Minutes of the discussions held on 27th November, 2009
Jyotindra Kumar Sharan
Minutes of the discussions held on 27th November, 2009 between IBA representing Management of Banks which are parties to the Bipartite Settlement and the five Workmen Unions viz. AIBEA, NCBE, BEFI, INBEF and NOBW for wage revision
Negotiations were held between the Indian Banks’ Association representing Managements of Banks which are parties to the industry-wide Bipartite Settlements and five workmen unions, viz. All India Bank Employees’ Association (AIBEA), National Confederation of Bank Employees (NCBE), Bank Employees’ Federation of India (BEFI), Indian National Bank Employees’ Federation (INBEF) and National Organisation of Bank Workers (NOBW) on different dates over the Charter of Demands for wage revision, changes in service conditions and on certain issues raised on behalf of the managements of banks. After detailed discussions on the issues, the parties have mutually agreed as under:
1. The wage revision will be effective from 1.11.2007.
2. The annual wage increase will be Rs.2577 crores.
3. The additional cost of pension on account of wage revision in excess of statutory contribution of 10% of pay will be shared equally between management and employees (13% of pay each) and the share of employees so calculated will be deducted from the agreed wage increase while revising salary and allowances.
4. All other issues of the Managements and Unions discussed during the process of negotiation will be settled to the mutual satisfaction.
5. The parties will meet on mutually convenient dates to draw out a detailed Memorandum of Settlement on the various issues on which consensus positions have been reached. The parties will endeavour to finalise the Memorandum of Settlement within a period of ninety days from the date of this minutes.
Signed at Mumbai on 27th November 2009
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FOR MANAGEMENT |
FOR WORKMEN UNIONS |
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All India Bank Employees’ Association |
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National Confederation of Bank Employees |
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Bank Employees’ Federation of India |
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Indian National Bank Employees’ Federation |
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National Organisation of Bank Workers |
Minutes of the discussions held on 27th November 2009 between
IBA representing Management of banks which are parties to the Bipartite Settlement and
the four Officers’ Associations viz. AIBOC, AIBOA, INBOC & NOBO on wage revision
Discussions were held between the Indian Banks’ Association representing Managements of banks and the authorized representatives of four Officers’ Associations, viz. All India Bank Officers’ Confederation, All India Bank Officers’ Association, Indian National Bank Officers’ Congress and National Organisation of Bank Officers on wage revision for officers in banks. After holding several rounds of discussions, the parties have mutually agreed as under:
1. The wage revision will be effective from 1.11.2007.
2. The annual wage increase will be Rs.2239 crores.
3. The additional cost of pension on account of wage revision in excess of statutory contribution of 10% of pay will be shared equally between management and employees (13% of pay each) and the share of employees so calculated will be deducted from the agreed wage increase while revising salary and allowances.
4. All other issues of the Managements and Associations discussed during the process of negotiation will be settled to the mutual satisfaction.
5. The parties will meet on mutually convenient dates to draw out a detailed Joint Note on the various issues on which consensus positions have been reached. The parties will endeavour to finalise the Joint Note within a period of ninety days from the date of this minutes.
Signed at Mumbai on 27th November 2009
FOR MANAGEMENT |
FOR OFFICERS’ ASSOCIATIONS |
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All India Bank Officers’ Confederation |
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All India Bank Officers’ Association |
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Indian National Bank Officers’ Congress |
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National Organisation of Bank Officers |
Minutes of the Discussions held on 27th November 2009 between IBA representing the Management of Banks and UFBU consisting of 5 Workmen Unions
viz. AIBEA, NCBE, BEFI, INBEF and NOBW and 4 Officers’ Associations
viz. AIBOC, AIBOA, INBOC & NOBO on another option to join the pension scheme
The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) entered into a Memorandum of Understanding on 25th February 2008 on various issues. Extending another option for pension to those who did not opt for pension when Bank Employees’ Pension Regulations, 1995 were implemented was one of the issues to be considered. Several rounds of discussions have taken place on the issue. An actuarial valuation of the liability was assessed through two commonly agreed actuaries who identified the total liability for extending another option for pension to non-optees.
On receipt of the actuarial valuation of the liability, several rounds of discussions have taken place between the parties and the following terms have been mutually agreed.
1. Existing employees
(i) The employees who were in service of the Banks as on the date of Pension Regulation ie. 29.9.1995/ 26.3.1996 and continue in service as on the date of settlement/ Joint Note to be signed between the parties, shall be given one more option to join the Pension Scheme.
(ii) The Banks’ contribution to Provident Fund along with interest thereon in respect of those employees who opt for pension shall be transferred to the Pension Funds of the respective Banks.
(iii) The gap in the pension fund identified will be shared between parties as under:
(a) 70% of the gap by the bank.
(b) 30% by the employees who are in service of the bank as on the date of Memorandum of Settlement/ Joint Note to be signed between the parties in this regard. This amount will be recovered from the arrears payable on wage revision.
2. Retired Employees
(i) Those employees who were in the service of the bank as on 29.9.1995/ 26.3.1996 who were eligible but, did not opt for pension and retired thereafter shall also be extended the option for joining the Pension Scheme. Towards joining the Pension Scheme they will –
(a) Refund the bank’s contribution to the Provident Fund with interest thereof received by them at the time of retirement.
(b) Contribute to the Pension Fund their share of 30% of the gap in the pension fund identified.
