Bank pension and Family pension was introduced wef 1.1.1986 except sbi

Bank pension and Family pension

In all public sector banks except SBI, pension was introduced wef 1.1.1986.

It was accorded by surrendering the Employers  provident fund contribution of 10%.

Pension has been obtained by losing Employers provident fund contribution.

Period of wage settlement was for four years. Due to the change of periodicity of an accord  from 4 years to 5 years.. an employee having 40 years of service can get only 8 bps improvements instead of 10 bps improvements in his wage structure. 

On a rough calculation by the change of this periodicity nearly 10-12% an employee loses..roughly equal to the PF contribution .

Why it was accepted in 1987..ie in the 5 th bipartite.

By surrendering the wage increase due to change of the periodicity from 4 to 5years..at the 5th bps.ir

By surrendering the change of  periodicity of settlement.. we have obtained family pension. 

That means a 10-12% deprival of salary in  service is resulted for the benefit of  family pension.

For pension ..Bank PF was surrendered in 1986

For family pensin the periodicity of settlement  is extended losing salary increase more less equal to provident fund.

For pension.. bank pf had been surrendered.

For family pension, wage increase accumulation by shorter  periodicity  had been surrendered.

I deem it proper to leave it to you to decide  whether Pension and family pension are additional benefits  achieved by  Negotiation with IBA 

Which often pleads to our surprise that it can't negotiate on pensioners issues for want of mandates from banks..

Kovilpatti Somasundaram

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