Salient features of Pension Scheme of PSBs which is to be made applicable to RRB staff


AIRRBEA Circular No. 56 dated 07-06-2018

Salient features of Pension Regulations/ Scheme in PSBs

ELIGIBILITY:

a) The person employed in service of the Bank on full time work on permanent basis or on part time work on part time basis on scale wages.

b) They must opt to be a member of the Bank’s Pension Scheme.

c) Option must be submitted to Bank within 120 days from the implementation of the Pension Regulations i.e. from the date of publication of Bank’s Pension Regulations in Govt. Gazette. (Notified Date)

d) Option must be submitted by the undernoted three categories of proposed beneficiaries. Option Format are group specific.

1. Employees in Service

2. Retired Employees

3. Spouse/Dependents of Deceased Retired Employees (Proposed Family Pensioner).

e) Retired Employees / Spouse/Dependents of Deceased Retired Employees must refund the entire bank’s contribution to Staff Provident Fund (SPF) with interest up to the date of settlement of SPF on superannuation/retirement PLUS interest @ 6% p.a. from the date of receipt of SPF to the date of refund to the Bank. Such refund of Bank’s contribution is to be made by the retired employee / Spouse/Dependents of Deceased Retired Employees within 60 days.

PENSION FUND:

The Bank shall constitute Employees Pension Fund under an irrevocable trust within 120 days from the notified date. The Fund shall have for its sole purpose the provision of the payment of Pension or Family Pension in accordance with these regulations to the employee or his/her family.

The Bank shall be a contributor to the Fund and shall ensure that sufficient sums are placed in it to enable the trustees to make the due payments to beneficiaries under these regulations.

The Provident Fund Trust shall, immediately after the constitution of Pension Fund, transfer the accumulated balance of the contribution of the Bank to the Provident Fund and interest accrued there on up to the date of such transfer in respect of every working employees opted for pension.

The employees retired before the notified date and opt for pension will refund the Bank’s contribution towards Provident Fund along with the interest up to the date settlement and interest @ 6.00% pa from the date of settlement to the date of refund. The family of the deceased employees / retired employee died before the notified date and opt for pension will also refund the Bank’s contribution towards Provident Fund as above Board of Trustee (BOT) of Pension Fund: The Bank shall constitute the BOT with 3 to 9 persons. The Bank shall nominate one person as Chairman and another person as Alternate Chairman. The Alternate Chairman shall act as Chairman in absence of Chairman.

The Bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund every financial year, on 31st day of March, and make such additional annual contributions to the Fund as may be required to secure payment of the benefits under these regulations.

QUALIFYING SERVICE :

1. The concerned employee must render a minimum of 10 years of active service to the Bank.

2. Active service of the concerned employee should by 33 years to avail full pension. If the active service of the concerned employee is less than 33 years , a proportionate pension will be allowed.

3. Active service means the difference of the date of retirement and the date of joining in the Bank’s service less extra ordinary leave with loss of pay more than 12 months during the entire service less period without pay, excluding extra ordinary leave with loss of pay sanctioned by the competent authority up to 1 year as mentioned above Less period of suspension (not exonerated by Disciplinary Authority/ Appellate Authority). All such figures are in Years- Months- Days Format. Months of the final figure more than 6 months should be considered as a full year otherwise that period is to be ignored. In case of Part-Time permanent scale wages employee the date of active service will be counted from the date he/she was included as a member of Staff Provident Fund.

BASIC PENSION / ADDITIONAL PENSION / FAMILY PENSION:

Basic Pension is Ten months average Pay (Pay attracting DA & PF) multiplied by Years of active service divided by 66 (sixty six)

Additional Pension is Ten Months average Allowances (Allowances attracting DA) Multiplied by years of active service divided by 66 (sixty six).

Family Pension is allowed to the family member of the deceased employee or staff pensioner as below:

Normal Family Pension = Last Month’s Pay X 15% subject to cap

Enhanced Family Pension = Normal Family Pension X 2 up to 7 years from the date of Retirement /death of the pensioner or 65 years whichever is lower,

FAMILY:

1. Spouse (wife in case of male employee or husband in case of lady employee)

2. A judicially separated wife or husband, if such separation is not being granted on the ground of adultery and the person surviving was not held guilty of continuing adultery.

3. Son up to the age of 25 years