Compiled By:- AMARJIT SINGH
Conceptualized By:- DEBASIS GHOSH

 

Dedicated to all the Field Functionaries especially to my Young Generation Officers who are the growth engine & profit centre of Union Bank of India

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UNION BANK OF INDIA (EMPLOYEES’)

PENSION REGULATIONS, 1995

In exercise of the powers conferred by Clause (f) of sub section (2) of section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), the Board of Directors of the Union Bank of India, after consultation with the Reserve Bank of India and with the previous sanction of the Central Government hereby makes the following regulations, namely:

CHAPTER I     PRELIMINARY

Regulation No. 1.

Short title and commencement

1. These regulations may be called Union Bank of India (Employees’) Pension Regulations, 1995.

2.  Save as otherwise expressly provided in these Regulations, these Regulations shall be deemed to have come into force on the date of their publication in the Official Gazette.

CHAPTER I     PRELIMINARY

Regulation No. 2.

Definitions

In these Regulations, unless the context otherwise requires:-

a.    “Act” means the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970)

b.   “Actuary” shall have the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of 1938);

c.    “Appendix” means, an Appendix annexed to these Regulations;

d.   “average emoluments” means the average of the Pay drawn by an employee during the last ten months of his service in the Bank;

e.  “Bank” means Union Bank of India mentioned under column 2 of the FIRST SCHEDULE of the Act;

f.     “Board” means the Board of Directors of the Bank;

g.   “Child” means a child of the employee, who, if a son, is under twenty five years of age and if a daughter, is unmarried and is under twenty five years of age and the expression “children” shall be construed accordingly;

h.  “Competent Authority” means the authority appointed by the Board for the purposes of these Regulations:

i.  “Consolidated wages” means lump sum amount payable to part-time employee belonging to the subordinate staff who is not drawing scale wages;

j.   “Contribution” means any sum credited by the Bank on behalf of employee to the fund, bur shall not include any sum credited as interest;

k.  “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 voluntary retires; or the date on which the officer is deemed to have retired;

l.   “deemed to have retired” means cessation from service of the Bank on appointment by central Government as a whole-time Director or managing Director or Chairman in the Bank or in any other Bank specified in column 2 of the FIRST SCHEDULE of the Act [or Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970)] or in any public financial institution or state Bank of India established under state Bank of India Act, 1955 (23 of 1955);

m. “Discipline and Appeal Regulations” means the Union Bank of India Officer Employees’ (Discipline and Appeal) Regulations, 1976 made under section 19 of the Act;

n.  “employee” means any person employed in the service of the Bank whether a workman on full time work on permanent basis or on part time work on permanent basis on scale wages or as an officer and who opts and is governed by these Regulations, but does not include a person employed either on contract basis or daily wage basis or on consolidated wages.

o.    “family” in relation to an employee 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 daughter including widow or divorced daughter till he or she attains the age of twenty five years or upto his or her marriage or remarriage, whichever is earlier including such son or daughter adopted legally;

    d. Parents who were wholly dependent on the employee when he/she was alive, provided the employee had left behind neither a widow/widower nor a child.

p.   “financial year” means a year commencing on the 1st day of April;

q.  “Fund” means the Union Bank of India (Employees’) Pension Fund constituted under Regulation 5;

r.   “notified date” means the date on which these Regulations are published in the official Gazette;

s.  “Pay” includes:-

    a. in relation to a workman who had either retired or died on or after the 1st day of January, 1986 but before the 1st day of November, 1992; and in relation to an officer who had either retired or died on or after the 1st day of January 1986 but before the 1st day of July, 1993,-

(i)    the basic pay including stagnation increments, if any; and

(ii)   all allowances counted for the purposes of making contribution to the provident fund and for the payment of dearness allowance;

     b. in relation to a workman who retired or died while in service on or after the 1st day of November,1992; and in relation to an officer who retired or died while in service on or after the 1st day of july,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 ; and

(iii) increment component of Fixed Personal Allowance; and

(iv) dearness allowance calculated upto index number 1148 points in the All India Average consumer price Index for industrial workers in the series 1960 – 100;

   c.  in relation to an employee who retired or died while in service on or after the 1st day of April, 1998,-

     i. the basic pay including stagnation increments, if any, and

    ii. all other components of pay counted for the purpose of making contributions to the Provident Fund and for the payment of dearness allowances; and

    iii. increment component of Fixed Personal Allowance; and

    iv. dearness allowance thereon on the above calculated upto Index number 1616 points in the Al India Average consumer Price Index for Industrial Workers in the series 1960=100

Explanation

For the purpose of this clause, basic pay, other components of pay and Fixed Personal Pay would mean the basic pay, other components of pay and Fixed Personal Allowance drawn by the employee in terms of the scales of pay as applicable and the rates at which the other components of pay were payable prior to 01.11.1997 (in the case of workmen) and prior to 01.04.1998 (in the case of officers).

t. “Pension” includes the basic pension and additional pension referred to in Chapter VI of these regulations;

u. “Pensioner” means an employee eligible for pension under these Regulations;

v. “Public financial institution” means a financial institution regarded as a public financial institution for the purposes of a section 4A of the Companies Act, 1950 (1 of 1956);

w. “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;

x. “retired” includes deemed to have retired under clause (1);

y. “retirement” means cessation from Bank’s service –

a. on attaining the age of superannuation specified in Service Regulations or Settlements;

b. on voluntary retirement in accordance with provisions contained in Regulation 29 of these Regulations;

c. on premature retirement by the Bank before attaining the age of superannuation specified in Service Regulations or Settlement;

z. “scale wages” in relation to part-time employees means the Basic Pay, City Compensatory Allowance, special allowances, House rent Allowance and other allowances, if any, and dearness allowance payable from time to time under the settlement;

za. “service regulations” means Union Bank of India (Officers’) Service Regulations, 1979 made under section 19 of the Act;

zb. “settlement” means memorandum of settlement agreed between the management of the Bank represented by the association authorized by them and workmen of such bank represented by trade unions authorized by them;

zc. “trust” means the trust of the Union Bank of India (Employees’) Pension Fund constituted under sub-Regulation (i) of Regulation 5;

zd. “trustee” means the trustees of the Union Bank of India (Employees’) Pension Fund constituted under Regulation 5;

ze. “trustee of the Provident Fund” means the trustees of the Provident Fund of the Bank;

zf. all other words and expressions used in these Regulations but not defined and defined in the Act or the Service Regulations or settlements shall have the same meanings respectively assigned to them in the Act, the Service Regulations or settlements, as the case may be.

CHAPTER II     APPLICATION AND ELIGIBILITY       

Regulation No. 3.

Application

These Regulations shall apply to employees who –

(1) (a) were in the service of the bank on or after the 1st day of January 1, 1986 but had retired before the 1st day of November, 1993; and

      (b) exercise an option in writing within one hundred and twenty days from the notified date to become member of the Fund; and

     (c) refund within sixty days after the expiry of the said period of one hundred and twenty days specified in clause

    (d) the entire amount of the bank’s contribution to the Provident Fund including interest accrued thereon together with a further simple interest at the rate of six per cent annum on the said amount from the date of settlement of the Provident Fund account till the date of refund of the aforesaid amount to the Bank; or till the 1st day of April, 1995, whichever is earlier; or

(2) (a) have retired on or after the 1st day of November, 1993, but before the notified date; and

     (b)  exercise on option in writing within one hundred and twenty days from the notified date to become member of the Fund; and

    (c)  refund within sixty days after the expiry of the said period of one hundred and twenty days specified in clause (b) the entire amount of the bank’s contribution to the Provident Fund and interest accrued thereon together with a further simple interest at rate of six per cent per annum on the said amount from the date of settlement of the Provident Fund account till the date of refund of the aforesaid amount to the bank; or

(3) (a) are in the service of the bank before the notified date and continue to be in the service of the bank on or after the notified date; and

     (b) exercise an option in writing within one hundred and twenty days from the notified date to become member of the fund; and

   (c) authorize the trust of the provident Fund of the bank to transfer the entire contribution of the bank along with the interest accrued thereon to the credit of the Fund constituted for the purpose under Regulation 5; or

(4)   Join the service of the bank on or after the notified date; or

(5)  were in the service of the bank during any time on or after the 1st day of November, 1993 and had died after retirement but before the notified date, their family shall entitled for the amount of pension payable to them from the date on which they would have been entitled to pension under these regulations, had they been alive till the date on which they died, if the family of the deceased

      (a) exercise an option in writing within one hundred and twenty days from the notified date to become member of the Fund; and

     (b) refund within sixty days after the expiry of the said period of one hundred and twenty days specified in clause (a) above the entire amount of the banks contribution to the provident Fund and interest accrued thereon together with a further simple interest at the rate of six per cent per annum from the date of settlement of the Provident Fund account till the date of refund of the aforesaid amount to the Bank; or

(6) Joined the service of the Bank on or after the 1st day of November, 1993 but who have died while in the service of the bank before the notified date, their family shall be entitled to the family pension under these Regulations:

Provided that the family of such a deceased employee refunds within one hundred and eighty days from the notified date the entire amount of the bank’s contribution to the Provident Fund, if any, and interest accrued thereon together with further simple interest at the rate of six per cent per annum, from the date of settlement of the provident fund till the date of refund of the aforesaid amount to the Bank;

Provided further that the family of such a deceased employee shall apply in writing for grant of family pension; or

(7) Were in the service of the Bank during any time on or after the 1st day of January, 1986 and had died while in service on or before the 31st day of October,1993 or had retired on or before the 31st day of October ,1993 but died before the notified date, in which case their family shall be entitled to the pension or the family pension as the case may be under these Regulations, if the family of the deceased,-

      (a) exercise an option writing within one hundred and twenty days from the notified date to become member of the Fund ; and

      (b) refund within sixty days of the expiry of the said period of one hundred and twenty days specified in clause (a) above the entire amount of the bank’s contribution to the Provident Fund and interest accrued thereon together with a further simple interest at the rate of six per cent per annum, from the date of settlement of the provident account till the date of refund of the aforesaid amount to the bank or till the 1st day of April,1995, whichever is earlier, or

(8) Joined the service of the bank on or before the 31st day of October, 1993 and who died while in service on or after the 1st day of November, 1993 but before the notified date, in which case their families shall be entitled to family pension under these Regulations if the family of the deceased employee,-

      (a) exercise an option in writing within one hundred and twenty days from the notified date to become a member of the Fund; and

      (b) refund within sixty days of the expiry of the said period of one hundred and twenty days specified in clause (a) above the entire amount of the bank’s contribution to the provident Fund, including interest accrued thereon from the date of settlement of the provident Fund account of the employee till the date of refund of the aforesaid amount to the banks

(9) Notwithstanding anything contained in sub regulations (1), (2), (3), (5) and (8) an option exercised before the notified date by an employee or the family of a deceased employee in pursuance of the settlement shall be deemed to be an option for the purpose of this chapter if such an employee or the family of deceased employee refund within sixty days from the notified date, the amount of the Bank’s contribution to the Provident Fund including interest accrued thereon together with a further simple interest in accordance with provisions of this Chapter and in case employer’s contribution of provident Fund has not been received from Provident Fund Trust has authorized or authorizes within sixty days from the notified date the trustees of the Provident Fund of the Bank to transfer the entire contributions of the Bank to the Provident Fund including interest accrued thereon in accordance with the provisions of this Chapter to the credit of the Fund constituted for the purpose under Regulation 5.

