1995 PENSION SETTLEMENT

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CHAPTER – XXIV
STAFF PENSION SCHEME
INDIAN OVERSEAS BANK (EMPLOYEES’) PENSION REGULATIONS 1995
The Pension Scheme in our Bank is introduced under Indian Overseas Bank
(Employees’) Pension Regulations, 1995, which has been approved by Our Board of
Directors and published in the Official Gazette on 29.09.1995 as per Section 19(1)
of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. These
regulations are effective from the Notified date, i.e.29.09.1995.
I. DEFINITIONS:
In these Regulations, unless the context otherwise requires.
Act means the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970.
Average Emoluments means the average of the pay drawn by an employee
during the last ten months of his service in the Bank.

Bank means the Board of Director of the Bank.
COMPETENT AUTHORITY means the authority appointed by the Board for the
purpose of these Regulations.
CONTRIBUTION means any sum credited by the Bank on behalf of employee
to the Fund, but shall not include any sum credited as interest.
DATE OF RETIREMENT means the last date of the month in which an employee
attains the age of superannuation or the date on which he is retired by the
Bank or the date on which the employee voluntarily retires; or the date on
which the officer is deemed to have retired.
DEEMED TO HAVE RETIRED means cessation from service of the Bank on
appointment by Central Government as a whole – time Director or Managing or
Chairman in the Bank.
EMPLOYEE MEANS any person employed in the service of the bank on full
time work on permanent basis or on part-time work on permanent basis on
scale wages and who opts and is governed by these Regulations, but not include
a person employed either on contract basis or daily wages basis or on
consolidated wages.
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FAMILY means
(a) wife in the case of a male employee or husband in the case of a female
employee;
(b) a judicially separated wife or husband such separation not being granted
on the ground of adultery and the person surviving was not held guilty of
committing adultery.
(c) Son or unmarried daughter or widowed/divorced daughter, was not attained
age of 25 years including such son or daughter adopted legally.
(d) Parents who were wholly dependent on the employee when he/she was
alive, provided the deceased employee had left behind neither a widow/
widower nor a child.
FUND means the Indian Overseas Bank (Employees’) Fund
NOTIFIED DATE means the date on which these Regulations are published in the
official Gazette i.e. 29.09.1995.
PAY includes.
(a) in relation to an employee who has either retired or died on or after 01.01.1986
but before 01.11.1992 in case of workman and for officers on or after
01.01.1986 but before 01.07.1993.
(i) The Basic Pay including stagnation increments, if any and
(ii) all allowances counted for the purpose of making contribution to the
Provident Fund and for the payment of dearness allowance.
(b) in relation to an employee who retires or dies while in service or dies while in
service on or after 01.11.1992 since for OFFICERS on or after 01.07.1993.
(i) the Basic Pay including stagnation increments PQA if any, and
(ii) all allowances counted for the purpose of dearness allowance; and
(iii) increment component of Fixed Personnel Allowance.
(c) on or after 01.04.1998
(d) on or after 01.11.2002
PENSION includes the basic pension and additional pension.
PENSIONER means an employee eligible for pension under these Regulations.
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QUALIFYING SERVICE means the service rendered while on duty or otherwise which
shall be taken into account for the purpose of pension under these Regulations.
RETIREMENT means cessation from Bank’s service.
(a) on attaining the age of superannuation.
(b) On voluntary retirement
(c) On premature retirement by the Bank before attaining the age of superannuation.
SERVICE REGULATIONS means Indian Overseas Bank (Officers’) Service Regulations
1979.
TRUST means the trust of the Indian Overseas Bank (Employees’) Pension Fund.
II APPLICATION AND ELIGIBILITY
These Regulations shall compulsorily be applicable to all employees who joined the
bank on or after the notified date, i.e.29.09.1995.
However, an employee who joins the service of the Bank on or after the notified date
at the age 35 years or more, may, within a period of ninety days from the date of
his/her appointment, elect to forego his/her right to pension, whereupon these
Regulation shall not apply to him/her.
For those employees who are in the service before the notified date, i.e.29.09.1995
the pension is optional. If they opt for pension, they are not eligible for Bank’s
contribution to the Provident Fund as their retirement benefit. Instead, their share of
Bank’s contribution to the Provident Fund will be transferred to the Pension Fund
along with interest accrued thereon.
III PENSION FUND
Pension will be disbursed to the pensioner from the Indian Overseas Bank
(Employees’) Pension Fund constituted under an irrevocable trust. The Bank shall
be a contributor to the Fund and ensure the Trustees to disburse pensions. The
accounts of the Fund is subject to audit.
