Hi, Like me, there are many Bank employees who have joined PSU Bank through lateral recruitment, with prior experience in PSU Bank. Before joining the current PSU Bank, we were covered under our previous Bank's Pension Regulation,1995 and had served the previous Bank for many years, say 8-10 years. Now, after joining the current Bank, we are again covered by our current Bank's Pension Regulation, 1995 (our current joining is prior to the implementation of NPS). However, if we want to opt for VRS, only the current tenure is taken, excluding our previous tenure in other PSU Bank.
The disconnect here is:
If we want to take VRS, then a minimum continuous period of service must be 20 years for availing the pension facility (which also includes family pension). Now, in this case, we would not get a pension if we opt for VRS since the length of service in the current Bank is less than 20 years; however, if we add the experience of the previous PSU Bank, then the length of service exceeds 20 years.
Our Argument
We all have served the same Govt, i.e. Govt of India, and the pension regulation 1995 for Bank employees is the same across all the PSU Banks, only the prefix changes, i.e. the name of the particular Bank changes before the Pension Regulation. then why is this discrimination? Our earlier years of service are wasted, and there is no weightage for the same in the eyes of the Govt for whom we have served.
The Query
Is there any earlier judgment by any Hon’ble court on this topic or any expert opinion on how to go about it?
Regards
Amit
From India, Bangalore
The disconnect here is:
If we want to take VRS, then a minimum continuous period of service must be 20 years for availing the pension facility (which also includes family pension). Now, in this case, we would not get a pension if we opt for VRS since the length of service in the current Bank is less than 20 years; however, if we add the experience of the previous PSU Bank, then the length of service exceeds 20 years.
Our Argument
We all have served the same Govt, i.e. Govt of India, and the pension regulation 1995 for Bank employees is the same across all the PSU Banks, only the prefix changes, i.e. the name of the particular Bank changes before the Pension Regulation. then why is this discrimination? Our earlier years of service are wasted, and there is no weightage for the same in the eyes of the Govt for whom we have served.
The Query
Is there any earlier judgment by any Hon’ble court on this topic or any expert opinion on how to go about it?
Regards
Amit
From India, Bangalore
The PSU Bank Pension Regulations 1995 themselves provide for certain situations in which an employee's past service in a bank can be reckoned with for pension purposes.As per the Pension Regulations as I understand, the past service of an employee in a bank can be counted for pension purposes only when the employee is transferred from the erstwhile bank to another bank either on account of merger or amalgamation of the former bank with that of the latter. It does not appear to be so in your case as you have joined the new PSU bank as a fresh recruitee, as I gather from your post.Then the other avenue is to look at the terms of your appointment in the PSU bank. If the terms of appointment in the new PSU bank permit you the benefit of reckoning past service for the purpose of retiral benefits like pension and gratuity, then you can avail of that benefit..But I have not come across any such case.It is an admitted fact that you have joined a PSU bank as a fresh recruitee .You must have therefore resigned from your erstwhile bank and joined the new PSU bank.The Bank Pension Regulations also contain a provision that an employee forfeits his entire past service on resignation. Thus when you resigned from your erstwhile bank, you are deemed to have forfeited your entire past service in the erstwhile bank for the purpose of pension.When you have no past service to reckon with even for pension purpose, you cannot ask for the benefit of having it included for pension purpose when you retire from the new PSU bank.
However, I agree with your view that this benefit of carrying forward past service in a bank for pension and gratuity purposes shall be made available to employees at least in the case of employees resigning from one PSU bank and join another PSU bank since it is a welfare measure and the service conditions of PSU banks are same.However I have not come cross any case law on this issue.
B.Saikumar
From India, Mumbai
1899However, I agree with your view that this benefit of carrying forward past service in a bank for pension and gratuity purposes shall be made available to employees at least in the case of employees resigning from one PSU bank and join another PSU bank since it is a welfare measure and the service conditions of PSU banks are same.However I have not come cross any case law on this issue.
B.Saikumar
From India, Mumbai
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Amendment in Employees Pension Scheme, 1995.pdf