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DFS Approves Pension for RRB Retirees: A Triumph for AIRRBEA Struggle
The DFS has approved pension parity for retired RRB employees, retroactive from November 1993, marking a historic victory for AIRRBEA after decades of relentless legal, political, and organisational efforts for justice.
Author: Saurav Kumar
Published: October 5, 2024
In a landmark decision, the Department of Financial Services (DFS), has granted the implementation of pension parity for retired employees of Regional Rural Banks (RRBs), marking a significant triumph for the All India Regional Rural Bank Employees Association (AIRRBEA). After decades of relentless efforts, AIRRBEA has succeeded in ensuring that pension benefits are applied retroactively from November 1, 1993. This historic achievement brings long-awaited justice to thousands of RRB retirees, capping a journey that began in 1978.
A paragraph from the DFS order states, “Accordingly, the amendment pension regulations, inter-alia, covering (i) payment of arrears to the existing pensioners/family pensioners upto 31.03.2018 who retired / died between 01.11.1993 and 31.03.2018, (ii) giving coverage along with consequential arrears to all those left out cases, viz. Resignation, voluntary retirement, compulsory retirement as a measure of penalty, medical incapacitation, compassionate allowance in case of dismissal/removal/termination from service, etc, who would benefit from the revised pension scheme effective from 01.11.1993, is being communicated to the RRBs separately, for immediate implementation with approval by their respective Boards.”
As per National Federation of Retired RRB Staff (NFRRBS), the decision is an unprecedented one wherein arrears from the respective date of retirement (as per 2018 pension regulations) will be paid to retired RRB employees, making it a truly golden milestone in the Golden Jubilee Year of RRBs. The draft amendments to pension regulations are set to be circulated to all RRBs, and a sensitisation meeting for RRB management will soon be conducted by DFS and NABARD to ensure the full and proper implementation of the orders.
A Unique Milestone in Pension Rights
RRB pensioners secured a landmark victory after a legal battle, with the Supreme Court upholding the need for the pension scheme in August, recognising the valuable contributions of retirees. The lead petitioner, Nagabhushan Rao, shared with Kanal, “What makes the DFS decision truly unique is that, for the first time, resigned staff in RRBs are now eligible for pensions—something that has never happened in commercial banks. An exception occurred when 29 resigned employees of Vijaya Bank received pensions due to a Karnataka High Court judgement, but otherwise, no resignee in commercial banks has ever been granted pension benefits.”
Pension Parity Achieved After Decades of Struggle
NFRRBS General Ganapati Hegde told Kanal, “Attaining pension parity is a powerful message to its members and to the Indian banking industry. AIRRBEA considers October 3, 2024 a Red Letter Day in the history of the Four Decades of struggle. We started our struggle demanding “Equal Pay for Equal Work” during the foundation conference in 1978, and has now culminated with this hard-earned victory. The pension parity decision is the result of years of battles fought by AIRRBEA across courts, political platforms, and organisational movements.”
AIRRBEA Secretary General, Venkateshwar Reddy, hailed the decision as a monumental achievement. Speaking to Kanal, he stated, “This is a key milestone for AIRRBEA, reflecting our decades-long fight for pay parity since the 1990s, successfully overturning the Mahalik Committee recommendations, and securing victories in pension parity cases in both Karnataka and Rajasthan High Courts. Our persistent pressure on the government has finally resulted in the implementation of Pension and Computer Increment benefits, retroactive to November 1, 1993.”
He further added, “The success of this pension struggle serves as an inspiration for the younger generation, encouraging them to strive harder in the pursuit of their rights.”
The pension issue has been a longstanding concern for AIRRBEA and was strongly advocated during the 12th Joint Consultative Committee (JCC) meeting. According to the NFRRBS, over 18,000 retired RRB employees stand to benefit from this decision, and the DFS order on pension has come as a significant relief for all.