A Revised Approach to Calculate Pensions for Bank Employees and Officers

by | Jul 13, 2023 | Retirement Pension | 38 comments

A Revised Approach to Calculate Pensions for Bank Employees and Officers




Watch this video to know about who is eligible for pension and how to calculate Pension on retirement….(read more)


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Method of Pension Calculation for Bank Employees/Officers

Pensions play a crucial role in ensuring a comfortable post-retirement life for employees in the banking sector. Banks, both public and private, have well-defined pension schemes in place to provide financial security to their employees/officers after they have completed their service. However, the method of calculating these pension amounts may vary depending on multiple factors.

In most cases, the calculation of pension for bank employees/officers is based on a formula that takes into account the years of service, average salary, and specific conditions prescribed by the bank. Let’s take a closer look at each component.

Years of Service: The longer an employee/officer serves in a bank, the higher their pension amount is likely to be. Different banks may have different rules regarding the minimum number of years of service required to be eligible for a pension. Generally, a minimum of 20 years of service is necessary to qualify for a full pension, while a lesser number of years may entitle employees/officers to a reduced pension.

Average Salary: The average salary earned during an employee/officer’s service period is also a crucial factor in determining their pension amount. The average salary is usually calculated based on a specific number of years preceding the retirement year. This can range from the last year’s salary to the last ten years’ average salary, depending on the bank’s rules. It is important to note that allowances such as dearness allowance, housing allowance, and other variable components may or may not be considered while calculating the average salary.

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Specific Conditions: Apart from years of service and average salary, specific conditions laid down by each bank can also impact the pension calculation. Some banks may offer higher benefits to employees/officers who have served in specialized positions or have held important roles during their tenure. These additional benefits can include higher gratuity amounts, additional pension adjustments, or other perks as per the bank’s policy.

It is worth mentioning that pension calculation methods have evolved over time due to regulatory changes and reforms in the banking sector. The shift from defined benefit schemes to the National Pension System (NPS) in certain banks has also affected the way pensions are computed. In the NPS system, the pension amount is determined based on the contributions made by the employee/officer and the returns generated by the investments made from these contributions.

In conclusion, the method of pension calculation for bank employees/officers involves considering factors such as years of service, average salary, and specific conditions set by the bank. These components, combined with regulatory changes and shifting pension systems, determine the final pension amount received by employees/officers after retirement. It is essential for bank employees/officers to be familiar with the pension rules and regulations applicable to their specific bank to ensure financial security during their post-retirement years.

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38 Comments

  1. prabhas singh

    Sir my father was an SBI employee He has died at his 56 years age, after completing 33 years of service, his last drawn basic salary is 78000 rs. And Overall salary is 140000 approx per month, what would be the amount of family pension, please sir tell me…

  2. K.N Pandey

    Sir, my joining dt. 1.11.93 and retirement Feb. 2026 in Central Bank.. Basic is 75780 pl calculate my pension in case of VRS

  3. Santosh Kaur

    Sir in April 1st pension 40050
    After revisioncase 47000apx

  4. Santosh Kaur

    Sir I retired March 2022 what is my pension basic75400.service Length 26year no comute tell me total pension

  5. rajesh nain

    21 years service karne par kya formula hoga pension calculation ka

  6. Sanjay Prasad

    If any employee has a basic salary 75000 approx , completed 26 years of service, what will be his pension and remaining service is 11 years.

  7. Truth

    SBI employee k total alag rules hai…. pension. So plz make video on sbi employee

  8. LAKSHA NA

    Dear Sir

    I'm mother Getting Rs 35000 as a enhanced Family Pension My father died on 2021 in 11 Bps Settlement
    Now my question is
    How much increase in Family Pension as per 12 BPs settlement

  9. Ghanshyam Gupta

    Sir , I retired after completion 31 yrs 4 months.
    1).my basic was 80000 in the month of retirement and avg basic of 10 months was 76000 due to increment given among 10 months . Pension portal says basic pension should be 50% of one of above two which is higher. What's your opinion sir?
    2). 31yr 4 months should be treated 63 half months for basic pension calculation or since 33 yrs of qualifying service dispensed with so 63 half months aren't relevant as per pension portal. my bank is paying 31/33 of 76000. what is your opinion pl reply.

  10. rashmi shinde

    Sir I want clarification on VRS scheme. I am working in a reputed public sector bank as an scale 1 Officer. I have completed 27 years of service in the bank and wish to opt for VRS. What will be my pension amount if my Basic Pay is Rs.65830 at present.

