IBA plans pension plan for PSB staff

Kolkata, Feb 25 | Updated: Feb 26 2005, 06:14am hrs
The Indian Banks Association (IBA) is working out a new pension scheme for employees of public sector banks (PSBs) of the country.

The IBA chairman,PS Shenoy, informed the United Forum of Bank Unions (UFBU) about the decision at a bipartite meeting held in Mumbai recently.

The eighth and the last bipartite wage agreement in the banking industry will be worked out in full and final, as soon as IBA will come out with the new scheme.

Industry sources informed that in the meeting, the UFBU representatives suggested that payment of pension should be calculated at 50% of the actual basic pay as provided in the pension agreement.

UFBUs demand was that cost of pension should be accounted for in the same manner as was done in the sixth bipartite wage negotiation.

They also demanded that the PSBs should also give one more pension option to those employees, who did not opt for it earlier.

The IBA suggested certain alternative proposals on pension. After preliminary discussions, it was agreed that the IBA would work out and submit the details to UFBU after which the same would be discussed along with further proposal. IBA representatives also said that they were considering the second pension option in an open mind, an UFBU representative said.

In the meeting, UFBU representatives also demanded that the cost of hospitalisation reimbursement expenses should be kept out of wage revision cost. The IBA representatives, rejected the proposal outright.