(Affiliated to NOBO & BMS)
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HOUSE MAGAZINE FOR INTERNAL CIRCULATION ONLY
QUARTERLY PUBLICATION – May 2010
QUARTERLY PUBLICATION – May 2010
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FROM THE GS DESK:The much awaited Wage revision settlement between UFBU & IBA has been inked upon on 27th April 2010 after prolonged negotiations. The long pending demand of offering One more Pension option to the existing PF optees has also been agreed upon on the same day. Compared to the wage hike enjoyed by the Central Govt employees as per 6th Pay commission recommendations, and also compared to the prevailing salary emoluments of employees in other Private sectors, the wage hike given to the Bank employees is very nominal. Majority of the Bank employees are unhappy over the unreasonable, indifferent & adamant attitude of IBA all along. During the course of negotiations the very credibility & trustworthiness of IBA was at stake, because of going back or deviating from the MOU entered by them again and again. The first MOU agreed upon by IBA was not at all honoured. The second and final MOU agreed upon by IBA on 27-11-09 is also not honoured fully, especially regarding sharing of Pension cost by the bank employees. While dealing with various section of the Bank employees IBA appears to have adopted the model of much hated divide and rule policy of the Britishers. The disparity in Pension cost sharing by the PF optees and Pension optees is much visible. The PF optees are made to cough out major or entire portion of their salary arrears by way of refunding 2.8 times of their Nov 2007 Pay, while Pension optees are allowed to get away with their arrears unscathed. The percentage of increase in wage hike is also not uniform in all the scales of officers. Percentage of increase in Salary of the officers in Scale-IV and above, is much more compared to that of officers in Scale I, II & III, though the assured wage hike at the time of MOU of 27-11-09 was 17.5%. The CCA agreed upon is 4% of the basic in Area-1, whereas CCA for the officers with the lowest starting basic of Rs 14500 in Scale-I also exceeds the maximum stipulation of Rs 540/-, which renders the percentage stipulation ridiculous! Junior officers are unhappy because of the additional stagnation increments given to the seniors. Pension optees are unhappy for compromising with a low wage hike due to the demand of One more Pension option. Retired employees who are PF optees, are unhappy because of the uniform formula of refund of their share of Pension cost (additional 56%) stipulated for all those retired from 29-9-1995 till 26-4-2010. Thus various sections are unhappy for various reasons. Anyway the deal is over and with a heavy heart, the UFBU leaders have agreed to the unreasonable terms & conditions of IBA. This settlement will be in force till 31-10-2012. We hope better wisdom will prevail upon IBA and through UFBU, the bank employees will get a better deal atleast in the next bipartite. We have brought out this special issue of CBOO Vartha containing the gist of wage settlement, Pension option, gratuity amendment and other details for the ready reference of the readers.
- B.K.Irwathraya
WAGE REVISION VAARTHA
ROLE OF NOBO & NOBW IN WAGE NEGOTIATIONS
This time, the Wage Negotiation carried special importance because the demands for wage increase and one more pension option were combined unlike in the past. Four officers unions (AIBOC, INBOC, AIBOA & NOBO) and five workmen unions (AIBEA,NCBE,BEFI,INBEC & NOBW) under the umbrella of United Forum of Bank Unions (UFBU) fought the battle. It is a well known fact that in the nationalised banks, majority of AIBEA & AIBOA membership are pension optees., where as majority of AIBOC , NOBO & NOBW membership are PF optees. That being the case, AIBEA was reluctant to take up the cause of PF optees. Added to this, the AIBOC leadership hailing from State Bank of India was also reluctant to take up their cause. Under the circumstances, the single minded devotion of Sri Bapu Joshi, ex-general secretary of NOBO in keeping the issue of ‘one more pension option’ alive all along and also his role in convincing the other UFBU constituents to treat the issue as the TOP PRIORIY demand during the wage negotiations with IBA is commendable. At last the long standing demand of PF optees has been fulfilled and the Joint agreement between the UFBU & IBA offering one more pension option to the PF optees has been signed on 27-04-2010. CBOO salutes Sri Bapu Joshi for his invaluable contribution in furthering the cause of PF optees.
