Revision in Pension

Substantive salary p.m.	Rate of family pension p.m.
Rs. 5720/- and below	30% of the substantive salary subject to minimum of Rs.1435/- p.m.
Rs. 5721/- to Rs.11,440/-	20% of the substantive salary subject to minimum of Rs.1715/- p.m.
Above Rs. 11,440/-	15% of the substantive salary subject to minimum of Rs.2292/- p.m. and maximum of Rs.4784/- p.m.

NOTE: In the case of part time employees, the minimum and maximum amount of family pension shall be in proportion to the rate of scale wages drawn by the employee.

Those retired/died on or after 1.11.2002 and on or after 1.5.2005:

Substantive salary p.m.	Rate of family pension p.m.
Rs. 5720/- and below	30% of the substantive salary subject to minimum of Rs.1435/- p.m.
Rs. 5721/- to Rs.11,440/-	20% of the substantive salary subject to minimum of Rs.1715/- p.m.
Above Rs. 11,440/-	15% of the substantive salary subject to minimum of Rs.2292/- p.m. and maximum of Rs.4784/- p.m.

In that letter NABARD in support of its demand for raising the ceiling to rs 2400/- stated as under: " Family pension recipients of NABARD are put under a disadvantageous position vis –a vis their counterparts in RBI and commercial banks. This has disturbed the internal relativity and a situation has come where the dependents of deceased senior executives and subordinate staff ( with the same length of service of 20 years or more) receive more or less the same amount of family pension. This is particularly due to the upper ceiling of rs 1250 on the ordinary rate of family pension not having been revised" ( please note the underlined sentences)

What has not been emphasized but should have been done is the comparison with corresponding position of GOI family pensioners who got their family pensions updated on the basis of 5th CPC with uniform norm of 30% and no ceiling and again on the basis of 6th CPC from 1-1-2006. Mere raising of the ceiling to rs 2400/- has only benefitted slightly those family pensioners who retired on or after 1-11-1992 leaving the family pensioners of earlier retirees as well as the family pensioners of later retirees high and dry as explained below.

Age of pensioner	Additional pension
From 80 years to less than 85 years	20% of basic pension.
From 85 years to less than 90 years	30% of basic pension.
From 90 years to less than 95 years	40% of basic pension.
From 95 years to less than 100 years	50% of basic pension.
100 years or more	100% of basic pension

EXPLANATION. - The expression one year of continuous service' wherever it occurs in this rule shall be construed to include' less than one year of continuous service' as defined in clause (ii)."; (b) after sub-rule (2A), the following shall be inserted, namely :--

"(28) In addition to family pension admissible in accordance with sub- rules (2), (2A) and (3), after completion of eighty years of age or above, additional family pension shall be payable in the following manner:-

Age of family pensioner	Additional family pension
From 80 years to less than 85 years	20% of basic family pension.
From 85 years to less than 90 years	30% of basic family pension.
From 90 years to less than 95 years	40% of basic family pension.
From 95 years to less than 100 years	50% of basic family pension.
100 years or more	100% of basic family pension

(c) in sub-rule (3), for clause (a), the following shall be substitute, viz., :-

"(a) (i) Where a Government servant, 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 50 per cent of the pay last drawn and the amount so admissible shall be payable from the date following the date of death of the Government servant for a period of ten years.

(ii) In the event of death of a Government servant after retirement, the family pension as determined under sub-clause (i) shall be payable for a period of seven years, or for a period up to the date on which the retired deceased Government servant would have attained the age of 67 years had he survived, whichever is less, Provided that in no case the amount of family pension determined under sub-clause (ii) shall exceed the pension authorised on retirement from Government service, Provided further that where the amount of pension authorised on retirement is less than the amount of family pension admissible under sub-rule (2), the amount of family pension determined under this clause shall be limited to the amount of family pension admissible under sub-rule (2).

