Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
A bank employee (Canara Bank) has completed 15 years service and had taken Sabbatical from Oct 2005 for 5 years . During Oct 2010 bank introduced Pension scheme for all employee who have joined on or before 1.1.1993 and this bank employee applied for the same by paying an amount as contribution in addition the Employer PF contribution will be surrendered . During Sabbatical this employee has lost her eye sight completely and now applied for resignation to the bank . The bank has now informed that since the employee has not completed 20 years of service the entire Pension contribution (Employer share for 15 years + employee contribution paid in Oct 2010) will forfeited . Can anyone help here to inform the correct Pension regulation in Indian banks and also whether the bank has right to forfeit the amount

From India, Bangalore
Under Pension Regulation, Pension can be paid on various grounds. In the instant case, the employee has lost her eye sight completely. Thus she has become incapacitated to continue to work with the Bank. Hence she has to seek Invalid Pension (not the pension under Voluntary Retirement Scheme where the minimum required service is 20 years). In this case, the minimum service required is 10 years. The request should be supported by a Medical Certificate from a Medical Officer approved by the Bank. It is believed that as at the time of she joining the Pension Scheme she was still in the employment of the Bank, ie., she has not resigned or taken VRS.
She would be entitled for Pension for the service done. The basic pension would be 20/33 x average 10 months' notional salary/2. She can also commute 1/3rd pension.

From India, Bangalore
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™