Hi, please see and contact your banker for full details.
On 27th April 2007, a Memorandum of Settlement with workmen and a Joint Note with officers' associations have been signed. One significant part of the whole negotiations of the 9th Bipartite settlement has been the offer of a 2nd option of pension to those bankers/ex-bankers who were earlier PF optees. However, the issue being very complex, a lot of queries have been coming to us asking whether they are eligible for the pension option. As things were not clear and it was not possible to reply individually to every query, we provide below the details as to who is eligible and how much they have to contribute towards the pension option.
Who Are Covered by the 2nd Offer For Pension:
(a) All existing employees as of 31st March 2010 will be offered an option to switch over to the existing pension scheme from CPF. However, those who have been recruited on or after 1st April 2010 are not eligible. Thus, new recruits on and after 1st April 2010 will not be covered by the existing Pension Scheme. This settlement will not be applicable in State Bank of India.
(b) The offer to opt for the existing pension scheme will be available to all retirees, as of the date of this settlement, who were in service of the Bank prior to 19th September 1995 in the case of nationalized banks/26th March 1996 in the case of Associate Banks of State Bank of India and retired thereafter prior to the date of this settlement.
(c) Thus, retirees will include those retired under the VR scheme after rendering service for a minimum of 15 years. The family of those who were in service on dates as aforesaid but died thereafter while in service or after retirement will also be eligible to opt for a pension.
How Much PF Optees Have to Contribute for Joining the Pension Scheme:
(a) All employees in service as of the date of the settlement (i.e., 27/04/2010) who may now opt for a pension will have to contribute 2.8 times the revised pay (BP, SPL Pay, FPP, PQP) as of November 2007. This amount will be recovered from the arrears receivable by them on account of wage revision.
(b) All retirees/family of the deceased employees/retirees now opting for a pension will have (i) to refund the Bank's contribution along with interest thereon received at the time of retirement/death + (b) they will have to further contribute an additional 56% on such amount to the pension fund.
Likely Time Schedule For Implementation of the Scheme:
All those willing to join the existing pension scheme have to exercise the option within 60 days from the date of the offer, and the retirees have to make refunds, as aforesaid, within 30 days from the date of expiry of the said 60 days.
Date from Which Pension Will Be Paid:
Pension/Family Pension to those who will now opt to join the Pension Scheme, in terms of this settlement, shall be payable with effect from 27th November 2009 or from the date of retirement, whichever is later.