Indian banks want defined pension

Demand from bank employees comes amid several states opting out of contribution pension scheme

Representational image. : File picture

TT Staff Reporter   |   Calcutta   |    25.10.22  : Unions representing bank employees have urged the Indian Banks’ Association (IBA) to consider defined pension — the old pension scheme — instead of contributory pension as part of the charter of demands under the 12th bipartite settlement for the revision of wages and service condition.

The demand from bank employees comes amid several states opting out of contribution pension scheme, which is the National Pension System.

The 11th bipartite settlement between bank employee unions and IBA was effective from November 1, 2017, for a period of five years ending October 31, 2022. Accordingly, the pay scales, other components of wages and service conditions need a revision from November 1, 2022.

As part of the charter of demands, the unions have said that employees who have joined after October 4, 2010 should be brought under an index-linked pension scheme or a minimum guaranteed pension has to be provided. For computing basic pension, the charter says that either the last drawn pay or the last 10 months average pay, whichever is higher, has to be taken into consideration.

The charter also pointed out that provident fund contribution should be increased to 12 per cent from 10 per cent of pay for all PF/pension optees.

The central government has moved from a defined benefit pension and GPF to a defined contributory pension scheme under National Pension System (NPS).

However, several non-BJP ruled states such as Rajasthan, Chhattisgarh, Jharkhand and more recently Punjab have moved away from NPS where returns are market linked. Bengal is not part of the list of state governments that have joined NPS.

“There is a guarantee of social security under defined pension,” Rajen Nagar, general secretary, the Bengal Provincial Bank Employees Association, told The Telegraph.

The unions have said that high inflation was eroding the real wage of employees. “No doubt, while there is a scheme for compensation against periodical price rise through payment of DA, the unprecedented price spiral in recent years in light of uncontrollable inflation is seriously eroding real wages and wages are far lagging behind the actual price rise,” the charter said.

The unions have also reiterated their demand for five working days and pointed out the wage revision to employees of Catholic Syrian Bank and DBS Bank (erstwhile Lakshmi Vilas Bank) on the lines of the 11th bipartite settlement must be extended without delay.

Union call

■ Bank staff pay scales need to be revised from November

■ Unions want a defined pension regime that will guarantee a minimum sum

■ They are opposed to Centre’s National Pension System

■ PF contribution should be increased to 12%