SBI SCRAPS MEDICAL BENEFIT SCHEMES FOR RETIRED EMPLOYEES

Posted: Saturday, Jun 28, 2003 at 0000 hrs IST



As a measure of severe cost control, the country’s biggest public sector commercial bank, State Bank of India (SBI), has decided to discontinue SBI Retired Employees Medical Benefit Scheme.

An internal circular issued by SBI’s deputy managing director and corporate development officer’s office stated, the bank’s staff and officers retiring from July 1, 2003 onwards would not be entitled to benefits under the scheme. However, SBI has clarified that those retiring before June 30 would be entitled to the benefits and retired employees already enjoying the scheme will continue to do so.

Under the Scheme, retired employees enjoying the pension scheme will be entitled to medical reimbursements up to Rs 2,00,000 provided they forego one month’s pension.

A circular dated June 19 stated, the bank’s actuaries have found that the fund bearing the medical expenses of retired employees is under great pressure since many more have retired under the voluntary retirement scheme (VRS)...