Govt has finally put its stamp on the long-awaited pension scheme for Bank Employees

The government has finally put its stamp on the long-awaited pension scheme for regional rural bank employees but they may have to wait at least another six months to get their dues.

The final shape of the scheme has failed to satisfy the retired employees as their demand for arrear payment has not been considered. The government approved revised pension only from April this year while RRB employees were demanding higher pension at par with their counterparts in nationalized banks for the past two decades.
The employees were demanding pension parity with effect from November 1993.

Till date, they used to get a measly sum as pension (something between Rs 1000 and Rs 2500 a month) from Regional Provident Fund Commissioner. Pensioners will first have to return the banks’ contribution to Provident Fund to become eligible for the new scheme.

“We will urge the government to make ex gratia payment to pensioners before all the formalities are done which may take another six months,” said Abdul Sayeed Khan, general secretary, National Federation of Regional Rural Bank Officers. About 30000 RRB employees, who were in service as on September 1, 1987 and joined before April 1 2018 can be considered for pension parity.

Newcomers who joined after March 31 this year will come under National Pension Scheme, which is the rule for nationalised bank employees since April 2010.

The National Bank for Agriculture & Rural Development prepared A Model Regional Rural Bank (Employees’) Pension Regulation 2018, a Model RRB (Officers and Employees) Service Amendment Regulations, 2018 and a Regional Rural Bank (Employees) Pension Scheme, 2018; in consultation with finance ministry. The schemes have been vetted by the Ministry of Law & Justice and approved by the government, according to a ministry communication to Nabard dated October 23.

The respective RRBs will have to place the model schemes before their board as the section 30(1) of RRBs Act 1976 empowers their boards to make regulations by notification in Official Gazette.

“This will be a lengthy process,” Khan said.

RRB associations won the protracted legal battle for pension parity on April 25 this year by way of a Supreme Court verdict. The Court had directed the government to implement the pension scheme within three months from the date of verdict.