BANK'S PENSION IS A CONTRIBUTORY PENSION

BANK’S PENSION IS A CONTRIBUTORY PENSION

It is a well known fact that the Nationalised Banks including State Bank of India are having Contributory Pension Scheme (CPF) to its employees.  This pension scheme was started in 1995, therefore the name given as “Indian Bank Employees Pension Scheme 1995”, “Canara Bank Employees Pension Scheme 1995”, “Bank of India Employees Pension Scheme 1995” etc., etc..The State Bank of India is also having similar scheme. 

Incidentally, the Employees Provident Fund Organisation improved its existing scheme in 1995 and scrapped its old FPS 1971 scheme subsequently and named the new improved scheme as EPF 1995 Scheme.

Since the EPF 1995 is limited to a monthly salary of Rs.6,500 and covering unorganized labourers, the Bank employees sought a separate scheme with higher salary and management of its funds by its own Trustees.

In both the schemes, the Employer contributes a sum to the employee for the pension fund.  In principle both the EPF 1995 and the Banks Pension Schemes 1995 are one and the same.  While the EPF 1995 pensioners are allowed to draw two family pensions, why similarly placed bank family pensioners are not allowed two family pensions.

This point has been emphasized in a number of judgments that a Banks’ pension is given from a separate fund and the government should not have any objection for payment.  But still the government, specially the MINISTRY OF DEFENCE AND THE RESPECTIVE RECORD OFFICES AND CDA ALLAHABAD  continues to reject many family pension requests from the widows of the re-employed ex-servicemen from banks.

A petition of a widow in the AFT Chennai (OA No.21 of 2010 AFT Regional Bench, Chennai) seeking Defence family pension in addition to the Bank of India’s family pension was cleared by the AFT by the following certificate issued by the Bank.

The certificate issued by the Bank of India dt.24.5.2011 reads as follows:-

            “This is to certify that Mrs.G.Mangammal, W/O A.G.Govindasamy (Ex.Staff of Bank of           

            India) is drawing family pension through SB A/C No.800010110005367.  The pension is         

            Paid out of our own funds as per Bank of India Employees Pension Scheme 1995 in lieu           

            Contributory Pension Fund. (CPF)”

The above certificate issued by the Bank gave way for clearing all disputes and the widow was granted second family pension by the AFT Chennai on 01.07.2011.

The Government should consider giving second family pension at least to the Bank’s family pensioners, without dragging them to the court.