The Government of India has approved a proposal by IBA to increase family pensions of public sector employees along with employer contributions to the National Pension System (NPS).
There is good news for over 10 lakh public sector bank (PSB) employees and pensioners. The central government has approved a proposal by the Indian Banks’ Association (IBA) to increase the family pension of PSB employees to 30 per cent of last drawn salary.
Also, there will be an increase in the employer banks’ contribution to the pension fund of employees under the NPS (National Pension System) from the existing 10 per cent to 14 per cent. The instant benefit of this approval will be an increase of 30,000 to 35,000 in the family pension of public sector bank employees from a maximum of 9,284 per month, depending on the last drawn salary of the deceased bank employee.
Earlier, both the employer and employee contributed 10 per cent each of basic salary. Now, the employer (bank) will contribute 14 per cent, while the employee will continue to contribute 10 per cent to the NPS.
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Union Finance Minister Nirmala Sitharaman’s had a two-day visit to Mumbai to review the performance of public sector banks, these announcements were made after the visit. Sitharaman also launched the EASE 4.0 reform agenda for smart-banking, during her visit to Mumbai.
Debasish Panda, Secretary of Department of Financial Services (Ministry of Finance), while making the announcement on Wednesday, said that, “In continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the IBA with the unions on November 11, 2020, there was a proposal for enhancement of family pension and also the employers’ contribution under the NPS.”
“This has been approved by the Finance Minister,” Secretary Panda added.
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