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ALL INDIA STRIKE BY UFBU ON 12th JUNE 2009 by 10 lacs bank employees and officers demands
1. Expedite wage settlement with adequate increase in wages of employees and officers
2. Extend another option for pension scheme without any pre-conditions
3. Do not impose anto-employee conditions in the negotiations
4. Implement compassionate appointment/ex-gratia scheme as per agreed understandings

What is the New Pension Scheme?
A scheme approved by the Government on 23.08.2003 has been made effective [mandatory] for all new recruits joined the Central Govt. Services from 01.01.2004 [except armed forces in the first stage.
A. A restructured “Defined Contributory Pension Scheme”

B. 10% of the salary and DA from the employees and matching contribution by the Central Govt. as monthly contribution.

o Govt. contribution for Govt. employees ONLY.
o Contribution and Returns from investments will be deposited in Pension Tier I A/c, which is not withdrawable.
o The present Pension Scheme [defined] provisions and General Provident Fund are not available to new recruits. as above mentioned

C. Voluntary contribution by individuals to a separate tier II a/c permitted and it can be withdrawn at the option of the individuals. No Govt. contribution to this tier II accounts which will be kept in a separate account. This amount in tier II will not attract any special tax treatment.

D. Normal exit age is 60 years for tier I pension scheme;
o At the time of exit, each individual will be required to invest 40% of his pension wealth [in tier I a/c] to purchase a Annuity. THIS IS MANDATORY. Annuity is purchased from IRDA / Regulated Insurance company.
o For Government employees, this annuity should provide the Pension for the life time of the employee and his dependent parents and his spouse at the time of retirement.
o Remaining 60% pf the pension wealth can be utilized by the individuals in any manner.
o Employees can leave the pension system prior to the age of 60 but the mandatory, annualisation would by 80% of the pension wealth.
o For new entrants with effect form 1.1.2004, no lGPF contribution will be deducted.
o No withdrawal permitted from the tier I account
o On the death of the pensioner, his contribution along with Govt. contribution with8% interest on both will be paid to the legal heir immediately.

2. What way it is different from the present pension scheme in the Banks?
In many counts our present pension scheme in the banks are more beneficial to the Bank employees /officers.
The defined contribution consisting of Basic + DA means more contribution from the employees every month with no responding guarantee on defined payments back.

3. What are the adverse features of the new Pension Scheme of the Government?
o Your contribution is defined, but your pension is not defined.
o Pension receivable is dependent on the return on annuity, which again depends on market variations.
o As against the commutation, 60% of the pension wealth is repaid at the time of exit.
o Commutation in our present scheme is restorable after 15 years
o Even after commutation, our pension draws a DA on the basic pension. No question of DA in the new scheme instead contribution of 10% on DA also taken along with Govt. contribution.
o Our pension is linked to CPI level and DA changeable every 6 months, duly compensating for the price rise. New scheme is dependant on return on annuity, has no relevance to cost of living.
o Family pension concept ensures continued sustenance for the family even after the death of the pensioner whereas in the new scheme your annuity [40%] along with Govt. contribution with 8% interest is paid immediately to legal heir, thereby cutting down the monthly income.
o These are some of the major advantages of our existing pension scheme.
o Gratuity is silently withdrawn in the new scheme.

4. Whether the new pension scheme has been accepted by the trade unions in the country?
o No – all major trade unions have opposed to the new scheme.

Source: All India Bank Officers Website

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