Pensionary benefits to employees who were in service of the banks as on 27.04.2010 and died thereafter
Reference is invited to the Clause 2(i) of Pension Settlement dated 27.4.2010 and Clause 2(a) of Joint Note dated 27.4.2010 by which employees who were in service of the banks prior to 29.9.1995 / 26.3.1996 and continue in service as on 27.4.2010 are eligible for another option for joining the existing Pension Scheme upon their agreeing to transfer the PF balance to Pension Fund and additionally contribute an amount equal to 2.8 times of the ‘pay’ of November, 2007 in the case of serving employees and refund of entire amount of the bank’s contribution to provident fund and interest accrued thereon received by them at the time of retirement together with additional contribution of 56% of the provident fund and interest thereon mentioned above in the case of retired employees.
We have been receiving queries from banks as to whether the family of employees are eligible for commutation of pension in the case of employees who are eligible to exercise the option in terms of Settlement / Joint Note dated 27.04.2010 but died on or after 27.4.2010.
we advise that the family of the employee eligible to exercise the option who died on or after 27.4.2010 shall be entitled for full pension from 27.11.2009 or from the date of retirement which ever is later till the date of death and family pension thereafter. They will also be eligible for commutation of pension; provided they comply with the terms of the settlement / Joint Note as mentioned in Para 1 above.