Important Facts of the News
- Regulations titled Indian Bank (Employees’) Pension (Amendment) Regulations, 2025.
- Comes into effect on the date of publication in the Official Gazette.
- New category added: “resigned former employee”.
- Eligibility applies to employees who served on or after 1 January 1986, joined before 1 April 2010, and resigned on or before 26 April 2010.
- Such employees must refund full Bank’s contribution to the Provident Fund with accumulated interest.
- Resignation of eligible resigned former employees will not result in loss of past service.
- Pension entitlement allowed if qualifying service is completed.
- Minimum pension amount revised including for part-time staff retired on or after 1 November 2022.
- Family pension eligibility extended to families of resigned former employees subject to conditions.
- Commutation of pension is not permitted for resigned former employees qualifying under this clause.
Indian Bank Pension Regulations Updated
The Indian Bank has brought changes to the pension regulations originally framed in 1995. These amendments take effect from the date of publication in the Official Gazette. The revision introduces a new defined category known as a “resigned former employee”. This category includes employees who were part of the Bank’s service on or after 1 January 1986, joined before 1 April 2010, resigned on or before 26 April 2010, and who were otherwise eligible for the pension scheme while in service.
Eligibility and Requirements
To receive pension benefits, the resigned former employee must refund the full amount of the Bank’s contribution to the Provident Fund along with accumulated interest. This refund must be supported by a written undertaking within the period specified by the Bank. When these conditions are met, resignation will not lead to forfeiture of past service. Such an employee may qualify for pension if the required length of service is fulfilled. However, the amendment clarifies that these employees are not eligible for the benefit of increased qualifying service and are not permitted to commute their pension.
Family Pension Provision
The amendment also covers family pension. Families of eligible resigned former employees will be entitled to family pension if the deceased had completed qualifying service. The refund of the Bank’s Provident Fund contribution with interest and submission of the undertaking are required in these cases as well. Additionally, the rules specify that family pension for children or parents will not continue if their income exceeds Rs 18,000 per month.
Pension Amounts and Dearness Relief
The regulation updates also revise minimum pension for employees retiring on or after 1 November 2022. The minimum monthly pension for a full-time employee is fixed at Rs 5,075. For part-time staff, pension rates vary depending on wage proportion: Rs 1,700 for 1/3 scale, Rs 2,547 for 1/2 scale, and Rs 3,820 for 3/4 scale. Updated provisions on dearness relief and family pension calculation are detailed in the substituted Appendix sections, specifying percentage-based adjustments linked to consumer price index variations.
Administrative Terminology Update
The designation “Chairman and Managing Director” in the regulations is now replaced with “Managing Director and Chief Executive Officer”.