How Long Can a Bank Legally Withhold Your Superannuation Benefits After Retirement?

How many days can a bank withhold superannuation benefits?

I retired on 31 July 2015. Due to an inquiry, my superannuation benefit was withheld by the bank, my employer. The bank procrastinated and penalized me after 6 months. I appealed to a higher authority to overturn the punishment. Another 2 months passed, and currently, 9 months have gone by without receiving the benefits after working for 31 years. Is there a specific time limit regarding how long the superannuation benefit can be withheld?

As long as the case is not closed, the benefit can be withheld. Upon satisfactory clearance from the employer, you can request quick processing.

What are the benefits withheld? Does the punishment awarded include any recovery from your superannuation benefits?

Gratuity, leave encashment, and commutation of pension are withheld. Pension without commutation has been paid since August 2015.

Legal Position on Gratuity and Pension Commutation

The present legal position is that gratuity and commutation of pension cannot be sanctioned until and unless the proceedings are concluded.

Leave Encashment and Relevant Rules

As regards Leave Encashment, the exact provision of the rule needs to be referred to. Please ascertain whether the provision is similar to Rule 39(3) of CCS (Leave) Rules as applicable to Central Government Servants:

"The authority competent to grant leave may withhold the whole or part of the cash equivalent of earned leave in the case of a Government servant who retires from service on attaining the age of retirement while under suspension or while disciplinary or criminal proceedings are pending against him if, in the view of such authority, there is a possibility of some money becoming recoverable from him on conclusion of the proceedings against him. On conclusion of the proceedings, he will become eligible for the amount so withheld after the adjustment of Government dues, if any."

If so, you may take up the matter with the authority concerned if the facts and circumstances are in your favor.