Reserve Bank to offer employees option to switch from CPF scheme to pension scheme

KOLKATA: The Reserve Bank of India has agreed to offer its employees an option to switch over to pension facility from the contributory provident fund (CPF). It was a long-standing demand by the central bank employees.

“This will be the last such option given to eligible serving/retired employee/ family members of deceased employees to switch over from CPF scheme to pension scheme and no further option will be given in future,” RBI said in an internal note.

The decision has been taken in consultation with the government. All existing employees who joined RBI before January 1, 2012 will get this benefit. For retirees, the cut-off date is November 1, 1990, the date of introduction of the pension scheme at RBI.


The switch over option will be available till November 15.

Those who will be availing themselves of the facility would be eligible to draw pension from July. “No arrears of pension will be paid for the period prior to July 1, 2020,” RBI said.

ET has reviewed the RBI’s administrative note issued on Monday. The central bank also said that it would circulate detailed instructions on the matter soon.

RBI employees who joined the service on or after January 1, 2012 are governed by the National Pension Scheme, which is a market-linked voluntary contribution scheme managed by professional fund managers.