AIBEA Demands Pension Benefits for Bank Employees Similar to Central Government Employees

The All India Bank Employees’ Association (AIBEA) has called for improvements in the bank pension scheme and pension regulations. In a circular letter dated October 20, 2026, AIBEA General Secretary C.H. Venkatachalam informed union office-bearers, state federations and bankwise organisations about the association’s ongoing efforts to improve pension benefits for bank employees and retirees. The association said it has been raising several issues with the Indian Banks’ Association (IBA), including periodic pension revision, a uniform Dearness Allowance (DA) formula for pensioners, higher pension benefits at advanced ages and changes to existing pension regulations.

AIBEA Recalls History of Bank Pension Scheme

The first Bipartite Settlement was signed on October 19, 1966, while the historic Pension Settlement was signed on October 29, 1993, after significant efforts and struggles.

According to AIBEA, the pension settlement has provided social security, dignity and financial protection to lakhs of bank employees and officers. The association also credited the United Forum of Bank Unions (UFBU) with playing an important role in securing another option to join the pension scheme in 2010. As a result, more than 3.5 lakh employees, officers and retirees were able to join the pension scheme.

AIBEA Demands a Return from NPS to OPS

AIBEA stated that pension policies have changed over the years. The government moved from the Defined Benefit Pension Scheme (DBS) to the Defined Contribution Pension Scheme (DCS) in 2004. A similar change was implemented in the banking sector from 2010.

The association said that switching from the National Pension System (NPS) to the Old Pension Scheme (OPS) remains one of the major demands of AIBEA and UFBU. It argued that a pension linked to Dearness Allowance is an important form of social security, particularly when inflation is increasing and people are facing higher living costs. Therefore, AIBEA said it continues to pursue this demand as a major issue.

Pension Improvements Already Achieved

AIBEA pointed out that several improvements have already been made to the bank pension scheme. These include 100% DA for pensioners who retired before November 2002, a uniform family pension rate of 30% without any ceiling, pension benefits for employees who resigned, minimum ex-gratia of ₹10,000 for retirees who retired before 1986, and ad hoc ex-gratia payments for all pensioners who retired before October 2022.

AIBEA Seeks Periodic Pension Revision and Uniform DA Formula

AIBEA said it has been demanding periodic revision or updation of pension to ensure that pensioners’ benefits remain adequate over time. It is also seeking a uniform DA formula for all bank pensioners and an extension of ex-gratia benefits to all pensioners of private sector banks.

Apart from these demands, the association has been seeking amendments to the bank pension scheme and pension regulations. According to the circular, the IBA has agreed to discuss these matters as residual issues.

Demand for Pension Benefits Similar to Central Government Employees

AIBEA has asked the IBA to consider incorporating certain benefits available under the Central Government pension scheme into the bank pension scheme.

One of its demands is an increase in the percentage of pension as pensioners reach the ages of 80, 85, 90 and 95 years, and beyond. The association also highlighted the method used under the Central Government pension scheme to calculate pension, under which pension is calculated at 50% of the average pay of the last 10 months or the pay of the last month, whichever is higher.

AIBEA pointed out that these provisions are not available under the existing bank pension scheme. It wants the IBA to consider these differences and discuss the introduction of similar benefits for bank pensioners.

AIBEA has also called for a review of Regulation 46.2, which relates to the non-release of gratuity. The association said these matters would be taken up with the IBA during discussions on pension-related residual issues.

AIBEA has requested its affiliated unions to submit suggestions for improving or amending the pension scheme and pension regulations. The association has asked unions to provide proper details of their proposals so that AIBEA and UFBU can take them up with the IBA during negotiations.