EPS95 pension and supreme court order on RRB pension

Dear Client,
The All India Regional Rural Bank Employees Association (AIRRBEA) has secured a landmark victory in its long-standing pension battle. On August 12, 2024, a bench of the Hon'ble Supreme Court comprising Justice Abhay S. Oka and Justice Augustine George Mashi delivered an order mandating that pensions be granted to retired employees of RRBs from their date of retirement, along with the computer increment, a long-awaited benefit and directed the government to pay the reasonable amount of the pending arrear by the 2nd week of October 2024. The court order explicitly states: “Implement the pension scheme in respect of the employees of RRBs w.e.f 01.11.1993, in terms of the Memorandum of Settlement dated 29.10.1993 applicable to Nationalised Commercial Banks and pay consequential arrears of pension/family pension.” The Government of India has been directed to pay the first installment to the RRB retirees before Deepavali, with the entire process expected to be completed by March 31, 2025.” As regards EPS 95 pension, the Supreme Court ruled in favour of all these old members of EPS 95 and said that they were eligible to apply for higher EPS pension. Since the wages before September 2014 were low, the average pensionable salary for the first period is likely to be very low for most people. If this pensionable salary is factored in on a pro-rata basis to calculate the final EPS pension, it will bring down the overall pension. So, the new calculation rule on a pro-rata basis is likely to reduce the pension amount significantly.