ISLAMABAD, April 7: The provident fund of the National Bank of Pakistan (NBP) employees, amounting to millions of rupees, has been restored after 26 years.

Sources in the NBP said the employees’ provident fund was frozen in 1977 after the government announced a new policy of provident fund for all banks.

The fund has been restored on the directives of the Supreme Court, and will benefit over 22,000 retired employees.

The apex court’s decision is a great win of the NBP employees, who have been fighting for their right for over two decades, the sources said.

According to the verdict of the apex court, all employees of the bank are entitled to receive the entire amount available in the provident fund account as on 30-11-1977 contributed by them and the bank.

The sources said in 1977, the NBP was the only bank where the facility of provident fund was given to its employees, therefore the bank did not fall in the new policy announced for all the banks and financial institutions of the country.

Under the new policy, the provident fund of the NBP’s employees was to be adjusted in the pension of employees.

The decision of the government regarding launching of new pension scheme introduced in 1977 reads as: “In view of providing better social security, it has been decided to introduce pension and retirement benefits for the officers/executives of the banks including the State Bank of Pakistan (SBP) and financial institutions as have been introduced by the federal government for civil servants.”

The existing scheme of pension in the case of NBP, contributory provident fund and gratuity shall be discontinued. The previous continuous service of officer/executive shall count as qualifying service for the pension. The contribution made by the employees and the bank shall be withdrawn as the service shall now count for the purpose of pension.”

The sources said the bank’s employees went into litigation against this decision of the government. However, the Lahore High Court (LHC) had dismissed their plea on July 12, 1982.

According to the judgment of the Supreme Court, the LHC verdict was set aside and employees of the NBP were allowed to receive the amount available in their provident fund account inclusive of the contribution made by the bank as on November 30, 1977 along with the interest up to the date of payment.

They said the fund had been restored after 26 years and several employees had died during this period.

The bank will also formulate rules for reimbursement of provident fund to the family of the NBP’s deceased officers.