After retirement, regular officers of the bank have to pay full amount due towards provident fund and gratuity. And officers joining contractual posts or post retirement will not be entitled to such retirement benefits after retirement. Contractual officers can serve up to a maximum of 65 years.
However, the retirement age of the regular officers of the bank will be maximum 59 years. Bangladesh Bank has issued a notification to clear the ambiguity regarding the retirement and contractual appointment of bank officers and has given several instructions. According to the notification of the central bank, to bring discipline, good governance and dynamics in bank management in the banking sector, the age limit of the contractual officers or employees is fixed at 65 years to remove the age limit inequality of the chief executive and other subordinate contractual officers or employees of the bank.
Apart from this, the private banks are instructed to formulate the policy for determining the retirement age of their regular officers or employees in line with the retirement age of the officers or employees of the state-owned commercial and specialized banks. In this case it is also advised to follow the retirement age policy of the central bank. Now the retirement age of central bank officials is 59 years.
The notification also states that complaints are being received that after the expiry of the regular service period of some of the working officers or employees of some banks, in the case of contractual employment of any of them, interest on the previous provident fund accumulated during their regular service has been continued. Apart from this, gratuity is being paid on the basis of the last salary received by adding the contractual period to the regular period of service and calculating the total period of service, which is in no way due as per rules.
The Central Bank has said that in order to ensure greater discipline and good governance in the banking sector, the regular officers or employees working in the bank after the completion of their regular service period shall follow the new policy from now on in determining the amount due for provident fund and gratuity in case of re-contractual re-employment of the bank for the essential needs of the bank. Instructions are provided.
The instructions of Bangladesh Bank include that the officers or employees appointed to the bank must pay the amount due in respect of provident fund and gratuity in full at the time of final retirement following the existing policies. It states that there is no need to create a provident fund for contractual officers or employees and they will not be entitled to such benefits. No officer or employee on contractual appointment shall be entitled to any gratuity benefit afresh.
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