(10) Notwithstanding anything contained in sub-regulations (2), (5), (6) and (8), in cases where an employee had retired /died after retirement on or after the 1st day November, 1993, but on or before the 1st day of April,1995, or where an employee had died while in service of the bank on or after the 1st day of November,1993, but on or before 1st day of April, 1995, such an employee or the family of the deceased employee, as the case may be, shall refund within the period specified in aforesaid sub-regulation the entire amount of the bank contribution to the Provident Fund including interest accrued thereon with a further simple interest at the rate of six percent per annum on the said amount from the date of settlement of the provident fund account till the date of refund of the aforesaid amount to the bank or till the 1st day of April, 1995, whichever is earlier.

(11)  As per joint note dated 27th April 2010 between the Indian Banks’ Association and the Officers union, another option for joining the existing Pension Scheme shall be extended to Officers. In view of the above, in respect of Officers who are in service as on 27.04.2010 and presently covered by the Contributory Pension Fund, while making payment of arrears, the following procedure may be adopted for smooth implementation of the Pension settlement:

      a)    An amount equal to 2.8 times of the ‘Pay’ for the month of November 2007 be withheld and kept in a Suspense Account for crediting to the Pension Fund in case the officer opts to join the Pension Scheme complying with the terms of the Settlement dated 27th April 2010.

       b)    If any officer gives in writing an irrevocable letter stating that he does not intend to join the Pension Scheme, in terms of the Joint Note, 2.8 times of the November 2007 pay as above need not be withheld.

      c)    Once the offer is made to join the Pension Scheme, on expiry of the period of option, the amount withheld in respect of those who exercised the option to join the Pension Scheme should be transferred to the Pension Fund. The arrears withheld in respect of those who did not opt for pension within the stipulated time, be refunded to them.

      d)    No portion of arrears be withheld in respect of non-optee officers who retired from 1st November 2007 to 27th April 2010. They will be joining the Pension Scheme by making contribution towards funding gap as retired officers in terms of the Joint Note.

Note: “Pay” means Revised Basic Pay, FPP and PQP, if any, as per Joint Note dated 27.04.2010.

The terms of the Bank Employees’ Pension Regulation 1995 dated 29th September 1995 / 26th March 1996 shall not apply to the officers who join the services of Banks on or after 1st April 2010; and they shall be covered by a Defined Contributory Pension Scheme, which shall be governed by the provision of the Contributory Pension Scheme introduced for officers of the Central Government w.e.f. 1st January 2004, and as modified from time to time.

Further to Clause 6 of Joint Note signed on 2nd June 2005 between representatives of Officers’ Associations and IBA, it is agreed between the parties as under:

(i)   With effect from 1st May 2005, the pension of officers who retired or died while in service during the period 1st April 1998 to 31st October 2002 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 5 of Joint Note dated 14th December 1999. No arrears of pension and commuted value of pension will be payable on account of such re-fixing of pension.

(ii) With effect from 1st May 2005, the pension of officers who retired or died while in service during the period 1st November 2002 to 30th April 2005 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 6 of Joint Note dated 2nd June 2005. No arrears of pension and commuted value of pension will be payable on account of such re-fixing of pension.

CHAPTER II     APPLICATION AND ELIGIBILITY       

Regulation No. 4.

Option to subscribe to the Provident Fund

1. Notwithstanding anything contained in the sub-regulation (4) of Regulation 3, an employee who joins the service of the bank on or after the notified date at the age of 35 years or more, may, within a period of ninety days from the date of his appointment, elect, to forego his right to pension, whereupon these Regulations shall not apply to him.

2. The option referred to in sub- regulation (1) and regulation 3, once exercised, shall be final.

CHAPTER III     THE FUND

Regulation No. 5.

Constitution of the Fund

1. The bank shall constitute a Fund to be called the Union Bank of India (Employees) Pension Fund under an irrevocable trust within one hundred twenty days from the notified date.

2. The Fund shall have for its sole purpose the provision of the payment of pension or family pension in accordance with these Regulations to the employee or his family.

3. The Bank shall be a contributor to the Fund and shall ensure that sufficient sums are placed in it to enable the trustee to make due payments to beneficiaries under these Regulations.

CHAPTER III     THE FUND

Regulation No. 6.

Liability of the Provident Fund Trust

The Provident fund trust shall, immediately after the constitution of the Fund, transfer to the Union Bank of India (Employees’) pension Fund the accumulated balance of the contribution of the Bank to Provident Fund and interest accrued thereon upto the date such transfer in respect of every employee.

CHAPTER III     THE FUND

Regulation No. 7.

Composition of the Fund

The Fund shall consist of the following namely –

a. the contribution by the bank at the rate of ten per cent per month on the pay of the employee;

b. the accumulated contributions of the bank to the Provident Fund and interest accrued thereon upto the date of such transfer in respect of the employees;

c. the amount consisting of contributions of the bank along with the interest refunded by the employees who had retired before the notified date but who opt for pension in accordance with the provision contained in these Regulations;

d. the investment in annuities or securities purchased out of the moneys of the Fund and interest thereon;

e. amount of any capital gains arising from the capital assets of the Fund;

f.  the additional annual contribution made by the bank in accordance with the provisions contained in Regulation 11 of these Regulations;

g. any income from investments of the amounts credited to the Fund;

h. the amount consisting of contribution of the bank along with interest refunded by the family of the deceased employee.

CHAPTER III     THE FUND

Regulation No. 8.

Board of Trustees

1.   The Board of Trustees shall consist of such number of persons not less than three and not more than nine, as may be determined by the Board, to be appointed by the Bank.

2.  The power to appoint the trustees shall be vested with the Bank and all such appointments shall be made in writing.

3.   The bank shall nominate one of the trustees to be the chairman of the Board of trustees. The bank shall also nominate a trustee to be an alternate Chairman who shall act as Chairman in the absence of the Chairman.

4.   The term of appointment of trustee shall be for a period of three years and the Bank may re-appoint a trustee who has already completed his term; provided that no trustee shall be appointed for more than two terms.

CHAPTER III     THE FUND

Regulation No. 9.

Trustees to carry out the directions of the Bank

The trustees shall comply with all such directions as may be given by the bank for the proper functioning of the Fund. Provided that all such direction shall be given in writing and shall specify the purpose or objective.

CHAPTER III     THE FUND

Regulation No. 10.

Books of accounts of the Fund

1. The accounts of the Fund shall contain the particulars of the financial transactions relating to the Fund in such form as may be specified by the Bank.

2. Within sixty days from the date of publication of the Balance Sheet of the Bank, the trust shall prepare a financial statement of the trust indicating therein the general account of assets and liabilities of the trust and forward a copy of the same to the bank.

3. The accounts of the Fund shall be audited in accordance with the provisions of section 10 of the Act.

CHAPTER III     THE FUND

Regulation No. 11.

Actuarial investigation of the Fund

The bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund every financial year, on the 31st day of March, and make such additional annual contribution to the fund as may be required to secure payment of the benefits under these Regulations;

Provided that the bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund, as on the 31st day of March immediately following the financial year in which the Fund is Constituted.

CHAPTER III     THE FUND

Regulation No. 12.

Investment of the Fund

All moneys contributed to the Fund or received or accruing after that date by way of interest or otherwise to the Fund, may be deposited in a Post Office Savings Bank Account in India or in a savings account with any scheduled bank or utilized in making payment of pensionary benefits in accordance with Pension Regulations and to the extent such moneys as are not so deposited or utilized shall be invested in the manner specified in sub-rule (2) of rule 67 if Income Tax Rules, 1962.

CHAPTER III     THE FUND

Regulation No. 13.

Payment out of the Fund

The Payment of benefits by the trust shall be administered for grant of pensionary benefits to the employees of the bank or the family pension to the families of the deceased employees of the bank.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 14. 

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.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 15. 

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.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 16. 

Count 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.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 17. 

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.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 18. 

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:

Provided that provisions of this regulation shall not apply for determining the minimum service required to make an employee eligible for pension.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 19. 

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.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 20. 

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 this regulation shall apply to any such employee who is appointed on contract basis or on daily wage basis or on consolidated wages.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 21. 

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 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 at the time that it shall count to such extent as such authority may declare.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 22. 

Forfeiture of service

1. 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;

2. An interruption in the service of a Bank employee entails forfeiture of his past service, expect 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 of compulsory retirement while under suspension;

     (c) transfer to non-qualifying service in an 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.

(3) Notwithstanding anything contained in sub-regulation (2), the appointing authority may, by order, commute retrospectively the periods of absence without leave as extraordinary leave.

(4) (a) In the absence of a specific indication to the contrary in the service record, an interruption between two spells of service rendered by a bank employee shall be treated as automatically condoned and the pre-interruption service treated as qualifying service;

     (b) Nothing in clause (a) shall apply to interruption caused by resignation, dismissal or Removal from service.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 23. 

Period of deputation to foreign service

An employee deputed on foreign service to the United Nations or any other foreign body or organization may at his option,-

     (a) pay pension contribution in respect of his foreign service and count such service as qualifying service under these Regulations; or

     (b) avail of the retirement benefits admissible under the rules of the foreign employer and not count such service as qualifying service under these Regulations:

Provident 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.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 24. 

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 employee shall not count as qualifying service for pension.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 25. 

Period of deputation to an organization in India

Period of deputation of an employee to another Organization in India will count as qualifying service:

Provided the organization to which he is deputed or the employee pays the pensionary contributions at the rates specified in sub-regulation (a) of regulation 7 of these Regulations or at rates specified by the Bank at the time of deputation, whichever is higher to the Bank.

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 26. 

Addition to qualifying service in special circumstances

An employee shall be eligible to add to his service qualifying for superannuation pension (but not 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, if the service or post to which the employee is appointed is one –

(a) for which post-graduate research, or specialist qualification or experience in scientific, technological or professional fields, is essential; and

(b) to which candidates of age exceeding the upper age limit specified for direct recruitment are normally recruited;

(c) for which the candidate was given age relaxation over and above the maximum age limit fixed by the Bank on account of his possessing higher qualifications or experience :

Provided that this concession shall not be admissible to an employee unless his actual qualifying service at the time he quits the service in the Bank is not less than ten years:

Provided further that this concession shall be admissible if the recruitment rules in respect of the said service or post contain specific provision that the service or post is one which carries benefits of this Regulation:

Provided also that the recruitment rules in respect of any service or post which carries the benefit of this regulation shall be made with the approval of the Central Government. 

