NOTE ON PENSION
RECORD NOTE OF DISCUSSIONS HELD ON VARIOUS DATES BETWEEN INDIAN BANKS’ ASSOCIATION REPRESENTING MEMBER BANKS AND AUTHORISED REPRESENTATIVES OF WORKMEN UNIONS AND OFFICERS ASSOCIATIONS IN THE MATTER OF PENSION
Issues relating to costing of pension for the purpose of wage revision in case of serving employees and redefining pay for
the purpose of pension at 50% of pay last drawn were discussed in detail and understandings reached as herein below:
1. Pay for Pension
* In respect of an employee retiring on or after 01.05. 2005, “average emoluments” as defined in Pension
Regulations for the purpose of pension, be calculated reckoning pay last drawn during the last ten months of the employees’ service in the Bank.
* Since this is an improvement over the existing provisions, in view of the legal decisions obtaining in the matter, the pension of retirees of the period
01. 04.1998 to 30.04. 2005 is to be re-fixed with effect from 01.05.2005 reckoning actual ‘pay’ drawn by them prior to retirement, i.e. during the last ten
months of service in the Bank.
* Accordingly, the pension of retirees of period 01. 04.1998 to 31.10.2002 will be re-fixed with effect from 01.05.2005 as per ‘pay’ as defined in Clause 6
of 7th Bipartite Settlement dated 27th March 2000 and note under Clause 5 of the Joint Note dated 14th December 1999 (Refer Annexure).
* The Pension of retirees of the period 01. 11.2002 to 30. 04.2005 will be re-fixed with effect from 01.05.2005 as per ‘pay’ as defined in Clause 6 of
8th Bipartite Settlement dated 2nd June, 2005 and Note(2) under Clause 6 of the Joint Note dated 2nd June, 2005 (Refer Annexure)