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A delegation of Bharatiya Mazdoor Sangh (BMS) met Shalini Pandit, Joint Secretary, Banking Operations, DFS, on November 4, 2026, and discussed various demands related to pension updation, health insurance, dearness allowance (DA), ex-gratia payments, pension options and other retirement benefits.
The delegation was led by BMS representatives and included senior bank pensioner activist K.D. Kheda, Santosh Kumar from New Delhi, Mankeshwar from Pune, Raghavendra Rao from Hyderabad, A.K. Kulkarni and C.K. Soman from IDBI Bank, Pune.
During the meeting, the delegation submitted a memorandum dated November 4, 2026, highlighting the problems faced by retired bank employees and seeking government intervention to resolve them.
Bank Pension Updation Case Pending Before Supreme Court
Pension updation was one of the most important issues discussed during the meeting. BMS highlighted that bank pensioners have been waiting for pension updation for several decades.
The organisation informed the Joint Secretary that the pension updation case was heard by the Supreme Court, which reserved its judgment on October 15, 2026. BMS expressed optimism that the Supreme Court would provide appropriate relief to bank pensioners in this long-pending matter.
Demand for Health Insurance from Welfare Fund for Retired Bank Employees
BMS strongly raised the issue of health insurance for retired bank employees. The delegation pointed out that despite the availability of Welfare Funds and government instructions, many banks are not providing proper health insurance facilities to retired employees through these funds.
As per the provisions of KCR-2010, 25% of the Welfare Fund is earmarked for the healthcare of retired employees. BMS also referred to the DFS letter dated February 24, 2012, which allowed banks to consider group insurance policies for both serving and retired employees instead of directly paying benefits from the Welfare Fund.
The delegation further highlighted that the government increased the Welfare Fund from Rs. 540 crore to Rs. 845 crore through its letter dated August 5, 2024.
According to a Press Information Bureau (PIB) statement issued in this regard, the increased allocation was intended to provide financial assistance to approximately 15 lakh serving and retired employees across 12 public sector banks.
However, BMS alleged that some banks were not properly utilising the Welfare Fund for retired employees and were providing only limited subsidies in the name of health insurance.
The organisation demanded proper implementation of DFS instructions and sought Group Health Insurance (GHI) facilities for both serving and retired employees through the Welfare Fund. It also demanded that the health insurance policy should be uniform across all public sector banks and that banks should bear the entire insurance premium.
Demand to Remove DA Discrimination Between Pre and Post November 2022 Retirees
BMS also raised the issue of discrimination in Dearness Allowance (DA) between bank pensioners who retired before and after November 2022.
According to the organisation, the 12th Bipartite Settlement/9th Joint Note dated March 8, 2024, created an anomaly because of different base years used for calculating DA.
At present, employees who retired on or after November 1, 2022, are receiving DA based on the 2016 base year index. However, pensioners who retired before November 2022 continue to receive DA based on the 1960 base year index.
BMS argued that DA is provided to compensate for inflation and should not be calculated at discriminatory rates for different groups of pensioners.
The organisation demanded that all pre-November 2022 pensioners should also receive DA based on the 2016 base year with effect from November 1, 2022.
Demand for Revision of Ex-Gratia Amount from April 2024
The delegation expressed concern over the non-implementation of existing settlements and agreements related to pensioners’ benefits.
BMS particularly highlighted the issue of annual revision of the ex-gratia amount payable to pre-November 2022 pensioners.
According to the organisation, the existing understanding provides for an annual review of the ex-gratia amount from April 2024 onwards. However, the amount has not been revised for April 2024, April 2025 and April 2026.
BMS requested the DFS to advise banks to follow the existing settlements and agreements and ensure the revision of the ex-gratia amount without further delay.
Demand for a Proper Grievance Redressal Mechanism for Pensioners
BMS also demanded a proper grievance redressal mechanism for retired bank employees.
The organisation stated that there is currently no effective platform where pensioners can register their complaints, raise concerns or submit suggestions regarding issues affecting their retirement benefits.
It pointed out that although pension is an important part of the service conditions of bank employees and is generally dealt with through discussions between bank management and employee unions, pensioners should also have an opportunity to express their views on decisions affecting them.