IV TYPES OF PENSION
1. SUPERANNUATION PENSION:
This is a pension granted to an officer who is compelled to retire from service on
attaining a particular age, i.e.60 years. Superannuation pension will be allowed for a
minimum service of 10 years of qualifying service.
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2. PENSION ON VOLUNTARY RETIREMENT:
(1) On or after 01.11.1993, at any time after an employee has completed 20 years
of qualifying service he may, by giving notice of not less than three months in
writing to the appointing authority, retire from service, under Regulation 29 of
Indian Overseas Bank (Employees’) Pension Regulations, 1995.
Provided that this sub-regulation shall not apply to an employee who is on
deputation or on study leave abroad unless after having been transferred or
having returned to India he has resumed charges of the post in India and has
served for a period of not less than one year.
Provided that this sub – regulation shall not apply to an employee who is
deemed to have retired.
(2) The notice of voluntary retirement shall require acceptance by the Appointing
Authority provided that where the appointing authority does refuse to grant the
permission for retirement before the expiry of the period specified in the said
notice, the retirement shall become effective from the date of expiry of the said
period.
(3) (a) An employee referred to in sub-regulation (1) above, may make a request
in writing to the appointing authority to accept notice of voluntary retirement
of less than three months giving reasons thereof.
(b) On receipt of such request, the appointing authority may subject to the
provisions of sub-regulation (2), consider such request for the curtailment
of the period of notice of three months on merits and if it is satisfied that
the curtailment of the period of notice will not cause any administrative
inconvenience, the appointing authority may relax the requirement of notice
of months on the condition that the employee shall not apply for
commutation of a part of his pension before the expiry of the notice of
three months.
(4) An employee, who has elected to retire under this Regulation and has given
necessary notice to that effect to the appointing authority, shall be precluded
from withdrawing his notice except with specific approval of such authority;
provided that the request for such withdrawal shall be made before the intended
date of his retirement.
(5) ADDITIONAL WEIGHTAGE: The qualifying service of an employee retiring
voluntarily under this Regulation shall be increased by period not exceeding
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five years, subject to the condition that the total qualifying service rendered by
such employee shall not in any case exceed thirty-three years and it does not
take him beyond the date of superannuation.
Weightage allowed based on service
Between 20-28 years - 5 years
For 29 years - 4 years
For 30 years - 3 years
For 31 years - 2 years
For 32 years - 1 years
Weightage allowed based on age
53 years and below age - 5 years
54 years age - 4 years
55 years age - 3 years
56 years age - 2 years
57 years age - 1 year
(6) The pension of an employee retiring under this Regulation shall be based on
the average emoluments and the increase, not exceeding 5 years in his
qualifying service, shall not entitle him to any notional fixation to pay for the
purpose of calculating his pension.
3. INVALID PENSION: on or after 01.11.1993
Invalid pension may be granted to those who has rendered 10 years of service
and retires due to mental infirmity or physically injury, which permanently
incapacitates him for the service.
Commutation is payable only after Medical examination by the Government Civil
Surgeon/Bank’s Doctor.
4. PREMATURE RETIREMENT PENSION:
Premature retirement pension may be granted to an employee who:
(a) has rendered minimum ten years of service and
(b) retires from service on account of orders of the Bank to retire prematurely
in the public interest or for any other reason specified in service Regulation
or Settlement, if otherwise he was entitled to such pension on
superannuation on that date.
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5. COMPULSORY RETIREMENT PENSION
Compulsory retirement pension is granted to an officer where he is made to
retire compulsorily as a measure of penalty by the Competent Authority. This is
applicable only for those who retired under compulsory retirement on or after
01.11.1993.
Whenever the Competent Authority passes an order (whether original, appellate
or exercise of power of review) awarding a pension less than the full
compensation pension admissible under these Regulations, the Board of
Directors shall be consulted before such order is passed.
Commutation payable only after Medical examination by the Government. Civil
Surgeon/Bank’s Doctor if it is more than one year from the date of order.
6. COMPASSIONATE ALLOWANCE:
Such dismissal, removal or termination is on or after 01.11.1993. Compassionate
allowance is granted to an officer who is dismissed or removed from service
and in the case deserving special consideration, the Competent Authority
sanction the allowance, not exceeding two-thirds of the pension which would
have been admissible to him on the basis of the qualifying service rendered
upto the date of his dismissal, removal or termination. The Compassionate
Allowance sanctioned, however, shall not be less than the minimum pension.
Commutation is payable only after Medical examination by the Government. Civil
Surgeon/Bank’s Doctor.
v. QUALIFYING SERVICE
1. Qualifying service:
Subject to the other conditions contained in these Regulations, 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.
