Pension Scheme

All India Regional Rural Bank Employees Association Kolkata 52

Ref. No. – 618          Date:- 22.09.2012

 

Dr. R.M. Kummur Chief General Manager (IDD)

NABAR,. Mumbai

 

 

Sir,

Sub:- Pension Scheme  

 

Memorandum of Settlement on pension issue in the Banking Industry:-

Memorandum of settlement dated the 29th October, 1993 between the Managements of 58 banks as represented by the Indian Banks’ association and their workmen as represented by the All India Bank Employees’ Association covers the details of eligibility criteria and Bank Employees Pension Regulation, 1993. In fact such regulation is for the entire bank staff i.e. Employee specific. Each bank has framed the Pension Regulations 1995 which provides the details of fund availability and distribution of funds etc. and all other details i.e. Bank specific with due regard to the conditions of the  Memorandum of Settlement on pension issue in the Banking Industry on 29th October, 1993 and subsequent additions and alterations as per settlement.

 

Bank specific pension scheme in case of PSB:-

We have collected copy of the pension scheme for the employees of Union Bank of India and added /altered the provisions in the said scheme as suitable for RRB staff for any RRB in the country. We are trying to send copy of the Union Bank Employees Pension Scheme separately by post. Of course it can easily be collected by NABARD from Union Bank of India or any other PSB, where up-to-date amendments have been incorporated.   

 Yours faithfully

                                                                                                                                                                                                                                         

 Dilip Kumar Mukherjee 

Secretary General, AIRRBEA

 

Pension Scheme for RRB staff at par with those in commercial banks

Enclosed herewith a Scheme introduced by the Union Bank of India vide their Staff Circular No. 4229 dated 26.10.1995, pursuant to the Bipartite Settlement signed between IBA and the unions in Banking Industry on 29.10.1993.

Kindly see that some changes are warranted in language and content to suit the purpose to make the scheme of Pension of RRBs same as that of Commercial Bank. Other languages /content of the Union Bank Regulations will remain unchanged, OTHER THAN THOSE WHERE CHANGE S ARE  INDICATED HERE IN BELOW. However, enclosures of formats may be suitablY named after the respective Gramin Bank and RELATED draft may be marked accordingly. This is however, subject to further amendment(s)/improvements, carried out if any/to be carried out in future in the Scheme.

 

So, we give below the main areas of required changes page wise and para wise of the enclosed Union Bank of India Regulations 1995 above referred to make it applicable for RRBs/Gramin Banks retrospectively in line with the Scheme in commercial banks.

_ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_/ / / / / / // / / / / / // / / / / // // / / // / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / // / /

 

 

(Main Page):-

……………………………Gramin Bank

(Symbol, if any)

………………………..Gramin Bank

(Employees)

Pension Regulations, 2012

Personnel Department

Pension Cell

Head Office

 

Changes required page wise and para wise ( See the enclosed Union Bank Regulation)

 

Under Page 1:

……………….Gramin Bank (Employees) Pension Regulations, 2012

 

In exercise of the powers conferred by Section 29 of the Regional Rural Banks Act, 1976 (21 of 1976), the Board of Directors of the _________Gramin Bank, after consultation with National Bank for Agriculture and Rural development and with previous sanction of the central government, hereby make the following regulation namely-

 

CHAPTER – I

1. Short title and commencement:

i) These regulations mayt be called – - – - – - – —-Gramin Bank (Employees) Pension Regulations,      2012

 

Under Page – 2

2 (a)   ‘Act’ means the Regional Rural Banks’ Act, 1976 ( 21 of 1976)

 

2  (e)   ‘Bank’ means  – - – - – - -Gramin Bank established under the RRBs Act, 1976

 

 

Under Page – 3

(l)   To be deleted

 

Under Page -4

(m)  ‘Discipline and Appeal Regulations’ means the RRB (Officers and Employees) Service Regulations, 2010 made under Section 29 of the RRBs Act, 1976

 

Under Page – 5

(q)  Fund means the _ _ _ _ _ _ _ _ Gramin Bank Pension Fund constituted under Regulation 5.

 

Under Page – 7

(za)  ‘Service Regulations’ means _ _ _ _ _ _ _  Gramin Bank (Officers and Employees) Service Regulations, 2010 made under Section 29 of the RRBs Act, 1976

 

Under Page – 8

(zc)  ‘Trust’ means the trust of the _ _ _ _ _ _ _ _  Gramin Bank Pension Fund constituted under Regulation 5.

 

(zd)   ‘Trustee’ means trustees of the _ _ _ _ _ _ _   Gramin Bank Pension Fund constituted under Regulation 5.