EXPLANATION - For the purpose of this sub-clause, pension authorised on retirement includes the part of the pension which the retired Government servant may have commuted before death."; (d) for sub-rule (4), the following shall be substituted, viz.,;-- "(4) Where an award under the Central Civil Services (Extraordinary Pension) Rules 1939, is admissible, no family pension under this rule shall be authorised during the currency of award.";

(e) for sub-rule (6), the following shall be substituted, namely:-

"(6) The period for which family pension is payable shall be as follows:-

subject to first proviso, in the case of a widow or widower, up to the date of death or re-marriage, whichever is earlier;

subject to second proviso, in the case of an unmarried son, until he attains the age of twerlty-five years or until he gets married or until he starts earning his livelihood, whichever is the earliest;

subject to second and third provisos, in the case of an unmarried or widowed or divorced daughter, until she gets married or remarried or until she starts earning her livelihood, whichever is earlier;

subject to sub-rule (10-A), in the case of parents, who were wholly dependent on the Government servant immediately before the death of the Government servant, for life;

Subject to sub-rule 10(8) and the fourth proviso, in the case of disabled siblings (i.e. brother and sister) who were dependent on the Page 6 of 13Government Servant immediately before the death of Government servant, for life:

Provided that family pension shall continue to be payable to a childless widow on re-marriage, if her income from all other sources is less than the amount of minimum family pension under sub-rule (2) of this rule and the dearness relief admissible thereon:

Provided further that if the son or daughter of a Government servant is suffering from any disorder or disability of mind including the mentally retarded 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 Government servant, the family pension shall be initially payable to the minor children (mentioned in clause (ii) or clause (iii) of this sub-rule) in the order set out in clause (iii) of sub-rule (8) of this rule until the last child attains the age of twenty-five and thereafter the family pension shall be resumed in favour of the son or daughter suffering from disorder or disability of mind, including the mentally retarded, 01" 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 including the mentally retarded 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 in the manner set out in clause (d) of sub-rule

(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 the 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 appointing authority shall satisfy that the handicap is of such a nature so as to prevent him or her from earning his or her livelihood and the same shall be evidenced by a certificate obtained from a Medical Board comprising of a Medical Superintendent or a Principal or a Director or Head of the Institution or his nominee as Chairman and two other members, out of which at least one shall be a Specialist in the particular area of mental or physical disability including mental retardation 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 a certificate, from a Medical Board comprising of a Medical Superintendent or a Principal or a Director or Head of the Institution or his nominee as Chairman and two other members, out of which at least one shall be a Specialist in the particular area of mental or physical disability including mental retardation, once, if the disability is permanent and if the disability is temporary, once in every five years to the effect that he or she continues to suffer from disorder or disability of mind or continues to be physically crippled or disabled;

(vi) in the case of a mentally retarded son or daughter, the family pension shall be payable to a person nominated by the Government servant or the pensioner, as the case may be, and in case no such nomination has been furnished to the Head of Office by such Government servant or pensioner during his lifetime, to the person nominated by the spouse of such Government servant or family pensioner, as the case may be, later on and the Guardianship Certificate issued under section 14 of the National Trust Act,1999 (No.44 of 1999), by a local level Committee, shall also be accepted for nomination or appointment of guardian for grant of family pension in respect of person(s) suffering from Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities as indicated in the said Act:

Provided also that the grant or continuance of family pension to an unmarried or widowed or divorced daughter beyond the age of twenty-five years or until she gets married or re-married or until she starts earning her livelihood, whichever is the earliest, shall be subject to the following conditions, namely:-

(i) the family pension shall be initially payable to the minor children (mentioned in clause (ii) or clause (iii) of this sub-rule) in the order set out in clause (iii) of sub-rule (8) of this rule until the last minor child attains the age of twenty-five years; and

(ii) there is no disabled child eligible to receive family pension in accordance with the second proviso of this sub-rule:

Provided also that such disabled siblings shall be eligible for family pension for life in the same manner and following the same disability criteria, as laid down in this rule in the case of son or daughter of the Government employees or pensioners suffering from any disorder or disability of mind (including mentally retarded) or 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.

EXPLANATION 1 .- An unmarried son or an unmarried or widowed or divorced daughter shall become ineligible for family pension under this sub-rule from the date he or she gets married or remarried.

EXPLANATION 2 .- The family pension payable to such a son or a daughter or parents or siblings shall be stopped if he or she or they start earning his or her or their livelihood.

EXPLANATION 3.- It shall be the duty of son or daughter or siblings or the guardian to furnish a certificate to the Treasury or Bank, as the case may be, once in a year that, (i) he or she has not started earning his or her livelihood, and (ii) he or she has not yet married or remarried and a similar certificate shall be furnished by a childless widow after her re-marriage or parents to the Treasury or Bank, as the case may be, once in a year that she or he or they have not started earning her or his or their livelihood.

EXPLANATION 4 .- For the purpose of this sub-rule, a member of the family shall be deemed to be earning his or her livelihood if his or her income from other sources is equal to or more than the minimum family pension under sub-rule (2) of this rule and the dearness relief admissible thereon.

