IBA proposal to meet bank employees pension demand

NEW DELHI: The long-standing demand of PSU bank employees for another chance to opt for pension may be met under an IBA proposal, which if unions agree to, would cover the new recruits under the New Pension System.

Under the proposal by the Indian Banks Association, the existing employees will be given another opportunity to opt for pension system manged by respective banks if the unions agree to cover the new recruits under the just launched NPS, which is managed by fund managers appointed by interim pension regulator PFRDA, sources said.

It is learnt that the IBA is talking to the Pension Fund Regulatory and Development Authority (PFRDA) to work out modalities of NPS for new recruits.

"IBA has shown interest in joining the NPS. They are considering the matter. If they take the decision, then new bank recruits will join," a PFRDA official said.

United Forum of Bank Employees Union convenor C H Venkatchalam said the unions are open to the question of NPS for new recruits, but this cannot be set as a pre-condition for giving existing employees another chance for pension.

"We exactly don't know what will be the modalities of NPS for new recruits. As such, we are open to it but this cannot be set as a pre-condition (for giving existing employees pension)," Venkatchalam said.