In a significant step toward strengthening social security for its workforce, UCO Bank has announced the UCO Bank (Employees’) Pension (Amendment) Regulations, 2025. Issued under the powers granted by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, these amendments mark a major reform in the bank’s nearly three-decade-old pension framework. The changes follow consultations with the Reserve Bank of India and come with the approval of the Central Government, ensuring that they align with the broader regulatory and policy environment.
One of the most impactful features of the amendment is the introduction of a new category called “resigned former employees.” Until now, employees who resigned before April 2010 had largely remained outside the scope of pension benefits, even if they had served long enough to qualify. The 2025 amendment changes that. Individuals who served the bank on or after January 1, 1986, joined before April 1, 2010, and resigned on or before April 26, 2010, are now eligible to join the pension scheme—provided they return the bank’s contribution to the Provident Fund along with accumulated interest. This move is expected to bring long-awaited relief to a group of employees who previously found themselves ineligible despite years of service.
The amendment also ensures that resignation by such eligible former employees will no longer lead to forfeiture of past service. This is a crucial shift, as earlier rules treated resignation as a break that disqualified a person from earning pension benefits. Now, eligible resigned employees who meet the conditions laid down—including submission of an undertaking and PF refund—can claim pension similar to other retirees, subject to qualifying service norms.
Another important aspect relates to family pension. In cases where a resigned former employee has passed away, the family may also receive family pension, provided the refund and undertaking requirements are fulfilled. This ensures financial continuity and protection for families who were previously outside the pension safety net.
The amendment also updates various financial thresholds and minimum pension amounts, especially for part-time employees and those retiring on or after November 1, 2022. Revised rates ensure that pensions remain aligned with changing salary structures and economic conditions. Additionally, eligibility criteria for family members—including parents, sons, and daughters—have been tightened to ensure pensions reach those genuinely dependent, with income caps set at ₹18,000 per month.
A major overhaul is the complete substitution of Appendix-II and Appendix-III, which modernizes the formulas for calculating dearness relief and family pension across different retirement periods. The updated structure provides clearer slabs, uniform rates in some categories, and additional ex-gratia payments to help pensioners cope with inflation.
These amendments carry retrospective effect, but the bank has clarified that no one’s interests will be harmed, as the provisions reflect negotiated agreements reached with employee unions and officers’ associations.
Overall, the 2025 pension amendments mark a progressive and inclusive shift in UCO Bank’s employee welfare policies—bridging long-standing gaps, updating outdated structures, and extending financial security to a wider circle of former employees and their families.