FLASH!!

SSBEA BIPARTITE MEETING CONCLUDED.STAFF HOUSING LOAN@6%.substaff 8lakhs,Clerical 12 lacks,officers 20Lacks.10%margin.Wef.01/04/2011!!!

Pages

27 April 2010

PENSION OPTION‍!

NOW IT IS HEREBY AGREED AND DECLARED BY AND BETWEEN THE PARTIES HERETO AS UNDER:

TERMS OF SETTLEMENT

(1) All workmen employees are in the service of the bank as on the date of this Settlement who exercise option to join the Pension Scheme in terms of this Settlement will contribute from their arrears on account of wage revision in terms of the Settlement between the parties dated 27th April 2010 an amount of Rs.878 crores towards their share in the amount of Rs.1800 crores offered by UFBU towards 30% of the estimated funding gap of Rs.6000 crores. The said amount is worked out @2.8 times of the revised pay for the month of November 2007, for individual workmen employees.

(2) Another option for joining the existing Pension Scheme shall be extended to those employees who:-

(I) (a) were in the service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India and continue in the service of the bank on the date of this Settlement;

(b) exercise an option in writing within 60 days from the date of offer, to become a member of the Pension Fund and

(c) authorise the Trust of the Provident Fund of the bank to transfer the entire contribution of the bank along with interest accrued thereon to the credit of the Pension Fund.


(II) (a) were in service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India and retired after that date and prior to the date of this Settlement;

(b) exercise an option in writing within 60 days from the date of offer to become a member of the Pension Fund and

(c) refund within 30 days after expiry of the said period of 60 days, the entire amount of the banks contribution to the Provident Fund and interest accrued thereon received by the employee on retirement together with his share in contribution towards meeting 30% of Rs.3115 crores which is estimated and reckoned as the funding gap for those eligible under Clause 2(II),2 (III) and 2(IV) of this agreement. On an individual basis, the payment over and above the bank’s contribution to Provident Fund and
7

interest thereon has been worked out at 56% of the said amount of bank’s contribution to Provident Fund and interest thereon received by the employee on retirement.


(III) The family of those employees who were in the service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India retired after that date and died will be eligible for family pension, provided –

(a) the family of the deceased employee exercises option in writing within 60 days of the offer to become a member of the Pension Fund and

(b) refund within 30 days after expiry of the said period of 60 days, the entire amount of the bank’s contribution to the Provident Fund and interest accrued thereon received by the deceased employee on retirement together with his share in contribution towards meeting 30% of Rs.3115 crores which is estimated and reckoned as the funding gap for those eligible under Clause 2(II),2 (III) and 2(IV) of this agreement. On an individual basis, the payment over and above the bank’s contribution to Provident Fund and interest thereon has been worked out at 56% of the said amount of bank’s contribution to Provident Fund and interest thereon received by the employee on retirement.


(IV) The family of those employees who were in the service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India, but have died while in service of the bank after that date will be eligible for family pension, provided –

(a) the family of the deceased employee exercises an option in writing within 60 days of the offer to become a member of the Pension Fund and

(b) refund within 30 days after expiry of the said period of 60 days mentioned above, the entire amount of the bank’s contribution to the Provident Fund and interest accrued thereon received upon death of the employee together with his share in contribution towards meeting 30% of Rs.3115 crores which is estimated and reckoned as the funding gap for those eligible under Clause 2(II),2 (III) and 2(IV) of this agreement. On an individual basis, the payment over and above the bank’s contribution to Provident Fund and interest thereon has been worked out at 56% of the said amount of bank’s contribution to Provident Fund and interest thereon received on death of the employee.
8

(3) (i) The existing pension scheme will not be applicable to those who join the services of banks on or after 1st April 2010.

(ii) Employees joining the services of banks on or after 1st April 2010 shall be eligible for the Defined Contributory Pension Scheme, the banks will be introducing for them. The Defined Contributory Pension Scheme proposed to be introduced for them will be one as governed by the provisions of New Pension System introduced for employees of Central Government w.e.f. 1st January 2004 and as modified from time to time. The Scheme shall be regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA).

(iii) The employees joining the services of the banks on or after 1st April 2010 shall contribute 10% of Pay and Dearness Allowance towards the Defined Contributory Pension Scheme and the bank shall make a matching contribution in respect of these employees.

(iv) There shall be no separate Provident Fund for employees joining services of Banks on or after 1st April 2010.


(4) Employees who ceased to be in service on or after 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India on account of voluntary retirement under special scheme after rendering service for a minimum period of 15 years, shall be eligible to exercise an option to join the Pension Scheme subject to the terms and conditions mentioned for retiring employees opting for joining the Scheme.


(5) Pension/ Family Pension to those who opt to join the pension scheme complying with the terms of this Settlement shall be payable with effect from 27th November 2009, provided that employees who retired after that date shall get pension from the respective dates of their retirement. All the Regulations of the Bank Employees’ Pension Regulations, 1995 / 1996 shall be applicable to those who opt for the Pension Scheme in terms of this Settlement except to the extent mentioned in the foregoing Clauses of this Settlement.


(6) The terms of this Settlement shall not be applicable to State Bank of India.


(7) The terms of this Settlement shall be incorporated in the Bank Employees’ Pension Regulations, 1995 dated 29th September 1995 in case of Nationalized Banks / 26th March
9

1996 in case of Associate Banks of State Bank of India respectively by complying with the procedure for amendment of the relevant Pension Regulations.


(8) The terms of this Settlement shall be applicable to employees of Private Sector Banks who are parties to this Settlement in respect of those who were in the service of the bank on date of implementation of the Pension Scheme in terms of the Settlement dated 29th October 1993 and did not opt for pension.


(9) National Organisation of Bank Workers (NOBW), which is not a party to the Pension Settlement dated 29th October 1993, hereby endorses all the terms of the said Settlement.


(10) The provisions of the Bipartite Settlement dated 29th October 1993 on pension shall stand amended/ modified or superseded to the extent and in the manner detailed hereinabove.


(11) The provisions of the Bipartite Settlement dated 29th October 1993 which have not been amended/ modified or superseded by this Settlement shall continue to be in operation.


(12) The Unions who are parties to this Settlement agree that during the operation of this Settlement, they will not raise any demand of any nature whatsoever on any banks in respect of matters covered by this Memorandum of Settlement.


(13) Copies of this Memorandum of Settlement will be jointly forwarded by the parties to the authorities listed in Rule 58 of the Industrial Disputes (Central) Rules, 1957 so that terms of and conditions thereof are binding on the parties as provided in law.


(14) Any difference of opinion regarding interpretation of any of the provisions of this Settlement, the matter will be taken up only at the level of the Indian Banks’ Association and the Workmen Unions for discussion and Settlement.

Mumbai Dated: 27th April 2010

1 comment:

  1. sir, this is penalty of2.8% for those now opting pension besides forgo employers contribution with interest since joining. but it should be the sameas scheme applied from 1.4.2010 since november 2007 or since joining or post nationalisation.

    ReplyDelete