CHAPTER IV      QUALIFYING SERVICE

Regulation No. 27. 

Counting of service rendered on permanent part–time basis

1.  In case of an employee who was employed on scale wages and on    a permanent part-time basis in the service of bank and was contributing to the provident fund, such service rendered by him on a permanent part time basis from the date he became a member of the Provident Fund shall be counted as qualifying service.

2. For the purpose of calculating the amount of pension in respect of a part time employee who was/is initially recruited on a lower scale wage and later fitted on higher scale wages including full scale wages, the length of qualifying service shall be determined in accordance with Appendix IV.

3. In respect of part time employees who continue to be in the same scale wages since their recruitment, for the purpose of calculating the amount of pension, the actual service put in shall be taken as qualifying service. In such cases the actual pay drawn on scale wages at the time of retirement shall be reckoned for the purpose of average emoluments.

Note: The actual service / qualifying service shall be calculated from the date of recruitment or 01.09.1978, whichever is later. 

CHAPTER V      CLASSES OF PENSION

Regulation No. 28. 

Superannuation Pension

Superannuation pension shall be granted to an employee who has retired on his attaining the age of superannuation specified in the Service Regulations or Settlements:

Provided that, with effect from 1st day of November, 2000, pension shall also be granted to an employee who opts to retire before attaining the age of superannuation, but after rendering service for a minimum period of 15 years in terms of any scheme that may be framed for such pension by the Board with the approval of the Government.

CHAPTER V      CLASSES OF PENSION

Regulation No. 29. 

Pension on Voluntary Retirement

1. On or after the 1st day of November 1993, at any time after the an employee has completed twenty years of qualifying service he may, by giving notice of not less than three months in writing to the appointing authority, retire from service:

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 charge of the post in India and has served for a period of not less than one year:

Provided further that this sub – regulation shall not apply to an employee who seeks retirement from service for being absorbed permanently in an autonomous body or public sector undertaking or company or institution or body, whether incorporated or not to which he is on deputation at the time of seeking voluntary retirement:

Provided that this sub-regulation shall not apply to an employee who is deemed to have retired in accordance with clause (1) of regulation 2.

2. The notice of voluntary retirement given under sub – regulation (1) shall require acceptance by the appointing authority:

Provided that where the appointing authority does not 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) may make a request in writing to the writing to the appointing authority to accept notice of voluntary retirement of less than three months giving reasons therefore :

   (b) On receipt of a request under clause (a), 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 three 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 the specific approval of such authority:

Provided that the request for such withdrawal shall be made before the intended date of his retirement.

5.  The qualifying service of an employee retiring voluntarily under this regulation shall be increased by a period not exceeding 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.

6. The pension of an employee retiring under this regulation shall be based on the average emoluments as defined under clause (d) of regulation 2 of these Regulations and the increase not exceeding five years in his qualifying service, shall not entitle him any notional fixation of pay for the purpose of calculating his pension. 

CHAPTER V      CLASSES OF PENSION

Regulation No. 30. 

Invalid Pension

1. Invalid pension may be granted to an employee who-

      (a) has rendered minimum ten years of service ; and

     (b) retires from the service, on or after the 1st day of November 1993, on account of any bodily or mental infirmity which permanently incapacitates him for the service,

2. An employee applying for an invalid pension shall submit a medical certificate of incapacity from a medical officer approved by the Bank.

3. Where the Medical Officer approved by the Bank has declared the employee fit for further service of less laborious character than that which he had been doing, he should, provided he is willing to be so employed, be employed on lower post and if there be no means of employing him even on a lower post, he may be admitted to invalid pension.

4. No medical certificate of incapacity for service may be granted unless the applicant produces a letter to show that the competent Authority is aware of the intention of the applicant to appear before the medical officer approved by the Bank.

5. The medical officer approved by the Bank shall also be supplied by the Competent Authority in which the applicant is employed with a statement of what appears from official records to be the age of the applicant.

CHAPTER V      CLASSES OF PENSION

Regulation No. 31. 

Compassionate Allowance

(1)  An employee, who is dismissed or removed or terminated from service, shall forfeit his pension:

Provided that the authority higher than the authority competent to dismiss or remove or terminate him from service may if-

i)   Such dismissal, removal or termination is on or after the 1st day of November,1993; and

ii)  the case is deserving of special consideration, sanction a compassionate allowance not exceeding two thirds of the pension which would have been admissible to him on the basis of the qualifying service rendered up to the date of his dismissal, removal, or termination.

(2) The Compassionate allowance sanctioned under the proviso to sub – regulation (1) Shall not be less than the amount of minimum pension payable under regulation 36 of these Regulations. 

CHAPTER V      CLASSES OF PENSION

Regulation No. 32. 

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 Regulations or Settlement or settlement, if otherwise he was entitled to such pension or superannuation on that date.

CHAPTER V      CLASSES OF PENSION

Regulation No. 33. 

Compulsory Retirement Pension

1.  An employee compulsorily retired from service as a penalty on or after 1st day of November 1993 in terms of Union Bank of India Officer Employees’ (Discipline and Appeal) Regulations 1976 or awards / settlements may be granted by the authority higher than the authority competent to impose such penalty, pension at a rate not less than two thirds and not more than full pension admissible to him on the date of his compulsory retirement if otherwise he was entitled to such pension on superannuation on that date.

2.  Whenever in the case of a bank employee the Competent Authority passes an order (whether original, appellate or in 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.

3.   A pension granted or awarded under sub –regulation (1) or, as the case may be, under sub – regulation (2), shall not be less than the amount of rupees three hundred and seventy five per mensem.

CHAPTER V      CLASSES OF PENSION

Regulation No. 34. 

Payment of Pension or Family Pension in respect of employees who retired or died between 01.01.1986 to 31.10.1993

(1) Employees who have retired from the service of the Bank between the 1st day of January, 1986 and the 31st day of October, 1993 shall be eligible for pension with effect from 1st day of November, 1993.

(2) The family of a deceased employee governed by the provisions contained in sub-regulation (7) of the regulation 3 shall be eligible for pension or family pension as the case may be with effect from the 1st day of November, 1993.

CHAPTER VI    RATE OF PENSION

Regulation No. 35. 

Amount of Pension

1. Basic pension and additional pension, wherever applicable, shall be updated as per the formulae given in Appendix–I

2. In the case of an employee retiring in accordance with the provisions of the service Regulations or Settlements after completing a qualifying service of not less than thirty three years, the amount of basic pension shall be calculated at fifty percent of the average emoluments

3. a. Additional pension shall be fifty percent of the average amount of the allowances drawn by an employee during the last ten months of his service;

    b. No dearness relief shall be paid on the amount of additional pension.

Explanation – For the purpose of this sub- regulation “allowances” means allowance which are admissible to the extent counted for making contribution to the provident fund.

4. Pension as computed being aggregate of sub –regulations (2) and (3) above shall be subject to the minimum pension as specified in these Regulations.

5. An employee who has commuted the admissible portion of his pension as per the provisions of regulation 41 of these regulations shall receive only the balance of pension, monthly.

6. (a) In the case of an employee retiring before completing a qualifying service of thirty three years, but after completing a qualifying service of ten years, the amount of pension shall be proportionate to the amount of pension admissible under sub-regulations (2) and (3) and in no case the amount of pension shall be less than the amount of minimum pension specified in these regulations.

   (b) Notwithstanding anything contained in these Regulations, the amount of invalid pension shall not be less than the ordinary rate of family pension which would have been payable to his family in the event of his death while in service.

7. The amount of pension finally determined under these regulation shall be expressed in the whole rupee and where the pension contains a fraction of a rupee, it shall be rounded off to the next higher rupee.

CHAPTER VI    RATE OF PENSION

Regulation No. 36. 

Minimum Pension

The amount of minimum pension shall be –

(a) rupees three hundred and seventy five per month in respect of an employee other than a part time employee where the employee had retired before 1st day of November, 1992 (in case of workmen) or before 1st day of July,1993 (in case of Officers) an proportionate amount thereof in relation to the rate of scale of wages in the case of part time employee who had retired before the 1st day of November, 1992;

(b) rupees seven hundred and twenty per month in respect of an employee other than a part time employee, where the employee retired on or after the 1st day of November, 1992 (in case of workmen) or on after the 1st day of July, 1993 (in case of Officers) and proportionate amount thereof in relation to the rate of scale wages in the case of a part time employee who retired on or after the 1st day of November, 1992.

(c) rupees one thousand and fifteen per month in respect of an employee other than a part time employee where the employee retired on or after the 1st day April,1998 and rupees three hundred and thirty nine per month in respect of a part time employee drawing 1/3 scale wages, rupees five hundred and eight per month in respect of a part time employee drawing ½ scale wages and rupees seven hundred and sixty two per month in respect of part time employee drawing ¾ scale wages where the part time employee retired on or after the 1st day of April 1998.

(d) In respect of employees other than part-time employees, who retired on or after 01.11.2012, the amount of minimum pension shall be Rs.2785 p.m. In respect of part-time employees who retired on after 01.11.2012, the minimum pension payable shall be Rs.932 p.m. in respect of part-time employees drawing 1/3 scale wages, Rs.1397 p.m. in respect of part-time employees drawing ½ wages and  Rs.2096 p.m. in respect of part-time employees drawing ¾ scale wages.

CHAPTER VI    RATE OF PENSION

Regulation No. 37. 

Dearness Relief

(1)  Dearness relief shall be granted on basic pension or family pension or invalid Pension or on compassionate allowance in accordance with the rates specified in Appendix II.

(2)    Dearness relief shall be allowed to full basic pension even after commutation.

CHAPTER VI    RATE OF PENSION

Regulation No. 38. 

Determination of the period of ten months for average emoluments

(1) The period of preceding ten months for the purpose of average emoluments shall be reckoned from the date of retirement.

(2) In the case of voluntary retirement or premature retirement the period of the preceding ten months for the purpose of average emoluments shall be reckoned from the date on which the employee voluntarily retires or his prematurely retired by the Bank.

(3) In the case of dismissal or removal or compulsory retirement or termination of service of the period of the proceeding ten months for the purpose of average emoluments shall be reckoned from the date on which the employee is dismissed or removed or compulsorily retired or terminated by the Bank.

(4) If during the last ten months of the service an employee has been absent from duty on extraordinary leave on loss of pay or had been under suspension and the period where of does not count as service, the aforesaid period of extra ordinary leave or suspension shall not be taken into account in the calculation of the average emoluments and an equal period before ten months shall be included. 

CHAPTER VII      FAMILY PENSION

Regulation No. 39. 

