Bank Employees Demand Restoration of Old Pension Scheme Amid Unified Pension Discussions
Demand for Old Pension Restoration Grows
In light of the recent approval of the Unified Pension System (UPS) by the central government, the issue of Old Pension Scheme (OPS) has taken center stage. Bank unions plan to raise concerns regarding the restoration of OPS with the Indian Banks' Association (IBA) during their upcoming meeting. Rupam Roy, General Secretary of the All India Bank Officers’ Association (AIBOC), emphasized that the government’s moves significantly influence bank management decisions.
Background on Pension Schemes
- The OPS allows retired employees to receive a pension without contributing, viewed as an essential social security benefit.
- Current pension arrangements have changed, particularly for employees recruited after April 1, 2010, who are now enrolled in the National Pension Scheme (NPS).
- The complete pension entitlements under the bank scheme are based on the average of the last 10 months' basic pay of employees with at least 28 years of service.
Unions' Response to UPS
While the UPS presented by the government offers improvements over the NPS, it remains unclear how it measures up to the benefits provided under the OPS. The demand for restoration of OPS is expected to intensify as banking unions finalize their responses based on further details.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.