  11. KULBHUSHAN SURI

    What about tomorrow date at SC? Is it there or again deferred?

  12. Sandeep Nain

    Service 21 year basic 29000 kitni pension banegi

  13. Nimbaji Ingale

    I have worked in RBI about 3 years resign and joined Canara Bank.
    Whether the aforesaid service is counted for calculation of pension.?

  14. Sandeep Garg

    Please tell if I take VRS after 25 years of bank service how my pension and gratuity will be calculated?

  15. Umakanta Sahoo

    Hello sir, Basic is 100000, year of completed service 20, considering DA 40%, what will be the pension amount. Pls

  16. AVINASH BHAT

    Is this formula and rule applicable to SBI Employees

  17. Gurinder Gill

    Sir meri basic 63840.00 hai vrs lene pe kitni pension milegi total service 25 years punjab & sind bank

  18. Rajesh Verma

    Sir I am ex service man joined the bank in 2009 December now I have completed 12 years of service my basic payment is 59600 now I want to leave the job kindly tell me how much pension I will get

  19. Raj k gupta

    Mai bank me clerk hu .Mera age 51 m job seevice 30 years ab medically problm ki vjh se ves lena chahta hu . Kya vrs mil jayega aur milta h to pension full milegi ya kam. Kindly answer

  20. Ashok Raikwar

    Sir meri basic pay 67830/ hai meri service31year hai vrs lene par kitni pension milegi

  21. padmalatha arige

    But MLAs and MPs are eligible for pension even if they serve as MP or MLA for a single day .why this discrimination.

  22. Srinivas Chary

    100%DA HOW CALCUKLATION PENSION

  23. suresh datre

    Is there any confirm news of pension updation.

  24. srinivas rao

    Sir mine pucha tha exservicemen reemployd ka bareme Appa ne na bataya pls batayiana

  25. srinivas rao

    Sirji yeah toh purana hotahai aur apne bataya commutation beat bhi correct nahi Sbi meh 6.6 hai appane bataya 9.81 correct Nahi pls ekbar gour kijiye

  26. srinivas rao

    Sirji ex seviceman ka baremey batayi agar 2009 recruited clerk retirement on 2022 how much he will get pension and commutation pls tell sirji

  27. Alok Sinha

    कोई मेथड नही है। आईबीए सरकार के इशारे पर बैंक कर्मियों का शोषण कर रहा है।

  28. Tapas Sarkar

    Are the rules same for SBI?

  29. Kavitakulkarni K

    What are the conditions to add extra 5 years in case of vrs

  30. N & M

    Clarification required:
    If an employee request for Pension after rendering 15 years of continuous service, what will be the applicability of addition of 5 years? ( In my case I have rendered 15 years of service and remaining 19 years of service. At present CM at BOB)

  31. N & M

    Sir, now the revised minimum service required for Pension before superannuation is 15 years with retrospective affect from 01.09.2000.
    It is already amended and notified in Govt. Of India Gazette 27.12 2003. After taking NOC from Govt of India ,IBA has also issued clarification on the matter on 30.1.08.2000.
    You may refer to Pension circular of BOB, PNB etc for the said changes

  32. Shishu Kumar Singh

    I was retired in april 18 average of ten months I e July 17 to april 18 in the mean time 11 bipartite was applicable from Nov 17 the anamoly is for the basics pay of the month July August September and October our bank is considering basic pay plus d a of these months for considering the new basic which is certainly lesser than corresponding new basicpay because in the new basic pay the load factor was added if possible kindly guide me thankyou

  33. Sohom Chakraborty

    Sir pension jab updation hoga us time me Family Pensioners ko bhi kuch fida hoga?

  34. Surjit Kaur

    Yeh new pentioners ya old pentioner ka formula hea

  35. Ashok Sharma

    बहुत अच्छी सूचनाएं पेंशन के बारे में

  36. Dansingh Panara

    Pahale kiya average last 10 months ka 40 percent tha abhi 50 percent kabse huva ye bataye

  37. SURESH CHANDRA SHARMA

    Banks are exploiting pensioners.
    The qualifying service for full pension in banks is 33 years
    Whereas in CENTRAL GOVT and
    Other state GOVT SERVICES it is
    Maximum 28 years
    Why this partialty
    2- Banks recruited experienced persons from other banks
    Banks are benefited by the experience of experienced staff
    but at the time of retirement, banks are not giving the full benefitof previous bank number of years services
    Bank should also consider 28 years services for full pension
    and full benefits should be given
    on retirement of the full number of years served in previous bank

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