Changes in Pension : Key Takeaways from the Central Bank of India Pension Amendments Regulations 2024

Some changes in Pensions are notified vide Central Bank of India Pension Amendments Regulations 2024 Dated 28.7.2024

Central Bank of India Pension Amendments Regulations 2024 – Changes in Pension

• Special allowance Excluded
• Removal of a part time employee also qualify for pensionary benefits
• Family pension payable to son or daughter shall be discontinued when the eligible son or daughter starts earning from any employment a sum in excess of Rs.12000 per month
• Family pension shall be discontinued if the income of one of the parents or the aggregate income of both the parents from employment in Government or Private sector or self-employment, exceeds Rs.12000/- per month;

CENTRAL BANK OF INDIA
(Human Resources Department)

NOTIFICATION

Mumbai, the 28th June, 2024

No. 290(E).—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 Central 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 further to amend the Central Bank of India (Employees’) Pension Regulations, 1995, namely:—

1. Short title and commencement-

• (1) These regulations may be called the Central Bank of India (Employees’) Pension (Amendment) Regulations, 2024.
• (2)They shall come into force on the date of their publication in the Official Gazette

2. In the Central Bank of India (Employees’) Pension Regulations, 1995 (hereinafter referred to as the said regulations), in regulation 2, in clause (s), in sub-clause (d), the following provisos shall be inserted, namely: –

“Provided further that special allowance introduced with effect from the 1st day of November, 2012 shall be excluded:

Provided further that an employee who was in the services of the Bank as on the 1st November, 2017 and whose stagnation increments have been re-adjusted as per revised periodicity from the date of reaching their maximum scale of pay shall be notionally eligible for such revised stagnation increments with effect from the 1st November, 2017 for the purposes of Pension but the monetary benefit on account of such re-adjustment shall be payable only with effect from the 1st November, 2020 or the actual date of entitlement, whichever is later.”.

3. In regulation 22 of the said regulations, in sub-regulation (1), the following proviso shall be inserted, namely: –

“Provided that the removal of an employee, who is employed in the service of the Bank as a workman on full time work on permanent basis or on part-time work on permanent basis on scale wages, shall not entail for forfeiture of his entire past service and shall qualify for pensionary benefits.”

4. In regulation 36 of the said regulations, after clause (f), the following clause shall be inserted, namely: —

“(g) rupees three thousand nine hundred and eighty-five 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, 2017, rupees one thousand three hundred and thirty-five per month in respect of a part-time employee drawing 1/3 scale of wages, rupees two thousand per month in respect of part-time employee drawing ½ scale wages, and rupees three thousand per month in respect of a part-time employee drawing ¾ scale wages, where the part-time employee retired on or after the 1st day of November, 2017.”.

5. In regulation 40 of the said regulations, –

a) in sub-regulation (1), —

i. in clause (b), for the first proviso, the following proviso shall be substituted, namely:—

“Provided that the family pension payable to son or daughter (including widowed or divorced) shall be discontinued or not be admissible when the eligible son or daughter starts earning a sum in excess of rupees twelve thousand per month from employment in Government or private sector or self- employment:”;

ii. for clause (c), the following clause shall be substituted, namely:—

“(c) in the case of parents, the family pension shall be discontinued or not be admissible if the income of one of the parents or the aggregate income of both the parents from employment in Government or Private sector or self-employment, exceeds rupees twelve thousand per month;”:

b) in sub-regulation (4),-

i. in clause (a), after sub-clause (vi), the following shall be inserted, namely:—

“(vii) twenty-six thousand five hundred and sixty rupees per mensem only in respect of employees, both officers and workmen, who retired or died on or after the 1st day of November, 2017.