Family Pension

(1) Without prejudice to the provisions contained in these Regulations where an employee dies-

      (a) after completion of one year of continuous service; or

    (b) before completion of one year of continuous service provided the deceased employee concerned immediately prior to his appointments to the service or post was examined by a medical officer approved by the bank and declared fit for employment in the bank; or

      (c) after retirement from service and was on the date of death in receipt of a pension or compassionate allowance; the family of a deceased shall be entitled to family pension, the amount of which shall be determined in accordance with Appendix III:

Provided that in respect of employees who were in the service of the bank on or after the 1st day of January, 1986 and had died while in service on or before the 31st day of October, 1987, or had retired on or before 31st day of October, 1987 but died later, the family of the deceased shall be entitled to family pension, the amount of which shall be determined in accordance with Appendix V.

(2)    The amount of family pension shall be fixed at monthly rates and be expressed in whole rupees and where the family pension contains a fraction of a rupee, it shall be rounded off to the next higher rupee:

Provided that in no case a family pension in excess of the maximum prescribed under these Regulations shall be allowed.

(3)    (a) (i) Where an employee, who is not governed by the workmen’s Compensation Act,1923 (8 of 1923) , dies while in service after having rendered not less than seven years continuous service, the rate of family pension payable to the family shall be equal to fifty percent of the pay last drawn or twice the family pension admissible under sub- regulation (1), whichever is less, and the amount so admissible shall be payable from the date following the date of death of an employee for a period of seven years or for a period upto the date on which the deceased employee would have attained the age of sixty five years had he survived, whichever is less :

  (ii) in the event of death of an employee after retirement, the family pension as determined under clause (a) of this sub regulation shall be payable for a period of seven years or for a period up to the date on which the retired deceased employee would have attained the age of sixty-five years had he survived, whichever is less:

Provided that in no case the amount of family pension determined under this clause shall exceed the pension authorized on retirement from the bank. If the pension authorized to the employee on his retirement is less than the amount of family pension at the ordinary rates, then, the family shall be allowed family pension at the ordinary rates.

Explanation: For the purpose of this sub – clause, “pension authorized on retirement” includes part of the pension which the retired employee might have commuted before death.

    (b) (i) Where an employee, who is governed by the workmen’s Compensation Act, 1923, (8 of 1923), dies while in service after having rendered not less than seven years continues service, the rate of family pension payable to the family shall be equal to fifty percent of the pay last drawn or one and half times the family pension admissible under sub regulation (1) whichever is less;

      (ii) the family pension so determined under sub clause (1) shall be payable for the period mentioned in clause (a).

(c) after the expiry of the period referred to in clause (a), the family, in receipt of family pension under that clause or clause (b) shall be entitled to family pension at the rate admissible under sub regulation (1).

(4) Notwithstanding anything contained in these regulations where the family of the deceased employee opts for pension in accordance with sub – regulation (5) of regulation 3 or is governed by the provisions contained in sub-regulation (6) or (7) or (8) of regulation 3, such family of the deceased shall be eligible of family pension under these Regulations.

CHAPTER VII      FAMILY PENSION

Regulation No. 40. 

Period of Payment of Family Pension

(1)    The period for which family pension is payable shall be

(a)    in the case of a widow or widower, up to the date of death or remarriage, whichever is earlier;

(b)    in the case of a son or daughter (including widowed /divorced) till he/she attains the age of twenty five years or up to the date of his / her marriage or remarriage, whichever is earlier:

Provided the family pension payable to sons/daughters (including widowed/divorced) shall be discontinued/not admissible when the eligible son / daughter starts earning a sum in excess of `2550/- per month from employment in Government /private sector / self-employment etc.

Provided further that if the son or daughter of an employee is suffering 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 twenty five years, the family pension shall be payable to such son or daughter for life subject to the following conditions, namely:-

(i)  If such son or daughter is one among two or more children of the employee, the family Pension shall be initially payable to the minor children in the order set out in clause (e) of sub –regulation (i) until the last minor child attains the age of twenty five years and thereafter the family pension shall be resumed in favour of the son or daughter suffering from disorder or disability of mind or who is physically crippled or disabled and shall be payable to him or her for life;

(ii) if there are more than one such children suffering from disorder or disability of mind or who are physically crippled or disabled, the family pension shall be paid in the order of their birth and the younger of them will get the family pension only after the elder next above him or her ceases to be eligible; Provided that where the family pension is payable to such twin children it shall be paid the manner set out in clause (f) of sub – regulation (1);

(iii) the family pension shall be paid to such son or daughter through the guardian as if he or she were a minor except in the case of physically crippled son or daughter who has attained the age of majority;

(iv) before allowing the family pension for life to any such son or daughter, the Competent Authority shall satisfy that the handicap is of such a nature as to prevent him or her from earning his her livelihood and the same shall be evidenced by a certificate obtained from a medical officer approved by the bank, setting out as far as possible, the exact mental or physical condition of the child;

(v) the person receiving the family pension as guardian of such son or daughter or such son or daughter not receiving the family pension through a guardian shall produce every three years a certificate from a medical officer approved by the bank to the effect that he or she continues to suffer from disorder or disability of mind or continues to be physically crippled or disabled.

Explanation – The grant of family pension to disabled children beyond the age limit specified in this regulation is subject to the following condition, namely –

     i. a daughter shall become ineligible for family pension under this sub regulation from the date she gets married;

    ii. the family pension payable to such son or daughter shall be stopped if he or she starts earning his or her livelihood. In such cases it shall be the duty of the guardian or son or daughter to furnish a certificate to the bank every month that

(a) he or she has not started earning his or her livelihood;

(b) in case of daughter that she has not yet married;

(c) in the case of parents the family pension shall be discontinued /not admissible if the income of one of the parents or the aggregate income of both the parents from employment in Government / private sector / self – employment etc. exceeds ` 2550/- per month.

(d) if a deceased employee or pensioner leaves behind a widow or widower the family pension shall become payable to the widow or widower, falling which, to the eligible child;

(e) family pension to the children shall be payable in the order of their birth and the younger of them shall not been eligible for family pension unless the elder next above him or her has become ineligible for the grant of family pension:

Provided that where the family pension is payable to twin children it shall be paid in the manner set out in Clause (f) of the sub regulation (1);

(f)  where the family pension is payable to win children it shall be paid to such children in equal shares:

Provided that where one such child ceases to be eligible, his or her share shall revert to the other child and where both of them cease to be eligible, the family pension shall be payable to the next eligible single child or twin children, as the case may be.

2.  where a deceased employee or a pensioner leaves behind more children than one, the eldest eligible child shall be entitled to the family pension for the period mentioned in clauses (b) or (c) or sub-regulation (1), as the case may be, and after the expiry of that period the next child shall become eligible for the grant of family pension.

3. where family pension is granted under this regulation to a minor, it shall be payable to the guardian on behalf on the minor.

4.   in case both wife and husband are employees of the bank and are governed by the provisions of this regulation and one of them dies while in service or after retirement, the family pension in respect of the deceased shall be payable to the surviving husband or wife and in the event of death of the husband or wife, the surviving child or children shall be granted the two family pensions in respect of the deceased parents, subject to the limits specified below, namely –

(a) if the surviving child or children is or are eligible to draw two family Pensions at the rates mentioned in sub-clause (1) of clause (a) and Sub-clause (i) of clause (b) of sub-regulation (3) of regulation 39, the amount of both pensions shall be limited to-

   i.  two thousand five hundred rupees only per mensem in respect of employees who retired or died while in service prior to the 1st day of November,1992 ( in the case of workmen) or prior to 1st day of July,1993 (in the case of officers);

  ii. four thousand eight hundred rupees per mensem only in respect of employees who retired or died on or after the 1st day of November,1992 (in the case of workmen) or on or after 1st day of July,1993 ( in case of officers); and

  iii. Six thousand seven hundred and fifty six rupees per mensem only in respect of employees, both officers and workmen who retired or died on or after 1st day of April,1998.

b) if one of the family pensions ceases to be payable at the rates mentioned in sub-clause (i) of clause (a) or sub-clause (i) of clause (b) of sub-regulation (3) of regulation 39 and in lieu thereof the family pension at the rate mentioned in sub-regulation (1) of regulation 39 becomes payable, the amount of both the pensions shall also be limited to –

          i. two thousand five hundred rupees only per mensem in respect of employees who retired or died while in service prior to the 1st day of November, 1992 (in the case of workmen) or prior to 1st day of July, 1993 (in the case of officers);

        ii. four thousand eight hundred rupees per mensem only in respect of employees who retired or died on or after the 1st day of November, 1992 (in the case of workmen) or on or after 1st day of July, 1993 (in case of officers); and

         iii. six thousand seven hundred and fifty six rupees per mensem only in respect of employees, both officers and workmen who retired or died on or after 1st day of April, 1998.

c) if both the family pensions are payable at the rate mentioned in sub-regulation (1) of regulation 39 amount of the two pensions shall be limited to-

         i. one thousand two hundred and fifty rupees per mensem in the case of employees who retired or died while in service prior to the 1st day of November,1992 (in the case of workmen) or 1st day of July, 1993 (in the case of officers);

      ii. two thousand four hundred rupees per mensem in respect of employees who retired or died on or after the 1st day of November, 1992 ( in the case of workmen) or on or after 1st day of July,1993 (in the case of officers); and

     iii. three thousand three hundred and seventy eight in respect of employees (both officers and workmen) who retired or died on or after 1st day of April,1998.

5.  a. where family pension is payable to more widows than one, the family pension shall be paid to the widows in equal shares;

     b. on the death of a widow, her share of the family pension shall become payable to her eligible child :

Provided that if the widow is not survived by any child, her share of the family pension shall not lapse but shall be payable to the other widows in equal shares, or if there is only one such other widow, in full, to her;

    c. where the deceased employee or pensioner is survived by a widow but has left behind eligible child or children from another wife who is not alive, the eligible child or children shall be entitled to the share of family pension which the mother would have received if she had been alive at the time of the death of the employee or pensioner:

Provided that on the share or shares of family pension payable to such a child or children or to a widow or widows ceasing to be payable, such share or shares shall not lapse, but shall be payable to other widow or widows and /or to other child or children otherwise eligible, in equal shares, or if there is only one widow or child, in full, to such widow or child;

(c a) where the deceased employee or pensioner is survived by a widow but has left behind eligible child or children from a divorced wife or wives such eligible child or children shall be entitled to the share of family pension which the mother would have received at the time of the death of the employee or pensioner had she not been so divorced;

Provided that on the share or shares of family pension payable to such a child or children or to widow ceasing to be payable; such share or shares, shall be not lapse, but shall be payable to the other widow or widows and /or to the other child or children otherwise eligible, in equal shares, or if there is only one widow or child, in full, to such widow or child.

     d. where the family pension is payable to twin children it shall be paid to such children in the manners specified in clause(f) of sub – regulation (1) above

e. except as provided in this sub–regulation the family pension shall not be payable to more than one member of the family at the same time.

