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