B Thak
in Labour Law
Asked May 28, 2015

Voluntary Retirement

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I am working with SBI for 21 years. So far I knew that for going for VRS with pension 20 years pensionable service is required. Accordingly, I applied for VRS after that I came to know that for getting pension some other criteria is required to be fulfilled as per the following. Please advise me whether I shall get pension or not. BANKING RULE ---------------------- A member of the State Bank of India Employees Pension Fund shall be entitled for pension under Rule 22(i) while retiring from the Bank’s service:- a) After having completed 20 years pensionable service provided that he has attained the age of 50 years; or b) If he is in the service of the Bank on or after 01.11.1993 after having completed 10 years pensionable service provided that he has attained 58 years of age. Further, if he is in the service of the Bank on or after 22.05.1998, after having completed 10 years pensionable service provided that he has attained the age of 60 years(Corp.Centre Memo No./CDO/PM/16/M/246 dt. 19.07.2001 & Corp.Centre Circular No./CDO/PM/16/CIR/51 dt. 08.11.2001. c) After having completed 20 years pensionable service irrespective of age he shall have attained, if he shall satisfy the Authority Competent to sanction his retirement by approved medical certificate or otherwise that he is incapacitated for further active service, d) After having completed 20 years pensionable service, irrespective of the age he shall have attained at his request in writing if accepted by the Competent Authority w.e.f 20.09.1986 (Corp. Centre Circular No./PA/CIR/140 dt. 20.09.2006) e) After 25 years pensionable service. f) A member who has attained the age of 55 years or who shall be proved to the satisfaction of the authority empowered to sanction his retirement to be permanently incapacitated by bodily or mental infirmity from further active service, and not as a result of irregular or intemperate habits, may, at the discretion of the Trustees, be granted a proportionate pension.

Answers 2

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Saakshi Sharma
Assuming that you are 50 years of age or older– According to the Regulations provided by you, Sir, if you are above the age of 50 years you are entitled to the pension under the VRS scheme.. According to Rule 22(i)(a) you are entitles to the pension if you are above the age of 50 years and have put in a minimum of 20 years of service. Since you have already put in 21 years of service wherein 20 years is the minimum requirement you can apply for the VRS Scheme and assuming you are 50 old you are entitled to the pension amount. Assuming that you are younger than 50 – According to Rule 22(i)(c) of the given banking regulations any person who has put in 20 years of service in the bank is eligible to ask for voluntary retirement with pension if he can prove that he is unfit for further for continuing the job due to medical reasons or otherwise. Hence sir, if you are suffering from any medical ailment and are unable to continue with your job efficiently, you may get a medical certificate from a registered practitioner regarding your ailment. The medical certificate must be then submitted to the competent authority for their sanction. If the competent authority approves your application you can retire with the full pension amount. For application under this rule, 20 years of service and a proper medical certificate are required. Alternatively, under Rule 21(i)(d), once a person has completed 20 years of service in the bank, he can write an application to the competent authority, who if accepts it will make the requisite order for the voluntary retirement and for payment of regular pension. Under this rule, sir, you can make an application in writing listing down your intention as well as reasons for asking for voluntary retirement. It is advisable to make this application as compelling as possible so that the competent authority feels inclined towards sanctioning the retirement. Once you get this letter of approval from the authority you are eligible to receive pension under the VRS scheme.
Agree Comment 0 Agrees over 1 year ago

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Anina D'cunha
Rule 22(i)(a) and (b) of the “State Bank of India Employees’ pension Fund Rules, 1955” as mentioned in the question is actually only one sub-rule. It states three conditions, and either one of these conditions has to be fulfilled. The first condition is that a member should have completed 20 years of service and should be 50 years old or above. The second condition states that s/he should be in the service of the Bank on or after 1.11.93, after having completed ten years pensionable service. He must be of 58 years or above also. The third condition states that he should be in the service of the Bank on or after 22.05.1998, after having completed ten years pensionable service and s/he should have also attained the age of 60 years. Clause (b) deals with the cases of retirement on two grounds and Clause (c) deals with the cases of voluntary retirement. Clause (d) deals with retirement on attaining the age of superannuation. To see if one fits into either of the categories listed, one must examine the facets of each sub-rule. For example, if the person did not attain the age of 50 years by the time he was removed from service, but he remained in service after 01.11.1993, his case will fit into that Clause.[1] Therefore, to know if you are eligible for pension, your age needs to be confirmed as above 50 years. Otherwise, you need to confirm the year of joining SBI. Endnotes: [1] Unknown v. V.Rama Rao, W.A.No.1200 of 2014
Agree Comment 0 Agrees over 1 year ago

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