Families of public sector bank employees will now get enhanced family pension as the Union Government has approved the Indian Banks' Association’s (IBA) proposal to increase the family pension to 30 per cent of last salary drawn.
With the approval of IBA proposal, each family of bank employees will now get family pension of as much as Rs 30,000 to Rs 35,000, said Panda, secretary, Department of Financial Services, Ministry of Finance in Mumbai on Wednesday.
Secretary, DFS informed that, in continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the IBA with the unions on November 11, 2020, there was a proposal for enhancement of family pension and also the employers' contribution under the NPS. This has been approved by the Finance Minister, he said at a press meet addressed by Finance Minister Nirmala Sitharaman in Mumbai on Wednesday.
“Earlier the scheme had slabs of 15, 20 and 30 percent of the pay that a pensioner drew at that point of time. It was capped subject to a maximum of Rs 9,284/-. That was a very paltry sum and Finance Minister Sitharaman was concerned and wanted that to be revised so that family members of bank employees get a decent amount to survive and sustain,” Panda was quoted as saying in a release issued by the Finance Ministry.
The Union Government has also approved the proposal to increase employers contribution under the NPS to 14 per cent from the existing 10 per cent, the release stated.
Thousands of families of PSU bank employees will be benefited by the enhanced Family Pension, while increase in employers contribution will provide increased financial security to the bank employees under the NPS.
Finance Minister, as part of her two-day visit to Mumbai reviewed the performance of the public sector banks and launched EASE 4.0 reform agenda for smart banking.