five years or upto the date of his/her marriage/remarriage, whichever is earlier Provided the family pension payable to sons/daughters (including widowed/divorced) shall be discontinued/not admissible when the eligible son/daughter starts earning a sum in excess of Rs. 2550/- per month from employment in Government/private sector/self-employment, etc.

If the son or daughter of an employee is suffering from any disorder or disability of mind or is physically crippled or disabled so as to render him or her unable to earn a living even after attaining the age of twenty-five years, the family pension shall be payable to such son or daughter for life subject to certain conditions.

Amount of Family Pension

The amount of family pension shall be fixed at monthly rates and in no case a family pension in excess of the maximum prescribed under pension regulations shall be allowed.

Commutation Factor

Age	17	18	19	20	21	22	23	24	25	26	27	28	29	30	31	32
Factor	19.28	19.2	19.11	19.01	18.91	18.81	18.7	18.59	18.47	18.34	18.21	18.07	17.93	17.78	17.62	17.46
Age	33	34	35	36	37	38	39	40	41	42	43	44	45	46	47	48
Factor	17.29	17.11	16.92	16.72	16.52	16.31	16.09	15.87	15.64	15.4	15.15	14.9	14.64	14.37	14.1	13.82
Age	49	50	51	52	53	54	55	56	57	58	59	60	61	62	63	64
Factor	13.54	13.25	12.95	12.66	12.35	12.05	11.73	11.42	11.1	10.78	10.46	10.13	9.81	9.48	9.15	9.82
Age	65	66	67	68	69	70	71	72	73	74	75	76	77	78	79	80
Factor	8.5	8.17	7.85	7.53	7.22	6.91	6.6	6.3	6.01	5.72	5.44	5.17	4.9	4.65	4.4	4.17
Age	81	82	83	84	85
Factor	3.94	3.72	3.52	3.32	3.13

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