During the long drawn struggle lasting for nearly two and a half years, NOBO & NOBW representatives took active part in all the UFBU meetings and deliberations with IBA. All the NOBO & NOBW members participated with full strength and vigour in all the demonstration programmes and strike actions taken up by UFBU. There was also unstinted support from all the Bank employees irrespective of their affiliations to the agitational programmes taken up by UFBU which ultimately made the IBA to bow down and enter in to the Wage negotiation and Pension option agreements on 27-4-2010 at Mumbai.
There were two separate Joint Notes on agreed conclusions regarding Wage Revision of officers and Pension option which were executed by IBA & 4 officers organisations at Mumbai on 27-4-2010. In executing these documents, NOBO was represented by the following leaders:
1. Sri M.S.Bhagwat – President NOBO & General Secretary Syndicate Bank Officers Association.
2. Sri A.N.Madhusudan – Vice president NOBO & President Canara Bank Officers Organisation
3. Dr Sunil U Deshpande – General Secretary NOBO & Officer Director, Bank of Maharashtra
4. Sri S.K.Rathod – Organising Secretary NOBO & General secretary SBBJ
DRAMA UNFOLDED ON 26-4-2010 & 27-4-2010 AT MUMBAI
As per the Bank Employee’s Pension regulations, 1995 notified in the official gazette of India on 29th Sept 1995, any deficit in the Pension Fund should have been the responsibility of the respective Bank Managements. Contrary to this, the Banks have been passing on a portion of the burden to the bank employees so far. In all the previous bipartite settlements a sizable portion of the wage revision of the Bank employees were being appropriated towards the funding gap of Pension Fund. Virtually, a portion of arrears of all the employees were being appropriated towards the pension cost irrespective of whether the employee was a Pension Optee, or a PF optee. There was a discontent among the PF optes as to why they were being forced to contribute towards the Pension Fund Deficit. It is learnt that, in the Banking sector there are over 7 lakhs Pension optees and about 2 lakhs PF optees. All along, these 2 lakhs (plus) PF optees were forced to contribute towards the pension Fund of 7 lakhs (plus) Pension optees.
As per the MOU signed between UFBU & IBA, this time the funding gap was to be shared by the employees & managements at the ratio of 30:70. Employees’ share of 30% was agreed to be recovered at the rate of 1.6 times of the revised Pay as on 1-11-2007 from each employee irrespective of whether he/she is a Pension optee or PF optee. But suddenly on 26-4-2010, when all the UFBU representatives gathered at Mumbai to sign the final settlement next day, IBA called the UFBU leaders and informed them that, in order to avoid any litigation, they have decided to collect entire employees’ share of 30% from those PF optees, who opt for joining Pension Fund now. According to them the same works out to be 2.8 times of the revised Pay as on 1-11-2007. IBA stipulated that the settlement could be signed on 27-4-2010 only if the UFBU was prepared and agreed for this condition.
AIBEA, AIBOA & NCBE immediately agreed to sign the settlement though the proposal of IBA was not in accordance with the terms of MOU dated 27-11-2009. Six other constituents of UFBU lead by AIBOC were shocked with this last moment bombshell of IBA and were reluctant to sign the settlement. Then IBA informed their member banks that the settlement was not going to be signed on 27-4-2010.
Still it is a surprise as to what transpired on that fateful night of 26-4-2010 because next morning the AIBOC took a ‘U turn’ and agreed to sign the settlement with this condition stipulated by IBA. The NOBO & NOBW were in a dilemma as to whether to join the settlement or keep away from it. Joint meetings of the NOBO & NOBW leaders were held and due consultations were made with all their affiliate units. Various views were pouring in. Following were the important and strong reasons, which lead the NOBO & NOBW leadership to ultimately arrive at a consensus and decide with heavy heart for signing the settlement:
1) The issue of one more pension option has been the prime issue as far as NOBO & NOBW are concerned all these years.