3. The Bank Employees’ Pension Regulations, 1995 will be effective up to 31.3.2010 and cease to apply to any person appointed in the services of banks on or after 1.4.2010.
A defined contributory retirement benefit scheme as governed by the “contributory pension scheme introduced for employees of Central Government with effect from 1.1.2004” will be introduced for workmen/officers joining the services of banks on or after 1.4.2010. There shall be no separate contributory provident fund in respect of these workmen/officers.
4. The terms of these minutes will not be applicable to State Bank of India.
5. The Parties will meet on mutually convenient dates to draw out a detailed Memorandum of Settlement/Joint Note in this regard; and appropriate modifications in the Bank Employees’ Pension Regulations will be made following the prescribed procedure in this regard. The parties will endeavour to finalise the Memorandum of Settlement/ Joint Note within a period of ninety days from the date of this minutes.
Signed at Mumbai on 27th November 2009
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FOR MANAGEMENT |
FOR OFFICERS’ ASSOCIATIONS |
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All India Bank Officers’ Confederation
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All India Bank Officers’ Association
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Indian National Bank Officers’ Congress
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National Organisation of Bank Officers
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FOR WORKMEN UNIONS
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All India Bank Employees’ Association
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National Confederation of Bank Employees
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Bank Employees’ Federation of India
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Indian National Bank Employees’ Federation
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National Organisation of Bank Workers
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Record Note of the Discussions held on 27th November 2009 between IBA
representing the Management of Banks and UFBU consisting of
5 Workmen Unions viz. AIBEA, NCBE, BEFI, INBEF and NOBW and
4 Officers’ Associations viz. AIBOC, AIBOA, INBOC & NOBO
on extending another option to join the pension scheme
The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) entered into a Memorandum of Understanding on 25th February 2008 on various issues. Extending another option for pension to those who did not opt for pension when Bank Employees’ Pension Regulations, 1995 were implemented was one of the issues to be considered. Several rounds of discussions have taken place on the issue. An actuarial valuation of the liability was assessed through two commonly agreed actuaries who identified the total liability for extending another option for pension to non-optees as under:
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Another Option for Pension (Serving Employees) | ||
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(Rupees in Crores) | ||
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Total Liability as on 31.3.2008 as per Actuarial Valuation – Joint Exercise |
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17190.00 |
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PF Accumulation |
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11532.00 |
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Gap |
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5658.00 |
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Add 2% of Total Liability for loss/ incomplete data |
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343.80 |
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Total |
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6001.80 |
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Another Option for Pension (Retired Employees) |
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Total Liability as on 31.3.2008 |
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4774.29 |
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PF Accumulation to be refunded |
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1657.79 |
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Balance |
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3116.50 |
On receipt of the actuarial valuation of the liability, several rounds of discussions have taken place between the parties and the following terms have been mutually agreed.
1) Existing employees
The employees who were in service of the Banks as on the date of Pension Regulations i.e. 29.9.1995/ 26.3.1996 and continued in service as on the date of settlement/ Joint Note to be signed between the parties, shall be given one more option to join the Pension Scheme.
2) The Banks’ contribution to Provident Fund along with interest thereon in respect of those employees who opt for pension shall be transferred to the Pension Funds of the respective Banks.
3) The gap in the Pension Fund identified (Rs.6001.80 crores) is agreed to be shared between the parties as under:
a) 70% (Rs.4201.26 crores) by the banks.
b) 30% (Rs.1800.54 crores) by all the employees who are in service of the banks as on the date of the Memorandum of Settlement/ Joint Note to be signed between the parties in this regard. This amount will be recovered from the arrears payable on wage revision.
4) Retired Employees
Those employees who were in the service of the bank as on 29.9.1995/ 26.3.1996 who were eligible but, did not opt for pension and retired thereafter shall also be extended the option for joining the Pension Scheme. Towards joining the Pension Scheme they will –
a) Refund the bank’s contribution to the Provident Fund with interest thereof received by them at the time of retirement.
b) Contribute to the Pension Fund their share of 30% of the gap in the Pension Fund identified (Rs.934.95 crores)
5) The Bank Employees’ Pension Regulations, 1995 will be effective up to 31.3.2010 and cease to apply to any person appointed in the services of banks on or after 1.4.2010.
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Page No -2
6) A defined contributory retirement benefit scheme governed as by the “contributory pension scheme introduced for employees of Central Government with effect from 1.1.2004” will be introduced for workmen/officers joining the services of banks on or after 1.4.2010. There shall be no separate contributory provident fund in respect of these workmen/officers.
7) The terms hereof will not be applicable to State Bank of India.
8) The Parties will meet on mutually convenient dates to draw out a detailed Memorandum of Settlement/Joint Note in this regard; and appropriate modifications in the Bank Employees’ Pension Regulations will be made following the prescribed procedure in this regard. The parties will endeavour to finalise the Memorandum of Settlement/ Joint Note within a period of ninety days from the date of this minutes.
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FOR MANAGEMENT |
FOR OFFICERS’ ASSOCIATIONS |
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All India Bank Officers’ Confederation |
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All India Bank Officers’ Association |
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Indian National Bank Officers’ Congress |
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National Organisation of Bank Officers |
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FOR WORKMEN UNIONS |
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All India Bank Employees’ Association |
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National Confederation of Bank Employees |
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Bank Employees’ Federation of India |
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Indian National Bank Employees’ Federation |
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National Organisation of Bank Workers |
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