The Indian Banks? Association (IBA), the trade body of bankers, may take the services of one of the top actuaries in the country, to sort out the contentious issue of bank employees? pension scheme. IBA, in a meeting with member banks on Wednesday, suggested that the demand put forward by the United Forum of Bank Unions (UFBU) on employees? pension scheme, could be sorted out by appointing a reputed actuaries? firm.
The calculations for additional burden on the banks would therefore increase by Rs 26,000, if the pension scheme was made available to all those who had not opted for the scheme when launched in 1993.
This is in much variation to the Rs 4,700 crore estimated by UFBU. The wide difference was largely due to the methods adopted in calculating annuities. While IBA?s calculation was based on annuity, the UFBU took the route of the employee part-funding the scheme.
IBA?s chief executive officer, HN Sinor, said, member banks have agreed to the idea of appointing a reputed actuaries group to calculate the pension figures again, so that there was some reconciliation. Also, Sinor said that a time frame would be set on March 3 for the issues raised by bank employees? unions. Shankar Narayan, chief personnel advisor of IBA, will start talks with the union representatives on the scheduled day.
Later, talking to FE over the phone, CH Venkatachalam, general secretary, UFBU, said, ?We are ready to adopt a single method to sort out the pension issue.? For example, we have agreed to share a certain amount of our money, apart from the 10% of contributory provident fund, which is already with the bank?s management for the pension fund.? About 2,85,000 bank staff, which include even those who have retired since 1993 without opting for pension, are demanding a second option for pension. Other issues like appointment on compassionate ground, ban on consolidation process in the state-run banks, will be discussed on March 3.