2) The new recruitees who joined the banks after 29th sept 1995 are compulsorily under Pension scheme. The existing PF optees are all those who joined the banks prior to 29th Sept 1995. Their number has been dwindling year after year mainly because of retirements, and with this, the support base for the demand of one more pension option is also continuously eroding. Therefore if this opportunity for one more pension option is lost, the same may never come up again.
3) Inspite of the injustice caused to the PF optees, the consensus among the affiliate units was to remain with in the UFBU and fight for the cause of bank employees in future also. The feed back was not in favour of coming out of UFBU.
However, the last moment drama unfolded at Mumbai left the PF optees in a lurch and still they are unable to reconcile as to why the entire burden of Pension Fund deficit is being thrust on them, without taking in to account their past contributions to the Pension Fund deficit in the previous bipartite settlements.
ARREARS LEVY
(Important information to CBOO members)
In all the previous bipartite settlements, CBOO has been collecting the levy from its members out of the salary arrears received. Always the percentage of arrears levy collected by CBOO used to be the least among the unions in our Bank. This time, due to the funding of Pension cost by the PF optees, many of our members will receive negligible or nil arrears. In the light of this, CBOO has not given any request to the bank to recover levy from the members while disbursing arrears. CBOO welcomes voluntary contributions from the members, which will strengthen the organisation. The voluntary contributions may be sent to the central office by way of DD drawn on Bangalore in favour of “Canara Bank Officers” Organsiation”WAGE REVISION DETAILS
01. Scales of Pay:Scale 1 : 14500-600/7-18700-700/2-20100-800/7-25700
Scale 2: 19400-700/1-20100-800/10-28100
Scale 3: 25700-800/5-29700-900/2-31500
Scale 4: 30600-900/4-34200-1000/2-40400
Scale 5: 36200-1000/2-38200-1100/2-40400
Scale 6: 42000-1200/4-46800
Fitment shall be stage-to-stage, i.e. on corresponding stages from 1st stage onwards and the increments shall fall on the anniversary date as usual.
02.Stagnation increments
a. Scale I :: Officers in Scale I, who have moved to Scale II in terms of Regulation 5(b) after reaching maximum of the higher scale shall be eligible for four stagnation increments for every three completed years of service of which first two shall be of Rs 800 each and next two Rs 900 each. Provided that officers who have completed three years or more after receipt of the second stagnation increment as on 1.11.2007 will get the third stagnation increment on 1.11.2007 and another stagnation increment on or after 1.11.2008on their completion of six years after receipt of second stagnation increment.
b. Scale II: Officers in Scale II who have moved to Scale III in terms of Regulation 5(b) after reaching maximum of higher scale shall be eligible for three stagnation increments of Rs.900/- each for every three completed years of service. Provided that officers who have completed three years or more after receipt of the first stagnation increment as on 1.11.2007 will get the next stagnation increment with effect from 1.11.2007 and a subsequent stagnation increment on or after 1.11.2008 on their completion of six years after receipt of the first stagnation increment
c. Scale III: Those officers in substantive Scale III i.e. those who are recruited in or promoted to Scale III shall be eligible for four stagnation increments of Rs.900/- each for every three completed years of service. Those who have already received two stagnation increments and completed more than three years of service after receipt of second stagnation increment as on 1.11.2007 will get the third stagnation increment on 1.11.2007 and the fourth stagnation increment, on or after 1.11.2008 on their completion of six years after receipt of second stagnation increment.
03. DA – 2836 points merged with basic:
On and from 1.11.2007, Dearness Allowance shall be payable for every rise or fall of four points over 2836 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100 at 0.15% of Pay. Four points will be one slab. DA increase per slab will be 0.15% of basic.
