The Indian Ministry of Finance recently addressed a query in the Lok Sabha regarding the pension scheme for retirees. The query highlighted concerns about the lack of revision in the pension scheme for bank retirees, especially those who retired many years ago.
The Ministry explained that the pension scheme was introduced through a Bipartite Settlement in 1993 for employees retired on or after January 1, 1986. This scheme was negotiated between bank employee unions/associations and the Indian Banks’ Association (IBA).
The Ministry clarified that the pension regulations established at that time do not include provisions for pension revision. However, pensioners continue to receive Dearness Relief on their pension, which is periodically adjusted to account for inflation. The IBA also mentioned that the issue of pension updation is currently under consideration by the Supreme Court of India.
Pension Scheme for Retirees
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION No. 1621
ANSWERED ON 31st JULY, 2023 / SRAVANA 9, 1945 (SAKA)
Pension Scheme for Retirees
- SHRI RAJMOHAN UNNITHAN:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government is aware that even after twenty eight years since introduction of pension scheme in Banks, it has not been revised and the retirees, especially those retired long back are living with great difficulty with a meagre amount of pension if so, the details thereof;
(b) whether the Bank Retirees are not given revision in pension along with the wage revision of serving employees on similar lines like the pension, scheme of Central and State Government retirees;
(c) whether the Government proposes to raise/revise the pension scheme of the bank retirees to ensure the quantum of pension payable to pensioner is adequate to meet his/her basic needs and lifestyle to which he/she is accustomed to live to achieve the objective of social welfare;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR. BHAGWAT KARAD)
(a) to (e): Pension, a funded scheme, was introduced in nationalised banks through Bipartite Settlement signed on 29.10.1993 (covering employees retired on or after 1.1.1986), between unions/associations of bank employees and the Indian Banks’ Association (IBA), which negotiated on behalf of participating banks. The Boards of the respective nationalised banks accordingly made Employees’ Pension Regulations, 1995, in exercise of their powers under section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980. These regulations do not have provision for revision of pension. However, pensioners/retirees of banks are being granted Dearness Relief on pension and the same is being increased from time to time i.e. on half yearly basis.
IBA has further informed that the matter of pension updation of Banks is sub-judice in Hon’ble Supreme Court of India.
Source: Loksabha