answer some pension related questions

TO ALL OFFICE-BEARERS/STATE FEDERATIONS &
ALL INDIA BANKWISE ORGANISATIONS :

Dear Comrades,
Reg: PENSION

We are getting number of queries about settlement on pension option, how much will be the share of existing employees towards the gap of Rs. 1800 crores, how much the retired employees who opt for pension should repay, date of effect, etc. Units will appreciate that all details will be finalized and informed to our units after the settlement is signed. However, in order to answer some of these repeated questions, we give below the following present position:

1. PENSION OPTION:

IBA has agreed that another option will be given to join the pension scheme for the following:

a) Those who are existing employees now and are in PF.
b) Those who were in PF and in service on the date of Pension Regulation 1995/96 and now want to opt for pension scheme
c) Those who were in PF and in service on the date of Pension Regulation 1995/96 and retired during this period but died subsequently ( family will be given an option now)
d) Those who were in PF and in service on the date of Pension Regulation 1995/96 and died while in service during this period ( family will be given an option now)
e) Those who were in PF and in service on the date of Pension Regulation 1995/96 and have taken voluntary retirement from service.

2. SHARING THE DEFICIT:

Formula is being worked out both for the contribution by the retired employees opting for pension now as well for the existing employees to contribute for the gap of Rs. 1800 crores.

3. PENSION OPTION – EFFECTIVE DATE:

IBA has stated that pension option will be given to all the retired employees as mentioned in 1. b,c,d,e, above and will be effective from the date of settlement i.e. pension will be payable to the retirees from the date of the pension option settlement. UFBU is pursuing the matter for retrospective date.

4. PENSION FOR THE EXISTING PENSION OPTEES WHO HAVE RETIRED FROM
BANKS AFTER 1-11-2007:

For all those employees who are already under pension scheme and who have retired from the Bank service after 1-11-2007, their pension amount and commutation will be revised based on the 9th BPS Pay. Arrears of wage revision will be paid to them from 1-11-2007 till their date of retirement and arrears on account of increase in commutation and monthly pension will be paid from their date of retirement.

Yours comradely, C.H. VENKATACHALAM
GENERAL SECRETARY