Voluntary retirement pension claims fail where the governing rules require 20 years of pensionable service

Employees who opted for voluntary retirement under the State Bank of India scheme could not claim pension under the superannuation clause in Rule 22(i)(a) when they had not completed 20 years of pensionable service. The scheme linked pensionary benefits to the governing Pension Fund Rules, and Rule 22(i)(c) specifically applied to retirement at an employee's own request, requiring the qualifying service condition to be met. The clarificatory circular denying pension to those with less than 20 years' service was consistent with the Rules, and the later amendment did not change the position for such retirees.

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Issues: Whether employees who accepted the State Bank of India Voluntary Retirement Scheme and had not completed 20 years of pensionable service were entitled to pension under Rule 22 of the State Bank of India Employees' Pension Fund Rules.

Analysis: The Scheme provided ex gratia as well as pensionary benefits, but expressly linked pension to the Pension Fund Rules on the relevant date. Rule 22(i)(a) dealt with normal retirement on superannuation, while Rule 22(i)(c) specifically governed retirement at the employee's own request in writing and required completion of 20 years of pensionable service. The Court held that voluntary retirement under the Scheme was distinct from normal retirement, and the respondents, having opted for voluntary retirement without completing the requisite 20 years, could not invoke the superannuation clause in Rule 22(i)(a). The clarificatory circular stating that employees with less than 20 years of pensionable service were not eligible for pension was consistent with the Rules, and the amended provisions did not alter the position for the respondents.

Conclusion: The respondents were not entitled to pension under the Scheme and the Pension Fund Rules.

Ratio Decidendi: Where a voluntary retirement scheme incorporates pensionary benefits by reference to the governing pension rules, the specific rule for voluntary retirement applies, and pension cannot be claimed by importing the superannuation clause when the employee has not satisfied the qualifying service required for voluntary retirement pension.

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