AIBOC issued its circular No. 70 dated 18.07.2011 on new pension scheme for employees joining the banks on or after 01.04.2010, in terms of the memorandum of settlement and joint note dated 27.04.2010 at industry level. We are reproducing the same here for our readers.
CIRCULAR NO.70 18.07.2011
TO ALL AFFILIATES/MEMBERS:
NEW PENSION SCHEME FOR EMPLOYEES JOINING THE BANKS ON OR AFTER 01.04.2010, IN TERMS OF THE MEMORANDUM OF SETTLEMENT AND JOINT NOTE DATED 27.04.2010 AT INDUSTRY LEVEL
Our Affiliates/Members are aware of the fact that, New Pension Scheme, Defined Contributory Pension, has been introduced in the Banking Industry for the Employees/Officers joining the Bank service on or after 01.04.2010. The Defined contributory pension scheme proposed to be introduced for such employees/officers will be:
Ø Governed by the provisions of the New Pension system introduced for Central Govt. employees w.e.f 1st January, 2004 and as modified from time to time.
Ø The Scheme shall be regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA).
Ø The employees/officers 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 Bank shall make a matching contribution.
Ø There shall be no separate Provident Fund for employees joining services of the Banks on or after 01.04.2010.
We were following the matter with IBA as well as Government for providing the guidelines for implementing the scheme. IBA has now issued a Circular vide No.CIR/HR&IR/2011-12/G2(DC)/3584 dated 06.07.2011, advising the member Banks to introduce the New Pension Scheme after finalising the modalities with PFRDA.
A copy of the Circular issued by IBA is annexed and the same is self-explicit.
With warm greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
HR & INDUSTRIAL RELATIONS
No.CIR/HR&IR/2011-12/G2(DC)/3584
July 6, 2011
The Chief Executives of Nationalised Banks
& Associate Banks of State Bank of India
Dear Sirs,
Introduction of New Pension Scheme for employees joining services on or after 1.4.2010 in terms of the Memorandum of Settlement and Joint Note dated 27.4.2010 at Industry Level
You are aware that in terms of the Memorandum of Settlement dated 27.04.2010 signed with representative Workmen Unions and Joint Note dated 27.04.2010 signed with representative Officers’ Organisations, 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). There shall be no separate Provident Fund for employees joining services of the Bank on or after 01.04.2010. The employees joining the services on or after 01.04.2010 shall contribute 10% of the pay and dearness allowance towards the Defined Contributory Pension Scheme and the bank shall make a matching contribution in respect of these employees.
We were in touch with PFRDA on the modalities in implementation of the New Pension Scheme in Banks in terms of the agreement reached at industry level. We are enclosing copies of the following letters from the Government and PFRDA in this regard for your information and guidance.
1. Government of India
2. PFRDA letter F.No.9/45/2009/PFRDA dated 5th April 2010
3. PFRDA letter D/R No.598/PFRDA/28/10/2010 dated 28th October 2010
The letters dated 5th April 2010 and 28th October 2010 provide the guidelines for implementing the New Pension Scheme in various organizations like PSUs or other corporations. The Scheme devised (Corporate Model) gives a choice of both Government Sector and Unorganised Sector PFMs, in case corporate carries out NPS activities for its underlying subscribers. The banks may choose the Government Sector PFMs as the Joint Note and Memorandum of Settlement signed at industry level provides for a scheme which will be as governed by the provisions of the NPS introduced for Central Government employees.
You are requested to approach the PFRDA directly to finalise modalities for implementing NPS for employees who joined the services in your bank on or after 01.04.2010 and implement the same with the approval of the Banks Board.
You may also approach the PFRDA for clarifications / doubts, if any, regarding the Scheme and implementation thereof.
Yours faithfully,
Sd/-
(K. Unnikrishnan)
Dy. Chief Executive
Encls.
c.c. to : 1. Chief Executives of All Private Sector Banks who are parties to the Bipartite Settlement and Joint Note dated 27.04.2010.
2. PFRDA
3. Department of Financial Services, Ministry of Finance, New Delhi
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