EXPLANATION 5 .- Parent shall be deemed to be dependent on the Government servant if their combined income is less than the minimum family pension under sub-rule (2) of this rule and the dearness relief admissible thereon.

EXPLANATION 6.- Disabled sibling shall be deemed to be dependent on the Government servant if their income is less than the minimum family pension admissible under sub-rule (2) of this rule and dearness relief thereon.

EXPLANATION 7 .- Family pension payable to a childless widow shall be stopped if, after re-marriage, her income from all other sources becomes equal to or exceeds the amount of minimum family pension under sub-rule (2) of this rule and the dearness relief admissible thereon";

(f) after sub-rule (10), the following shall be inserted, namely:-

"(10-A)(a) Family pension to the parents shall be payable if the parents were wholly dependent on the Government servant immediately before his or her death and the deceased Government servant is not survived by a widow or an eligible child.

(b) The family pension, wherever admissible to parents, will be payable to the mother of the deceased Government servant failing which to the father of the deceased Government servant.

(10-8) Family pension to the dependent disabled siblings shall be payable if the siblings were wholly dependent upon the Government servant immediately before his or her death and deceased Government servant is not survived by a widow or an eligible child or eligible parents.";

(g) in sub-rule 11, for clauses (a) and (b) the following shall be substituted, namely: -

"(a)(i) if the surviving child or children is or are eligible to draw two family pensions at the rate mentioned in sub-rule (3),the amount of both the family pensions shall be limited to forty-five thousand rupees per mensem ;

(ii) if one of the family pensions ceases to be payable at the rate mentioned in sub-rule (3), and in lieu thereof the family pension at the rate mentioned in sub-rule (2) becomes payable, the amount of both the pensions shall also be limited to forty-five thousand rupees per mensem;

(b) if both the family pensions are payable at the rates mentioned in sub-rule (2), the amount of two family pensions shall be limited to twenty-seven thousand rupees per mensem.";

(h) in sub-rule (11-8), after clause (b), the following shall be inserted,

namely;-- .

"(c) Subject to the proviso to or of sub-rule (11-A), after the child or children cease to be eligible for family pension under this rule, such family pension shall become payable to the surviving judicially separated spouse of the deceased Government Servant till his or her death or remarriage, whichever is earlier.";

(i) in sub-rule (12), in clause (b), the word 'female' shall be omitted;

(j) in sub-rule (138), for the second proviso, the following proviso shall be substituted, namely;--

"Provided further that the family pension admissible under these rules shall be allowed in addition to the family pension under the Employees Pension Scheme, 1995 and the Family Pension Scheme, 1971, where ever applicable.";

(k) in sub-rule (14), in clause (b) for sub-clause (ii), the following sub- clauses shall be substituted, namely:-

"(ii) unmarried son who has not attained the age of twenty-five years and Unmarried or widowed or divorced daughter, including such son and daughter adopted legally;

(iii) dependent parents;

(iv) dependent disabled siblings (i.e. brother or sister) of a Government servant.";

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Here also the pitiable plight of the family pensioners of those who retired prior to 1-11-1992 was not focused and taken for granted as if they do not deserve any updation just as the pensioners also suffered for want of updation of pensions.

Secondly the decision of NB as approved by the GOI for updation of ceiling on family pensions for those who retired on or after 1-11-1992 to only Rs2400/- is also equally harsh on them and much more on family pensioners of later retirees as will be seen below. For drawing the maximum of rs 2400/- as family pension at 15% of pay, the pensioner should have drawn a basic pay of rs 16,000/ at the time of retirement.

When we take the scales of pay introduced from 1-11-2002 ie from Rs 11,250- 22,500 for A grade, the widow of even an A grade officer would be stuck at the ceiling of family pension, if the deceased officer before retirement had put in more than 7 years in that grade . THUS THERE IS NO BENEFIT OVER RS16,000 OF BASIC PAY TOWARDS FAMILY PENSION for an officer even in that grade The B grade officer similarly would have crossed Rs 16,000 after four years of service in that grade assuming he starts at that scale as a direct recruit. The officer promoted from A grade would have crossed the above threshold at the time of his promotion to Grade B As the starting basic pay of C grade and above is higher than rs 16,000/- all the family pensioners of such officers will not get more than rs 2400/- as basic family pension and will be stuck up at that level, though they are entitled to higher family pensions as per GOI revised norms @ 30% of last pay drawn.

