Pension, Dearness Allowance for Public Sector Bank (PSB) employees and retirees: The Central Government has said that bank employees and retirees are paid Dearness Allowance (DA) and Dearness Relief (DR) respectively as per the Bipartite Settlement arrived between bank employees’ unions and Indian Banks’ Association (IBA). The IBA negotiates on behalf of the participating banks. However, no decision has been taken on the issue of neutralisation of DA for Pre-November 2022 retirees.
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“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,” Union Minister of Finance for State, Dr Bhagwat Karad, said in a written reply to a query in the Lok Sabha on Monday (February 13, 2023).
Dr Karad was replying to a query on whether the Government has taken any steps to resolve the pre-November, 2002 retirees issue of Public Sector Banks (PSBs) by restoring payment of full neutralisation of Dearness Allowance.
No provision to revise pension
Responding to another query on the issue of pension updation of the PSBs, Dr Karad said that the Employees’ Pension regulations made by the Boards of nationalized banks do not have the provision for revision of pension. However, DA/DR is being increased on a quarterly/half-yearly basis.
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“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,” the minister said.
Pension Updation issue is still Sub-Judice
According to Dr Karad’s reply in the Lok Sabha, the IBA has informed that the committee set up to look into the matter of pension updation of PSBs has submitted its report to the Supreme Court and the matter is still subjudice.
