The Government of India announced a new revision in the pension scheme of the public sector bank employees. This is announced peculiarly by Nirmala Sitaraman, the Union Finance Minister of India. The new revisions show that the Government boosted up the contribution to the National Pension Scheme (NPS) way from 10 percent to 14 percent. This marked a positive change for the family pensions. Now the bar on family pensions has been taken off and the new contribution will be taken into account.

Before the revision, the scheme was having 15 percent, 20 percent, and 30 percent of the pensioner’s pay along with a cap of Rs. 9284. Regarding the revisions, this creates drastic changes which are truly beneficial for thousands of families of bank staff in public sectors. They deserve such revisions. Along with the changed family pension scheme, the deceased public sector bank staffs’ families are eligible for an equal pension of 30 percent of their last drawn salary. Any additional burden regarding the payment will be taken by the banks themselves.

This scheme is a piece of extra to the 11th bipartite settlement which is signed by the unions and banks. This comes under the wage revision provision for the bank employees in public sectors. Under this revision, banks are equally responsible for the contribution of 14 percent of the current employees’ salary to their retirement corpus.

Those employees who have been started their career in public sector banks before 2004 are eligible for a monthly pension scheme. They are not opted out in this revision and hence equally given importance. Their pension scheme is calculated based on a pre-set formula of their last drawn salaries. On the other hand, the employees who joined after 2004 will surely be a part of the National Pension Scheme (NPS).

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