The scales of pay of officers have been substantially revised with effect from 1-11-2007 and the A grade now starts from Rs 17,100/- and hence more than Rs 16,000/- in other words all the family pensioners of those who retired from the above scales of pay after 1-11-2007 will get only rs 2400/- as the basic family pension, except for the period for which higher family pension will be paid as per the regulations. IT IS ALSO PERTINENT TO POINT OUT THAT AS IN (I) ABOVE ALL THOSE WHOSE BASIC PAY ABOVE RS 16,000/- WILL BE STUCK UP AT THIS CEILING and will draw the same family pension irrespective of the higher basic pay and grade in which they retired .

One more aspect to be borne in mind is that the pensioners who retired in the scales of pay effective from 1-11-2002 or1-11-2007 would have drawn much higher pensions after retirement during their life as the rate of pension is fixed uniformly at 50% of average emoluments drawn by them during the last ten months of their service. There is thus a very precipitous fall in the amount of pension payable to their widows as compared to the amount of pension they drew after retirement, if the officer had reached beyond 65 years. This is very harsh and it is more poignant when their basic pay at the time of their retirement is much higher in each grade and hence they would have drawn much higher pensions. In contrast in GOI there is uniform norm of 30% of last pay drawn and there is minimum family pension which is much higher than what our family pensioners are entitled to.

There is another disadvantage to these hapless family pensioners. The family pensioners of later retirees will also draw lesser total family pension than those who retired in the previous scales of pay, because of the difference in DA percentages. The DA payable, we understand is determined with reference to date of retirement of the pensioner or death while in service. As there is a merger of DA upto specified points with basic pay in each pay revision the rates of DA payable on pension and hence on corresponding family pension will be the same rates as being paid to those who retired during the effectiveness of the respective pay scales, which operate for five years . For instance as per the latest DA circular the rate of DA paid is 89.4% for those who retired on or after 1-11-1997 but before 1-11-2002 and 54% for those who retired on or after 1-11-2007. Thus the amount of DA payable to family pensioners also gets drastically reduced while the basic family pension remains constant at Rs 2400/- for ones who retired between 1-11-2002 and 1-11-2007 and thereafter for no fault of theirs. One can imagine the substantial fall in amount of family pension in such cases as compared to pension drawn by the spouses while alive..

The 18th May 2011 circular raising the ceiling on family pension to Rs 2400/- says as under:

3. At the time of paying interim relief from October 2005, it was clarified to the Family Pensioners that "the amount presently being paid is only by way of interim relief and necessary adjustments would be made as and when approval of Government is received for our proposal for revision in Family Pension". In this connection, we advise as under:

The ineligible amount of interim relief paid from October 2005 to 15 May 2009 has to be recovered fully from the arrears payable now from 16 May2009 to May 2011.

In case the ineligible amount of interim relief paid is higher than the arrears payable on account of the above revised rate of family pension, the balance amount may be recovered in suitable instalments from the monthly family pension payable. The summary position of such cases may be communicated to HO [HRMD-PPD].

In cases where it is not possible to recover the ineligible amount of interim relief partly/fully due to death of family pensioners or other reasons, such cases are to be referred to HO[HRMD-PPD].

We undestand that in HO some preliminary check was done and there are some cases where there should be recoveries of the family pension already paid after implementing the revised ceiling and a final decision is yet to be taken.

Since the revision of ceiling @ 2400 is appropriate for only those who retired on or after 1-11-1992 and before 1-11-1997, the sensible approach is to pay DA at the rates payable for them and also for the rest of the later family pensioners.

As it is they are suffering from unreasonable ceiling and hence they should not suffer further by paying them lower Da which will mean that later family pensioners will draw less family pension than their earlier counterparts. I understand that this solution is being thought of to aovid recovering amounts paid by way of interim relief.

But the other hardships to be endured by family pensioners cannot be sorted out unless the family pensions are revised for all the family pensioners on the same basis as was done by GOI along with uniform norm of 30% of last pay drawn and removal of ceiling on family pension except in relation to highest pay in NABARD. Since the 6th CPC had endorsed the same norms as were adopted after the 5th CPC report it is essential that the revision of family pensions of all the past family pensioners of NABARD on the same lines as were done by GOI is taken up with GOI at the earliest. There should be atleast two revisions of family pensions , once as on 1-11-1997 and again as on 1-11-2007 if the revision is to be done once in ten years as in GOI.

As mentioned earlier GOI is paying additional family pensions for those above the age of 80 years of age as under:

It is necessary that same norms are adopted for paying higher family pensions for those above the age of 80 years.

