*IMPORTANT POINTS A PSB RETIREES 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 Inservice 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
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