PSU bankers may get to opt for pension

KOLKATA: Nearly 3.20 lakh public sector bankers are about to get another opportunity to opt for a monthly pension, which they had silently craved for years. The group includes some 60,000-odd retired bankers.

Finance Minister Pranab Mukherjee, it is learnt, is open to extending such pension benefit with retrospective effect from November 2009. A final agreement between the Indian Banks’ Association (IBA) and bank unions is expected to be signed on April 27, when they meet to finalise the distribution of wage increase under the ninth bipartite.

“We are likely to clinch the deal tomorrow,” All India Bank Employees’ Association president Rajen Nagar told ET.
This chunk of bankers did not opt for pension when it was offered to them first time in 1993. They opted for provident fund, instead.

The United Forum of Bank Unions and the bank management’s association IBA have decided that retired bankers willing to switch over to the pension plan will have to surrender 56% of the PF, plus the interest on it.

They have also mutually decided that existing bank employees will have to share 30% of the additional pension burden while banks will shoulder the balance. Additional pension burden on account of existing employees is pegged at Rs 6,000 crore.

“Around 50% of bank employees had opted for monthly pension and it has proved to be a better choice. All provident fund optees are now expected to go for pension,” a senior banker said.

Public sector bank employees in general are entitled to only two retirement benefits — pension or provident fund and gratuity. There is an exception though: SBI employees get three superannuating benefits provident fund, gratuity and monthly pension.

The negotiating parties are scheduled to meet on Tuesday to finalise the micro details of the ninth bipartite wage settlement covering over 7 lakh bank employees in the public sector realm. They are expected to complete the formalities related to the pension issue.

The negotiating parties have agreed on a 17.5% wage hike amounting to an increase of Rs 2,577 crore. Nearly 2.44 lakh officers and 4.68 lakh workmen employees will benefit from the wage revision, which is due from November 2007.

As per the distribution of the enhanced kitty goes, basic pay for officers at the entry level is likely to be Rs 14,500 a month compared with Rs 10,000 under the eight bipartite.

For clerical staffers who are graduates, the basic pay is likely to be Rs 7,000 a month from Rs 4,840 earlier. For subordinate staffs, it will be Rs 5,500 per month, against Rs 4,060.