Bank Staff Unions demand Old Pension Scheme Amid New Unified Pension Scheme Announcement
This week, bank staff unions are set to bring up a crucial topic with the Indian Banks’ Association (IBA)—the reinstatement of the Old Pension Scheme (OPS). This move comes right after the central government introduced a new Unified Pension Scheme (UPS) for its employees, which will start on April 1, 2025.
Rupam Roy, the General Secretary of the All India Bank Officers’ Association (AIBOC), shared with Business Standard that the unions have reviewed the recent notification about the OPS for government employees. “The central government’s decisions impact how bank managements make their choices,” Roy explained. “Our main demand is for the OPS, where employees do not have to contribute. It’s a significant social security benefit.”
AIBOC is part of the United Forum of Bank Unions (UFBU), which represents bank employees and officers. In December 2023, banks and UFBU signed a memorandum of understanding to revise wages and agreed to continue discussions on other issues, including pensions.
Currently, the pension system in banks differentiates between employees based on their recruitment date. Those hired before April 1, 2010, are eligible for the bank pension scheme, which provides a pension calculated as 50% of the average of their basic pay over the last 10 months of service, after 28 years of service. However, employees recruited on or after April 1, 2010, are covered by the National Pension Scheme (NPS) under the Pension Fund Regulatory and Development Authority (PFRDA).
One senior official from the All India Bank Employees Association (AIBEA) commented that while the UPS is an improvement over the NPS, it will take time to fully understand how it compares to the OPS. The unions are expected to formally address their demand for the restoration of the OPS as they delve deeper into the details of the new scheme.
