Wednesday, September 8, 2010
PF OPTEES PUNISHED!
1. I am Special Assistant, drawing max. stag inc, max PQA, and FPA
My arrears calculations are as follows:
Gross Arrears 1,32,281.00
Less: New P.F. contribution - 23,092.00
Income Tax @ 20% - 26,456.00 (my income will cross 5 lacks)
Recovery for Pension Cost(2.8 times) - 74,228.00
Nett. Arrears Payable Rs.8,505.00 for 30 months
QUESTION 1 : IN 7TH &8TH BIPARTITE ADDITION PENSION COST WAS GIVEN
OUT OF WAGE REVISION AT THE RATE OF 8.25%&9.25%
IN 9TH BIPARTITE ALSO IT IS AGREED TO GIVE OUT OF WAGE REVISION.
ON AN AVERAGE OF Rs10000/- BASIC PAY A PF OPTEE’S AMOUNT COMES
TO Rs1.30.000/- (WITHOUT CONSIDERING INTEREST) FROM 1997 TO 2010.
IF I DECIDE TO REMAIN AS PF OPTEE WHETHER THE BANK WILL REFUND
THE AMOUNT WITH INTEREST?
QUESTION 2 : ARREARS BEING GIVEN AFTER 30 MONTHS. INTEREST ON DELAYED
PAYMENT COME TO AROUND Rs.16,000/-
WHEN IBA IS KEEN IN RECOVERING ADDITIONAL EXPENDITURE,
WHY EMPLOYEES SHOULD LOOSE SUCH A HEAVY AMOUNT?
Suggestion: All the empl. are not going to draw pension from today. Therefore recovery
should not be at one go. Instead it may be recovered in EMI till the dt. of retirement of
the respective empl.
2. Employees drawing different Spl.Allowance (new) i.e Nil,510,1250.1500, etc., on 01.11.2007
will pay different amt. for pension cost, but all will draw the same pension amt for their
spl. allow. as it will be uniform for all clerks from May 2010.
3. An Employee retired on Mar 2010 and got Rs.700000/- as PF has to contribute Rs.392000/- as
pension cost, while an empl. Retiring on June 2010 will contribute only around Rs.60000/-
Is it correct?
Any misunderstanding by me about the outcome so far may be pointed out.
P. KUMAR ,INDIAN BANK ,SALEM FORT.