Bank Pension: There is a major update for bank employees. The All India Bank Employees’ Association (AIBEA) has reiterated its demand for improvements in the bank employees’ pension scheme, including regular pension revision, a uniform dearness allowance (DA) formula and the extension of benefits to more pensioners. In its circular letter dated October 20, 2026, the association highlighted the importance of pension as a source of social security and financial protection for retired bank employees and officers.

AIBEA Highlights the Importance of the Pension Scheme

AIBEA recalled the historic pension settlement signed on October 29, 1993, describing it as a major achievement of the bank employees’ movement. The association credited leaders such as Prabhat Kar and H. L. Parvana for their role in the struggle for the settlement, while identifying former AIBEA General Secretary Tarakeswar Chakraborti as a key architect of the pension arrangement.

The association also referred to the additional pension option introduced in 2010 following the efforts of the United Forum of Bank Unions (UFBU). According to the circular, more than 3.5 lakh employees, officers and retirees were able to join the pension scheme through this additional option.

Demand to Switch from NPS to OPS

One of AIBEA and UFBU’s major demands is the replacement of the National Pension System (NPS) with the Old Pension Scheme (OPS). The association has also argued that a pension linked to dearness allowance would offer better protection against inflation and help retirees maintain their purchasing power.

The circular noted that the government moved from the Defined Benefit Pension Scheme to the Defined Contribution Pension Scheme in 2004, with the latter implemented in banks from 2010. AIBEA continues to seek changes to the existing pension arrangement to improve retirement security.

Key Pension Improvements Already Achieved

The association highlighted several improvements secured over the years, including 100% dearness allowance for pensioners who retired before November 2002, uniform 30% family pension without a ceiling, pension benefits for employees who resigned, a minimum ex-gratia payment of Rs 10,000 for pre-1986 retirees, and ad hoc ex-gratia payments for pensioners who retired before October 2022.

These measures, according to AIBEA, have helped improve financial protection for different categories of retired bank employees and their families.

Four Major Demands for Pensioners

AIBEA has renewed its demand for periodic pension revision and a uniform DA formula for all pensioners. It has also sought the extension of ex-gratia benefits to private bank pensioners and further improvements to the pension scheme and pension regulations.

“>October 21, 2026

The circular states that the Indian Banks’ Association (IBA) has agreed to discuss these matters as residual issues. However, the circular does not announce a final decision or implementation date for the proposed improvements.