6.   where a female employee or male employee dies leaving behind a judicially separated husband or widow and no child or children, the family pension in respect of the decease shall be payable to the person surviving: provided that where in a case the judicial separation is granted on the ground of adultery and the death of the employee takes place during the period of such judicial separation, the family pension shall not be payable to the pension surviving if such person surviving was held guilty of committing adultery.

7. (a) where a female employee or male employee dies leaving behind a judicially separated husband or widow with a child or children, the family pension payable in respect of the deceased shall be payable to the surviving person provided he or she is the guardian of such child or children:

    (b) where the surviving person has ceased to be the guardian of such child or children, such family pensions shall be payable to the person who is actual guardian of such child or children.

(8) If the son or unmarried daughter eligible for the grant of family pension has attained the age of eighteen years, the family pension may be paid to such son or unmarried daughter directly.

(9) (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 instituted against him;

      (b) if on the conclusion of the criminal 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;

         (ii) is acquitted of the charge of murder or abetting in the murder of the employee, the family pension shall be payable to such a person from the date of death of the bank employee;

     (c) the provisions of the sub clauses (a) and (b) shall also apply for the family pension becoming payable on the death of an employee after his retirement.

CHAPTER VIII      COMMUTATION

Regulation No. 41. 

Commutation

1. An employee shall be entitled to commute for a lump sum payment of a fraction not exceeding one third of his pension:

Provided that in respect of an employee who is governed by sub regulation (5) of regulation 3, of these Regulations, the family of such employee shall also be entitled to commute for a lump sum payment of fraction not exceeding one third of the pension admissible to the employee.

2. An employee shall indicate the fraction of pension which he desires to commute and may either indicate the maximum limit of one third pension or such lower limit as he may desires to commute.

3. 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.

4. The lump sum payable to an applicant shall be calculated in accordance with the Table given below: 

Commutation Values for a pension of Rs. One Per annum
Age Next Birthday Commutation value expressed as the number of year’s purchase Age Next Birthday Commutation value expressed as the number of year’s purchase Age Next Birthday Commutation value expressed as the number of year’s purchase
17 19.26 40 15.87 63 9.15
18 19.20 41 15.64 64 8.82
19 19.11 42 15.40 65 8.50
20 19.01 43 15.15 66 8.17
21 18.91 44 14.90 67 7.85
22 18.81 45 14.64 68 7.53
23 18.70 46 14.37 69 7.22
24 18.59 47 14.10 70 6.91
25 18.47 48 13.82 71 6.60
26 18.34 49 13.54 72 6.30
27 18.21 50 13.25 73 6.01
28 18.07 51 12.95 74 5.72
29 17.93 52 12.66 75 5.44
30 17.78 53 12.35 76 5.17
31 17.62 54 12.05 77 4.90
32 17.46 55 11.73 78 4.65
33 17.29 56 11.42 79 4.40
34 17.11 57 11.10 80 4.17
35 16.92 58 10.78 81 3.94
36 16.72 59 10.46 82 3.72
37 16.52 60 10.13 83 3.52
38 16.31 61 9.81 84 3.32
39 16.09 62 9.48 85 3.13

NOTE:

The table above indicates the commuted value of pension expressed as number of year’s purchase with reference to the age of the pensioner as on his next birthday. The commuted value in the case of an employee retiring at the age of fifty eight years is 10.46 years’ purchase and, therefore, if he commutes rupees one hundred from his pension within one year of retirement, the lump sum amount payable to him works out to Rs.100×10.46×12 = Rs.12,552.

5.  An employee who had commuted the admissible portion of pension is entitled to have the commuted portion of the pension restored after the expiry of a period of fifteen years from the date of commutation.

6. An applicant who is authorized a superannuation pension, voluntary retirement pension, premature retirement pension, compulsory retirement pension, invalid pension or compassionate allowance shall be eligible to commute a fraction of his pension under these Regulations:

Provided that on and from 01.07.2003, in case of an applicant in whose case the commuted value of pension becomes payable on the day following the date of his retirement or from the date from which the commutation becomes absolute, the reduction in the amount of pension on account of commutation shall become operative from its inception.

Where, however, payment of commuted value of pension could not be made within the first month after the date of retirement or within the first month after the date when the commutation become absolute, as the case may be, the difference between the normal monthly pension and commuted pension shall be paid for the period between the date on which commutation becomes absolute and the date preceding the date on which commuted value of pension is deemed to have been paid.

7.  In the case of a pensioner eligible for superannuation pension or pension on voluntary retirement or premature retirement pension, no medical examination shall be necessary, if the application for commutation is made within one year from the date of retirement. However, if, such a pensioner applies for commutation of pension after one year from the date of his retirement, the same will be permitted subject to medical examination;

Provided that in the case of an applicant who is in receipt of a provisional pension as in Regulation 46 and for whom pension in whole or part of the finalization of the departmental or judicial proceedings has been authorized, a period of one year referred to in this sub-Regulation shall reckon from the date of issue of the orders consequent upon the finalization of the departmental or judicial proceedings.

8.  An Applicant who –

      (i) retires on invalid pension under regulation 30 of these Regulations; or

     (ii) is in receipt of compassionate allowance under regulation 31 of these Regulation;   or

    (iii) is compulsorily retired by the bank and is eligible for compulsory retirement pension under regulation 33 Shall be eligible to commute a fraction of his pension subject to the limit specified in sub-regulation (1) after he has been declared fit by a medical officer approved by the Bank.

9. The commutation of pension shall be become absolute in the case of an employee-

     a. retiring on superannuation or on voluntary retirement who submits an application for commutation of pension before the date of retirement, on the date following the date of retirement:

Provided that the employee governed by sub-regulation (3) of regulation 29 shall not apply for commutation of a part of his pension before the expiry of the notice of three months and the commutation of pension shall become absolute only on the expiry of the period of notice referred to in sub-regulation (1) of regulation 29;

     b. retiring on superannuation or on voluntary retirement or on premature retirement, if he applied for commutation of pension after the date of retirement but before the completion of one year from the date of retirement, on the date the application for commutation is received by the Competent Authority;

     c. retiring on superannuation or on voluntary retirement or on premature retirement, if he applies for commutation of pension after one year from the date of retirement, on the date of the medical certificate given by medical officer approved by the bank;

     d. who has retired prior to the 1st day of November,1993, and who opts to be governed by these regulation, on the 1st day of November, 1993, where the application of commutation is made within the period specified by clause (b) of sub-regulation(1) of regulation 3;

     e. who was in the service of the bank on or after the 1st day of November,1993, but who retired prior to the publication of these regulations on the day immediately following the date of his retirement, where the application is made within the period specified by clause (b) of sub-regulation (2) of regulation 3;

     f. who retired on or after the 1st day of November ,1993, but died prior to the notified date, on the day immediately following the date of his retirement, where the application for commutation is made by the family of the deceased within the period specified by clause (a) of sub-regulation (5) of regulation 3;

    g. In respect of whom invalid pension under regulation 30 or compassionate allowance under regulation 31 or compulsory retirement pension under regulation 33 is admissible Commutation shall become absolute on the date of the medical certificate given by medical officer approved by Bank.

Note:- Officers in service of the Banks as on 1st November 2012 and who have retired thereafter but before 25th May 2015 and who had opted for commutation of pension will have an option not to claim incremental commutation on revised basic pension.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 42. 

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.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 43. 

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 mensem payable under these Regulations.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 44. 

Conviction by Court

Where a pensioner is convicted of a serious crime by Court of Law, action shall be taken in the light of the judgement of the court relating to such conviction.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 45. 

Pensioner guilty of grave misconduct

In a case not falling under regulation 44, if the Competent Authority considers that the pensioner is prima facie guilty grave misconduct it shall, before passing an order, follow the procedure specified in Union Bank of India Officer Employees’ (Discipline & Appeal) Regulations, 1976 or in Settlement, as the case may be.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 46.

Provisional Pension

(1)    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 finally sanctioned is less than the provisional pension or the pension is reduced or withheld, etc., either permanently or for a specified period.

(2)    In such cases the gratuity shall not be paid such an 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.

Explanation – In this chapter –

(a) The expression ‘serious crime’ includes a crime involving an offence under the official Secrets Act, 1923 (19 of 1923);

(b) the expression ‘grave misconduct’ includes the communication or disclosure of any secret official code or password or any sketch, plan, model, article, note, document or information, such as is mentioned in section 5 of the Official Secrets Act, 1923 (19 of 1923) which was obtained while holding office in the bank so as to prejudicially affect the interest of the general public or the security of the State;

(c) the expression ‘fraudulently’ shall have the meaning assigned to it under section 25 of the Indian Penal Code, 1860 (45 of 1860);

(d) the expression ‘criminal breach of trust’ shall have the meaning assigned to it under section 405 of the Indian Penal Code, 1860 ( 45 of 1860).

(e) the expression ‘forgery’ shall have the meaning assigned to it under section 463 of the Indian Penal Code, 1860 ( 45 of 1860).

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 47.

Commutation of Pension during departmental or judicial proceedings

An employee against whom departmental 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, authorized under these Regulations during the pendency of such proceedings.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 48.

Recovery of pecuniary loss caused to the Bank

(1) The Competent Authority may withhold or withdraw a pension or a part thereof, 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 of grave misconduct or negligence or criminal breach of trust or forgery or for acts done fraudulently during the period of his service:

Provided that the Board shall be consulted before any final orders are passed:

Provided further that departmental proceedings, if instituted while the employee was in service, shall after the retirement of 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.

(2) No departmental proceedings, if not instituted while the employee was in service, shall be in instituted in respect of an event which took place more than four years before such institution:

Provided that the disciplinary proceedings so instituted shall be in accordance with the procedure applicable to disciplinary proceedings in relation to the employee during the period of his service.

(3) where the Competent Authority orders recovery of pecuniary loss from the pension, the recovery shall not ordinarily be made at a rate exceeding one third of the pension admissible on the date of retirement of the employee:

Provided that where a part of pension is withheld or withdrawn, the amount of pension drawn by a pensioner shall not be less than the minimum pension payable under these Regulations.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 49.

Recovery of Bank’s dues

The bank shall be entitled to recover the dues to the Bank on account of housing loans, advances, license fees, other recoveries and recoveries due to staff co-operative credit society from the commutation value of the pension or the pension or the family pension.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 50.

Commercial employment after retirement

(1) If a pensioner who immediately before his retirement was holding the post of an officer and wishes to accept any commercial employment before the expiry of one years from the date of his retirement, he shall obtain the previous sanction of the Bank to such acceptance.

(2) Subject to the provision of sub-regulation (3), the Bank may, by order in writing, on the application by a pensioner, grant, subject to such conditions, if any, as it may deem necessary, permission, or refuse for reasons to be recorded in the order, permission to such pensioner to take up the commercial employment specified in the application.

