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Saturday, May 30, 2015

New Pension Scheme!

Few days back I have posted an article about Contributory P.F scheme and Pension Fund.
Some comrades asked me why not you write about NPS scheme?
When you join the scheme through your Bank, you might be provided with details of the scheme.  Also there is a detailed FAQ in Pension portal website.
I give below the link for reference and understanding.
As per my calculation if an employee (clerk) on joining the Bank  contribute 3370(1685+1685) per month the return at the rate of  8% is 76.84 lacs ( By recurring deposit calculation method)
This monthly subscription will vary every 3 month due to increase in D.A, by every year  as he will be getting one increment per year, and by every 5 year as there will be a wage revision. Therefore the total return will be much much higher.
Therefore benefit wise it is not a bad scheme.
Then why we oppose this scheme?

Thursday, May 28, 2015

AIBEA Claims......

Considering the financial benefits and other improvements
under the Settlement,
it is one of the best settlements achieved by AIBEA so far.
(Comment: Employees thought that it is achieved by UFBU.
From the words of AIBEA, it is explicit that, all the blunder is done by AIBEA only)
Our Unions should take up the matter with the respective Head office/Central office of the Banks for expeditious implementation of the Settlement, payment of the revised emoluments and also disbursement of the arrears to the employees.

Wednesday, May 27, 2015

Pension fund and 2% load!

Pension fund and 2% load !

Let me explain about P.F. Fund and Pension Fund from my understanding.
P.F is deducted at the rate of 10% of Basic Pay from Employee.
An equal amount is contributed by bank to the P.F. account of employee 
These amounts are credited to the P.F. trust account of the individual banks.
Representatives of recognised unions will find place in the Board of trustees.
They have access to the Income/Expenditure account and balance sheet of the trust.
The amounts deposited in the account are invested in various financial instruments like 
Govt., Bond etc., Income generated will be utilized for giving interest to employees account.
At the time of retirement the amount (both employee contribution and Bank contribution) 
standing in the concerned employee will be given to the employee

This is the procedure of Contributory P.F. system.

In case of Pension Fund what is happening?
In 1995 Pension was introduced in Banking sector.
At that time, amount lying in P.F. trust (belonging to Pension opted employees) 
is transferred to Pension fund of the individual Banks.
Thereafter 10% contributions from employees were credited to P.F. Trust account.
10% Contribution by Bank was/ should be credited to Pension Fund.
The amount thus accrued in Pension Fund is invested and income generated also 
credited to Pension Fund .
Out of this fund only, Pension to all retired employees who opted for Pension scheme,
Commutation amount and family pension for the diseased employees, are disbursed every month .

Now my doubts are
1. Whether union representatives are members of any governing board of Pension Fund?

Tuesday, May 26, 2015

Make soup, by cutting the tail of dog, and give it to dog itself!

 IBA/UFBU’s New suggestion for avoiding reduction in Pension!
 Following is the provision added in 10th B.P.S. document:

“Employees in service of the Banks as on 1st November 2012 and who have
Retired thereafter but before 25th May 2015 and who had opted for
Commutation of pension will have an option not to claim incremental
Commutation on revised basic pension.”

What is the effect?

* When we expect a +plus in our pension, settlement gives us -negative pension
*To make the difference 0 instead of -negative, unions suggest that
  Employee should loose Rs.350217 (Commutation arrears for sample case) and make the difference 0.
* i.e Bank will not give even extra Rs.1, but we have to make it correct with our own money
* to save a pension of Rs.2298 p.m loose Rs.350217. i.e for 152 months (12.66 Years) value
    ( If interest factor is taken into account it will be much longer )

Monday, May 25, 2015

Saturday Holiday becoming a reality!!

Following a pact between public sector bank (PSB) employees and officers 
with the management,
all branches in the country will remain closed on all second and fourth 
Saturday from July. 
T M Bhasin, chairman of the Indian Banks' Association, said the Reserve Bank of India 
had approved the proposal and a notification would be issued on the change under the 
Negotiable Instruments Act. 
It will take three or four weeks for the process to get completed. 
PSB branches will work full-time on the first and third Saturday of each month, 
said Bhasin, also chairman and managing director, Indian Bank.