Pension regulations in banking industry.
lava kumar kota
(Querist) 25 January 2013
This query is : Resolved
Dear sir
I am a bank employee. Following is a clause in pension regulations of the bank.
22. FORFEITURE OF SERVICE:
(1) Resignation or dismissal or removal or termination of an employee
from the service of the Bank shall entail forfeiture of his entire past
service and consequently shall not qualify for pensionary benefits;
The clause speaks about forfeiture of entire past service and consequent disentitlement for pensionary benefits in the event of resignation.
You are kindly aware that pension is an extended form of EPF in order to extend more safety to the individual and family of the employee.
Please clarify :
1. When an employee under EPF option is entitled to take back the employer's share of contribution upto the date of resignation, why the pension fund do not address to refund the share of employer contribution to the fund which is an extended form of EPF only.
3. I understand that people under new pension scheme are entitled to get the employer's share also. If so, why the employees who are continuing under these existing regulations are deprived of the refund of employer's share till the date of resignation.
4. The regulations do not contain provision for any amendment and do not discuss the scope of amendment to the regulations. Whether it estops the pension fund or the Bank from amending the regulations to protect the interest of the employees resigning from the services of the bank.
5. Whether the clause of non refund of employer's share of epf contribution credited to pension fund is universal across the banking industry.
6. Remedies open to an employee who resigned to the bank's services after more than 10 or 15 years of service and is deprived of employer's share of contribution to pension fund .
7. Whether framing of such regulation inconsistent with the welfare objective enshrined under labour laws of the country is considered as abuse of authority on account of privileged position of the employer in framing the regulations to the advantage of the employer.
8. Whether undue enrichment of the Pension fund/Bank by disentitling the employees concerned is not violative of principles of natural justice and doctrine of equity.
General feedback : Many employees after considerable service are leaving the banks without any benefit for the service rendered in the event of resignation. Resignation is not a negative deed or action that should invite such harsh treatment of disentitlement of past service and all other benefits.
Please address this aspect adequately and guide me in this regard.
R.K Nanda
(Expert) 25 January 2013
contact local lawyer as query too long.
lava kumar kota
(Querist) 26 January 2013
Dear sir
Kindly guide on queries possible to be guided.
Queries are general in nature but specific for many individuals across the industry.
Your valuable guidance will help many.
Best regards.
Lava Kumar
V R SHROFF
(Expert) 26 January 2013
Your Association or trade Union Leaders are the best persons to consult and discuss about it.
Bank Empl remuneration and benefits are part of mutual consents and Agreement is a part of collective bargaining .. binding on both the parties; employer and employee.
we can't get / devote time to read lengthy Query one.
Raj Kumar Makkad
(Expert) 29 January 2013
Engage either of the experts and take his professional service to discuss such important matter.
Guest
(Expert) 29 January 2013
You have mixed up issues like Pension Regulations of the banks, EPF and New Pension Scheme.
You have also not mentioned whether pension regulations of your bank are based on the CCS (Pension) Rules of the Central Goverbnment, or the New Pension Rules, or are framed independently of the aforesid rules by your bank management?
Surprisingly, it is not understood, as a senior manager, how you are concerned with the EPF or EPS and in what context you have raised such nixure of queries, when that is not applicable specifically in your own case?
Raj Kumar Makkad
(Expert) 29 January 2013
*Dhigra sir! As the querist himself is confused so I had suggested him to have special professional service of either of the experts so that such mixed issues may be separated in one to one meeting.
Guest
(Expert) 29 January 2013
Yes, Makkad ji,
I have made it clear for the querist, as to how he has confused various issues without having any links and that too without specifying his own personal problem.
