Finance Ministry urged to improve family pension too

The All Kerala Bank Retirees Forum has urged the Ministry of Finance to update basic pension and substantially increase family pension in accordance with the Bank Employees Pension Regulation.

Whenever a demand for updating pension and improving family pension was raised , the Indian Banks’ Association (IBA) and the Ministry of Finance argued that any tilt in the pension scheme would adversely affect the pension corpus fund.

However, figures collected relating to retirements from banks during the next five years from March 31, 2019, showed that the cost of pension would be drastically reduced, said K.T. Babu, vice president of the forum.

He said the employees who had joined service from April 1, 2010, were out of the ambit of pension regulations of 1995 as they were covered by the National Pension System (NPS).

On careful consideration relating to 18 public sector banks, the State Bank of India and the Reserve Bank of India, a revision of basic pension and improvement in family pension would not affect the viability of the pension fund, said Mr. Babu.

He said more than one lakh employees and officers in the banking industry had opted for mass voluntary retirement in 2001. One of the main attractions of the scheme then was that they would get pension from the next month onwards, without considering the superannuation age of 60.

However, the liability of pension for such retirees up to superannuation age should have met by respective banks as part of the VRS scheme. But, it was met from the pension fund itself, added Mr. Babu.

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