Provided that on and from the 1st day of April, 2021, sub-clauses (i) to (vii) shall cease to have effect and amount of both pensions for all the above said category of employees shall be payable as per the provisions of sub-clause (i) of clause (a) and sub-clause (i) of clause (b) of sub-regulation (3) of regulation 39.”;

ii. in clause (b), after sub-clause (vi), the following shall be inserted, namely:—

“(vii) twenty-six thousand five hundred and sixty rupees per mensem only in respect of employees, both officers and workmen, who retired or died on or after the 1st day of November, 2017:

Provided that on and from the 1st day of April, 2021, sub clause (i) to (vii) shall cease to have effect and the amount of both the pension for all the above said category of employees shall be payable as per the provisions of sub regulation (1) of regulation 39 or sub-clause (i) of clause (a) and sub-clause (i) of clause (b) of sub-regulation (3) of the said regulation, as the case may be.”;

iii. in clause (c), after the sub-clause (vi), following sub-clauses shall be inserted, namely: —

“(vii) thirteen thousand two hundred and eighty only in respect of employees, both officers and workmen, who retired or died on or after the 1st day of November, 2017:

Provided that on and from the 1st day of April, 2021, sub clause (i) to (vii) shall cease to have effect and the amount of the two pension for all the above said category of employees shall be payable as per the provisions of sub-regulation (1) of regulation 39.”.

6. In Appendix-II to the said regulations, for clause (4) in the Appendix-II shall be substituted, namely:-

“(4) In respect of employees who retire on or after the 1st May, 2005, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 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. Such increase or decrease in dearness relief for every said 4 points shall be calculated at the rate of 0.18 per cent. of basic pension:

Provided further that on and from the 1st day of May, 2005, in respect of employees who retired on or after the 1″ day of November, 2002 but on or before the 30″ day of April, 2005, dearness relief shall be payable in terms of this clause:

Provided that in respect of employees who retired on or after the 1s day of November, 2007, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 2836 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 4 points shall be calculated at the rate of 0.15 per cent. of basic pension:

Provided also that in respect of employees who retired on or after the 1st day of 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 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 4 points shall be calculated at the rate of 0.10 per cent. of basic pension:

Provided also that in respect of employees who retired on or after the 1st day of November, 2017, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 6352 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 4 points shall be calculated at the rate of 0.07 per cent. of basic pension.”

7.In Appendix III to the said regulations, after clause (f), the following clauses shall be inserted, namely:—

“(g) in respect of employees (both officers and workmen) other than part-time employees retiring on or after the 1st day of November, 2017:

Scale of pay per month	Amount of monthly family pension
(1)	(2)
Upto Rs. 15,880	30 per cent of the pay shall be the basic family pension and additional 30 per cent of allowance which are counted for making contribution to provident fund but not for dearness allowance, shall be the additional family pension: Provided that the aggregate of basic and additional family pension shall be subject to a minimum of Rs.3985 per month.
Rs. 15,881 to Rs. 31,760	20 per cent of the pay shall be basic family pension and additional 20 per cent of allowance, which are counted for making contributions to provident fund but not for dearness allowance, shall be the additional family pension: Provided that the aggregate of basic and additional family pension shall be subject to minimum of Rs.4900 per month.
Above Rs. 31,760	15 per cent. of the pay shall be the basic family pension and additional 15 per cent of allowances which are counted for making contributions to provident fund but not for the dearness allowance, shall be the additional family pension: Provided that the aggregate of basic and additional family pension shall be subject to a minimum of Rs.6365 per month and maximum of Rs.13280 per month.”.

(h) On and from the 1st day of April, 2021 clauses (a) to (g) shall cease to have effect and in respect of all employees (both officers and workmen) mentioned in the said clauses, 30 per cent of the ‘Pay’ shall be the basic family pension plus 30 per cent of allowance which are counted for making contribution to provident fund but not for dearness allowance, shall be the additional family pension.”

Explanatory Memorandum

The regulations which have been given retrospective effect are as per the agreed terms and conditions of the settlements and Joint Notes signed between the Indian Banks’ Association on behalf of member banks on the basis of specific mandate given by the respective banks in this regard and apex level workmen unions and officers’ associations of the banks. Therefore, interests of no person shall be adversely affected by such retrospective effect.

POPPY SHARMA, General Manager-Hcm
[ADVT.-III/4/Exty./221/2024-25]

Note: The principal regulations were published in the Gazette of India, Part III, Section 4 vide notification number CO/PRS/PENSION/95-96/278, dated the 29th September, 1995 and lastly amended vide notification number 395(E), dated the 1st September, 2023.

View the Amendment Notification pdf