Comparative FP Chart: Revised Family Pension (Bank) payable from April 1, 2021

Ministry of Finance (Department of Financial Services) in its letter dated 25.08.2021 addressed to the Chief Executive of IBA conveyed the revision of family pension. According to the letter, the payment of Family Pension should be at a uniform rate of 30% of the pay of the deceased employee without any ceiling on family pension effective from 1.4.21.

Family Pension is computed on the LAST DRAWN PAY of the deceased Employee which includes Basic Pay + eligible Portion of PQA & FPA ranking for PF.

Sixty percent of the pension drawn by you is the approximate family pension payable to your spouse after your death. The below chart is prepared for your reference, considering the top of the pay scale at the time of retirement/ death while still in active service.

For example, let us assume Mr.X retires from the Bank’s service during 2008 when his last 10 months’ average basic salary was Rs.36000.(However, his last month’s pay was Rs 37000 due to increment). In this case, his basic pension (before commutation) is Rs.18000 i.e. 50% of basic pay of Rs.36000. His present dearness relief is 120% of his basic pension that is Rs 21600. Together with basic and DR total pension received by him was Rs.39600.
Now after the death of X, his widow is eligible for Family Pension. Because X’s last month’s pay was Rs.37000 his widow’s basic pension will be 30% of Rs.37000. That is Rs.11100. With present Dearness at 120% her gross pension becomes

24420 (Basic11100+ DA13320). So Mrs. X receives a family pension of Rs.24420 for the current month.