It seems IBA has agreed to certain demands of the union regarding the revision of pay, etc. Please let me know whether a VRS-opted employee, who is not receiving the benefit of a pension and now wants to opt for a pension, can these VRS-opted employees will benefit from this settlement, and if so, what will be the formula.
From India, Indore
Acknowledge(0)
Amend(0)
From India, Indore
Acknowledge(0)Amend(0)
After bargaining hard for over two years, bank unions and the Indian Banks' Association (IBA) on Friday finally agreed to the ninth bipartite wage settlement with effect from November 1, 2007.
This follows the agreement reached on the pension option being granted once more to existing as well as retired employees.
Under pension option, 2.72 lakh existing employees and 35,000 retired employees will benefit as another option for pension is being extended to non-pension optees. The total liability on account of existing employees exercising the pension option is Rs 6,000 crore, and that due to retired employees is Rs 3,116 crore. The gap in the pension liability will be shared between banks (70 percent) and employees (30 percent).
Retired employees (non-pension optees), who were in the service of the bank as on September 29, 1995, and March 26, 1996, and retired thereafter, choosing the pension option, will be required to return the bank's contribution to the provident fund with interest thereof received by them at the time of retirement. Further, they have to contribute to the pension fund their share of 30 percent of the gap in the pension fund.
Existing employees (non-pension optees) can exercise the pension option by contributing to the pension fund their share of 30 percent of the gap in the pension fund. This contribution will be recovered from the arrears payable on wage revision.
Detailed modalities will be worked out within the next 90 days.
From India, Ghaziabad
Acknowledge(0)Amend(0)
This follows the agreement reached on the pension option being granted once more to existing as well as retired employees.
Under pension option, 2.72 lakh existing employees and 35,000 retired employees will benefit as another option for pension is being extended to non-pension optees. The total liability on account of existing employees exercising the pension option is Rs 6,000 crore, and that due to retired employees is Rs 3,116 crore. The gap in the pension liability will be shared between banks (70 percent) and employees (30 percent).
Retired employees (non-pension optees), who were in the service of the bank as on September 29, 1995, and March 26, 1996, and retired thereafter, choosing the pension option, will be required to return the bank's contribution to the provident fund with interest thereof received by them at the time of retirement. Further, they have to contribute to the pension fund their share of 30 percent of the gap in the pension fund.
Existing employees (non-pension optees) can exercise the pension option by contributing to the pension fund their share of 30 percent of the gap in the pension fund. This contribution will be recovered from the arrears payable on wage revision.
Detailed modalities will be worked out within the next 90 days.
From India, Ghaziabad
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Revision in Basic wage wef Mar 2014 Gazette.pdf