Other refinements in family pension norms effected by GOI

In the light of decisions taken on the basis of recommendations of the 6th CPC the following additional changes have been made by GOI in their family pension rules . I enclose the relevant extract from the notification of GOI dated June 2011 in this regard as annexure. It is essential that similar amendments are also made in our family pension regulations in line with GOI changes.

Amendment to pension regulations

These changes would require amendment to the corresponding regulations relating to family pension contained in Chapter VI of NABARD pension regulations. This also calls for urgent action on the part of management of NABARD to mitigate as early as possible the hardships being endured by the family pensioners.

( T. K Kasiviswanathan) ( S C Wadhwa)

President General Secretary

3-10-2011

Annexure

The additional changes made in the family pension norms for GOI family pensioners. Extract from GOI notification of 8th June 2011:

(2) Subject to the provisions of sub-rule 13-8 and without prejudice to the provisions contained in sub-rule (3), where a Government servant dies -

after completion of one year of continuous service; or

before completion of one year of continuous service, provided the deceased Government servant concerned immediately prior to his appointment to the service or post was examined by the appropriate medical authority and declared fit by that authority for Government service; or

after retirement from service and was on the date of death in receipt of a pension, or compassionate allowance, referred to in these rules,the family of the deceased shall be entitled to Family Pension (hereinafter in this rule referred to as family pension) under the Family Pension Scheme for Central Government Employees, 1964, the amount of which shall be determined at a uniform rate of 30% of basic pay subject to a minirilum of three thousand and five hundred rupees per mensem and a maximum of twenty-seven thousand rupees per mensem.

,

ALL INDIA NABARD RETIRED EMPLOYEES WELFARE ASSOCIATION

Mumbai

ISSUES RELATING TO FAMILY PENSION

We had earlier given detailed representation on the issues relating to pension payable to family pensioners of NABARD. We would like to specifically highlight some of the hardships being faced by the family pensioners, into account the revision of the ceiling on family pension to Rs 2400/- effected recently.

2. Under the Pension regulations of NABARD the family pension is paid as per the tapering slab system of 30,20,15% of last pay drawn and with a minimum of Rs 375/- and a ceiling on the family pension payable, earlier pegged at Rs 1250/pm, in terms of Regulation no 32(5) of the Regulations. As we had pointed out in our detailed earlier representation on this issue the 5th CPC found the slab system of family pension to be harsh and inequitable and hence recommended its abolition and replacement with a uniform norm of 30% of the last pay drawn, and also removal of ceiling on family pension but related to maximum pay in GOI.

3. We again reproduce for ready reference, what the 5th CPC said while recommending the above changes. Para 134.8 of 5th pay commission report says that " the existing rates of family pension on a slab basis would appear to be inadequate to cater to the needs of the family of the deceased employee/ pensioner." "Revision thereof is justified because there are certain fixed costs of an establishment, which do not get halved and the family continues to incur them even after the demise of the pensioner. There would also appear to be no rationale for prescribing different percentages of family pension with reference to different pay slabs because all families suffer equal hardships on the death of a breadwinner. Taking the above and other relevant factors into account we recommend the existing varying rates of family pension (30%,20% and 15%) may be replaced by a uniform rate of 30% of pay for all categories of employees."

4. Para 134.14 the Fifth Pay Commission report dealt with removal of the earlier ceiling of Rs 1250/- pm on family pension. This is in keeping with its stand on not having any ceiling on pension. It states as under :

" It is one of the fundamental tenets of social security scheme that the beneficiary should have the assurance that in the event of death, his widow and children would have the necessary wherewithal to live in reasonable comfort. However, with meager amount of family pension this last desire of the deceased employee can hardly be met. The old assumption that the civil servants in higher grades could save a great deal is no longer valid , with the substantial increase in cost of living. Considering the fact that the number of employees against whom the existing ceiling operates harshly is not very significant , we are inclined to accept the suggestion for removal of ceiling on family pension and recommend accordingly."