2. Commencement of qualifying service:
Subject to the provisions contained in these Regulations, qualifying service of
an employee shall commence from the date he takes charge of the post to
which he is first appointed on a permanent basis.
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3. Counting of service on probation :
Service on probation against a post in the Bank if followed by confirmation in
the same or any other post shall qualify.
4. Counting of periods spent on leave:
All leave during service in the Bank for which leave salary is payable shall
count as qualifying service.
Provided that extraordinary leave on loss of pay shall not count as qualifying
service except when the sanctioning authority has directed that such leave not
exceeding twelve months during the entire service, may count as service for all
purposes including pension.
5. Broken period of service of less than one year:
If the period of service of an employee includes broken period of service less
than one year, then if such 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. For example, if the service of an employee is 26 years and 7 months,
than his qualifying service will be taken is 27 years. If the service is 26 years
and 5 months, then the qualifying service will be 26 years only.
6. Counting of period spent on training:
Period spent by an employee on training in the Bank immediately before his
appointment shall count as qualifying service.
7. Counting of past service in the erstwhile Bank:
In the case of an employee who is permanently transferred to a service in the
Bank from any other Bank on merger, amalgamation of any other Bank with the
Bank to which these Regulations apply, the continuous service rendered by
such an employee in any other Bank on permanent basis, if any, followed without
interruption, by permanent appointment, or the continuous service rendered
under that Bank in a permanent capacity, as the case may be shall qualify;
provided that nothing contained in the Regulation shall apply to any such
employee who is appointed on contract basis or on daily wage basis or on
consolidated wages.
8. Period of suspension:
Period of suspension of an employee pending enquiry shall count for qualifying
service where, on conclusion of such enquiry, he has been fully exonerated or
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the suspension is held to be wholly unjustified, and in other cases the period
of suspension shall not count as qualifying service unless the Competent
Authority passing the orders under the Service Regulations or Discipline and
appeal Regulations or Settlements governing such cases expressly declares
that it shall count in such a manner as such Authority may declare.
9. Forfeiture of Service:
i. Resignation or dismissal or removal or termination of an employee from
the service of the Bank shall entail forfeiture of his entire past service
and consequently shall not qualify for pensionary benefits
ii. An interruption in the service of a Bank employee entails forfeiture of his
past service, except in the following cases, namely;-
a. authorized leave of absence;
b. suspension, where it is immediately followed by reinstatement,
whether in the same or a different post, or where the bank employee
dies or is permitted to retire or is retired on attaining the age
compulsory retirement while under suspension.
c. Transfer to non-qualifying service in a establishment under the control
of the Government or Bank if such transfer has been ordered by a
Competent Authority in the public interest.
d. Joining time while on transfer from one post to another.
iii. notwithstanding anything containing in sub-regulation (ii), the appointing
authority may, order, commute retrospectively the periods of absence
without leave as extraordinary leave.
iv. a. In the absence of a specific indication to the contrary in the service
record, an interruption between two spells of service by a bank
employee shall be treated as automatically condoned and the preinterruption
service treated as qualifying service.
b. Nothing in clause (a) shall apply to interruption caused by
resignation, dismissal or removal from service.
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10. Period of deputation to foreign service:
An employee deputed on foreign service to the United Nations or any other
foreign body or organisation may at his option.
a. Pay pension contribution in respect of his foreign service and count such
services as qualifying service under these Regulations; or
b. Avail of the retirement benefits admissible under the rules of the foreign
employee and not count such service as qualifying service under these
Regulations; provided that where an employee opts for clause (b),
retirement benefits shall be payable to him in India in rupees from such
date and in such manner as the Bank may, by order specify.
11. MILITARY SERVICE
An employee who has rendered military service before appointment in the Bank
shall continue to draw the military pension, if any, and military service rendered
by the employees shall not count as qualifying service for pension.
12. PERIOD OF DEPUTATION TO AN ORGANISATION IN INDIA
Period of deputation of an employee to another organisation in India will count
as qualifying service provided the organisation to which he is deputed or the
employee pays the pensionary contributions at the rates specified by the
Bank.
13. ADDITION TO QUALIFYING SERVICE IN SPECIAL CIRCUMSTANCES
An employee, appointed under special circumstances, shall be eligible to add
to his service qualifying for superannuation pension (but for any other class of
pension) the actual period not exceeding one fourth of the length of his service
or the actual period by which his age at the time of recruitment exceeded the
upper age limit specified by the Bank for direct recruitment or a period of five
years, whichever is less.
