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Friday, August 7, 2020

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.


3 comments:

  1. No. I have seen a case where the Average pay is 49550.00 (8th stagnation plus other eligible allowances).Pension is 24775.00 Family Pension is 7433.00 only. That is 15%.

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  2. Has updation of pension is given a silent go by UFBU - appears to be - given the thumping wrong analysis provided for family pension increase (100%). What can be expected from UFBU leaders who are totally incompetent to understand the life after retirement. Retirees have raised high pitch requests trying to bring a sense of understanding of their financial stress to Unions with whom they had strong relationship while working, to IBA - supposed to be considerate to employees current and retirees, sought Government intervention and approached court for orders to update pension. Nothing seems to be working. In an unethical way IBA has decided to increase only family pension forgetting the living retirees.

    ReplyDelete
  3. Sir will there be any reduction in service for vrs from 20years to 10years

    ReplyDelete