04. H.R.A.:
a) Major “A” Class Cities and Project Area in Group A : 8.5% of Pay
b) Other places in Area I and Project Area in Group B: 7.5% of Pay
c) Other places : 6.5% of Pay
If an officer produces a rent receipt, the House Rent Allowance payable to him/her shall be the actual rent paid by him/her for the residential accommodation in excess over 1.2% of Pay in the first stage of the Scale of Pay in which he/she is placed with a maximum of 150% of the House Rent Allowance payable as per aforesaid rates mentioned in Column II above.
Note:
The claims of officer employees for House Rent Allowance linked to the cost of their ownership accommodation shall also be restricted to 150% of House Rent Allowance as hitherto.
05.CCA:
a) Places in Area 1 and in the State of Goa : 4% of Basic Pay with a maximum of Rs.540/- p.m.
b) Places with population of five lakhs and over and State Capitals and Chandigarh, Puducherry and Port Blair: 3% of Basic Pay with a maximum of Rs.375/- p.m
06.Medical Aid:
On and from 1st November 2007, reimbursement of medical expenses shall be as under :
a) Officers in JMG & MMG Scales–Rs.5100/-p.a.
b) Officers in SMG & TEG Scales - Rs.6320/-p.a.
07.Hospitalisation expenses:
Tariff with effect from 1st May 2010:
Up to Scale III.: Bed Charges : Self – Rs.700/- per day. Family – Rs.525/- per day.
Other charges – at the scale of 125% of the limits laid down under the Hospitalisation Scheme applicable to workmen employees.
Scales IV to VII: Bed Charges :Self – Rs.900/- per day. Family – Rs.675/- per day.
Other charges – at the scale of 150% of the limits laid down under the Hospitalisation Scheme applicable to workmen employees.
08.Recovery of House/Furniture Rent:
a) House rent recovery shall be @ 1.20 % of the first stage of the scale of pay in which the officer is placed or the standard rent for the accommodation, whichever is less.
b) Furniture rent recovery shall be @ 0.25% of the first stage of the scale of pay in which the officer is placed.
09.Fixed Personal Pay (FPP):
On and from 1st November 2007, Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall remain frozen for the entire period of service.:
Increment component”A” DA as on 1-11-07"B" Total FPP where Bank’s
accommodation is provided “C”
800 58 858
900 65 965
1000 72 1072
1100 79 1179
1200 86 1286
1300 94 1394
Note:
a) F.P.P. as indicated in “C” above shall be payable to those officer employees who are provided with bank’s accommodation.
b) F.P.P. for officers eligible for House Rent Allowance shall be “A” + “B” plus House Rent Allowance payable on the last increment of the relevant scale of pay as specified in sub-regulation (ii) of Regulation 4 is earned.
c) The increment component of F.P.P. shall rank for superannuation benefits.
10. Professional Qualification Pay (PQP) (w.e.f. 1.11.2007)
Officers shall be eligible for professional qualification pay as under :
Those who have passed only CAIIB – Part I / JAIIB : Rs.410/- p.m. one year after reaching top of the scale.
Those who have passed both parts of CAIIB – Rs.410/- p.m. one year after reaching top of the scale.
Rs.1030/- p.m. two years after reaching top of the scale.
An Officer employee acquiring JAIIB/CAIIB (either or both parts) qualifications after reaching the maximum of the scale of pay, shall be granted from the date of acquiring such qualification the first installment of PQP and the release of subsequent installments of PQP shall be with reference to the date of release of first installment of PQP.
Provided further that in a case where an officer, as on the date of this Joint Note, has already acquired any of the above said qualifications and has not earned any increment or PQP on account of acquiring such qualification/s, he may be, with effect from 1st November 2007 or the date of acquiring such qualification/s, whichever is later, released PQP as provided herein above.
11.Deputation Allowance
On and from 1st May 2010, Deputation Allowance shall be at the following rates :
a) An officer deputed to serve outside the bank – 7.75% of Pay with a maximum of Rs.2,300/- p.m.
b) An officer deputed to an organization at the same place or to the training establishment of the bank – 4% of Pay with a maximum of Rs.1200/- p.m.