14. ADDITION UNDER VOLUNTARY RETIREMENT
The qualifying service shall be increased by a period not exceeding five
years.
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VI. RATE OF PENSION
1. various elements required for calculating pension are;
i. Gross service : calculation of the total number of years of service rendered
by an employee from the date of his appointment on permanent basis to the
date of retirement. This is Gross service.
ii. Non qualifying service : period under suspension, leave on loss of pay, etc
will be treated as non qualifying service.
iii. Net qualifying service : if you deduct the period of non qualifying service
from the Gross service, we get Net qualifying service. To this, we may add the
weightage of service, if any, given for voluntary retirement and for appointment
under special circumstances.
iv. Total Basic Pay : Basic pay received by the member during the last
10 months period preceeding the date of retirement.
If during the last 10 months period, an employee had been on leave and drawing
leave salary or had been suspended and reinstated without forfeiture of past service,
the pay which he would have drawn had he not been on leave or on suspension
should be taken into account to determine the Average Emoluments.
If during the last 10 months, an employee had been on extra ordinary leave on loss
of pay or had been under suspension (suspension treated as penalty and ordered
as such), corresponding back period so as to make up 10 months, should be taken.
v. Total Allowances Allowances like Fixed Personal Allowance, Professional
Qualification Allowance, etc, which count for Provident Fund, drawn by the
member during the last 10 months.
vi. Average Emoluments : Average of the last 10 months Basic Pay and average
of the Allowances shall be arrived at separately because pension calculated on
Average Basic Pay is treated as Basic Pension, which is eligible for dearness
allowance relief.
HOW TO CALCULATE PENSION:
In case of an employee retiring on superannuation after completing 33 years of
qualifying service, the amount of Basic pension is calculated on 50% of the Average
Emoluments (Basic Pay) and other allowances such as FPA & PQA.
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In case of any employee retiring before completing qualifying service of 33 years,
but after completing qualifying service of 10 years, the amount of pension shall be
proportionate.
The formula is:
Average Emolument 50 x No. of years of qualifying service
100 33
ILLUSTRATION:
An officer joined the Bank on 01.09.1979. He takes voluntary retirement form the
Bank on 30.06.2005. His date of Birth 01.07.1949. His Average Basic Pay is Rs.19920.
He has also received Fixed Personnel Pay of Rs.560 and Professional Qualification
Pay of Rs.750/-.
His Pension is Calculated as follow:
Total of Service Date of Retirement 30.06.2005
Date of entry is Service 01.09.1979
Gross Service is 25 years and 10 months
Qualifying service rounded off and 26 years
to Add Additional weightage 4 years
Total qualifying Service 30 years
Though he retired after completing 26 years he is allowed weightage only for 4 years,
because he has retired at the age of 56 years and the balance period of service
before retirement on superannuation i.e..30.06.2009 is only 4 years.
For the Net qualifying service of 30 years, his Basic pension will be
Rs. 19920 + 560 + 750 = 21230 x 50 x 30 = 9650
100 33
Commutation 9650 = 3217
3
Rs.3217 x 11.10 = 4,28,504/-
Note : Charts shows the basic pension for different periods of qualifying service are
given in the table.
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2. Other salient features of Pension
1. Pension shall become payable from the date following the date on which
he retires.
2. Pension will be paid monthly, in arrears, on or after the first day of the
following month
3. Pension will be paid in Indian Rupees in India only.
4. Pension will be rounded off to next higher rupee
5. The amount of minimum pension shall be Rs.1060/ in respect of an
employee who retires on or after 1-4-98 and for those retired after
1-11-2002 the minimum shall be Rs.1435/
6. Pension will be paid for the day of death of the pensioner.
3. Accounting procedure
In our bank, pension payments to our ex staff are computerised at Pension cell,
Personnel Administration Department, Central Office,. The monthly pension will be
credited by Central Office to the branch from where the pensioner desires to receive
his pension. The monthly pension will be credited to the branch by way of IBSA and
ECS clearing.
VII DEARNESS RELIEF
Dearness relief shall be granted on basic pension of family pension or invalid pension
or on compassionate allowance as per the rates specified below.
On and from 1.5.2005.
In the case of employee who retired from 1.4.98 to 31.10.2002 Dearness relief shall
be payable for every rise or be recoverable for every fall, as the case may be of
every 4 points over 1684 points in the quarterly average of All India Average
Consumer Price Index for industrial worker in the service 1960 = 100 such increase
or decrease for every said four points shall be calculated in the manner given
below.
