Pension

PENSION

Eligibility:

Employees who have joined the service of the bank on or after 01-11-93.

Employees who have joined prior to 31-10-93 & who have opted for the scheme

Classes of pension

a) superannuation pension

b) pre-mature retirement pension

c) pension on voluntary retirement: an employee may be permitted to retire voluntarily, who has completed 15 years of qualifying service, after giving 3 months notice in writing & in such case, the qualifying service shall not in any case exceed 33 years & does not take him beyond the date of superannuation.

Rate of pension

50% of last drown pay. Pay means aggregated of pay drawn in terms of 8^th BPS dt 02.06.05

Amount of pension

a) 50% of average of 10 months emoluments i.e. BP+spl allowance. ranking for PF+PQP+FPP (basic + DA component only)

to be calculated as stated above.

b) Service of 33 years will qualify for full pension – for those with less than 33 years of service, pension will be calculated proportionately, as

(10 months average emoluments × qualifying service)

2 X 33

Commutation: pensioner may surrender up to maximum of 1/3^rd of the pension admissible to him by way of commutation & receive in lieu thereof lump sum determined in accordance with his age at next birthday as per time table, given here under: Ex: 1/3^rd of basic pension × 12 × factor at age at next birthday

Age at next birthday	Commutation factor	Age at next birthday	Commutation factor	Age at next birthday	Commutation factor
35	16.92	45	14.64	55	11.73
36	16.72	46	14.37	56	11.42
37	16.52	47	14.10	57	11.10
38	16.31	48	13.82	58	10.78
39	16.09	49	13.54	59	10.46
40	15.87	50	13.25	60	10.13
41	15.64	51	12.95	61	09.81
42	15.40	52	12.66	62	09.48
43	15.15	53	12.35	63	09.15
44	14.90	54	12.05	64	08.82

Commuted portion of the pension will be restored after a period of 15 years from the date of commutation.

DA is eligible on full basic pension.

FAMILY PENSION

(i) No Stipulation of minimum service for family pension

(ii) In the event of death while in service or after retirement, pension shall be payable to the spouse/dependent at the following rates:

Up to Rs.2870/- 30% of pay min. Rs.720/- p.m.

From Rs.2871 to Rs.5740/- 20% of pay min. Rs.860/- p.m.

Above Rs.5740/- 15% of pay min. Rs.1150/- & max. Rs.2400/- p.m.

(iii) (a) In the case of an employee who dies after completion of 7 years of service, higher family pension equal to 50% of pay last drawn by the deceased employee or twice the ordinary rate of family pension whichever is less payable. The family pension at higher rate is payable till the date the deceased employee would have attained the age of 65 years subject to a maximum period of 7 years.

a) in the event of the death of an employee after retirement, before attaining the age of 65 years, family pension is payable at twice the ordinary rate of family pension or @ 50% of pay last drawn by the employee at the time of retirement, whichever is less. The maximum period for which higher family pension will be payable is 7 years or till the deceased employee would have attained 65 years of age if it occurs earlier.

MEMORANDUM OF SETTLEMENT DATED 27.04.2010 – TERMS OF SETTLEMENT – OPTION TO JOIN PENSION SCHEME:

1. All workman employees are in the service o 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 27^th 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 29^th September 1995 in case of Nationalized Bank 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) Authorize 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.

3. The existing pension scheme will not be applicable to those who join the services of the Banks on or after

1^st April 2010.

a. Employees joining the services of the Banks on or after 1^st 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 of them will be one as governed by the provisions of New Pension System introduced for employees of Central Government w.e.f. 1^st 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).

b. The employees joining the services of the Banks on or after 1^st 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.

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