"SBI opened for its employees who have completed service of 15 years or more Voluntary Retirement Scheme (VRS) option. The option was being exercised by various officers and they were paid the compensation as per scheme

The employees who have opted for VRS have made claim to get pension as per rules of bank since they have also completed the services with the bank of 15 years or more. The stand taken is that the VRS so taken by them is nothing but like a person being superannuated from the services. However, the bank did not agree to the contention of the employees and refused to pay pension to such employees who have opted for VRS. Supreme Court on 2nd March, 2022 in the case of Assistant General Manager, State Bank of India and Others vs. Radhey Shyam Pandey has held that the employees who completed 15 years of service or more as on cutoff date were entitled to proportionate pension under SBI VRS to be computed as per SBI Pension Fund Rules. Let the benefits be extended to all such similar employees retired under VRS on completion of 15 years of service without requiring them to rush to the court. However, considering the facts and circumstances, it would not be appropriate to burden the bank with interest. Let order be complied with and arrears be paid within three months, failing which amount to carry interest at the rate of 6 per cent per annum from the date of this order. The appeals are accordingly disposed. The contention of the employees opted for VRS under the scheme to get pension as per pension rules of bank is correct.