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The rate of dearness allowance as a percentage or basic pension
Scale of pay
i. upto Rs.3550 0.24 of Basic Pension
ii. Rs.3551 to Rs.5650/- 0.24% of Rs.3550/ plus 0.20% of the basic
pension in excess of Rs.3550/
iii Rs.5651 to Rs.6010/- 0.24% or Rs.3550 plus 0.20% of difference
between Rs.5650/ and Rs.3550/ plus 0.12% at
basic pension plus 0.20% of the difference.
iv. above Rs.6010/- 0.24% of Rs.3550/ plus 0.20% plus 0.12%
between Rs.5650/- and Rs.3550/- plus 0.12%
difference between Rs.6010/- and Rs.5650/ plus
0.06% of basic pension in excess of Rs.6011/-
In respect of retirees of period after 1.11.2002 Pension will be revised w.e.f. 01.05.2005
D.A. relief shall be payable at 0.18 percent of basic pension w.e.f. 1.5.2005 Aug. 05
DA will be 14.22% of basic pension for the above category employees.
NOTE
Dearness relief shall be payable for the half year commencing from the 1st day of
February and ending with 1st day of July on the quarterly average of the index
figures published for the months of October, November and December of the previous
year and for the half year commencing form the 1st day of August and ending with
the 31st day of January on the quarterly average of the index figures published for
the months of April, May and June of the same year.
VIII. COMMUTATION
1. An employee shall be entitled to commute (surrender) for a lumpsum payment,
a fraction of pension, not exceeding one third of his pension.
2. If fraction of pension to be commuted results in fraction of rupee, such fraction
of a rupee shall be ignored for the purpose of commutation.
3. Such commuted portion of pension shall be reduced from pension amount
monthly, with effect from the date of commutation / date of payment.
4. The lumpsum payable to an applicant shall be calculated with the table given
below.
TABLE
Commutation value of pension of Re one per annum
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AGE Commutation value expressed Age next birthday Commutation value
as number of year’s purchase expressed as
number of year’s
purchase
17 19.28 51 12.95
18 19.20 52 12.66
19 19.11 53 12.34
20 19.01 54 12.05
21 18.91 55 11.73
22 18.81 56 11.42
23 18.70 57 11.10
24 18.59 58 10.78
25 18.47 59 10.46
26 18.34 60 10.13
27 18.21 61 09.81
28 18.07 62 09.48
29 17.93 63 09.15
30 17.78 64 08.82
31 17.62 65 08.50
32 17.46 66 08.17
33 17.29 67 07.85
34 17.11 68 07.53
35 16.92 69 07.22
36 16.72 70 06.91
37 16.52 71 06.60
38 16.31 72 06.30
39 16.09 73 06.01
40 15.87 74 05.72
41 15.64 75 05.44
42 15.40 76 05.17
43 15.15 77 04.90
44 14.90 78 04.65
45 14.64 79 04.40
46 14.37 80 04.17
47 14.10 81 03.94
48 13.82 82 03.72
49 13.54 83 03.52
50 13.25 84 03.32
85 03.13
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The table indicates the commuted value of pension expressed as number of years’
purchase with reference to the age of the pensioner as on his next birth day. For
example the commuted value in the case of an employee retiring at the age of 58
years is 10.46 years’ purchase and if he desires to commute Rs.1000/ from his
pension within one year of retirement, the lumpsum amount (commuted value) payable
to him is Rs.1000 x 12 x 10.46 = Rs.1,25,520/-
5. Commuted portion of pension will be restored after a period of 15 years from
the date of payment of commuted value.
6. If the commutation is sought after one year of the date of retirement, it will be
granted only after medical examination by the Bank’s medical officer.
7. Commutation is admissible in respect of superannuation pension, voluntary
retirement, pension, premature retirement pension, invalid pension and
Compassionate Allowance.
8. In the case of a pensioner eligible for superannuation pension or pension on
voluntary retirement or premature retirement pension, no medical examinations
is necessary. If the application for commutation is made within one year from
the date of retirement.
9. An employee against whom department or judicial proceedings have been
instituted before the date of his retirement or a person against whom such
proceedings are instituted after the date of his retirement shall not be eligible
to commute a fraction of his provisional pension or pension, as the case may
be, authorised under these Regulations during the pendency of such
proceedings.
Forms relating to Pension / Family Pension may be obtained from Pension
Department, Central Office. In case of superannuations the Pension Department
generally mails the forms in advance to the retiring Pension Optees.
If necessary one can conduct the Association Office for any assistance.
(List of phone numbers of Office Bearers is provided in this book.)