BMS urged the government to establish a suitable forum where retired employees can register their grievances and participate in discussions on pension-related policy matters.
One Last Pension Option for Employees Who Could Not Exercise Second Option
BMS requested the government to provide one final opportunity to those retired bank employees who could not exercise the second pension option due to financial difficulties.
The organisation raised this demand on humanitarian grounds and stated that the number of such pensioners would not be more than 200 to 300.
It requested the government to consider their difficulties and allow them one final chance to opt for the bank pension scheme.
Demand for Pension Benefits to Resignees from the Date of Resignation
The issue of pension benefits for employees who resigned from bank services was also discussed.
BMS stated that excluding employees who resigned from the pension scheme was wrong and that the mistake had now been corrected by allowing pension to such employees with prospective effect.
However, the organisation argued that these employees should not suffer because of an earlier policy decision.
BMS demanded that resignees should receive pension from the month immediately following the acceptance of their resignation letters instead of receiving pension only from a later date.
Special Allowance Should Be Included in Pension and Gratuity Calculation
BMS also raised the issue of Special Allowance introduced from November 1, 2012.
According to the organisation, a major portion of basic pay was separated and converted into Special Allowance, which was kept outside pension and gratuity calculations.
As a result, bank employees who retired from November 2012 onwards are reportedly losing thousands of rupees in pension every month.
BMS pointed out that the Nainital High Court had quashed the Special Allowance provision, but banks subsequently challenged the decision before the Supreme Court.
The organisation demanded government intervention to resolve the matter and ensure that retired employees receive their legitimate pension benefits.
Demand for Reforms in Bank Pension Regulations 1995
BMS also discussed the need to update the Bank Employees Pension Regulations, 1995, in line with changes made in the Central Civil Services Pension Rules.
The organisation stated that bank pension regulations are broadly based on the Central Civil Services Rules, 1972, which have subsequently been updated through the 2021 rules. However, corresponding changes have not been made in the bank pension regulations.
BMS highlighted several important areas where reforms are required:
- Family pension should be extended to widowed, divorced and unmarried daughters without the earlier age restriction of 25 years, in line with the changes in Central Civil Services Pension Rules.
- Full pension should be provided after completing 20 years of service.
- Pension should be calculated on the basis of the average salary of the last 10 months or the last month’s pay drawn, whichever is higher.
- Higher pension rates should be provided to senior pensioners after they cross the prescribed age.
BMS demanded that these provisions should also be incorporated into the Bank Employees Pension Regulations, 1995, to bring bank pension benefits in line with the revised Central Government pension rules.
IDBI Bank and eUWB Employees’ Issues Also Discussed
The delegation also raised several specific issues concerning IDBI Bank retirees and employees of the erstwhile eUWB.
The following matters were discussed:
- Second pension option for eUWB employees: BMS demanded the extension of the second pension option to eUWB employees in accordance with the settlement dated April 27, 2010.
- Pending wage revision arrears: The organisation raised the issue of non-payment of 23 months’ wage revision arrears to former eUWB employees.
- Pension option for resignees: BMS demanded pension options for resignees in accordance with the 12th Bipartite Settlement/Joint Note.
- Protection of IDBI Bank retirees’ benefits: The delegation also discussed the protection of existing pension and retirement benefits of IDBI Bank retirees. Relevant documents were submitted to the Joint Secretary in support of their demands.
Joint Secretary Assures Consideration of Pensioners’ Issues
According to BMS, the meeting was held in a cordial atmosphere. Shalini Pandit listened to the delegation’s concerns and examined the issues raised by its representatives.
She assured the delegation that the rights of bank pensioners would not be ignored and that she would make efforts to resolve the issues appropriately.
At the end of the meeting, the BMS delegation thanked the Joint Secretary for providing an opportunity to present the long-pending problems of retired bank employees.
The organisation also stated that it would continue its efforts to improve the existing conditions of bank pensioners as well as serving bank employees.
The memorandum was submitted by Girish Chandra Arya, In-charge, Financial Sector, Bharatiya Mazdoor Sangh.
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