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ELIGIBILITY FOR PENSION - INCLUDING FOR VRS 2000 OPTEES

K Bala Subramanian

(One of our enlightened readers has sent the following details about the likely eligibility criteria for pension)

ELIGIBILITY OF PENSION AS PER PENSION REGULATION 1995 AND INTERPRETATIONS UNDER THE MOU SIGNED

APPLICABILITY :
Pension regulation 1995 is applicable to all employees who are/were in the services of the bank on or after 01 January 1986.

QUALIFYING SERVICE
Minimum of 10 years of service in the bank as on the date of retirement for pension Broken period More than six months it shall be treated as full year less than six months will be ignored

FORFEITURE SERVICE:
RESIGNATION OR DISMISSAL OR REMOVAL OR TERMINATION OF AN EMPLOYEE FROM THE SERVICES OF THE BANK SHALL ENTAIL FORFEITURE OF HIS ENTIRE PAST SERVICE AND CONSEQUENTLY SHALL NOT QUALIFY FOR PENSIONARY BENEFITS.

ELIGIBILITY
In other words the employee must retire from the services of the bank in any one of the following ways so as to make himself eligible for
pension.
1.ATTAINING SUPER ANNUATION
SUPER ANNUATION PENSION
2. VOLUNATARY RETIREMENT (VRS)

Employees should have completed twenty years of qualifying service .In such cases the qualifying service of an employee shall be increased by
a period not exceeding five years subject to the condition that the total qualifying service rendered by such an employee should not exceed
33 years and it does not take him beyond the date of superannuation.

NOTE : TO MAKE THE PERSONS ELIGIBLE FOR PENSION AMONG THE PENSION OPTEES UNDER VRS 2000 SCHEME IBA HAS AMENDED THE REGULATION WITH RETROSPECTIVE EFFECT TO MAKE THE QUALIFYING SERVICE UNDER VRS TO 15 YEARS.

TREATMENT TO VRS 2000 PENSION OPTEES: IBA after loosing the legal battle permitted member banks to notionally add 5 years of notional service for the purpose of calculating pension for 20 years and above. No five years addition for VRS 2000 15 to less than 20 years category who opted pension. IBA VIEWED THE SCHEME AS A SPECIAL CASE AND THEY HAVE NOT EXPLICITLY STATED IN THE VRS CIRCULAR AND HENCE THE BENEFIT OF DOUBT AND AMBIGUITY WAS ALLOWED TO THE VRS RETIREES BY THE SUPREME COURT.

3. INVALID PENSION : Minimum ten years of service : FOR BODILY OR MENTAL INFIRMITY WHICH PERMANENTLY INCAPABLE OF HIM FOR THE SERVICE.

4. PREMATURE RETIREMENT PENSION

5 COMPULSORY RETIREMENT PENSION.

SO, ALL THE EMPLOYEES WHO OPTED FOR PF OTHERWISE ELIGIBLE TO RETIRE UNDER PENSION REGULATION 1995 WILL BE GIVEN ANOTHER CHANCE TO OPT FOR PENSION.

SINCE COST SHARING AND QUANTUM OF ESTIMATE TO BE COVERED ARE TICKLISH ISSUES AND THEY THEMSELVES ARE IN CONFUSED STATE INSPITE OF FIGURES ARRIVED WHAT EVER WE DISCUSS MAY BE A WASTEFUL EXERCISE. ONE THING IS CLEAR. COMMUTATION WILL BE ALLOWED AND THE PF REPAYABLE WILL BE DEDUCTED FROM THAT AMOUNT. 15 YERS FOR RESTORATION ONLY FROM THE DATE OF COMMUTATION TO THE DISADVANTAGE OF THE OPTEES CONSIDERING THE AGE. ALL EMPLOYEES TO SHARE THE BURDEN ARISING OUT OF THE INCREASE IN PROVISION BECAUSE OF WAGE REVISION. PF OPTEES BOTH EXISTING AND RETIRED HAS TO SHARE THE NET ADDITIONAL COST ESTIMATED IE 1800 CRORES.

Mr Asim Kumar Sen writes :

"It is learnt that during the meetings on 9th and 10th Dec.09, it was mutually clarified and understood by IBA /UFBU that ‘Retirees’ would mean and include employees/officers who have retired on normal superannuation, those who have retired under VRS/Special VRS and families of the PF optees who had died during the period all of whom would be eligible for the pension option.

However, the eligibility criteria for other category of Retirees (employees/officers) need clarification. There are retirees who had to quit service prematurely under disciplinary action procedures. They are (1) employees/officers whose services were prematurely terminated under compulsory retirement order and (2) employees/officers who were dismissed from service and (3) employees/officers who prematurely resigned from service due to health ground or for other reasons.

Out of these two categories ; category 1 received full PF and gratuity benefits and all other dues and arrears till the date of retirement and category 2 received own contributory PF only.Category 3 received PF also.

The above three categories of retired/terminated employees/officers also need immediate attention and settlement of 2nd. option for pension."

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