PSU bankers likely to get monthly pension benefit
By Neelima Shankar
Apr 27, 2010
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Bankers associated with public sector banks are likely to get the opportunity to opt in for a monthly receipt of pension. The group of aspirants involves 60,000 odd retired bankers.

The Finance Minister, Mr. Pranab Mukherjee has agreed to extend this benefit to the bankers with a retrospective effect from November 2009.

It is expected that the final agreement on the issue would be signed today between the Indian Banks' Association (IBA) and bank unions.

"We are likely to clinch the deal tomorrow (27th April 2010)," All India Bank Employees' Association president Rajen Nagar said.

The chunk of aspiring pensioners had earlier not opted for pension when it was offered to them for the first time in 1993. They had instead opted for provident fund.

It has been decided by the United Forum of Bank Unions and the bank management's association IBA that those bankers who wish to switch to the pension plan will have to surrender 56% of their PF in addition to the interest accrued on it.

It has also been decided that the existing employees of the bank would bear 30% of the additional pension burden and the remaining will be borne by banks. The additional pension burden on exisitng employees would amount to 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.

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