12. Hill and Fuel Allowance (w.e.f. 1.11.2007)
a) Place with an altitude of 1000 metres and above but less than 1500 metres and Mercara Town: 2% of Pay subject to a maximum of Rs.550/-p.m.
b) Place with an altitude of 1500 metres and above but less than 3000 metres.: 2.5% of Pay subject to a maximum of Rs.680 p.m.
c) Place with an altitude of 3000 metres and above.: 5% of Pay subject to a maximum of Rs.1570/- p.m.
13. Halting Allowance (w.e.f. 1.5.2010):
Scale Major ‘A’ class cities Area I Other Places Delhi, Mumbai, Kolkata Chennai
I/II/III 800 700 600 1000
IV & above 1000 800 700 1200
14. Special Area Allowance (w.e.f. 1.11.2007):
Special area allowance is payable in terms of Regulation 23(ii) of Officers’ Service Regulations, 1979/1982, at specific rates in specific places in North East, J&K, Himachal Pradesh, Uttaranchal,UP etc.
15.Project Area Allowance (w.e.f.1.11.2007):
Project Areas falling in Group A – Rs.290/- p.m.
Project Areas falling in Group B – Rs.255/- p.m.
16.Mid-academic year transfer Allowance: Rs.700/- p.m. w.e.f. 1-5-2010
17. Split Duty Allowance (w.e.f.1-11-2007): Rs.165/- p.m.
18. Compensation on Transfer (Packing charges)(w.e.f.1.5.2010):
Scale I, II and III : Rs 9000
Scale IV & above : Rs 12000
19. Maternity Leave:
a) Maternity leave, which shall be on substantive pay, shall be granted to a female employee for a period not exceeding 6 months on any one occasion and 12 months during the entire period of her service.
b) Within the overall period of 12 months, leave may also be granted in case of miscarriage/abortion/MTP.
c) Within the overall period of 12 months, leave may also be granted in case of hysterectomy up to a maximum of 45 days.
20. Mode of Travel and Expenses on Travel:
a) Scale I officer is entitled to travel by 1st Class or AC 2-tier Sleeper by train.
b) Scale II & III officer are entitled to travel by 1st Class or AC 2-tier Sleeper by train. They may, however, travel by air (economy class) if the distance to be traveled is more than 1000 kms.
c) An officer in Senior Management or Top Executive Grade is entitled to travel by AC 1st Class by train or by air (economy class).
d) An officer in Senior Management or Top Executive Grade may travel by car between places not connected by air or rail provided that the distance does not exceed 500 km. However, when a major part of the distance between the two places can be covered by air or rail only the rest of the distance should normally be covered by car.
The remaining provisions as in Sub-regulations (2) & (3) of Regulation 41 of Officers’ Service Regulations shall remain unchanged.
21.Leave Travel Concession (LFC):
a) An officer, by exercising an option anytime during a 4 year block or two year block, as the case may be, surrender and encash his LTC (other than travel to place of domicile) upon which he shall be entitled to receive an amount equivalent to 75% of the eligible fare for the class of travel by train to which he is entitled up to a distance of 4500 kms. (one way) for officers in Scale I , II & III and 5500 kms (one way) for officers in Scale IV and above.
b) An officer opting to encash his LTC shall prefer the claim for himself / herself and his / her family members only once during the block / term in which such encashment is availed of. The facility of encashment of privilege leave while availing of Leave Fare Concession is also available while encashing the facility of LFC.
c) The mode and class by which an officer may avail of Leave Travel Concession shall be the same as the officer is normally entitled to travel on transfer and other terms and conditions subject to which the Leave Travel Concession may be availed of by an officer, shall be as decided by the Board from time-to-time. Provided that w.e.f.1st May 2010 an officer in Scale I while availing LFC will be entitled to travel by air in the lowest fare economy class in which case the reimbursement will be the actual fare or the fare applicable to AC 1st Class fare by train for the distance traveled whichever is less.
d) The same rules shall apply when an officer in Scale II and III while availing LTC where the distance is less than 1000 kms.