 

Under Page – 10

3©  Authorize the Bank and the trust of the Provident Fund to arrange to transfer the entire contribution of the Bank along with interest accrued thereon to the credit of the Fund constituted for the purpose under Regulation 5. This Bank’s contribution includes –

-          Difference of contribution towards PF already made by RRB as per EPF & MP Act 1952/EPS 1995 ( 12% of Rs 6500/-, totaling Rs 780/- p.m.) and the amount payable @ 10% of BP as per BP settlements in Banks.

-          Amount lying with RPFC to the extent of 8.33% of Rs 780/-, i.e. Rs 541/- p.m. as at present effective from June 2001, lesser amount prior to that), after adjustment of pension amount paid to retired/deceased cases by the respective RPFC, calculated for individual employees

-          Amount credited to employees’ account out of Bank’s contribution of 12% i.e. to the extent of 3.67% of Rs 780/-, i.e. Rs 239/- per month, with interest

-          Amount withdrawn by retired employees/families of deceased employees, who are not drawing any pension under the EPF & MP Act 1952/EPS 1995 and now opt for Pension under this Regulation, to be refunded along with the simple rate of interest of 6%, and this refundable amount may be adjusted against pension payable to them in suitable installments, along with difference amount of Bank’s matching contribution payable by the Bank @ 10% of BP minus already paid at the rate as per EPF & MP Act 1952, to be deposited to Pension Fund along with interest of 10%.

-          Amount withdrawn by some employees as per RPFC scheme from the Bank’s contribution to PF for House Building, Daughter’s marriage or medical care etc, also to be refunded along with simple rate of 6% interest.

 

Under Page 11  

5 (b)  Authorize to  arrange make refund within sixty days after expiry of the said period of one hundred and twenty days specified in clause (a) above the entire amount of bank’s contribution to the PF, taking into account the difference of the amount payable as per calculation of 10% of BP and that as per 12% of Rs 6500/- already paid by the Bank, the amount lying with concerned RPFC and the amount lying with employees own PF account, with simple interest of 6%, amount of Bank’s contribution withdrawn by some employees on retirement and not getting any Pension, to be refunded and bank is to contribute the difference amount for them too. Also the amount withdrawn by some employees from Bank’s contribution to PF for House Building, Daughter’s marriage, medical care etc., will be refunded with simple interest of 6%, as stated hereinabove.

 

Under Page 13

7 (b) Same as 5 (b) above

 

Under Page 14

8 (b) Same as 5 (b) above

 

(9) Similar change in last sentence is required

 

Under Page 16

5. Constitution of the Fund :- (1) The Bank shall constitute a fund to be called _ _ _ _ _ _ _ _ _ Gramin Bank Pension Fund under an irrevocable trust within one hundred twenty days from the notified date.

 

6. Liability of the Provident Fund Trust: – The Provident Fund Trust shall, immediately after the constitution of the Fund, arrange transfer to the _ _ _ _ _ _ _ _Gramin Bank (Employees’) Pension Fund, the Bank’s contribution to PF and interest accrued/calculated thereon up to the date of such transfer in respect of every employee, as follows:-

 

-          Difference of contribution towards PF already made by RRB as per EPF & MP Act 1952/EPS 1995 (12% of Rs 6500/-, totaling Rs 780/- p.m.) and the amount payable @ 10% of BP as per BP settlements in Banks, along with interest at the rate of 10%.

-          Amount lying with RPFC to the extent of 8.33% of Rs 6500/- out of Rs 780/-, i.e. Rs 541/- p.m. as at present effective from June 2001, lesser amount prior to that), along with accrued interest, after adjustment of pension amount paid to retired/deceased cases by the respective RPFC, calculated for concerned individual employees.

-          Amount credited to employees’ account out of Bank’s contribution of 12% i.e. to the extent of 3.67% of Rs 6500/- out of Rs 780/-, i.e. Rs 239/- per month, with simple rate of interest at 6%.  BESIDES THE ABOVE THE FOLLOWING AMOUNTS ALSO WILL BE TRANSFERRED TO THE PENSION FUND -

-          Amount withdrawn out of Bank’s contribution to PF by retired employees/families of deceased employees, who are not drawing any pension under the EPF & MP Act 1952/EPS 1995, to be refunded with simple 6% interest, and this refundable amount may  be adjusted against pension payable to them in monthly suitable installments, along with difference amount payable by the Bank towards Bank’s matching contribution @ 10% of BP, to be deposited to Pension Fund along with interest of 10%.

-          Amount withdrawn from Bank’s contribution to PF by some employees as per RPFC scheme for House Building, Daughter’s marriage or medical care etc, also to be refunded with simple interest of 6%.

 

Under Page 17

7 (b) the accumulated contributions of the Bank to the Provident Fund and interest accrued thereon up to the date of such transfer in respect of the employees, as detailed at Regulation 6 above.

 

Under Page 19

10 (3)    the accounts of the Fund shall be audited in accordance with provision of the Regional Rural Banks Act, 1976.

 

 

 

 

 

 

 

 

Top