Monday, May 10, 2010

Pension Option - eligibility and other details (9th BPS - 2nd Option)

1. Eligibility for pension option – Who can opt now ? :
Those who were in service of the Bank on date of Pension Regulations in 1995/1996
       a)  and continue in service as on 27.4.2010.
       b)  OR retired thereafter before 27.4.2010.
       c)  OR retired thereafter and died before 27.4.2010 

             (Family can opt now).
       d)  OR died while in service but before 27.4.2010. 

             (Family can opt now).
       e)  OR  ceased  to be  in  service  thereafter under 

             the Special VRS  scheme after rendering  
             15  years   service.

 2.  Who is a retired employee and who is an existing employee ?
a)  Those who have retired prior to 27-4-2010 are retired employees.
b)  Those who are in service as on 27-4-2010 are existing employees.

3.  What to refund :
a)  Employees in service as on 27.4.2010 and opt for pension now will pay from their arrears an amount equal to 2.8 times of „Pay‟ payable for the month of November, 2007. 
b)  Employees who have  retired  / died before  27.4.2010  and  if  option  is given now by them/their family, they will repay the Bank’s contribution to  PF  received  by  them  +  56%  on  this  amount  Less  commutation amount. 

4.   From when pension will be paid: 
a)  For  those  who  retired/died  before  27.11.2009,  arrears  of  Pension/Family Pension will be paid from 27.11.2009.

b)  For those who retired/died after 27.11.2009, arrears will be paid from date of retirement/death.

5. When the option will be given:
  All Banks will make an offer to the employees and retired employees.  Within 60  days  from  the  date  of  this  offer,  employees/retirees  should  give  their option. 

6.  When to pay /refund the amount ?

  For the existing employees as on 27-4-2010, the amount payable by them at 2.8 times of the Pay of November, 2007 will be recovered from the arrears. If  anyone  does  not  opt  for  Pension,  then  the  amount  will  be  refunded  to them.  If they give a letter prior to payment of arrears that they do not want to  opt  for  pension  scheme,  then  the  recovery  will  not  be  made  from  the arrears but then they cannot opt for pension scheme later.

  For Retired Employees, Upon receipt of the letter of option from the retired employees, Banks will work out  and  inform  the  retired employee as  to how much he will get as pension and how much he has to refund to the Bank. 

  While  refunding  the Bank’s PF + 56 %,  the Commutation  receivable will be netted and only the balance amount is to be paid. 

7.  Commutation:

  Commutation will  be  payable  from  the  date  of  application  for  commutation and  the  age  for  this    purpose  will  be  the  present  age  as  on  the  date 

 of commutation.

8. Arrears of Pension:

  For those who have retired prior to 27-11-2009, pension is payable from 27-11-2009. Full Pension (before Commutation  )  is payable  till Commutation  is applied/Paid.

  For those who have retired after 27-11-2009 but before 27-4-2010, pension is payable  from  date  of  retirement.  Full  pension  (before  Commutation )  is payable till Commutation is applied/Paid. 

  9.  Employees retired after 1-11-2007:
Those employees who have  retired  from  the Banks after 1-11-2007 will be eligible for the following benefits:
For pension Optees :
a)  Arrears of wage  revision  /  revised pay  scales & allowances  from 1-11-2007  till date of retirement will be paid.
b)  Gratuity will be reworked based on revised Pay and difference over the amount already received will be paid.
c)  Monthly pension will be revised based on new pay scales. 
d)  Consequently, arrears of pension from date of retirement will be paid
e)  Difference between revised Commutation and commutation already received.
For PF Optees :
a)  Arrears of wage  revision  /  revised pay  scales & allowances  from 1-11-2007  till  date of retirement will be paid.
b)  Gratuity will be reworked based on revised Pay and difference over the amount already received will be paid. 
c)  On opting  for pension scheme,  their pension  / commutation will be paid based on  9th  BPS  Pay.    They  will  also  get  arrears  of  full  pension  amount  +  D.A    (  i.e.before  commutation  )  from  27-11-2009  or  from  date  of  retirement whichever is later till the commutation is paid. 
10.  Employees  who  join  between  1-11-1993  and  date  of  Pension Regulations :
Reference has been made to us about employees who had joined the Banks from 1-11-1993 till Pension Regulations were adopted in 1995/96 as to whether they should pay 2.8 times of Pay to join the pension scheme as some Banks have treated them as PF Optees. Our contention  is that all  these employees are automatically covered under  pension  scheme  since  our  Settlement  dated  29-10-1993  provides  that  all those who join the Banks on and from 1-11-1993 will be covered by pension scheme only.   However,  it needs a  legal  clarification  from  the Government  /  IBA.   We are seized  of  the  matter  and  shall  follow  up  the  same.    In  the  meantime,  such employees  are  advised  to  opt  for  pension  when  the  offer  is  made  under  our settlement dated 27-4-2010.

