Family Pension

  • Spouse of employee, if the member dies during service after putting in a minimum of one year pensionable service.
  • Eligible only if the deceased employee was eligible for pension if the employee was not eligible/ deprived of pension benefit, then his family will not get benefit under this scheme.

Revision in Family Pension Scheme in the Bank

Circular No. : CDO/P&HRD-PM/6212007-08

Substantive salary per month Rate of family pension per month
(a) Rs. 1,500/- and below 30% of substantive salary subject to a minimum of Rs 300/- p.m. 
(b) Above Rs. 1,500/- 15% of substantive salary subject to a minimum of Rs 450/- p.rn, and maximum of Rs 1,000/-·p.m.

Rates of Family Pension

The family pension be revised w.e.f. 1.5.2005 as under:

(A) Those who died or retired before 1.11.1993:

Substantive salary p.m. Rate of family pension p.m.
Rs. 1500.00 and below 30% of the substantive salary subject to minimum of Rs. 375.00 p.m.
Rs. 1501.00 to Rs 3000.00 20% of the substantive salary subject to a minimum of Rs 450.00 p.m.
Above Rs. 3000.00 15% of the substantive salary subject to a minimum of Rs. 600.00 p.m. and maximum of Rs. 1250.00 p.m.

(B) In respect of employees retired/died on or after 1. 11.1993 but before 1.4.1998:

Substantive salary p.m. Rate of family pension p.m.
Rs. 2870.00 and below 30% of the substantive salary subject to minimum of Rs. 720.00 p.m.
Rs. 2871.00 to Rs. 5740.00 20% of the substantive salary subject to minimum of Rs. 860.00 p.m.
Above Rs. 5740.00 15% of the substantive salary subject to a minimum Rs. 1150.00 p.m. and Maximum of Rs. 2400 p.m.

(C) Those retired/died on or after 1.4.1998:

Substantive salary p.m. Rate of family pension p.m.
Rs 4210.00 and below 30% of the substantive salary subject to minimuin of Rs. 1056.00 p.m.
Rs. 4210.00 to Rs. 8420.00 20% of the substantive salary subject to a minimum of Rs. 1262.00 p.m.

(D) 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 5720.00 and below 30% of the substantive salary
subject to minimum of Rs. 1435.00 p.m.
Rs. 5720.00 to Rs. 11440.00 20% of the substantive salary subject to minimum of Rs. 1715.00 p.rn.
Above Rs. 11440.00 15% of the substantive salary
subject to a minimum of Rs 2292.00
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.

Revision in Pension of Eligible Members of
the Fund who Retired / Retire on or after 01.11.2012 &
Revision in Family Pension of Eligible Members of the Fund who Retired / Retire on or after 01.11.2012.

Circular No. CDO/P&HRD-PM/77/2016-16 Dated 21.12.2015

With the active persuasion of both the Federation the Bank accorded approval for revised Basic Pension and Dearness relief thereon to eligible members of the fund who retired on or after 01.11.2012, pending amendments in SBI Pension Fund Rules now Regulations 2014 and Revision in family Pension in respect of of eligible members of the fund who retired on or after 01.11.2012.

(i) Amount of Basic Pension:-
The maximum amount of pension or members of the Fund eligible for pension, who retired/retire while in service or otherwise cease to be in employment on or after 01.11.2012, shall be computed as under:

  • The average of monthly substantive salary drawn during the last twelve months’ pensionable service has been enhanced from Rs. 31500/- and now is up to Rs. 51,490/- p.m. (the maximum pay scale of JMGS-I). The ceiling is at 50% of the average of monthly substantive salary drawn during the last twelve months’ pensionable service plus ½ of Professional Qualification Pay (PQP) plus ½ of increment component of Fixed Personal Pay (FPP), wherever applicable (pro-rata in the case of part-time employees)
  • Where it is above Rs. 51,490/- p.m. (the maximum pay scale of JMGS-I) then it will be at 40% of the average of monthly substantive salary drawn during the last twelve months’ pensionable service subject to minimum of Rs. 25,745/- p.m. plus ½ of Professional Qualification Pay (PQP) plus half of increment component of Fixed Personal Pay (FPP), wherever applicable (pro-rata in the case of part-time employees).

(ii) Amount of Dearness Relief:-
The dearness relief on pension with effect from 01.11.2012 shall be granted at the same rate as is applicable in the industry.
2. Further, revision in family pension in respect of eligible members of the Fund, who retired/retire on or after 1.11.2012 have been shown as under:

(i) Amount of monthly family pension:-

Scale of pay per month Amount of monthly family pension
Up to Rs 11,100 30 per cent of the ‘pay’ subject to a Minimum of
Rs. 2,785 per month.
Rs 11,101 to Rs 22,200 20 per cent of the ‘pay’ subject to a Minimum of

Rs. 3,422 per month.
Above Rs 22,200 15 per cent of the ‘pay’ subject to a Minimum of Rs. 4,448 per month and Maximum of Rs. 9,284
per month

Payment of Family Pension Provision for Payment of ‘Family Pension’ to Parents for Life

Cir No. CDO/P&HRD-PM/87/14-15) dt. 04/03/2015

1. Family Pension Scheme was introduced in the Bank’s w.e.f. 01.01.1986. As per the extant provisions of Family Pension Scheme, family pension is payable –

  • To widow / widower up to her / his death or remarriage, whichever occurs first.
  • In case (a) above is not applicable, the eldest of surviving children in order of their birth up to the age of 25 years or he/she is gainfully employed, whichever is earlier.
  • In case, beneficiary is an unmarried daughter, until she attains 25 years of age or is married or is gainfully employed, whichever occurs first.
  • This process will continue till the last beneficiary attains age of 25 years or is gainfully employed or is married in case of daughter, whichever is earlier.
  • To son or daughter for life if he / she is physically crippled or disabled so as to render him unable to earn a living even after attaining the age of 25 years.

2. On the 25th February, 2015, the Bank has approved widening of the scope of “Family” for the purpose of family pension by including the parents as beneficiaries. As such, the eligibility for family pension will be as per the following sequence:

  • To widow / widower up to his / her death or remarriage whichever is earlier.
  • Failing (a) above, the eldest of surviving children in order of their birth up to the age of 25 years or he/she is gainfully employed, whichever is earlier.
  • In case of beneficiary is an unmarried daughter, until she attains 25 years of age or is married or is gainfully employed, whichever occurs first.
  • This process will continue till the last beneficiary attains age of 25 years or is gainfully employed or is married in case of daughter, whichever is earlier.
  • Failing (a) to (d) above, to son or daughter for life if he/ she is physically crippled or disabled so as to render him unable to earn a living even after attaining the age of 25 years.
  • Failing (a) to (e) above, to the parents who were wholly dependent upon the employee when he/she was alive provided the deceased employee has left behind neither a widow nor a child. Among the parents, mother will have precedence over father.

3. The words ‘gainfully employed’ shall mean that he/she is either self employed or is otherwise employed and is earning from such employment, an income more than the amount of family pension to which he/she is entitled. Where the earning is less than the entitled family pension, the amount of family pension will be payable but be reduced by the amount of such income. Only those cases where parents are dependent and meet other conditions of eligibility for family pension at the time of death of the employee or his/her spouse, whichever is later, are eligible for pension.

4. The above modification in the provision for payment of family pension have been made effective from the 25.02.2015. Other terms and conditions in this regard will remain unchanged.