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IX. FAMILY PENSION
1. Ordinary rate of family pension
1. Without prejudice to the provisions contained in these Regulations where an
employee dies -
a. after completion of one year of continue 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
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 as follows:
In respect of employees other than part time employees retired from 1.4.98 to
31.2.2002
Scale of pay per month Amount of monthly Family Pension
Upto Rs.4210 30 per cent of the PAY shall be the basic family
pension plus 30 percent of allowances which are
counted for making contributions to Provident
Fund but not for dearness allowance shall be the
additional family pension. The aggregate of basic
and additional family pension shall not be less
than Rs.1056 per month.
Rs.4210 to Rs.8420/ 20 percent of the PAY shall be the basic family
pension plus 20 per cent of allowances which
are counted for making contributions to Provident
Fund but not for dearness allowance shall be the
additional family pension. The aggregate of basic
and additional family pension shall not be less
than Rs. 1262 per month.
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Above Rs,.8420/ 15 percent of the PAY shall be the basic family
pension plus 15 percent of allowances which are
counted for making contributions to Provident
Fund but not for dearness allowance shall be the
additional family pension. The aggregate of basic
and additional family pension shall not be less
than Rs.1687 per month and more than Rs.3521/
per month.
ii. In respect of employees other than part time employees retired or retiring on
or after 1.11.2002.
Scale of pay per month Amount of monthly Family Pension
Upto Rs.5720/- 30 percent of the PAY shall be the basic family
pension plus 30 percent of allowances which are
counted for making contributions to Provident
Fund but not for dearness allowance shall be the
additional family pension. The aggregate of basic
and additional family pension shall be subject to
a minimum of Rs.1435 per month.
Rs.5720 to Rs.11440/ 20 percent of the PAY shall be the basic pension
plus 20 percent of allowances which are counted
for making contributions to Provident Fund but
not for dearness allowance shall be the additional
family pension. The aggregate of basic and
additional family pension shall be subject to a
minimum of Rs.1715 per month.
Above 11440/- 15 per cent of the PAY shall be the basic family
pension plus 15 percent of allowances which are
counted for making contributions to Provident
Fund but not for dearness allowance shall be the
additional family pension. The aggregate of basic
and additional family pension shall be subject to
a minimum of Rs.2292 per month and a
maximum of Rs.4784 per month.
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Note:
1. Dearness relief is not payable on additional family pension.
2. Scale of pay for the purpose of calculation of family pension as above shall be
the aggregate of PAY and ALLOWANCES as defined in these Regulations.
For the above two categories, Family pension will be revised from 01-05-2005.
3. Enhanced Rate of Family Pension.
Where at the time of death, the employee has completed 7 years of continuous
service, family pensions may be paid at 50% of the pay last drawn or twice the
ordinary rate of family pension, whichever is less, for a period of 7 years or till the
deceased employee would have attained the age of 65 years had he survived,
whichever is less, provided the enhanced family pension shall not exceed the normal
pension admissible on retirement.
4. Commencement of family pension
The family pension will become payable form the date following the date of death of
the employee/pensioner.
5. Period of payment:
The period for which family pension is payable is as follows:
a. in the case of widow or widower, upto the date of death or re marriage
whichever is earlier
b. in the case of son, until he attains the age of 25 years or until he get married
whichever is earlier.
c. In the case of unmarried daughter, until she attains the age of 25 years or until
she gets marriage whichever is earlier.
d. For own sons and daughters, income should not exceed Rs.2550/-
e. For parents who were wholly dependent on the employee when he / she was
alive, provided the deceased employee had left behind neither a widow/ widower
nor a child and parents income should not exceed Rs.2550/-
However, family pension shall be payable to the son or daughter for life, if he/she
suffers 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 25
years.
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5. Order of payment of family pension:
After the death of the employee/pensioner, the family pension will be paid in
the following order.
a. first to the widow or widower, if she/he is not remarried
b. next to the children the order of their birth, The younger of them is not
eligible for family pension until the elder next above him or her has become
ineligible for the grant of family pension.
c. After exhausting all these members, the disabled child will receive family
pension for life.
6. Payment to Twins
Where family pension is payable to twins children, it shall be paid in equal shares.
Similarly, family pension payable to more than one widow, the same is paid in equal
shares.
6. Receipt of two family pensions:
In case both the husband and wife are employees of our bank and in the event of
death of both of them, the surviving eligible child be granted two family pensions
subject to ceiling on the total amount of pension.
7. Suspension of family pension:
a. If a person who, in the event of death of an employee while in service, is
eligible to receive family pension under these Regulations, is charged with the
offence of murdering the employee or for abetting in the commission of such
an offence, the claim of such a person, including other eligible member or
members of the family to receive the family pension, shall remain suspended till
the conclusion of the criminal proceedings institute against me.
b. If on the conclusion of the original proceedings referred to in clause (a) the
person concerned.
