SBI Employee Not Entitled to Pension Without 20 Years’ Service or Age 50; Voluntary Abandonment Not Equivalent to Voluntary Retirement: Supreme Court
Supreme Court Ruling on SBI Pension Eligibility
The Supreme Court ruled that an SBI employee is ineligible for pension unless they complete 20 years of pensionable service and reach age 50, or meet post-1993 rules for 10 years’ service up to age 58. This stems from Rule 22(i) of the SBI Employees’ Pension Fund Rules, which sets these strict thresholds for entitlement.
Voluntary Abandonment vs. Retirement
The Court distinguished “voluntary abandonment of service” from “voluntary retirement,” rejecting claims where an employee absents without notice, such as working abroad without approval. Abandonment lacks the formal three-month notice required for voluntary retirement under pension rules, treating it as discontinuation rather than a qualifying exit.
Key Case Arguments
In the dispute, the employee claimed over 20 years’ service from appointment but was denied because pensionable service counts from confirmation, and he was under 50 with no formal retirement notice. SBI argued absence amounted to abandonment, not retirement, upheld by Justices Prashant Kumar Mishra and N.V. Anjaria in their April 2026 judgment. This aligns with precedents emphasizing probation periods and confirmation for qualifying service.
