Proposed Increase in Family Pension
AIBEA has issued a circular regarding improvement in Family Pension.
Copy of circular and a table of calculation related 10th BPS, and formula for Family Pension is attached here for your reference.
In the table it is stated that Family Pension, for clerk at maximum scale of pay
i.e.Rs.42020, will increase from Rs.11087 to Rs.22174.
A 100% increase.
According to my calculation it is only 48%.
Let me explain how it is.
As per table new Family Pension amount on Basic Pay of Rs.42020 will be Rs.22174.
Yes, I accept it.
30% of 42020 =12606
D.A for July 2020 at 75.9%= 9568
Total=22174
O.K
What about present Family Pension?
They have taken 15 % on entire amount of 42020 as basic pension.
That is Rs.6303
D.A. will be @75.9%=4784
Total=Rs.11087
Here, I differ.
The % of 30%,20%,15% on basic pay should be calculated on slab system as per formula and not on straight line method.
If calculated on slab system, result will be
Up to 11000@30%=3300
Next 11200@20%=2240
Remaining 19820@15%=2973
Total Basic Pension=8513
D.A @75.9%=6461
Total=Rs.14974
Present family pension of 14974 will become 22174.
Increase will be 48% only.
(This 48% will increase for those whose Basic Pay was more than 42020, particularly officers, as excess amount will fall in 15%slab and that amount will be increased to 30% now) .
Those who are drawing Family Pension may check my calculation and reply.
Purpose of my writing about this calculation is, we should not give false hope to Family Pensioners.
If my calculations are proved wrong, I am ready to accept and correct my understanding.
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