Latest Update on Pension of PSB Retirees
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
UNSTARRED QUESTION No. 1828
ANSWERED ON 13th FEBRUARY, 2023 / MAGHA 24, 1944 (SAKA)
PENSION UPDATION OF RETIREES OF PSBs
- SHRI RAVIKUMAR D.:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has taken any step to resolve the pre-November, 2002 retirees issue of Public Sector Banks (PSBs) by restoring payment of full neutralisation of Dearness Allowance, if so, the details thereof;
(b) the present position of the Ministry over the issue of pension updation of the PSBs; and
(c) whether the committee set up to look into the matter of pension updation of PSBs has submitted its report and if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR. BHAGWAT KARAD)
(a): Bank employees and retirees are being paid Dearness Allowance (DA) and Dearness Relief (DR) respectively, settled through Bipartite Settlement arrived at between bank employees’ unions/associations and the Indian Banks’ Association (IBA), which negotiates on behalf of the participating banks. IBA has informed that unions/associations have demanded the neutralization of DA for Pre-November, 2002 retirees. However, no decision has been taken in the Bipartite Settlement regarding the same.
(b) and (c): Pension, a funded scheme, was also introduced in nationalised banks through Bipartite Settlement. The Boards of the respective nationalised banks accordingly made Employees’ Pension regulations 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, DA/DR is being increased from time to time i.e. on quarterly/half yearly basis.
IBA has further informed that the committee set up to look into the matter of pension updation of PSBs has submitted its report to the Hon`ble Supreme Court and the matter is still subjudice.