Superannuation pension shall be granted to an employee who has retired on his attaining the age of superannuation specified in the Service Regulations or Settlements.
Provided further that employees who ceased to be in service on or after 29th September 1995 in case of Nationalised Banks/ 26th March 1996 in case of Associate Banks of State Bank of India on account of voluntary retirement before attaining the age of superannuation but after rendering service for a minimum period of 15 years in terms of any scheme framed for such purposes by the Board with the approval of the Government, shall be entitled to join the Pension Fund, subject to the terms and conditions mentioned for retiring officers opting for joining the scheme if they-
(a) exercise an option in writing within sixty days from the date of offer to become a member of the pension fund; and
(b) refund within thirty days after expiry of the period of sixty days, the entire amount of bank’s contribution to Provident Fund and interest accrued thereon received on retirement together with a further sum equivalent to fifty six per cent of the said amount of bank’s contribution to the Provident Fund and interest thereon received on retirement.
Provided that, with effect from 1st September, 2000 pension shall also be granted to an employee who opts to retire before attaining the age of superannuation, but after rendering service for a minimum period of 15 years in terms of any Scheme that may be framed for such purpose by the Board with the approval of the Government.
Explanatory Memorandum
1. Indian Banks' Association, after taking a no-objection from the Government of India, circulated a model Voluntary Retirement Scheme (VRS) to all the Public Sector Banks on 31.8.2000. The Scheme, inter alia, provided that employees who have rendered 15 years’ service are eligible for the Scheme. According to the existing provisions in the pension regulations, it is only employees who opt for voluntary retirement after completing 20 years’ of qualifying service and after giving notice of not less than 3 months in writing to the appointing authority, are eligible for pensionary benefits. The eligibility criteria and the benefits flowing out of the above provisions in the Pension Regulations are distinct and separate from that envisaged under VRS circulated on 31.8.2000. There are no provisions available in the Pension Regulations for extending penionary benefits to a member employee who retires before attaining the age of superannuation under such specific schemes. It has been, therefore, decided to provide the benefit of pro-rata pensionary benefits to members of Pension Fund who opt for voluntary retirement under specified scheme(s).
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2. It is, therefore, necessary that the amendment may be made effective from 1st September, 2000 so that all employees who are members of the Pension Fund and have taken voluntary retirement under the scheme after completion of 15 years of service can draw the benefit of pension.
3. It is certified that no employee/officer of the UCO Bank is likely to be affected adversely by the Notification being given retrospective effect.
Provided further that employees who ceased to be in service on or after 29th September 1995 in case of Nationalised Banks/ 26th March 1996 in case of Associate Banks of State Bank of India on account of voluntary retirement before attaining the age of superannuation but after rendering service for a minimum period of 15 years in terms of any scheme framed for such purposes by the Board with the approval of the Government, shall be entitled to join the Pension Fund, subject to the terms and conditions mentioned for retiring officers opting for joining the scheme if they-
(a) exercise an option in writing within sixty days from the date of offer to become a member of the pension fund; and
(b) refund within thirty days after expiry of the period of sixty days, the entire amount of bank’s contribution to Provident Fund and interest accrued thereon received on retirement together with a further sum equivalent to fifty six per cent of the said amount of bank’s contribution to the Provident Fund and interest thereon received on retirement.