22.Definition of Family:
a) For the purpose of medical facilities and for the purpose of leave fare concession, the expression ‘family’ of an officer shall mean an officer’s spouse, wholly dependent unmarried children (including step children and legally adopted children), physically challenged brother/sister with 40% or more disability, as also parents ordinarily residing with and wholly dependent on the officer.
b) The term wholly dependent child/parent shall mean such member of the family having a monthly income not exceeding Rs.3500/- p.m.
c) If the income of one of the parents exceeds Rs.3,500/- p.m. or the aggregate income of both the parents exceeds Rs.3,500/- p.m., both the parents shall not be considered as wholly dependent on the officer.
23. Provident Fund :
a) While the officers who are presently covered under the Pension Scheme and those who will join the Pension Scheme in terms of option being made available under Joint Note dated 27th April, 2010 shall continue to contribute 10% of the Pay towards Provident Fund, there shall be no matching contribution.
b) Officers who are presently covered under Contributory Provident Fund Scheme who do not opt for Pension Scheme being made available under Joint Note dated 27th April, 2010 shall continue under the Contributory Provident Fund Scheme as hitherto.
c) There shall be no Provident Fund to officers joining the services of banks on or after 1st April 2010. They shall be covered by a Defined Contributory Pension Scheme, where the officer will contribute 10% of Pay plus Dearness Allowance and the bank will make a matching contribution. The Scheme shall be governed by the provisions of the Contributory Pension Scheme as introduced for employees of Central Government w.e.f. 1st January 2004 and modified from time to time.
24. Pension:
a) With effect from 1st May 2005, the pension of officers who retired or died while in service during the period 1st April 1998 to 31st October 2002 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 5 of the Joint Note dated 14th December 1999. No arrears of pension and commuted value of pension will be payable on account of such re-fixing of pension.
b) With effect from 1st May 2005, the pension of officers who retired or died while in service during the period 1st November 2002 to 30th April 2005 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 6 of the Joint Note dated 2nd June 2005. No arrears of pension or commuted value of pension will be payable on account of such re-fixation of pension.
c) On and from 1.5.2005, in the case of officers who retired during the period 1.4.1998 to 31.10.2002, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1684 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:
Scale of Basic Pension per month AND The rate of Dearness Relief payable as a percentage of Basic Pension:
(i)Up to Rs. 3550 :0.24 percent
(ii)Rs.3551 to Rs.5650 : 0.24 per cent of pension exceeding Rs.3550 plus 0.20 per cent of the basic pension in excess of Rs.3550
(iii)Rs.5651 to Rs.6010: 0.24 per cent of Rs.3550 plus 0.20 per cent of the difference between Rs.5650 and Rs. 3550 plus 0.12 per cent of basic pension in excess of Rs.5650
(iv)Above Rs.6010: 0.24 per cent of Rs. 3550 plus 0.20 per cent of the difference between Rs.5650 and Rs.3550 plus 0.12 per cent difference between Rs.6010 and Rs.5650 plus 0.06 per cent of basic pension in excess of Rs. 6010
1) In respect of retirees for the period 1.11.2002 to 30.4.2005 for whom pension has been revised w.e.f. 1.5.2005 based on definition of pay in terms of Clause 6(2) of the Joint Note dated 2nd June 2005, dearness relief shall be payable w.e.f. 1.5.2005 for every rise or be recoverable for every fall as the case may be of every four points over 2288 points in the quarterly average of All India Average Consumer Price Index for Industrial Workers in the series 1960=100 @ 0.18% of the basic pension.
2) In respect of officers who retire on or after 1.5.2005, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every four points over 2288 points n the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100, at the rate of 0.18 per cent of basic pension.
