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Minutes of the Discussions held on 27th November 2009 between IBA representing the Management of Banks and UFBU consisting of 5 Workmen Unions viz. AIBEA, NCBE, BEFI, INBEF and NOBW and 4 Officers’ Associations viz. AIBOC, AIBOA, INBOC & NOBO on another option to join the pension scheme

The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) entered into a Memorandum of Understanding on 25th February 2008 on various issues. Extending another option for pension to those who did not opt for pension when Bank Employees’ Pension Regulations, 1995 were implemented was one of the issues to be considered. Several rounds of discussions have taken place on the issue. An actuarial valuation of the liability was assessed through two commonly agreed actuaries who identified the total liability for extending another option for pension to non-optees.    On receipt of the actuarial valuation of the liability, several rounds of discussions have taken place between the parties and the following terms have been mutually agreed.

1. Existing employees

(i) The employees who were in service of the Banks as on the date of Pension Regulation ie. 29.9.1995/ 26.3.1996 and continue in service as on the date of settlement/ Joint Note to be signed between the parties, shall be given one more option to join the Pension Scheme.
(ii) The Banks’ contribution to Provident Fund along with interest thereon in respect of those employees who opt for pension shall be transferred to the Pension Funds of the respective Banks.
(iii) The gap in the pension fund identified will be shared between parties as under:
(a) 70% of the gap by the bank.
(b) 30% by the employees who are in service of the bank as on the date of Memorandum of Settlement/ Joint Note to be signed between the parties in this regard. This amount will be recovered from the arrears payable on wage revision.
 

2. Retired Employees

(i) Those employees who were in the service of the bank as on 29.9.1995/ 26.3.1996 who were eligible but, did not opt for pension and retired thereafter shall also be extended the option for joining the Pension Scheme. Towards joining the Pension Scheme they will –
(a) Refund the bank’s contribution to the Provident Fund with interest thereof received by them at the time of retirement.
(b) Contribute to the Pension Fund their share of 30% of the gap in the pension fund identified.

3. The Bank Employees’ Pension Regulations, 1995 will be effective upto 31.3.2010 and cease to apply to any person appointed in the services of banks on or after 1.4.2010.
4. A defined contributory retirement benefit scheme as governed by the “contributory pension scheme introduced for employees of Central Government with effect from 1.1.2004” will be introduced for workmen/officers joining the services of banks on or after 1.4.2010. There shall be no separate contributory provident fund in respect of these workmen/officers.
5. The terms of this minutes will not be applicable to State Bank of India.
6. The Parties will meet on mutually convenient dates to draw out a detailed Memorandum of Settlement/Joint Note in this regard; and appropriate modifications in the Bank Employees’ Pension Regulations will be made following the prescribed procedure in this regard. The parties will endeavour to finalise the Memorandum of Settlement/ Joint Note within a period of ninety days from the date of this minutes.
 

Signed at Mumbai on 27th November 2009
Record Note of the Discussions held on 27th November 2009 between IBA representing the Management of Banks and UFBU consisting of 5 Workmen Unions viz. AIBEA, NCBE, BEFI, INBEF and NOBW and 4 Officers’ Associations viz. AIBOC, AIBOA, INBOC & NOBO on extending another option to join the pension scheme
 

 The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) entered into a Memorandum of Understanding on 25th February 2008 on various issues. Extending another option for pension to those who did not opt for pension when Bank Employees’ Pension Regulations, 1995 were implemented was one of the issues to be considered. Several rounds of discussions have taken place on the issue. An actuarial valuation of the liability was assessed through two commonly agreed actuaries who identified the total liability for extending another option for pension to non-optees as under:

Another Option for Pension (Serving Employees)                           (Rupees in Crores)

Another Option for Pension (Retired  Employees)                           (Rupees in Crores)

On receipt of the actuarial valuation of the liability, several rounds of discussions have taken place between the parties and the following terms have been mutually agreed.

1) Existing employees
The employees who were in service of the Banks as on the date of Pension Regulations i.e. 29.9.1995/ 26.3.1996 and continued in service as on the date of settlement/ Joint Note to be signed between the parties, shall be given one more option to join the Pension Scheme.
2) The Banks’ contribution to Provident Fund along with interest thereon in respect of those employees who opt for pension shall be transferred to the Pension Funds of the respective Banks.
3) The gap in the Pension Fund identified (Rs.6001.80 crores) is agreed to be shared between the parties as under:
a) 70% (Rs.4201.26 crores) by the banks.
b) 30% (Rs.1800.54 crores) by all the employees who are in service of the banks as on the date of the Memorandum of Settlement/ Joint Note to be signed between the parties in this regard. This amount will be recovered from the arrears payable on wage revision.

4) Retired Employees
Those employees who were in the service of the bank as on 29.9.1995/ 26.3.1996 who were eligible but, did not opt for pension and retired thereafter shall also be extended the option for joining the Pension Scheme. Towards joining the Pension Scheme they will –
a) Refund the bank’s contribution to the Provident Fund with interest thereof received by them at the time of retirement.
b) Contribute to the Pension Fund their share of 30% of the gap in the Pension Fund identified (Rs.934.95 crores)
5) The Bank Employees’ Pension Regulations, 1995 will be effective up to 31.3.2010 and cease to apply to any person appointed in the services of banks on or after 1.4.2010.
6) A defined contributory retirement benefit scheme governed as by the “contributory pension scheme introduced for employees of Central Government with effect from 1.1.2004” will be introduced for workmen/officers joining the services of banks on or after 1.4.2010. There shall be no separate contributory provident fund in respect of these workmen/officers.
7) The terms hereof will not be applicable to State Bank of India.

Moreover, if we are not able to rise to the occasion we should be prepared with n no. of begging bowls (n representing the no. of members in our family) without the help of which we may not be able to fulfill our familial responsibilities and provide them a decent standard of living. Further, there are few more steps provided by one of our colleagues at allbankingsolutions.com that can be undertaken in order to sustain with the current salary levels.

1. If you own a house, give it on rent and shift to near by slum. This way you will be able to increase your income. Some day your child may become slumdog Banker.
2. Apply for a BPL ration card. As per new manifesto you will get Wheat and Rice for Rs.2 or Rs.3 per KG whosoever makes the government.
3. Use Municipal Primary schools for the education of your children, if you cannot afford private and live in an affordable housing i.e.Jhuggi.
4. Use Primary healthcare centre for medical treatment.
5. Use Public conveyance on maximum occasions.
6. Take tuitions at home.
7. Look for alternate jobs if you are still eligible for other central/state Govt. jobs.
8. Purchase cloths from Jama Masjid market at cheap rate.
9. Buy vegetables when the whole community finishes purchasing. You will get vegetables at lower price.
10. Request management to rename you designations in accordance to your salary.
11. Mr.Venkatachalam will ensure that you follow all the above religiously .Some day Government will come out with some rehabilitation plan for Bankers i.e. waiver of Staff Overdraft, Staff Housing Loan, Vehicle Loan etc.

If we do not wish to or cannot undertake the above steps, we have the following alternatives:

1) Curse the system, union and management, sitting at home.
2) Pray to god.
3) Keep your hands on your heart and say all is well.
4) Wait for the final outcome and then take the Step 1.
5) Pray to union leaders.
6) Do gossip and politics on the subject like AIBOC i.e signing the accord with one hand and assuring the members with the other.
7) Say lal salaam and accept whatever treatment is meted out to us as a diehard communist.
8) Take action as an educated member. Use the power of your vote and subscription.

Please let us know if you take the most difficult yet effective step no. 8.

You can submit your comments on : allbankingsolutions@gmail.com