Bank staff unions to push for Od Pension Scheme with IBA

Bank staff unions are set to discuss bringing back the Old Pension Scheme (OPS) with the Indian Banks' Association (IBA) this week. This follows the central government's recent approval of a new Unified Pension Scheme (UPS) for its employees, which will start on April 1, 2025.

Rupam Roy, General Secretary of the All India Bank Officers’ Association (AIBOC), said that unions have reviewed the OPS notification for government employees. They plan to bring up the issue with the IBA soon. Roy emphasized that OPS, where employees do not have to contribute, is a crucial social security benefit.

In December 2023, the IBA and the United Forum of Bank Unions (UFBU), which represents bank employees and officers, agreed on a wage revision deal and promised to keep talking about other matters, including pensions.

Currently, bank employees hired after April 1, 2010, are covered by the National Pension Scheme (NPS), managed by the Pension Fund Regulatory and Development Authority (PFRDA). Those employed before this date are eligible for the bank pension scheme. Employees who have worked for 28 years in a bank receive a pension that is 50% of the average of their basic pay over the last 10 months of service.

An official from the All India Bank Employees Association (AIBEA) noted that while the UPS is an improvement over the NPS, it will take time to fully understand how it compares to the OPS.