Dismissed Staff Will Also Get Pension

Unions welcome apex court verdict allowing pension benefits for dismissed staff-Business Line

VINSON KURIANTHIRUVANANTHAPURAM, JAN. 19---2014:  

The All-India Bank Employees’ Association has said the Supreme Court judgment providing pension benefits for employees removed from service meets its long-pending demand.

“We hope the Indian Banks’ Association and the Government will now take steps to suitably amend pension regulations based on the bipartite settlement of 2002,” said C. H. Venkatachalam, General-Secretary, AIBEA.

Giving the background, he said the 2002 settlement signed with the IBA governed disciplinary action and procedures to be taken by banks.

PUNISHMENTS ENVISAGED

It provides for various punishments for misconduct committed during the course of their employment.

Commensurate with the degree of misconduct, it envisages punishments such as warning; stoppage of future increments; reduction in pay; removal from service/compulsory retirement/discharge (with all retirement benefits); and dismissal from service.

Prior to this, in 1993, AIBEA had signed a settlement on extension of pension benefit to bank employees.

This settlement was repackaged as a common pension regulation in 1995 to govern the pension scheme for both employees and officers in the banks.

PENSION REGULATION

Under this, anyone dismissed, removed or terminated would not be eligible for pension save for compassionate allowance of not more than two-thirds of the eligible pension.

The 2002 settlement set right this anomaly by providing for pension for those removed or compulsorily retired or discharged from service. But the pension regulation had not been amended accordingly, leading to denial of pension benefits to the affected employees.
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