The government revised the Bank’s retirement plan

Mumbai: The government has announced changes in the pension scheme of public sector banks.
For family members of the employee, the ceiling at the family retirement has been appointed and, for current employees, the bank’s contribution to this scheme has increased by four percentage points to 14% from the start of 10%.
“Previously, this scheme had a slab of 15%, 20% and 30% of the payment was taken at that point Bank employees get a decent amount to survive and survive, “said Debashish Panda, Secretary in the Financial Services Department, at a press conference held by FM.
The second change is that the contribution of the employer for the Corpus of the New Pension Scheme (NPS) has been upgraded to 14% of the previous 10% payment.
The change was in the continuation of the 11th bipartite settlement signed by the Bank and trade unions on last year’s revisions.
In addition to the reward revision, there was a proposal for improving family pensions and also the contribution of employers under NPS.
A statement issued by the government said that thousands of families of public sector banks will benefit from enhanced family retirement schemes, while increasing the contribution of employers will provide financial security to bank employees under NPS.
Employees who have been with the Bank before 2004 are eligible for the retirement scheme of certain benefits where monthly payments are determined by the formula based on the last wage.
This employee will benefit from an increase in pension limits.
Employees who have joined after 2004 are part of the NPS where employees and banks contribute to the Pension Corpus.
After retirement, Corpus must be used to buy an annuity from insurance companies that will provide monthly income.
The monthly income level depends on the size of the corpus and the cost of the annuity.
With a decrease in interest rates, returns through the annuity scheme have shrunk, resulting in calls for higher contributions.
The insurance regulator also works with the industry to develop an annuity scheme related to inflation.