SBI gets nod for revision in pension schemes

State Bank Of India | Bank - Public | BFSI | BSE: 500112 | NSE: SBIN

31 Dec 2011 Evaluate

State Bank of India (SBI), country’s largest public sector bank has received nod from central board for revision of family pension and minimum pension with retrospective effect from November 1, 2007. The bank took this decision at its board meeting held last week.

As per the revision for those in the scale of pay up to Rs 7,090, 30% of the pay shall constitute the basic family pension. Thirty 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 1,779 a month. Basic family pension for those with a pay of Rs 14,181 and above will be 15%. Fifteen per cent of allowance 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 2,841 a month and more than Rs 5,930 a month.

The minimum amount of family pension and the maximum amount of family pension will be in proportion to the rate of scale wages drawn by the employee in case of part-time employees. In respect of employees other than part-time employees who retired on or after November 1, 2007, the amount of minimum pension shall be Rs 1,779 a month.

The minimum pension payable in respect of part-time employees who retired on or after that date, shall be Rs 595 a month in respect of part-time employees drawing 1/3rd scale wages; Rs 892 a month in respect of part-time employees drawing 1/2 scale wages; and Rs 1,330 a month in respect of part-time employees drawing 3/4th scale wages.