Pension option - quitting bank service under Voluntary Retirement / Resignation etc.

Some of the CPF Optees are putting in their papers for voluntary retirement without being conscious of the implications of such acts on their part although they have completed the minimum qualifying service under the Pension Regulations. AIBOC has advised such officers  to await the implementation of the 2nd Option on Pension Scheme, the process of which involves many technicalities , before venturing to submit their papers presumably under the impression that they would be eligible to Pension benefit in the normal course.It is better to await until the formalities are completed rather to take the risk of getting into technical wrangles at a later date.

 

Click on the link  below to view  circular  

AIBOC Circular

IBA issued guidelines for implementation of 9th Bipartite Settlement

The IBA has  issued communication to the Member Banks to implement and pay the arrears of salary as per the settlement reached with unions. The IBA has also further instructed the banks to be in preparedness for the introduction of the 2nd Option on Pension since the formalities of getting approval from Government is in process. 

Higher retirement age, variable pay for public sector bank employees on cards

Employees of public sector banks (PSBs) could soon get incentives like their private sector counterparts to perform better and acquire new skill sets. A government committee has recommended 15-20% variable component in their salary package, along with the removal of the existing upper limit for their remuneration. It has also pitched for a hike in retirement age to 62 years from the current 60, sources in the committee told FE. The committee, set up by the finance ministry, is expected to submit its report next week.
Significantly, if the committee’s recommendations are accepted, each bank would be free to fix its salary structure based on its financial strength and also reward the highly-skilled with out-of-turn promotions.
The proposals are aimed at infusing a greater degree of professionalism in India’s banking industry, which is on the cusp of a makeover with the slow and steady globalisation of the financial sector.
India’s 27 PSBs have a combined manpower strength of 7 lakh. But the industry — which accounts for 70% of the banking business in the country — is experiencing a shortage of talent in high-end areas like risk management and treasury operations. Over 58% of middle-level managers in PSBs will retire in a couple of years.
The panel, headed by Bank of Baroda’s former chairman AK Khandelwal, has recommended that each public sector banks be allowed to settle salaries for its employees in line with their specific skill sets and the bank’s overall performance. 

Govt. Approval for implementation of 9th Bipartite Settlement

Govt. Approval for implementation of 9th Bipartite Settlement has been received and IBA is expected to issue detailed guidelines in this regard. As regards the various formalities in relation to the 2nd Option on Pension, as well as the Notification etc., further detailed instructions from the IBA are awaited. 

 

2nd Option on Pension for resigned employees

AIBOC has written a letter to IBA requesting resignee bank employees to be included in second option of pension.

We reproduce below the circular issued by AIBOC in this regard.