(3) In granting or refusing permission under sub-regulation (2) to a pensioner for taking up any commercial employment, the bank shall have regard to the following factors, namely:

     (a) the nature of the employment proposed to be taken up and the antecedents of the employer;

     (b) whether his duties in the employment which he proposes to take up might be such as to bring him into conflict with the Bank;

    (c) Whether the pensioner while in service had any such dealing with the employer under whom he proposes to seek employment as it might afford a reasonable basis for the suspicion that such pensioner had shown favors to such an employer.

    (d) Whether the duties of the commercial employment proposed involve liaison or contract work with Bank. 

    (e) whether his commercial duties will be such that his previous official position or knowledge or experience under bank could be used to give the proposed employer an unfair advantage;

     (f) the emoluments offered by the proposed employer;  and

     (g) any other relevant factor.

(4) Where within a period of sixty days of the date of receipt of an application under sub-regulation (3) the bank does not refuse to grant the permission applied for or does not communicate the refusal to the applicant, the bank shall be deemed to have granted the permission applied for:

Provided that, in any case, where defective or insufficient information if furnished by the applicant and it becomes necessary for the Bank to seek further clarifications or information from him, the period of sixty days shall be counted from the date on which the defects have been removed or complete information has been furnished by the applicant.

(5) Where the bank grants the permission applied for subject to any conditions or refuses such permission, the applicant may, within thirty days of receipt of the order of the Bank to that effect, make a representation against any such conditions or refusal and the bank may make such orders thereon as a deems fit:

Provided that no order other than an order cancelling such condition or granting such permission without any condition shall be made under this sub-regulation without giving the pensioner making the representation an opportunity to show cause against the order proposed to be made.

(6) If any pensioner takes up any commercial employment at any time before the expiry of one years from the date of his retirement without the prior permission of the Bank or commits a breach of any condition subject to such permission to take up any commercial employment has been granted to him under this regulation, 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 the whole or such part of the pension and for such periods as may be specified in the order:

Provided that no such order shall be made without giving the pensioner concerned an opportunity to show cause against such declaration:

Provided further that in making any order under this sub-regulation, the bank shall have regard to the following factors, namely:

i)  the financial circumstances of the pensioner concerned;

ii) the nature of, and the emoluments from, the commercial employment taken up by the pensioner concerned; and

iii)  any other relevant factor.

(7) Every order passed by the bank under this regulation shall be communicated to the pensioner concerned.

(8) In this regulation, the expression “commercial employment” means –

 (i) an employment in any capacity including that of an agent under a company (including a banking company), cooperative society, firm or individual engaged in trading, commercial, industrial, financial or professional business and includes also a directorship of such company (including a banking company) and partnership of such firm, but does not include employment in under a body corporate, wholly or substantially owned or controlled by the Central Government or a State Government ;

(ii) setting up practice, either independently or as a partner of a firm, as adviser or consultant in matters in respect of which the pensioner –

  a. has no professional qualifications and the matters in respect of which the practice is to be set up or is carried on are relatable to his official knowledge or experience,                 or

  b. has professional qualifications but the matters in respect of which such practice is to be set up are such as are likely to give his clients an unfair advantage by reason of his previous official position,        or

  c. has to undertake work involving liaison or contact with the offices or officers of the bank.

Explanation – For the purpose of this clause, the expression “employment under a Co-operative society” includes the holding of any office, whether elective or otherwise such as that of President, Chairman, Manager, Secretary, Treasurer, and the like, by whatever name called in such society. 

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 51.

Nomination

(1) The trust shall allow every employee governed by these Regulations to make a nomination conferring on one or more persons the right to receive the amount of pensionary benefits under these Regulations in the event of his death before that amount becomes payable, or having become payable , has not been paid. Such nomination shall be made in such form as may be specified by the Bank from time to time.

(2) If any employee nominates more than one person under sub-regulation (1),he shall, in his nomination, specify the amount or share payable to each of the nominees in such a manner as to cover the whole of the amount of the pensionary benefits that may be payable in the event of his death.

(3) A nomination made by an employee may at any time, be modified or revoked by him after giving a written notice to the trust of his intention of doing so in such form as the bank may from time to time specify.

(4) A nomination or its revocation or its modification shall take effect to the extent it is valid on the date on which it is received by the trust. 

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 52.

Date from which pension becomes payable

(1) Except in the case of an employee to whom the provisions of regulation 43 and regulation 46 apply, a pension other than family pension shall become payable from the date following the date on which the employee retires.

(2) Family Pension shall become payable from the date following the date of death of the employee or the pensioner.

(3) Pension including family pension shall be payable for the day on which its recipient dies.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 53.

Currency in which pension is payable

All pension admissible under these Regulations shall be payable in rupees in India only.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 54.

Manner of payment of pension

A pension fixed at a monthly rate shall be payable monthly on or after the first day of the following month.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 55.

Power to issue instructions

The Chairman and Managing Director of the Bank may from time to time issue instructions as may be considered necessary or expedient for the implementation of these Regulations.

CHAPTER IX      GENERAL CONDITIONS

Regulation No. 56.

Residuary provisions

In case of doubt, in the matter of application of these Regulations, regard may be had to the corresponding provisions of Central Civil Service Rules, 1972 or Central Civil Services (commutation of pension) Rules, 1981 applicable for Central Government employees with such exceptions and modifications as the Bank, with the previous sanction of the Central Government, may from time to time, determine.

 ***************************

 

Appendix – I

(See Regulation 35)

1. The formula for updating basic pension and additional pension in respect of employee s who retired during the period 1.1.1986 to 31.10.1987 shall be as under:-

(1) A.

(a) 50 per cent of first Rs.1000 of the average emoluments                          Rs. __________

reckonable for pension.

(b) 45 per cent. Of next Rs.500                                                                      Rs. __________

(c) 40 per cent of the average emoluments reckonable                                 Rs. __________

for pension exceeding Rs.1500

Total of (a +b+ c)                                                                                             Rs.__________ (A)

B. 50 per cent. Of the average monthly Emoluments for

 the last 10 months in Service prior to retirement                                           Rs.__________ (B)

C. Dearness Relief at index number 600 In the All India Average                  Rs.__________ (C)

Consumer Price Index for Industrial Workers in the series 1960= 100,

on basic pension calculated at (A) above, as per Table given below.

D. Total basic pension

= (B) +(C) X Number of years of qualifying service (Maximum 33 years) / 33 Rs.__________ (D)

E. Basic pension as on 1.11.1993 (Rounded Off to the next higher rupee)     Rs.__________ (E)

(2) Special allowances to the extent of the amount ranking for making contributions to the Provident Fund in terms of the Bipartite  Settlement dated 10th April, 1989 or Officers’ Service Regulation, as the case may be, corresponding to the special allowances drawn at the time of retirement shall be reckoned for the purpose of additional pension.

TABLE

Rates of dearness relief worked out at index number 600 in the All India Average Consumer Price Index for Industrial Workers in the series 1960 = 100 for all classes of employees who retired during the period 1.1.1986 to 31.10.1987:

(a) Employees in subordinate Staff Cadre           80.40 percent of pension calculated at A above

 

(b) Employees in clerical staff cadre drawing       67 per cent of pension calculated at A above

     pension upto Rs.756/- per month.

(c) Employees in clerical staff cadre drawing pension of Rs.757/- per month and above will be eligible for dearness relief as under:-

Amount of basic pension Drawn per month Rs.              The amount of dearness relief admissible Rs.

                          757 – 796                                                             508.00

                          797 – 804                                                             534.00

                          805 – 824                                                             540.00

                          825 – 844                                                             553.00

                          845 – 864                                                             567.00

                          865 – 884                                                             580.00

                          885 – 904                                                             593.00

                          905 – 924                                                             607.00

                          925 – 944                                                             620.00

                          945 – 964                                                             634.00

                          965 – 984                                                             647.00

                          985 – 1004                                                           660.00

                        1005 – 1024                                                           674.00

                        1025 – 1044                                                           687.00

                        1045 – 1064                                                           701.00

                        1065 – 1084                                                           714.00

                        1085 & above                                                         727.00

(d) Employees in officer cadre shall be eligible for dearness relief as under:

(i) For those drawing basic amount                 66 per cent of the pension calculated as at A pension upto Rs.765/- per month                          above, subject to a maximum of Rs.500.

(ii) For those drawing basic pension from             Rs.500/-

 Rs.766/- to Rs.1165/- per month;

(iii) For those drawing basic pension of                42.90 per cent of amount of  amount of pension

 Rs.1166/- per month or above;                            calculated as at A above, subject to a max. of

                                                                              Rs.715/-

2. The formula for updating basic pension in respect of workmen who have retired on or after the 1st day of November, 1992 but before the 1st day of September, 1993 and in respect of officers who have retired on or after the 1st day of July, 1993 but before the 1st of May, 1994 shall be as under:

(1) Total of pay drawn as per the old scales for the month/s during             Rs.____________

 the last 10 months of qualifying service.

(2) Total of dearness allowance actually drawn or  dearness allowance      Rs.____________

 at 1148 points, whichever is less, for each month of pay calculated

 as (1) above

(3) Total of pay drawn as per (1) above plus total of dearness allowance    Rs.____________

 drawn as per (2) above

(4) Total of pay drawn as per revised scales of pay for the month/s during  Rs.____________

 the last 10 months of qualifying service including the month in

 which the employee retired.

(5) Total of columns (3) and (4)                                                                     Rs.____________

(6) Average emoluments for the purpose of pension i.e. Total as per          Rs._____________

 (5) above / 10

(7) Updating basic pension 50% of (6) above X Number of years                Rs.____________

 of qualifying service (Max. 33 years) / 33

(8) Basic Pension (Rounded off to next higher rupee)                                  Rs.____________

3. In respect of workmen who have retired on or after the 1st day of November, 1992 but before the 1st day of November , 1994 and in respect of officers who have retired on or after the 1st day of July, 1993 but before the 1st day of November, 1994 the amount of special allowances in terms of Bipartite Settlement dated 14th February, 1995 or the Officers’ Service Regulations, as the case may be, corresponding to the special allowances actually drawn at the time of retirement shall be reckoned for the purpose of computation of additional pension w.e.f. 1st November, 1994:

Provided that for the period from 1st day of November, 1992 or from the date of retirement, whichever is later, till the 31st day of October, 1994 the amount ranking for provident fund at pre-revised rates shall be reckoned for the purpose of computation of additional pension.

4. In respect of employees who have retired on or after the 1st day of November, 1994 and have drawn special allowance both at the pre-revised and revised rates during the last 10 months of service before retirement, the amount of special allowance in terms of the Bipartite Settlement dated 14th February, 1995 or the Officers’ Service Regulations, as the case may be, corresponding to the pre-revised special allowance actually drawn at the time of retirement shall be reckoned for the purpose of computation of additional pension.

Note:

The amount of revised special allowance drawn on or after the 1st day of November, 1994 shall be reckoned for computation of basic pension.

