During the wage revision negotiations, the United Forum of Bank Unions (UFBU) raised the issue of extending the pension scheme option to resigned employees and officers, which was agreed upon by the Indian Banks’ Association (IBA). This led to the signing of a memorandum of understanding (MoU) between the IBA and UFBU on 9th November 2023. Subsequently, the Government approved the extension of the pension scheme to resigned employees and officers based on the IBA’s recommendation.
Eligibility Criteria
Eligibility for the extended pension scheme includes employees and officers who were in service of the banks on or after 1st January 1986, joined the banks before 1st April 2010, and resigned from the service of the bank on or before 26th April 2010. In addition, they should have been eligible to join the pension scheme while in service and have completed 20 years of service or more at the time of resignation. In the event of an employee’s death after resignation, the surviving spouse or eligible family member can opt for the family pension.
Refund Requirement
Resigned employees and officers eligible for the pension scheme extension are required to refund the entire bank’s contribution to the Provident Fund, along with accumulated interest received at the time of their resignation from the bank. No additional interest is applicable in this case.
Pension Calculation
As per the Pension Regulation, the pension payable is 50% of the pay if the employee completed 33 years of service at the time of resignation. In other cases (20 to 32 years), the pension is calculated as 50% of pay multiplied by years of service divided by 33. The pension and family pension will be payable prospectively.
Conclusion
This development marks a significant achievement for UFBU, as resigned employees in other sectors such as Central/State Government, RBI, LIC, GIC, etc., do not have access to a similar pension scheme extension. The IBA will now work on finalizing the details and instruct the banks to offer this option to eligible resigned employees and officers.
consequently untired and all out efforts of UFBEU has produced a good and ever chance for retirees who comes under this category
There is no mention of 20 years service either in joint note or Govt./IBA communication. There is mention that the employee must be otherwise eligible to join pension scheme.
Looks like 20 years is deliberate implant by someone to deprieve some resigned employees of their benefit.
But, again let the banks come out with their communication.
It’s a great achivement!!!, Include gramin banks employee, goi has not clarified in his approval letter. 👏👏👏
It is a welcome measure for those who resigned after the pensionable service whatever maybe the compulsion.
In the similar way if the updation of Pension is considered all the retirees will be happy in their horizon of the life.
Minimum 20 years service condition should be reduced to 10 years, at par with central government. This point should be raised by UFBU with IBA. I’m sure, government will accept.
Great achievement.
Good achievement
How we can apply for this
Kindly WhatsApp me the process on 9911185222
CHV is unfit to lead any negotiation since his agenda is not for the welfare of retirees.
Good Achievement 👏👏
Good Achievement 🖐️👏
Why the cut off of 2010.what about those who resigned later say 2012?
What happened to the retired bank employees who are not opted pension scheme ?.will they get one more chance to opt pension scheme as applicable to resignee bank employees before 2010 ?
It will be very good if minimum service eligibility is reduced to 10 years.Hope the associations take it up with IBA and do the needful.
The salary of bank employees was very low before 1985/86 and reducing service period from 20 years to 10 years will be God’s gift to some employees.
Good step. Thanks to UFBU, GOI AND ALL for giving 2nd option for pension to resignees
Thanks a lot to UFBU for purposeful presentation and to GOI for the kind and favorable gesture really, Regards to all concerned
Of course it is a laudable achievement by Unions. But once again there arises a doubt whether IBA would direct all banks to implement including private sector banks who were parties to this settlement. Perhaps UFBU as well as other retiree organizations could clarfy🙏
For merged Banks,like DBS,Bank of Madura too should be benefitted
ICICI Bank refuses to extend second option to Bank of Madura Employees.All banks extended as per 9th bi- partite settlement dated 27/04/2010.Ministry of finance should prevail upon to pay.