UCO Bank Revises Employees’ Pension Regulations 2025
Overview of Pension Amendments
UCO Bank has issued the Employees’ Pension (Amendment) Regulations, 2025, which come into effect from the date of publication in the Official Gazette. The amendments clarify the eligibility of resigned former employees for pension benefits and introduce updated dearness relief and family pension rates for various categories of employees.
Key Changes for Resigned Former Employees
The amendments define a resigned former employee as someone who:
- Worked in the Bank on or after 1 January 1986.
- Joined the Bank before 1 April 2010.
- Resigned on or before 26 April 2010.
- Was otherwise eligible for the pension scheme while in service.
Resigned former employees can retain past service and receive pension if they refund the Bank’s Provident Fund contribution along with interest and provide the requisite undertaking.
Updated Pension and Family Pension Rules
The amendments update regulations regarding:
- Entitlement to pension for resigned former employees upon completion of qualifying service.
- Exclusions from the benefit of increase in qualifying service for resigned employees.
- Monthly pension rates for part-time and full-time employees retiring on or after 1 November 2022.
- Eligibility for family pension for deceased resigned former employees, subject to refund of Provident Fund contributions.
- Income thresholds for family pension for children and parents of deceased employees.
- Commutation restrictions for resigned former employees.
Dearness Relief and Ex-Gratia Payments
Dearness relief is updated across all employee categories, calculated based on the quarterly average of the All India Average Consumer Price Index for Industrial Workers. Ex-gratia amounts are also provided depending on the basic pension slabs. Dearness relief is payable on full basic pension even after commutation.
Impact on Employees and Families
The revised regulations ensure that employees who had resigned under specified conditions can still benefit from pension provisions. Families of deceased eligible employees will receive family pension according to the new minimum thresholds. These amendments standardize pension benefits, making them more transparent and accessible to resigned, retired, and current employees of UCO Bank.
UCO BANK (Head Office) NOTIFICATION
Kolkata, the 13th November, 2025
F. No. HO/PSD/PEN/2025-26/147(E)
In exercise of the powers conferred by clause (f) of sub-section (2) of section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the Board of Directors of the UCO Bank, after consultation with the Reserve Bank of India and with the previous sanction of the Central Government, except as respects things done or omitted to be done in pursuance of the Government of India, Ministry of Finance, Department of Financial Services, letter number 4/2/1/2022-IR, dated 13th March, 2024, on and from 1st November, 2022 till the date of publication of this notification in the Official Gazette, hereby makes the following regulations further to amend the UCO Bank (Employees’) Pension Regulations, 1995, namely:
1. (1) These regulations may be called the UCO Bank (Employees’) Pension (Amendment) Regulations, 2025. (2) They shall come into force on the date of their publication in the Official Gazette.
2. In regulation 2 of the said regulations, after clause (w), the following clause shall be inserted:–
“(wa) ‘resigned former employee’ means an employee, who – (a) was in the services of the Bank on or after the 1st January, 1986; (b) joined the Bank before the 1st April, 2010; (c) has resigned from the services of the Bank on or before the 26th April, 2010; and (d) was otherwise eligible to join the pension scheme while in service of the Bank;”.
3. In regulation 3 of the said regulations, after sub-regulation (14), the following shall be inserted:–
“(15) qualifies the definition of resigned former employee defined in clause (wa) of regulation 2 and has agreed to refund to the Bank the entire Banks’ contribution to Provident Fund (along with accumulated interest thereon) received by him at the time of resignation or later, from the Bank and has given an undertaking as per the draft provided by the Bank within the time as stipulated by the Bank.”.
4. In regulation 22 of the said regulations, in sub-regulation (1), after the proviso, the following proviso shall be inserted:–
“Provided further that resignation by a resigned former employee defined in clause (wa) of regulation 2, and who also conforms to the conditions contained in sub-regulation (15) of regulation 3, shall not entail forfeiture of the past service.”.