Source - AIBEA circular


  1. What about those pf optees who have taken vrs after 27/04/2010 and before offer letter received from bank.

  2. contribution of 56% from the retirees is unjustified. Moreover, I came to understand that the benefit of Grautity will not be given to those who retired before April 2010, cuasing a loss of approximately Rs.4.00 lacs to an officer. If it is correct it is also unjustified to hit hard to the retirees.

  3. please reply that no one left service in normal condition
    if everyone enjoy second opsion why not me i served 27 year in bank of rajasthan and when bank not giving me permission to meet my son in canada so i left job.what can i do ?

  4. I retired from bank of baroda in july 2003.After that i married two daughters. Where from i will bring money to refund 56% extra whereas i will get pension from november 2009 and commutation on a lower fraction. What leaders have thought is amystery.

  5. I was retired on 31.1.2010, I think that 56% to be paid for me is absolutely wrong method atleast it may be worked proportionally for the period,
    since the talks dragged out to a long time .If it is settled prior to this date many employees may be avoided undue penalty of 56% of PF they have received. It is compelled legally by the useless and lucrative leaders who are in the position of bank union leadership signed agreement without considering the members should be removed from the post they are adorning

  6. DEAR SIR,



  7. Unions and Bank management have done gross injustice to the normal VRS category people who have retired under VRS under OSR after 20 years of service.

  8. anonymous said....

    A private Bank has announced a VRS scheme 2002 and took voluntary retirement on 31-10-2002 after serving the organisation for 30 years. Please let me know, whether I am eligible for 2nd Option pension. If no offer is received from the Bank, what am I to do? whether I can submit Annexure II as prescribed by IBA Circular. Please reply

  9. Whether ING Vysya Bank has issued a circular on 2nd option pension for PF Optees ? Please furnish

  10. I lost my only child in Mar 2009 and immediately I was posted to Kolkata in Apr 2009 from AP. I am forced to go on VRS as my request was denied and I was under deep depression. Every one has assured me that I will be eligible for pension, since I was in service during the settlement period. I don't know what to do now and I am yet to come out of the depression. Suppose if the settlement is dragged for 10 years, can we call all the employees who were retired during this period as ex employees????????

  11. what about syndicate bank? when are they going to issue the circular for pention option

  12. While concluding settlements, (specifically prior to 1.11.2002) many discrepancies were left unsolved. To say, that they were not having knowledge about them-may be a green lie. By arbitrarily fixing a cut of date for payment of quantum of pension, gratuity amount etc. the retired employees have to seek court intervention to get their grievances redressed. Again in the settlement which came into effect w.e.f. 1.11.97; instead of allowing pension against the last 10 months salary drawn- an arbitrary clause was included reducing the merging points from 1684 to 1616. In effect this affected all pensioners who had retired between 1.11.1997 to 31.10.2002. As the amount deprived was huge, again some pensioners filed suits in many High Courts in India-. For each anomaly – arbitrarily created during settlements-pensioners have to seek legal intervention. Unless the highest court in India give a judgment in employees favor- IBA would never listen to us .In getting a favorable judgment it may take a minimum of 10 to 15 years. Considering the fact that most of the retirees are Senior Citizens- it suggested that IBA should be forced to institute Tribunal at appropriated level to redress the grievances of pensioners
    In the 8th Settlement which came into effect from 1.11.2002 -100 per cent neutralization of DA was given effect w.e.f 1.5.2005 those who have retired after 1.11.2002.. This arbitrarily fixing of DA formula has created huge differences in the quantum of pension drawn by the earlier retirees. Whether it would be possible for us to get the legal opinions obtained by IBA( in this matter) through RTI act. If we could get the same all our cases can made in our favour very easily.

    Whether it would be possible to get one cadre one pension for bank employees ?

    Even Central Pay commission has opined and insisted that there should not be any different formula for payment of DA among the existing and already retired employees of Central Govt. staff. A recent judgement in Rajasthan High Court ( Case: LIC Vs. Govt- regarding different rate of DA for the recently retired employees and already retired employees) , it has been decreed that there should not be any differentiation in the payment of DA.

    In view of the above we should get 100% neutralisation DA for those who have retired prior to 1.11.2002 and opted for pension. We should also get arrears of pension- for those who had retired between 1.11.1997 and 31.10.2002 .

    Please mail your suggestions and comments to

  13. What about Bank of baroda?When will they issue the circular for second pension option?

  14. Still no news from Syndicate Bank. Why this delay? Why this delay. When are they going to issue the circular for pension option?

  15. Yes i am also waiting for the circular from syndicate bank.Why are they taking so much of time to issue the circular for pension option?

  16. as i have taken vrs in 1987 and have joined
    the pension scheme in * 1993 at present
    i completed 80 years of age should i am eligeble
    for additional pension as per other goverment pension schem.