Family pension benefits

From Indiapensions

The pension scheme is designed not only to secure retired life for the employee but also to secure his family in case of the unfortunate death of the employee. This benefit which the family receives after the death of an employee is known as family pension. The employees who retired from the service of the banks between 1st January, 1986 and 1st November, 1993 (in case of public sector banks) and those between 1.1.1986 and 31.10.1990 (in case of Reserve bank) andopted for the pension scheme by returning the PF contributions with a 6% interest rate, are eligible for the family pension. The scheme became active from 1st November, 1993 for public sector bank employees and from 1.11.1990 for the employees in the Reserve Bank. Family pension is granted to the dependents or survivors of the employees if he dies in any of the following circumstances:

• After 1 year of continuous service. In State Bank Of India, the family pension is granted to the survivors of a deceased employee provided the deceased employee served for a minimum period of one year. In case an employee dies before rendering one year of service, the family would not be eligible to receive pension.
• Before 1 year of continuous service provided that the deceased employee was declared fit before his appointment by the bank's medical officer.
• After retirement from service if he was receiving a pension or compassionate allowance on the date of death.

If an employee dies during the period of suspension before the conclusion of any judicial proceedings then the period between the date of suspension and death would be treated as period of service for all purposes and his family would be given full pay and the allowance for that period to which he would have been entitled had he not been suspended. In case of a permanent part time employer, the family pension shall be proportionate to the rate of scale wages. The period for which the family pension is payable is dfferent in cases of the spouse, children and handicapped child.

1. The spouse of a deceased employee would receive family pension only till the time she or he gets remarried or dies.

2. The children would receive family pension till the time they attain the age of twenty five years (in case of sons). A daughter receives family pension only if she is major and maximum till the time she gets married.

3 As regards the handicapped child, he or she would receive the family pension throughout his or her life provided that he or she does not earn his or her livelihood. In case of a handicapped child (children), an employee has to attach a certificate of disability while he is in service. In case his child or children become(s) disabled after his death, then the handicapped child (children) does not get the family pension.

In case an employee dies after rendering service of seven years then his family would receive the family pension at the rate of 50% of pay last drawn or twice the ordinary rate of family pension, whichever is less for a period of seven years or till the time the deceased employee would have attained the age of 65 years whichever is less. On the other hand, if an employee dies after his retirement then also the same condition applies as in the case of death after seven years of service. In case where both husband and wife were employed in the same bank, after their death the children would get two family pensions, provided that both the pensions shall be limited to Rs.2,500 per month (for those retiring before 1.11.1993) and Rs.4,800 in case of retirement after 1.11.1993. If the survivors of the deceased employee is convicted of any grave misconduct or serious crime, then his family would be debarred from receiving the family pension. In Canara Bank out of present 45000 odd employees, nearly 50% have opted for pension. At present, Canara Bank services 9000 regular pensioners and 1700 family pensioners.

The family pension in both the public sector and Reserve Bank is not payable to more than one member at the same time. If a deceased is survived by a widow the family pension shall be payable to her /him, failing which to the eligible child. The family pension to the children shall be payable in the order of their birth and the younger would not be eligible unless the elder one has become ineligible for the grant of the family pension.

The following Table shows the rates at which family pension benefits are payable

Pay of the member per month on which pension is payable	Monthly rate of family pension
Upto Rs.2870	30% of the basic pension+ 30% of additional pension, with minimum of Rs.720 per month
Rs.2871 to Rs.5740	20% of basic pension +20% of additional pension, with minimum of Rs 800 per month
Above Rs.5740	15% of basic pension+15% of additional pension, with minimum of Rs.1150 and maximum Rs.2400 per month