3) In respect of officers who retired or died while in service on or after 1.05.2005 Dearness Relief shall be payable at 0.18% of the basic pension or family pension or invalid pension or compassionate allowance as the case may be. Dearness Relief in the above manner shall be paid for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Consumer Price Index for industrial workers in the series 1960 = 100.
Note:
The Dearness Relief as above shall be payable for the half year commencing from the 1st day of February and ending with 31st day of July on the quarterly average of index figures published for the months October, November and December of the previous year and for the half year commencing from 1st day of August and ending with the 31st day of January on the quarterly average of the index figures published for the months of April, May and June of the same year
25. One more Pension Option:
1) Who were in the service prior to 29th Sept 1995 and continue to be in the service as on 27-04-2010 on the following terms:-
a) They should exercise their option to join the Pension scheme in writing with in 60 days from the date of offer
b) Out of the wage revision arrears, they should contribute their 30% share towards Pension cost (Deficit) an amount equivalent to 2.80 times of their Pay (New basic +PQP +FPP) as on 01-11-2007.
c) They should authorize the Trust of the PF of the bank to transfer the entire contribution of the bank along with interest accrued thereon to the credit of Pension Fund.
2) Who were in the service of the Bank on 29th Sept 1995 and retired thereafter on the following terms:-
a) They should exercise their option to join the pension scheme with in 60 days from the date of the offer
b) After expiry of 60 days, with in next 30 days, they should refund entire amount of Management contribution PF with interest accrued received by them at the time of retirement + 56% of the said amount towards their share of Pension Cost (Deficit)
HOW TO CALCULATE PENSION ?
a) Basic pension: 50% of the average basic pay drawn by the employee during the last 10 months of the service
b) Additional pension: 50% of the average amount of allowances eligible for PF deduction, drawn by the employee for the last 10 months of service. (FPP, PQA)
c) DA at the prevailing rate on half yearly basis on Feb & August every year
d) Total pension will be: a) Basic Pension + b) Additional Pension + c) DA
Example:
The basic pay of an officer in Scale III who retired from the Bank on 31-3-2010 is Rs 35100 (including all stagnation increments) . For his CAIIB Part –I. he has got PQP of Rs 410/-. His FPP is Rs 965/-. DA as at 31-3 2010 was 36.75%. Then his pension will be as worked out below:
The Basic pension at the time of retirement ……………….. Rs 17550
Addl Pension PQP …………………………………………...Rs 205
Addl Pension FPP…………………………………………… Rs 450 *
Total ………………………………………………………….Rs 18205
* Out of FPP of Rs 965, amount eligible for PF deduction is only Rs 900
Total pension will be = Rs 17550 + 205 + 450 + DA @36.75%
= Rs 17550 + 205 + 450 + 6690
= Rs 24895
HOW TO CALCULATE COMMUTATION ?
A pensioner may surrender up to a maximum of 1/3 of the basic pension + Additional pension, and receive a lumpsum as per prescribed formula. In the above example, commuted portion of pension will be 1/3 of Rs 17550 + 205+ 450 = Rs 6068
After commutation, the officer gets the pension of Rs 24895 – Rs 6068 = Rs 18827
In the above example, the basic at the time of retirement will be Rs 35100 +410 +900 = Rs 36410
a) If the employee retired at the age of 60, his age as at next birthday will be 61.
b) The factor as per above table will be 19.62.
c) Therefore, total commutation amount to be received
by him from the bank will be ……………………… = Rs 36410 multiplied by 19.62
= Rs 7,14,364
GRATUITY VARTHA
STATUTORY GRATUITY CEILING LIMIT ENHANCED FROM RS 3.50 LAKHSTO RS 10.00 LAKHS BY GOVT.
