SBI Voluntary Retirement Scheme 2020: Eligibility, salary, pension, other benefits


State Bank of India
has planned a voluntary retirement scheme (VRS) under which about 30,190 employees are eligible. As per SBI spokesperson, SBI has an existing workforce of around 2.50 lacs. The bank is expanding its operations and requires people and hence has plans of recruiting more than 14,000 employees this year, said the spokesperson.

A PTI report cited sources telling that a draft for VRS has been prepared and board approval is awaited. The proposed scheme -- 'Second Innings Tap VRS-2020' -- will provide an option and a respectable exit route to employees who have reached a level of saturation in their career, may not be at the peak of their performance, have some personal issues or want to pursue their professional or personal life outside the bank.

Eligibility:

As per the agency report, the scheme will be opened to all permanent officers and staff who have put in 25 years of service or completed 55 years of age on the cut-off date. According to the proposed eligibility criteria, a total of 11,565 officers and 18,625 staff members will be eligible for the scheme.

Application Date:

The scheme will open on December 1 and will remain open till the end of February 2021. The applications for VRS will reportedly be accepted during this period only. As per the report, the total net savings for the lender would be Rs 1,662.86 crore if 30 per cent of eligible employees opt for retirement under the scheme (estimates based on July 2020 salary).

Salary: 

As per the draft accessed by the agency, the staff member, whose request for retirement under VRS is accepted, will be paid an ex-gratia amounting 50 per cent of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months' last drawn salary.

Pension and other benefits:

The report further mentioned that as per the draft, other benefits like gratuity, pension, provident and medical benefits will be given to employees seeking VRS. A staff member retired under the scheme will also be eligible for engagement or re-employment in the bank after a cooling-off period of two years from the date of retirement.

It is worth mentioning that quashing all reports of the move being a way to cut costs, SBI spokesperson said, "There have been media reports about the “On Tap VRS” scheme proposed to be introduced by SBI. The reports have been interpreted as a cost-cutting measure and Bank’s intent to reduce workforce. Bank has been employee-friendly and is expanding its operations and requires people, which is evidenced by the fact that Bank has plans of recruiting more than 14,000 employees this year."

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