(i) is convicted for the murder or abetting in the murder of the employee,
such a person shall be debarred from receiving the family pension which
shall be payable to the other eligible member of the family, from the date
of death of the employee.
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(ii) is acquitted of the charge of murder or abetting in the murder of the
employees, the family pension shall be payable to such a person from
the date of death of the employee.
b. The above provisions shall also apply for the family pension becoming payable
on the death of an employee after his retirement.
X GENERAL CONDITIONS
1. Pension subject to future good conduct:
Future good conduct shall be an implied condition of every grant of pension and its
continuance under these Regulations.
2. Withholding or withdrawal of Pension:
The Competent Authority may, by order in writing, withhold or withdraw a pension or
a part thereof, whether permanently or for a specified period, if the pensioner is
convicted of a serious crime or criminal breach of trust or forgery or acting fraudulently
or is found guilty of grave misconduct.
Provided that where a part of pension is withheld or withdrawn, the amount of such
pension shall not be reduced below the minimum pension per month payable under
these Regulations.
3. Conviction by Court
Where a pensioner is convicted of a serious crime by a Court of law, action shall be
taken in the light of the judgement of the court relating to such conviction.
4. Pensioner guilty of grave misconduct:
If the Competent Authority considers that the pensioner is prima facie guilty of grave
misconduct, it shall, before passing an order, follow the procedure specified in Indian
Overseas Bank Officer Employees’ (Discipline and Appeal) Regulations, 1976.
5. Provisional Pension:
a. An employee who has retired on attaining the age of superannuation or otherwise
and against whom any departmental or judicial proceedings are instituted or
where departmental proceedings are continued, a provisional pension, equal to
the maximum pension which would have been admissible to him, would be allowed
subject to adjustment against final retirement benefits sanctioned to him upon
conclusion of the proceedings but no recovery shall be made where the pension
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finally sanctioned is less than the provisional pension or the pension is reduced
or withheld, etc, either permanently or for a specified period.
b. In such cases the gratuity shall not be paid to such employee until the
conclusion of the proceedings against him. The gratuity shall be paid to him
on conclusion of the proceedings subject to the decision of the proceedings.
Any recoveries to be made from an employee shall be adjusted against the
amount of gratuity payable.
6. Recovery of Pecuniary loss caused to the Bank:
A The Competent Authority may withhold or withdraw a pension or a part hereof,
whether permanently or for a specified period, and order recovery from pension
of the whole or part of any pecuniary loss caused to the Bank if in any
departmental or judicial proceedings the pensioner is found guilty or grave
misconduct or negligence or criminal breach of trust or forgery or acts done
fraudulently during the period of his service.
Provided that the Board shall be consulted before any final are passed.
Provided further that departmental proceedings, if instituted while the employee
was in the employee, be deemed to be proceedings under these Regulations
and shall be continued and concluded by the authority by which they were
commenced in the same manner as if the employee had continued in service.
Provided also that no departmental or judicial proceedings, if not initiated while
the employee was in service, shall be instituted in respect of a cause of action
which arose or in respect of an event which took place more than four years
before such Institution.
c. where the Competent Authority orders recovery of pecuniary loss from the
pension, the recovery shall not ordinarily be made at a rate exceeding onethird
of the pension admissible on the date of retirement of the employee.
7. Recovery of Bank’s dues:
The Bank shall be entitled to recover the dues to the Bank on account of housing
loans, advances licences fees, other recoveries and recoveries due to staff cooperative
credit society from the commutation value of pension or the pension or the
family pension.
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8. Commercial employment after retirement :
If a pensioner takes up any commercial employment at any time before the expiry of
two years from the date of his retirement without the prior permission of the Bank or
commits a breach of any condition subject to which the permission to take up any
commercial employment has been granted to him, it shall be competent for the Bank
to declare by order in writing and for reasons to be recorded therein that he shall
not be entitled to whole or such part of the pension and for such period as may be
specified in the order, provided no order shall be made without giving the employee
an opportunity of show cause against such declaration.
9. Nomination:
The pensioner can nominate one or more persons, specifying their share, to receive
the amount of pensionary benefits (life time arrears) that may be payable in the
event of his death.
Nomination can be modified or revoked by the pensioner at any time after giving a
written notice to the Trust.
10. Power to issue instruction:
The Chairman and Managing Director of the Bank may from time issue instructions
as may be considered necessary or expedient for the implementation of these
Regulations.