5. In respect of subordinate staff who have retired on or after the 1st day of November, 1992 and have drawn pre-revised special allowance as also those who have retired on or after the 1st day of November, 1994 and have drawn special allowance both at the pre-revised and revised rates during the last ten months of service before retirement, the amount of special allowance actually drawn at the pre-revised rates shall be reckoned for the purpose of computation of basic pension and shall draw dearness relief at the rates for every rise or fall of 4 points over 600 points in the quarterly average of the All India Consumer Price Index for Industrial Workers in the series 1960=100.

 

 

Appendix II

(See Regulation 37)

Dearness relief on basic pension shall be as under:-

(1) In the case of employees who were in the workmen cadre and who retired on or after 1st day of January, 1986 before the 1st day of November, 1992; and in the case of employees who were in the officers’ cadre and who retired on or after 1st day of January, 1986 but before the 1st day of July, 1993 dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 600 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:-

Scale of basic pension Per month (1)     The rates of dearness relief as apercentage of basic pension (2) (i) Upto Rs. 1250                                 0.67 per cent

(ii) Rs. 1251 to Rs. 2000                     0.67 per cent of Rs. 1250 plus 0.55 per cent of basic

                                                            pension in excess of Rs. 1250.

(iii) Rs. 2001 to Rs. 2130                    0.67 per cent of Rs.1250 plus 0.55 per cent of the

                                                           difference between Rs.2000 and Rs.1250 plus 0.33

                                                           percent of basic pension in excess of Rs.2000.

(iv) Above Rs.2130                            0.67 per cent of Rs.1250 plus 0.55 per cent of the

                                                          difference between Rs.2000 and Rs.1250 plus 0.33 per   

                                                          cent of the difference between Rs.2130 and Rs.2000 plus

                                                          0.17 per Cent of basic pension in excess of Rs.2130.

(2) In the case of employees who are in workmen cadre and who retire on or after 1st day of November, 1992; and in the case of employees who are in the officers cadre and who retire on or after 1st day of July, 1993 dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1148 points in the quarterly average of All India Average Consumers Price Index for Industrial Workers in the series 1960=100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:-

Scale of basic pension Per month (1)     The rates of dearness relief as apercentage of basic pension (2) (i) Upto Rs. 2400                                 0.35 per cent

(ii) Rs.2401 to Rs.3850                       0.35 per cent of Rs.2400 plus 0.29 per cent of basic

                                                            pension in excess of Rs.2400.

(iii) Rs.3851 to Rs.4100                      0.35 per cent of Rs.2400 plus 0.29 per cent of the

                                                            difference between Rs.3850 and Rs.2400 plus 0.17 per

                                                            cent of basic pension in excess of Rs.3850.

(iv) Above Rs.4100                             0.35 per cent of Rs.2400 plus 0.29 per cent of the

                                                            difference between Rs.3850 and Rs.2400 plus 0.17 per

                                                            cent of the Difference between Rs.4100 and Rs.3850 plus

                                                            0.09 per cent of basic pension in excess of Rs.4100.

3. In the case of employees who retire on or after the 1st day of April, 1998 dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1616 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:-

Scale of basic pension Per month (1)     The rates of dearness relief as apercentage of basic pension (2) (i) Upto Rs.3380                                0.25 per cent

(ii) Rs.3381 to Rs.5420                     0.25 per cent of Rs.3380 plus 0.21 per cent basic pension

                                                          in excess of Rs.3380.

(iii) Rs.5421 to Rs.5770                    0.25 per cent of Rs.3380 plus 0.21 per cent of the difference

                                                          between Rs.5420 and Rs.3380 plus 0.12 percent of basic

                                                          pension in excess of Rs.5420.

(iv) Above Rs.5770                           0.25 per cent of Rs.3380 plus 0.21 per cent of the difference

                                                          between Rs.5420 and Rs.3380 plus 0.12 per cent of the

                                                          difference between Rs.5770 & Rs.5420 plus 0.06 per cent

                                                          of basic pension in excess of Rs.5770.

4. Further to Clause 2 (b) of Joint Note signed on 2nd June 2005, it is agreed between the parties as under:

(i) On and from 01.05.2005, in case of officers who retired during the period 01.04.1998 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 the All India Average Consumer price Index for Industrial Workers in the series 1960 = 100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:

Scale of basic pension Per month (1)     The rates of dearness relief as apercentage of basic pension (2) (i) Upto Rs.3550                                 0.24 per cent

(ii) Rs.3551 to Rs.5650                      0.24 per cent of pension exceeding Rs.3550 plus 0.20 per

                                                           cent of the basic pension in excess of Rs.3550.

(iii) Rs.5651 to Rs.6010                     0.24 per cent of Rs.3550 plus 0.20 per cent of the

                                                          difference between Rs.5650 and Rs.3550 plus 0.12 percent

                                                          of basic pension in excess of Rs.5650.

(iv) Above Rs.6010                           0.24 per cent of Rs.3550 plus 0.20 per cent of the difference

                                                          between Rs.5650 and Rs.3550 plus 0.12 per cent of the

                                                          difference between Rs.6010 & Rs.5650 plus 0.06 per cent

                                                          of basic pension in excess of Rs.6010.

(ii) In respect of retirees for the period 01.11.2002 to 30.04.2005 for whom pension has been revised w.e.f. 01.05.2005 based on definition of pay in terms of Clause 6 (2) of the Joint Note dated 2nd June 2005, dearness relief shall be payable w.e.f. 01.05.2005 for every rise or be recoverable for every fall as the case may be of every four points over 2288 points in the quarterly average of the All India Average Consumer price Index for Industrial Workers in the series 1960 = 100 @ 0.18% of the basic pension.

(iii) In respect of officers who retire on or after 01.05.2005, dearness relief shall be payable w.e.f. 01.05.2005 for every rise or be recoverable for every fall as the case may be of every four points over 2288 points in the quarterly average of the All India Average Consumer price Index for Industrial Workers in the series 1960 = 100 @ 0.18% of the basic pension.

(iv) In respect of officers who retired or died while in service on or after 01.05.2005, dearness relief shall be payable at 0.18% of the basic pension or family pension or invalid pension or compassionate allowance as the case may be. Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Consumer price Index for Industrial Workers in the series 1960 = 100.

Note: The Dearness Relief as above shall be payable for the half year commencing from the 1st day of February and ending with 31st July on the quarterly average of index figures published for the months October, November and December of the previous year and for the half year commencing from 1st day of August and ending with the 31st day of January on the quarterly average of index figures published for the months of April, May and June of the same year.

5. In the case of employees who retire on or after the 1st November 2012, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 4440 points in the monthly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100 at the rate of 0.10% per slab on the basic pension.

6. Dearness relief shall be payable for the half year commencing from the 1st day of February and ending with 31st 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 from 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.

7. In the case of family pension, invalid pension and compassionate allowance, dearness relief shall be payable in accordance with the rates mentioned above.

8. Dearness relief will be allowed on full basic pension even after commutation.

9. Dearness relief is not payable on additional pension.

10. Pensioner whose basic pension is less than minimum pension but the aggregate of basic pension and additional pension is more than the minimum pension shall draw dearness relief as applicable to minimum pension.

 

Appendix III

(See Regulation 39)

The ordinary rates of family pension shall be as under:-

(a) In respect of employees other than part-time employees, where the employee was in the workmen cadre and retired before 1.11.1992 or where the employee was in the officers’ cadre and retired before 1.7.1993.

Scale of pay per month (1)           Amount of monthly family pension (2)

   Upto Rs.1500                      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.375 per month.

Rs.1501 to Rs.3000                20 per cent. 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 dearness allowance shall be the additional family pension. The aggregate of basic and additional family pension shall not be less than Rs.450 per month.

Above Rs.3000                      15 percent of the ‘Pay’ shall be the basic family pension plus 15 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.600 per month and not more than Rs.1250 per month.

(b) In respect of employee other than part-time employees, where the employee was in the workmen cadre and retired on or after 1.11.1992 or where the employee was in the officers’ cadre and retire on or after 1.7.1993.

Scale of pay per month (1)           Amount of monthly family pension (2)

Upto Rs.2870                           30 per cent of the ‘Pay’ shall be the basic family pension plus 30 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 be subject to a minimum of Rs.720 per month.

Rs.2871 to Rs.5740               20 per cent 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 be subject to a minimum of Rs.860 per month.

Above Rs.5740                    15 per cent of the ‘Pay’ shall be the basic family pension plus 15 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 be subject to a minimum of Rs.1150 per month and a maximum of Rs.2400 per month.

(c) In respect of employees (both officers’ and workmen) other than part-time employees retiring on or after 1.4.1998:-

Scale of pay per month (1)           Amount of monthly family pension (2)

Upto Rs.4040                         30 per cent of ‘Pay’ shall be the basic family pension plus 30 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.1015 per month.

Rs.4040 to Rs.8080                    20 per cent 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.1212 per month.

Above Rs.8080                        15 per cent of the ‘Pay’ shall be the basic family pension plus 15 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.1616 per month and more than Rs.3378 per month.

(d) In respect of employees (both officers’ and workmen) other than part-time employees who retire / retired from service on or after 01.11.2015 the ordinary rate of pension shall be as under:-

Scale of pay per month (1)           Amount of monthly family pension (2)

Upto Rs.11000                     30 per cent of ‘Pay’ subject to a minimum of Rs.2785 per month.

Rs.11101 to Rs.22200         20 per cent of the ‘Pay’ subject to a minimum of Rs.3422 per month.

Above Rs. 22200               15 per cent of the ‘Pay’ subject to a minimum of Rs.4448 per month and maximum of Rs.9284 per month.

Notes:

(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’ as defined in sub-clause(s) of regulation 2 and “allowances” as defined in the explanation to sub-regulation (3) of regulation 35.

(3) In the case of part-time employee, the minimum amount of family pension and maximum amount of family pension shall be in proportion to the rate of scale wages drawn by the employee.

(4) In case the aggregate of basic family pension and additional family pension falls short of minimum pension the pensioner may be given minimum family pension and dearness relief may be paid on such minimum family pension. However, no additional family shall be payable over and above the minimum family pension.

 

Appendix – IV

(See Regulation 27)

—————————————————————————————–

Actual service on scale wages rendered   Length of corresponding qualifying service

on permanent part-time basis in one         for each year of service render permanent

week (1)                                                         part-time basis for calculating the amount

                                                                       of pension. (2)

—————————————————————————————–

Six hours or more but upto 13 hours                     one third of a year

more than 13 hours upto 19 hours                        one half of a year

more than 19 hours but upto 29 hours                  three fourth of a year

more than 29 hours                                               one year

 

Appendix V

(See Regulation 39)

The formula for computing basic family pension and additional family pension in respect of employees who were in the service of the Bank on or after the 1st day of January, 1986 and had died while in service on or before the 31st day of October, 1987 or had retired on or before the 31st day of October, 1987 but died shall be as under:-

(1) Basic Family Pension

(A) Pay drawn by the deceased employee at the time of                               Rs.___________

death / retirement

(B) Basic family pension at the ordinary rate as per Table                             Rs.____________

given below

(C) Dearness Relief at index 600 in the All India Average Consumer           Rs.____________

 Price Index for Industrial Workers in the Series 1960 = 100 as per

Table I given In Appendix –II on basic family Pension Calculated at

 (B) above.

