Punjab National Bank vide Circular Nos. 500 dated 04.04.2020, 501 dated 13.04.2020 and 507 dated 04.06.2020, had decided to compensate its employees by way of one day’s salary for every 6 working days on which an employee has put active duty in the branch/ office during the Covid19 Lockdown period from 25.03.2020 to 31.05.2020.
Now Punjab National Bank vide PF & Pension Fund Deptt. Circular No. 09/2020 dated 15.09.2020 has decided that compensation paid on account of attending office during Covid19 lockdown period will be included for calculation of Terminal dues (Pension / Commutation / Gratuity).
I welcome & appreciate the goodwill gesture of Punjab National Bank for compensation / incentive to its employees for working during Covid19 lockdown period.
However, to keep the records straight, I wish to add as under;
1. Compensation being provided by Punjab National Bank for working during the Covid19 lockdown period is not defined as part of the pay and allowances either in Bipartite or Officers Service Regulations. This compensation can at best be termed as incentive or bonus. Treating it as part of salary will tantamount to payment of salary for 35 days in a month, which defies all norms.
2. This compensation / incentive / bonus is not part of pay & allowances for calculation of pension as per Punjab National Bank (Employees’) Pension Regulations, 1995, as such will require suitable amendments in pension regulations & extra provisioning in pension fund to pay pensionary benefits on this compensation / incentive / bonus.
3. Terminal & pensionary benefits on compensation will not be equitably available to all employees who worked during Covid19 lockdown period. Employees retiring after Feb. 2021, will not be able to get the benefit of Terminal & pensionary benefits on compensation, due to pension calculation formula based on the last 10 months average of pay & allowance, thus creating two classes of pensioners i.e.;
Employees retiring upto Feb. 2021. However maximum benefit of Terminal & pensionary benefits will go to employees retiring upto Dec. 2020, as their last 10 months average will cover the entire period of Covid lockdown. There will be a graded benefit for the employees retiring in Jan. & Feb. 2021.
Employees retiring on / after 31.03.2021 will not be able get any benefit under the proposed scheme, as their pensionary & commutation benefits shall be base on the average of last 10 months pay i.e. average of pay from June,2020 to March,2021.
However this anomaly can be taken care of by tagging the entire amount of compensation with the calculation of the last ten months average, irrespective of the date of retirement. This again will require amendments to Pension Regulations.
Again applauding the goodwill gesture of Punjab National Bank for compensation / incentive to its employees for working during Covid19 lockdown, I request the bank, as a gesture of goodwill, allow terminal & pensionary benefits on special allowance (which is very well part of salary, being paid to employees) to employees who have retired since 01.11.2012 & oblige.
Disclaimer: The sole purpose of this blog is to create awareness on the subject and must not be used as a guide for taking or recommending any action or decision. A reader must do his own research and seek professional advice if he intends to take any action or decision in the matters covered in this blog.
