In a good news for the families of deceased bank employees that they will start receiving up to 30 percent of the last drawn salary of the employee under the National Pension Scheme (NPS).
Secretary at Department of Financial Services, Ministry of Finance, Debasish Panda, made the announcement at a press meet addressed by the Finance Minister of India, Nirmala Sitharaman on Wednesday.
Debasish Panda said, "In continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the IBA with the unions on November 11, 2020, there was a proposal for enhancement of family pension and also the employers’ contribution under the National Pension System."
He said that this has been approved by the Finance Minister Sitharaman.
He added that the union government has approved this and explained the contribution made by Public Sector Banks (PSBs) for employee pensions under the NPS has been hiked to 14 percent from the previous 10 percent.
With this change, the family pension rises from a maximum of rupees 9,284 per month to as high as rupees 35,000 depending on the last drawn pension amount.
As per to the union government, thousands of families would be benefited by the enhanced family pension.
Meanwhile, the increase in employer contribution will also provide a risein financial security to the bank employees under the NPS.