HOW MUCH A PF OPTEE(RETIRED) LOSSES?

                                                       Attention retired employees!

Do you know how much you have lost because of second option to Pension Settlement?

I attempted to find out. Here is live case.

Details of the Employee:

D.O.B  16.11.1943         PF Received: Rs.354357

D.O.J    19.04.1968       Basic Pay      :Rs. 15380 ( as on 31.05.2001)

D.O.R  31.05.2001       

If he is Pension optee what he would have received up to 31.08.2010?

Computation amount                              :Rs.    3,31,592 (A)

Pension for 123 months                          :Rs. 11,31,477 (B)

Total                                                       :Rs. 14,63,069

(Pension on 31.05.2001 is 6925(5127+1798)

Pension on 31.08.2010 is 12673 (5127+7546)

Average pension 9199 is taken for 123 months)

If he is a PF optee, now joins for Pension scheme,what he will receive?

Computation amount                              :Rs. 2,41,466

Pension for 9 months                              :Rs. 1,14,057

PF received at the time of retirement     :Rs. 3,54,357 (C)

Total                                                        :Rs.7,09,880

Less penalty @156%                              :Rs. 5,52,796

Remaining amount in hand                    :Rs.1,57,084

In both the cases they are going to draw the same pension from Sep 2010

Net loss                                                  :Rs.13,05,985/-

It is only in obsolete money terms, If interest factor is applied

As RIP on (A),RD on (B) and RIP on (C) at 8%

Loss becomes                                        :Rs. 18,96,837/-

Any Ramanujam from UFBU may come forward to prove my calculation is not correct!

Why and how this huge lose happened?

It is because pension is denied from date of retirement but will be payable from 27.11.2009, but penalty will be 56% extra of Pf amount. This will cover 8 years at 7%.

It clearly shows that retired employees are betrayed.

After all who are these retired employees? They are our comrades working with us till recently, They have participated in demonstrations, dharnas , strikes, and gave subscription as well as donation & levy to unions. We will also become retirees one day. We will also face same betrayal tomorrow, Is it not? 

There are so many associations for retired bank employees in the country, Let them come forward to fight it out through court.

This is right time as banks have gave advertisements in newspaper, and started sending letter for opting pension.

Retired Employees may demand as follows:

1.Pension should be paid from date of retirement and not from 27.11.2009

2.Penalty should be 6% or 7% from date of commencement of pension (let it be dt. Retirement or 1.1.2008 or 27.11.2009)  and not 56% in general.

3. Resigned employees should also be give a chance to opt for pension as there is no difference between employees who quit the bank before superannuating whether he is a pension optee or PF optee.

4. Family of expired employees are also treated as per calculation of retired employees, only difference is they will draw family pension.

P. KUMAR SALEM TAMILNADU.vetrinicchayam dot yahoo dot co dot in