(D) Updated basic family pension i.e. (B) + (C)                                             Rs._____________

(E) Updated basic family pension as per (D) above                                      Rs._____________

(rounded off to next higher rupee).

(F) Basic family pension at one and half times or twice the updated            Rs._____________

 basic family pension as the case may be of (D) above (rounded

off to next higher rupee)

(2) Additional Family Pension

Special allowance to the extent of the amount ranking for making contributions to the Provident Fund in terms of the Bipartite Settlement dated 10.4.1989 / Officers’ Service Regulations  corresponding to the special allowance drawn before retirement / death shall be reckoned for the purpose of additional family pension.

Notes: –

1. Dearness relief is not payable on additional family pension.

2. In case the aggregate of updated basic family pension and updated additional family pension falls short of Rs.375/-, the pensioner may be paid Rs.375/- with dearness relief thereon in which case no updated additional family pension shall be payable.

TABLE

Pay Range         ________________________                         Amount of family Pension

Below Rs.664/-          30 percent of ‘Pay’ shall be the basic family Pension plus 30 per cent. of the allowances which Counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension with a minimum of Rs.100/- and maximum of Rs.166/-.

Rs.664/- and above    15 per cent of ‘Pay’ shall be the basic

but below Rs.1,992/- family pension plus 15 per cent of the allowances, which counted for making contributions to Provident Fund but not for dearness allowance, shall be the additional family pension with a  minimum of Rs.166/- and maximum of Rs.266/-.

Rs.1992/- and above  12 per cent of ‘pay’ shall be the basic family Pension plus 12 per cent of the allowances which counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension with a minimum of Rs.266/- and maximum of Rs.415/-.

*****************************

Amendments to Union Bank of India (Employees’) Pension Regulations, 1995

Staff Circular No. 5779 dated 15.09.2011

Staff Circular No. 6098 dated 30.05.2014

 

 

 

Other Important Information towards Staff Pension:

SB / CD Account of Pensioner operated jointly (Staff Circular No. 5285 dated 07.07.2006)

It has now been permitted credit of Pension to a joint account operated by the Pensioner with his / her spouse in whose favour an authorization for family pension exists in the Pension Payment Order (P.P.O.). The joint account of the pensioner with the spouse could be opened either by “Former or Survivor” or “Either or Survivor” basis subject to the following terms & conditions:

1. Once pension has been credited to a pensioner’s bank account, the liability of the Government / Bank ceases. No further liability arises, even if the spouse wrongly draws the amount.

2. As a pensioner is payable only during the life of a pensioner, his / her death shall be intimated to the bank at the earliest and in any case within one month of the demise, so that the bank does not continue crediting monthly pension to the joint account with the spouse, after the death of pensioner. If, however, any amount has been wrongly credited to the joint account, it shall be recoverable from the joint account and / or any other account held by the pensioner / spouse either individually or jointly. The legal heirs, successors, executors etc. shall also be liable to refund any amount, which has been wrongly credited to the joint account.

3. Payment of arrears of Pension (Nomination) Rules 1983 would continue to be applicable to a joint account with the pensioner’s spouse. This implies that if there is an ‘accepted nomination’ in accordance with these rules, arrears mentioned in the Rules shall be payable to the nominee.

Family Pension to post-retiral spouse (Staff Circular No. 5445 dated 03.11.2007)

Definition of family for payment of family pension:

1. The Family Pension in respect of the retiree is payable to his post-retiral spouse and on the death of the post-retiral spouse the family pension would become payable to the children born out of wedlock between the retired employee and the spouse, in order of their birth.

2. Even during the life time of the surviving post-retiral spouse, child / children, if any from the retirees earlier marriage is / are entitled to receive family pension in equal shares along with the surviving spouse.

The Banking Division has now clarified that the definition of family in relation to a Bank Employee includes post retiral spouse, however the children of the post retiral spouse from his / her earlier marriage are not entitled to the family pension of the retired employee of the Bank.

Centralized Payment of Pension to retires staff and Pension payment Branch to take care of Deduction of Tax, Life Certificate / Remarriage Certificate, Recovery of Pension (Staff Circular No. 6113 dated 18.07.2014)

 

 

AT A GLANCE OVERVIEW OF UNION BANK OF INDIA (EMPLOYEES’) PENSION REGULATIONS, 1995 & CALCULATION FORMULA

Salient Features

  • Union Bank of India (Employees’) Pension Regulations was adopted by the Board in September, 1995.
  • Pension is voluntary to employees joined the bank before 29.09.1995 and compulsory to those employees who joined from 29.09.1995 to 31.03.2010. Employees who joined from 01.04.2010 are coming under NPS (National Pension Scheme).
  • Pension is the 3rd Terminal Benefit in lieu of Bank’s contribution to PF along with PF (own contribution) and Gratuity.
  • Average of Basic Pay, PQP, SP. Pay, FPP (Basic portion) and officiating allowance (if any) as per rules, for the last 10 months are taken in to account while calculating pension.

Classes of Pension

  • Superannuation Pension (SAP)
  • Voluntary Retirement Pension (VRP)
  • Compulsory Retirement Pension (CRP)
  • Invalid Pension (IP)
  • Premature Retirement Pension (PRP)
  • Superannuation pension shall be granted to an employee who has retired on his / her attaining the age of superannuation i.e. 60 years.
  • Minimum of 20 years of qualifying service is required for opting for VRS under Pension Regulation 1995
  • Additional maximum 5 years of notional service is added in case of VRS. However, the total qualifying service rendered by an employee should not in any case exceed 33 years’ service in the Bank.
  • Full pension is granted to employees who retired under Superannuation and have put in 33 years of qualifying service.
  • The employees retiring on superannuation with service of less than 33 years are paid pension on pro-rata basis.
  • Resignation or dismissal or removal or termination of an employee from the service shall entail forfeiture of his entire past service and consequently shall not qualify for pensionary benefits.
  • Compulsory Retirement Pension An employee compulsorily retired from service as a penalty is eligible for Pension. An employee retired compulsorily can commute a fraction of his/her pension after he/she has been declared fit by a medical officer approved by the Bank.
  • In case of invalid pension minimum 10 years of qualifying service is required, subject to undergoing medical check up to prove incapacitation.
  • Premature Retirement Pension:- Granted to an employee who has rendered minimum 10 years of service. Retires on account of orders of the Bank.
  • Ex-Servicemen re-employed in the Bank are entitled for dual pension. For their calculation of pension from Bank the qualifying service put in by them in the Bank alone will be taken in to account. Their family is also eligible for dual family pension w.e.f.24.09.2012.

COMMUTATION

  • Employees shall be entitled to commute for a lump sum payment of a fraction not exceeding 1/3rd of Basic pension.
  • Commutation is payable as per the table e.g. commutation value in the case of employee retiring on attaining age of superannuation (60 years at present) as per the table is 9.81.
  • Commutation is restored after 15 years
  • Medical check-up is compulsory if the employee opts for commutation after one year from the date of retirement / VRS. Medical check-up is mandatory in case of compulsorily retired employees.

FAMILY PENSION

  • Family Pension is paid to the dependent of the employee / Pensioner.
  • Family Pension is 15% to 30% of the last basic pay drawn by the employee/pensioner as per various Bipartite settlements / salary revisions, subject to the limit of minimum and maximum family pension as per pension regulation.
  • Enhanced family pension is double the normal family pension. The same is paid up to 7 years from the date of death of employee / pensioner or 65 years of age of the employee / pensioner, who expired, whichever is earlier.
  • In case of children, family pension is paid up to the age of 25 years or employment or marriage (in case of female children) whichever is earlier.
  • Differently abled children are entitled for lifelong family pension provided they are not gainfully employed.
  • In case of widow or widower upto the date of death or remarriage.

COMMERCIAL EMPLOYMENT AFTER RETIREMENT

  • If a pensioner who immediately before his retirement was holding the post of an officer is required to obtain prior sanction from the bank to accept commercial employment before the expiry of one year from the date of his retirement.

Case Study

AGE AT JOINING: 29 YEARS.

Case A): 40 years. Case b): 55 years. Case C): 60 years.

CASE A)

Not eligible for Pension, since less than 12 years of service in the bank.

CASE B)

Average pensionable pay i.e. Basic + FPP + PQA + Other allowances eligible for PF x no. of years of service + additional service (Max 5 years) if not completed 33 years of actual service, provided still having left over service of 5 years or more) / 2 x 33.

  • Basic Pension is = 30000+600+750 x (26 + 5) / 2 * 33 =14725.
  • Commuted portion = 14725/3 = 4908.
  • Reduced Basic Pension = 14725 – 4908 = 9817.
  • Commutation amount: 4908 x 12 x commutation factor i.e. 11.42 as per calculation table ( since already he had completed 55 years of age, hence the factor of next birthday i.e. 56 year has been taken) = 672592. Commuted portion of the pension will be automatically restored after 15 years from the date of commutation. No need to send any representation.
  • Important Point: if the commutation is done within 1 year from the date of retirement, then the pension can be commuted without Medical certificate. Otherwise, pensioner has to undergo medical examination by Bank’s Doctor at concerned RO and the age will be taken for commutation factor as per enclosed table, and as per the Bank’s approved medical officer’s certificate.

CASE C)

(30000+600+750) x 33 / 2 * 33 = 15675 i.e. Basic Pension is 50% of pensionable pay.

  • Though he had completed 36 years of service, the maximum service to be considered for pension will be 33 years only.
  • Commuted portion: 15675 / 3 = 5225. Commutation amount: 5225 x 12 x 9.81= 615087.
  • Another example, say one’s age is 53 years & completed 30 years of service, then the pension & commutation will be as under Basic Pension : (30000+600+750) X (30 + 3 ) / 2 * 33 = 15675. Commutation amount = 5225 x 12 x 12.05 = 755535.
  • The commutation amount is more in this case as compared to case “C” since the age is less, eligible for full pension and the survival chances are more, hence the commutation amount is more.

In the case of Family Pension — If an Employee / Pensioner died after 01/11/2012 drawing basic salary of Rs.30000, Total of other allowances Rs.1350/- Total eligible amount for calculation of pension is Rs.31350/-

Normal family pension = 31350 * 15 / 100 = Rs.4703/- + DA
Enhanced family pension = 4703 * 2 = 9406/- + DA
Enhanced family pension is up to 7 years from the death of employee/pensioner or up to the age of 65 of employee/pensioner whichever is early. After that it will be converted to normal family pension i.e. Rs.4703/- + DA.