Mumbai: In a big relief for nearly 1,25,000 family pensioners in the banking sector, finance minister Nirmala Sitharaman Wednesday approved the Indian Banking Association’s proposal to increase the family pension of a deceased bank employee to 30% of the last salary drawn by him or her.
The move would make the family pension of banking sector employees to go up to Rs 30,000 to Rs 35,000 per family as against a maximum family pension of little over Rs 9,000 at present. The decision was announced by Debasish Panda, secretary in the department of financial services, in Mumbai.
The new provision will come into effect retrospectively and it will be implemented from April this year.
Panda, who accompanied finance minister in her two-day Mumbai visit to review the functioning of public sector banks, told reporters that the decision was in continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the Indian Bank Association (IBA) with the bank unions in November last year.
Bank employees’ family pension increased
The proposal for enhancement of family pension and the employers' contribution under the National Pension Scheme was part of the bipartite settlement between the bank management and worker unions and officer associations.
