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Suspension Period to be Considered for Calculating Pension Benefits: HC

The AP High Court has made it clear that an employer should take into account the period of suspension of an employee, if suspended for any reason, for the purpose of calculating the total period of service for determining his pensionary benefits.

Justice B Chandra Kumar has recently allowed a writ petition by one V Rama Rao by revising the earlier order of the court to the effect that the period of suspension of an employee shall be counted for determining the pensionary benefits.

The judge, however, made it clear that the petitioner who was suspended from service by the SBI authorities, shall not be entitled for any monetary benefits for the suspension period, except the subsistence allowance in accordance with the rules.

In June last year, the court while disposing of petitioner’s case has directed the bank to consider the latter’s case as to whether he was entitled for pension or other retiremental benefits and to pass appropriate orders within six weeks.

In the present case, the petitioner sought review of the previous order seeking a direction to the bank authorities to count the period of suspension for the purpose of determining his pensionary benefits.

He was appointed in the bank in April 1970 and was removed from service in Nov 1996. In the removal order, the bank stated that there is no case to treat the suspension period as on duty and accordingly, he was not entitled for payment of any amount except the subsistence allowance. He was kept under suspension from Feb 1987 to Mar 1991.

The petitioner submitted that the court ought to have clarified the position with regard to the period of suspension in the order under review. The bank is taking advantage of the order since there is no specific direction with regard to the suspension period.

On the other hand, the bank authorities submitted that the petitioner was not entitled for pensionary benefits since he would not come within the eligibility criteria. An employee should have completed 25 years of pensionable service irrespective of the age and since the petitioner has not completed required service he would not be eligible for pension.

 Article referred: http://www.newindianexpress.com/cities/hyderabad/Suspension-Period-to-be-Considered-for-Calculating-Pension-Benefits-HC/2014/04/20/article2179102.ece

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