CHART SHOWING BASIC PENSION w.r.t. ‘AVERAGE EMOLUMENT’ AND ‘SERVICE’
QUALIFYING SERVICE IN YEARS
AVE. 20 21 22 23 24 25 26 27 28 29 30 31 32 33
EMOL
UME
NTS
10000 3030 3182 3333 3485 3636 3788 3939 4091 4242 4394 4545 4697 4848 5000
10470 3172 3331 3490 3649 3807 3966 4125 4283 4442 4600 4759 4918 5076 5235
10940 3315 3481 3647 3812 3978 4144 4310 4475 4641 4807 4972 5138 5304 5470
11410 3458 3630 3803 3976 4149 4322 4495 4668 4841 5013 5186 5359 5532 5705
11880 3600 3780 3960 4140 4320 4500 4680 4860 5040 5220 5400 5580 5760 5940
12350 3742 3930 4117 4304 4491 4678 4865 5052 4239 5427 5614 5801 5988 6175
12820 3885 4079 4273 4468 4662 4856 5050 5245 5439 5633 5827 6022 6216 6410
288
13320 4036 4238 4440 4642 4844 5045 5247 5449 5650 5853 6055 6256 6458 6660
13820 4187 4397 4607 4816 5025 5235 5444 5654 5863 6072 6282 6491 6701 6910
14320 4339 4556 4773 4990 5207 5424 5641 5858 6075 6292 6509 6726 6943 7160
14880 4509 4735 4960 5185 5411 5636 5862 6087 6313 6538 6763 6989 7215 7440
15440 4678 4913 5147 5381 5615 5848 6082 6316 6550 6784 7018 7252 7486 7720
16000 4848 5091 5333 5576 5818 6061 6303 6545 6788 7030 7273 7515 7758 8000
16560 5018 5269 5520 5771 6022 6273 6524 6775 7025 7276 7527 7778 8029 8280
17120 5188 5447 5707 5966 6225 6485 6744 7004 7263 7522 7782 8041 8301 8560
17680 5358 5625 5803 6161 6429 6697 6965 7233 7501 7768 8036 8304 8572 8840
18240 5527 5804 6080 6356 6633 6909 7185 7462 7738 8015 8290 8567 8844 9120
18800 5697 5982 6267 6552 6836 7121 7406 7691 7976 8261 8545 8830 9115 9400
19360 5867 6160 6453 6747 7040 7333 7627 7920 8213 8507 8800 9093 9387 9680
19920 6036 6338 6640 6942 7244 7545 7847 8149 8451 8753 9055 9356 9658 9960
20480 6206 6516 6827 7137 7447 7758 8068 8378 8688 8999 9309 9619 9930 10240
21040 6376 6695 7013 7332 7651 7970 8288 8607 8926 9245 9563 9882 10201 10520
21660 6564 6892 7220 7548 7876 8205 8533 8861 9189 9517 9845 10174 10502 10830
22280 6752 7089 7427 7764 8101 8439 8777 9115 9452 9790 10127 10465 10802 11140
22900 6939 7286 7633 7980 8327 8674 9021 9368 9715 10062 10409 10756 11103 11450
23520 7127 7483 7840 8196 8553 8909 9265 9622 9978 10335 10691 11047 11404 11760
24140 7315 7681 8047 8412 8778 9144 9510 9875 10241 10607 10972 11338 11704 12070
24760 7503 7878 8253 8628 9004 9379 9754 10129 10504 10879 11254 11630 12005 12380
25380 7691 8075 8460 8845 9229 9614 9998 10383 10767 11152 11536 11921 12305 12670
26000 7879 8273 8667 9061 9454 9848 10242 10636 11030 11424 11818 12212 12606 13000
26620 8067 8470 8873 9277 9680 10083 10487 10890 11293 11697 12100 12503 12907 13310
27300 8273 8686 9100 9514 9927 10341 10755 11168 11582 11995 12409 12823 13236 13650
27980 8479 8712 9127 9542 9956 10371 10786 11200 11616 12031 12445 12860 13275 13690
28660 8685 9119 9553 9988 10422 10856 11290 11725 12159 12593 13027 13462 13896 14330
29340 8891 9335 9780 10225 10669 11114 11558 12003 12447 12892 13336 13781 14225 14670
30020 9097 9552 10007 10462 10916 11371 11826 12281 12736 13191 13645 14100 14555 15010
30700 9303 9768 10233 10698 11164 11629 12094 12559 13024 13489 13955 14420 14885 15350
31600 9576 10055 10533 11012 11491 11970 12448 12927 13406 13885 14364 14842 15321 15800
32600 9879 10373 10867 11361 11855 12348 12842 13336 13830 14324 14818 15312 15806 16300