5. In regulation 29 of the said regulations, –
(i) in sub-regulation (1), after the third proviso, the following proviso shall be inserted:–
“Provided also that a resigned former employee as defined in clause (wa) of regulation 2 and conforming to the conditions specified in sub-regulation (15) of regulation 3, shall also be entitled for pension provided he has completed such qualifying service.”;
(ii) in sub-regulation (5), the following proviso shall be inserted: –
“Provided that the resigned former employee defined in clause (wa) of regulation 2 shall not be eligible for the benefit of increase of such qualifying service.”.
6. In regulation 36 of the said regulations, after clause (g), the following clause shall be inserted:–
“(h) rupees five thousand and seventy-five per month in respect of an employee, other than a part-time employee, where the employee retired on or after the 1st November, 2022, rupees one thousand seven hundred per month in respect of a part-time employee drawing 1/3 scale of wages, rupees two thousand five hundred and forty seven per month in respect of part-time employee drawing ½ scale wages, and rupees three thousand eight hundred and twenty per month in respect of a part-time employee drawing ¾ scale wages, where the part-time employee retired on or after the 1st November, 2022.”.
7. In regulation 39 of the said regulations, in sub-regulation (1), in clause (c), after the proviso, the following proviso shall be inserted:–
“Provided further that family of a deceased resigned former employee as defined in clause (wa) of regulation 2 shall also be eligible for family pension provided that the deceased resigned former employee has completed required qualifying service in the Bank under sub-regulation (1) of regulation 29, subject to the condition that the deceased resigned former employee (before his death) or family member has agreed to refund to the Bank the entire Bank’s contribution to Provident Fund (along with accumulated interest thereon) received at the time of resignation or later, from the Bank and has given an undertaking as per the draft provided by the Bank within the time as stipulated by the Bank.”.
8. In regulation 40 of the said regulations, in sub-regulation (1),–
(i) in clause (b), for the first proviso, the following proviso shall be substituted:–
“Provided that the family pension payable to son or daughter (including widowed or divorced) shall be discontinued or not be admissible when the eligible son or daughter starts earning a sum in excess of rupees eighteen thousand per month from employment in Government or Private Sector or self–employment etc.:”;
(ii) for clause (c), the following clause shall be substituted:–
“(c) in the case of parents, the family pension shall be discontinued or not be admissible, if the income of one of the parents or the aggregate income of both the parents from employment in Government or Private Sector or self–employment, etc. exceeds rupees eighteen thousand per month.”.
9. In regulation 41 of the said regulations, in sub-regulation (1), after the proviso, the following proviso shall be inserted:–
“Provided further that a resigned former employee as defined in clause (wa) of regulation 2 and who conforms to conditions contained in sub-regulation (15) of regulation 3, shall not be eligible for commutation of his pension.”.
10. In regulation 55 of the said regulations, for the words “The Chairman and Managing Director”, the words “The Managing Director and Chief Executive Officer” shall be substituted.
11. In the said regulations, for Appendix – II, the following Appendix shall be substituted:–
“Appendix-II (See regulation 37) Dearness relief on basic pension shall be as under:
| Sl. No. | Scale of basic pension per month | Rate of dearness relief as a percentage of basic pension |
|---|---|---|
| 1 | Upto Rs.1250 | 0.67 per cent. |
| 2 | Rs.1251 to Rs.2000 | 0.67 per cent. of Rs.1250 plus 0.55 per cent. of basic pension in excess of Rs.1250 |
| 3 | Rs.2001 to Rs.2130 | 0.67 per cent. of Rs.1250 plus 0.55 per cent. of the difference between Rs.2000 and Rs.1250 plus 0.33 per cent. of basic pension in excess of Rs.2000 |
| 4 | Above Rs.2130 | 0.67 per cent. of Rs.1250 plus 0.55 per cent. the difference between Rs.2000 and Rs.1250 plus 0.33 per cent. of the difference between Rs.2130 and Rs.2000 plus 0.17 per cent. of basic pension in excess of Rs.2130 |
Further details and complete tables for all categories are included in the official notification.
RAJESH KUMAR TIWARI, General Manager
[ADVT.-III/4/Exty./472/2025-26]