The government has responded to questions regarding pension revision for retirees as expectations grow around the implementation of the 8th Pay Commission and potential changes to salary and pension structures. The government clarified that pensions in public sector banks are governed by specific regulations.
Many bank retirees argue that while government employees see periodic pay commission revisions, their basic pension has not been updated for decades. The issue was recently raised in Parliament, where the government clarified its position on whether there are plans to revise the basic pension of public sector bank (PSB) retirees.
The matter was recently raised in the Lok Sabha by MP Konda Vishweshwar Reddy. The question pointed out that some financial institutions have approved pension increases and asked whether a similar revision could be considered for retirees of public sector banks.
The government’s response was provided by Minister of State for Finance Pankaj Chaudhary. The government confirmed that pension revisions have been approved in some financial institutions. According to the Finance Ministry, the government has approved a 10% increase in basic pension plus dearness relief for retirees of the Reserve Bank of India (RBI). It applies to all pensioners who retired before November 1, 2022.
For NABARD retirees, pension revisions were carried out earlier in phases. Pension for retirees before November 1, 2012, was revised with effect from March 1, 2019. Pension for retirees before November 1, 2017, was revised with effect from June 12, 2023.
PSBs include 11 nationalised banks and the State Bank of India (SBI). For SBI employees, pension is governed by the State Bank of India Employees’ Pension Fund Regulations, 2014. For employees of nationalised banks, pension is governed by the Bank (Employees’) Pension Regulations, 1995, which were approved by the respective bank boards.
According to the Finance Ministry’s response in Parliament, no proposal is currently under consideration to revise the basic pension of public sector bank retirees. The government said pensions will continue to be governed by the existing pension regulations, which do not allow for such revision. The government’s clarification indicates that pensioners will continue to receive Dearness Relief revisions and ex-gratia payments under existing arrangements.