Kochi: The new pension scheme applicable to the new recruits joining State Bank of India on after August 1 doesn’t have any legal effect, observed Kerala High Court.
The court made the observation while disposing of a petition filed by SBI staff union which challenged the new Defined Contributory Pension Scheme.
The court pointed that it was for the Board of SBI to decide whether to validate or not to validate the scheme in accordance with procedures under Section 50 of the Act concerned.
According to the petitioners, the State Bank of India Act, 1955 did not empower the Central Board of the State Bank of India (SBI) to amend the pension rules without due process of law, that too with retrospective effect, reported the Hindu.