The bank staff unions will raise the issue of restoration of the Old Pension Scheme (OPS) with the Indian Banks’ Association.
“What the Centre implements influences the decision making of bank managements. Our principle demand is for OPS where the employee does not contribute. It is a social security benefit,” said Rupam Roy, general secretary, All India Bank Officers’ Association.
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Tuesday 12 Nov. 2024
Roy told Business Standard unions have gone through the notification (OPS for government employees). The issue of pension will be raised at a meeting with Indian Bank’s Association this week.
“What the central government implements influences the decision making of bank managements. Our principle demand is for OPS where the employee does not contribute. It is a social security benefit,” Roy added.
AIBOC is a member of the United Forum of Bank Unions (UFBU).Banks, represented by IBA, and UFBU, representing employees’ and officers’, had signed an MOU for wage revision in December 2023 and had agreed to continue discussion on residual matters including pension.
The Pension Fund of banks do not service the employees recruited on or after April 1, 2010 who are covered by another scheme like NPS under the aegis of Pension Fund Regulatory and Development Authority (PFRDA). Those recruited prior to April 2010 are eligible for the bank pension scheme. The person who has served for 28 years in a bank will get the complete benefit of pension.
The pension is calculated as 50 per cent of the average of their basic pay over the last 10 months of service. One senior office bearer of All India Bank Employees Association (AIBEA) said while UPS is definitely better than NPS, it will take a while to understand the full implications and how close it is to OPS.
The demand for restoration of old pension scheme for bank employees will come automatically. The detailed response from banking sector unions will be formulated after examining details, the AIBEA office bearer said.