A bill amending Payment of Gratuity Act 1972 to enhance the gratuity ceiling limit as well as tax exemption limit is already passed by Loka sabha and Rajya sabha. The Bank employees are going to be benefited by this because, they are eligible to get gratuity amount either as per the Statutory Gratuity scheme or as per Bank’s gratuity scheme, whichever is beneficial. So far they have been availing Gratuity under bank’s Gratuity scheme because of the ceiling limit of Rs 3.50 lakhs under Stautory gratuity scheme. Now in view of raising the ceiling limit to Rs 10.00 lakhs under the Statutory Gratuity scheme, bank employees will get more gratuity amount under this scheme compared to the Bank’s gratuity scheme. Some more details about the gratuity is given herebelow for the benefit of the readers.There are two categories of gratuity called a) Statutory Gratuity and b) Bank’s scheme of Gratuity:
Statutory Gratuity: (Gratuity payable as per “The Payment of Gratuity Act, 1972”)
i) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to the employee at the rate of 15 days wages on the basis that a worker earns a month’s wage for attending to work on 26 working days, as per the Act:
ii) Gratuity will be = Wages X Number of years of service X 15/26
iii) Wages as per act includes and means – Basic pay, DA, Special allowance, PQA, FPP and Personal allowance if any (CCA & adjusting allowance shall not be included).
iv) The ceiling on the maximum gratuity was fixed at Rs 3.50 lakhs. Now a bill amending the Payment of Gratuity Act 1972 to enhance the Ceiling limit of gratuity & Tax exemption limit from Rs 3.50 lakhs to Rs 10.00 lakhs has been passed by Loka sabha as well as Rajya sabha.
Bank’s scheme of gratuity:
i) One month’s pay for every completed year of service, subject to a maximum of 15 months pay shall be the Gratuity payable as per the Bank’s Scheme of Gratuity.
ii) Where an officer has completed more than 30 years of service, he shall be eligible by way of Gratuity for an additional amount at the rate of ½ month’s pay for each completed year of service beyond 30 years.
iii) Pay for the purpose of Gratuity as per CBOSR 1979 shall include Basic pay, Permanent special allowance if any and Personal allowance if any (DA shall not be included).
Eligibility for gratuity: Officers are eligible for gratuity on :
i) Retirement (Voluntary/ Superannuation):
Either Statutory Gratuity or gratuity as per our Bank’s scheme of gratuity, whichever higher is payable.
ii) Resignation:
a) No gratuity is payable to officers on resignation before completion of 5 years of service.
b) Officers who resign on or after completion of 5 years but before completion of 10 years are eligible for Statutory Gratuity.
c) In case of officers who resign after completion of 10 years, either Statutory Gratuity or gratuity as per our Bank’s scheme of gratuity, whichever higher is payable.
iii) Deceased / Disabled officers:
There is no restriction as to the minimum service required for payment gratuity.
LOKA VAARTHA
FATE OF AMERICAN BANKS
As per recent news paper reports, the American banking industry continues to be shaky, with nearly 15 banks on an average biting the dust every month. About 57 banks have been shut down so far this year alone (2010). The failure of these banks is expected to cost the Federal Deposit Insurance Corporation (FDIC) heavily. FDIC is the Federal agency which insures the deposits at over 8000 American banks. Looking at the way how the Nationalized Banks are performing well in our country, we feel that it is high time for Mr Obama to take banking lessons from Dr Manmohan Singh.BANKRUPTCY PETITIONS IN USA
According to recent news paper reports, the number of Bankruptcy petitions in the US last year (2009) soared to 1.4 million, a record high. Not withstanding the slow economic recovery, this indicates that both business and consumers are still struggling to tide over the financial turmoil, one of the worst since Great Depression of 1930s. Richest country in the world has got highest number of Bankrupts!
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Editorial committee: A.N.Madhusudan, B.K.Irwathraya, M.S.Ganeshmurthy, M.H.Shivaprakash,
M.S.Gurumurthy, R.Lokanath, L.V.Shivaswamy Mail your Contributions/ Suggestions to “ Canara bank Officers Organisation (Regd), 114/6, III Floor, Subedar Chatram Road, Opp:Hotel Hoysala, Seshadripuram, Bangalore – 560 020. (Ph:080-23460988)
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