5. GOI accepted both these recommendations and implemented them with effect from 1-1-1996. Further such family pensions were updated on the basis of modified parity formula on the same lines as for pensioners who retired prior to 1-1-1986 and thereafter for all who retired prior to 1-1-1996 with a rider that minimum family pension shall not be less than Rs 1275/-pm and also not less than 30% of revised starting pay introduced from 1-1-1996 for the post last occupied by the pensioner at the time of retirement. This was further updated on the basis of recommendations of the 6th CPC with effect from 1-1-2006 by merger of DA up to specified points and additional fitment weightage of 40% of basic pension. The merger of DA and fitment weightage suggested were the same as for serving employees and hence the same treatment as for serving employees and in keeping with the principle recommended by the 5th CPC that pensions should be revised in a manner not dissimilar to pay revision of serving staff. Unlike the 5th CPC there was no stipulation regarding minimum guaranteed family pension at 30% of revised starting pay for the post last occupied by the retiree in relation to revised pay scales as from 1-1-2006. The minimum family pension was also enhanced to Rs 3500/- pm from Rs 1275/-. Family pension is being paid on an uniform basis of 30% of last pay drawn for all .The maximum is 30% of the highest pay in GOI ie 27,000/- being 30% of Rs 90,000/-, being the salary of Cabinet Secretary. In other words, the ceiling is related to maximum pay in the GOI.

Additional family pension for those above the age of 80 years is to be paid on the same percentage basis as was recommended for the corresponding pensioners. These measures increased significantly the amount of family pensions being paid with effect from 1-1-2006 for all the GOI family pensioners. Railways also updated the family pensions of its own family pensioners on the same lines.

6. However, in our case the above slab system of family pension and ceiling on family pension continue to operate and without any updation of basic family pensions. They are therefore at a considerable disadvantage as compared to GOI pensioners, as explained below :-

.

The family pensioners of those who retired prior to 1-11-1992 including those in future of the surviving pensioners who retired prior to that date are the worst sufferers as they are drawing very poor family pensions because the minimum family pension continues to be Rs 375/- only whereas the minimum family pension in the case of GOI family pensioners is now Rs 3500/- wef 1-1-2006.. With present DA the minimum family pension is around rs 2625 only for Nabard family pensioners under this category, whereas the minimum family pension drawn by the GOI family pensioner is around Rs5250/- ie nearly double the amount paid in our case.

Secondly for these categories of family pensioners the ceiling on family pension is still Rs 1250/- as the recent revision of the above ceiling to Rs 2400 as from May 2009 is not applicable to them. Secondly, at the higher pay slabs ( which are very small as compared to the scales now in force for officers as from 1-11-2007) the rate of family pension at 20% and then at 15% of pay is very harsh. If one translates the ceiling on family pension of Rs 1250/- in terms of pay which will give that family pension, it works out to Rs 8333/ @15% . Thus even in the case of an F grade officer who retired from NABARD prior to 1-11-1992 on the then maximum basic pay of rs 7000/- or so in the scales of pay then existing, the family pension for his widow is only around rs1050or1100/- and it will not even be equal to the ceiling amount.. The same situation holds good for still surviving pensioners who retired before that date as their spouses, in the event of their death will get only the above amount of family pension which even at the highest level is a pittance, in these days of high inflation. Most of the family pensioners are over 65 years old in this category and hence the enhanced family pension would not be payable to them as provided in terms of regulation no 32(3).

An out of box solution was the sanction by NABARD of interim relief to these family pensioners but the same was applied only to those who retired on or after 1-11-1992, ignoring the plight of the family pensioners of those who retired earlier to that date , whereas in GOI any revision in family pension was applied to all the family pensioners irrespective of the dates of retirement of the pensioner. This is again great injustice to these pensioners.

It is true that NABARD made a proposal some years back for raising the rate of family pension uniformly to 30% as in GOI and also raising the minimum pension to Rs 1275/- but it was rejected . It is unfortunate that NABARD did not effectively represent against the above unreasonable and unjust decision of GOI by quoting the very same arguments of the 5th CPC for uniform norm and removal of ceiling and accepted by GOI. It is also surprising that GOI , while accepting the recommendations of the 5th CPC for removal of slab system and ceiling did not care about the same plight of the family pensioners of financial institutions but was prepared to tinker with the pay slabs in line with revised pay scales and raise the ceiling accordingly but retaining the same slab system of family pension. This is despite the fact that at the time of sanction of pension scheme same norms as were being applied to GOI pensioners were incorporated in all the pension schemes.

Instead in its letter no NB.HRMD.PPD/546/Pen pol/2005-6 asked only for revision of family pension slabs as were revised for nationalized banks in view of the suffering of these later retirees. As against two upward revisions already sanctioned to nationalized banks, and one more subsequently NABARD asked for only one revision for raising the ceiling to Rs 2400. even in the case of SBI where the pension is a third benefit three updations of family pensions had taken place and last two revisions are as under:

Those retired/died on or after 1.11.2002 and on or after 1.5.2005: