Switch From CPF To Pension, Last Option Here: RBI To Its Employees

Bhubaneswar: The Reserve Bank of India (RBI) has agreed to offer its employees an option to switch over to pension facility from the contributory provident fund (CPF), under RBI Pension Regulations, 1990. It was a long-standing demand by the central bank employees.

About 3,000 RBI retirees across the country including, nearly 100 retirees from the Regional Office, Bhubaneswar will benefit from this option, informed an eligible retiree.

The decision has been taken in consultation with the government. “This will be the last such option being given to eligible serving/retired employee/family members of deceased employees to switch over from CPF scheme to pension scheme and no further option will be given in future,” RBI said in an administration circular.

All existing employees who joined RBI before January 1, 2012, will get this benefit. For retirees, the cut-off date is November 1, 1990 (the date of introduction of the pension scheme at RBI) and who continued as such on November 15, 2000 (the closing date of the last opportunity given to employees to exercise pension option).

The option for pension by serving employees, retired employees and family members of deceased employees is subject to certain terms and conditions will be specified separately. On exercising the option, these members will be eligible to draw monthly pension or family pension with effect from July 1, 2020. “No arrears of pension will be paid for the period prior to July 1, 2020,” the notice said.

This option is not applicable for the RBI employees who joined the service on or after January 1, 2012, and are governed by the National Pension Scheme, which is a market-linked voluntary contribution scheme managed by professional fund managers.