BANK EMPLOYEES GET ONE-TIME PENSION OPTION

After bargaining hard over for two years, bank unions and the IBA on Friday finally agreed to the nineth bipartite wage settlment w.e.f. 1.11.2007.

This follows the agreement reached on the pension option being granted once more to existing as well as retired employees.
IBA has agreed to an aggregate annual wage increase of Rs.4816 crores i.e. 17.5% increase.
The total liability on a/c of exisitng employees exercising the pension option is Rs.6000 crores and that due to retired employees is Rs.3116 crores. The gap in the pension liability will shared by the banks and employees in 70:30.

Retired employees (non-pension optees), who were in the service of the bank as on September 29, 1995 and March 26, 1996 and retired thereafter, choosing the pension option will be required to return the bank's contribution to the provident fund with interest thereof received by them at the time of retirement. Further they have to contribute to the pension fund their share of 30% of the gap in pension fund.

Existing employees (non-pension optees) can exercise the pension option by contributing to the pension fund their share 30% of the gap in pension fund. This contribution will be recovered from the arrears payable on wage revision.

According to the agreement, a defined contributory retirement benefit scheme will be introduced for workmen/officers joining the services of banks on or after April 1, 2010.
Source: http://www.thehindubusinessline.com/2009/11/28/stories/2009112851270600.htm