Centre approves proposal to hike family pension, employer contribution to NPS for public sector bank employees

The Government of India has approved a proposal by IBA to increase family pensions of public sector employees along with employer contributions to the National Pension System (NPS). Here's all you need to know.

There is cause for cheer for over 10 lakh public sector bank (PSB) employees and pensioners. After protracted negotiations, the central government has approved a proposal by the Indian Banks' Association (IBA) to increase the family pension of PSB employees to 30 per cent of last drawn salary. The other big announcement is an increase in the employer banks' contribution to the pension fund of employees under the NPS (National Pension System) from the existing 10 per cent to 14 per cent.