CHAPTER 14 BENEFITS ON RETIREMENT & POST RETIREMENTCHAPTER 14 BENEFITS ON RETIREMENT & POST - RETIREMENT 1, RETIREMENT ©On attainment of 60 years of age, Every Officer shall retire from the service on the afternoon of the last day of the month in which he attains the age of 60 years provided that the officer whose date of birth is 1st of month, shall retire from the service on the afternoon of the last day of the preceding month on attaining the age of 60 years. (PAD Consolidated Circul ar No. 18 dt. 31.03. 2014) Regulation 19 — Age of Retirement (1) The age of retirement of an officer employee shall be as determined by the Board in accordance with the guidelines issued by the Government from time to time. Provided that the Bank may at its discretion, on review by the Special Committee / Special Committees as provided hereinafter in Sub Regulation (2) retire, if it is of the opinion that it is in the public interest, an officer employee on or at any time after the completion of 55 years of age or on or at any time after the completion of 30 years of total service as an officer employee or otherwise, whichever is earlier. Provided further that before retiring an officer employee, at least three months notice in writing or an amount equivalent to three months substantive salary / pay and allowances, shall be given to such officer employee. Provided further that an officer aggrieved by the order of the Competent Authority, as provided in Sub Regulation (2) may within one month of the passing of the order, give in writing a representation to the Board of Directors against the decision of Competent Authority, and on receipt of such representation from the concerned officer, the Board of Directors shall consider his representation and take a decision within a period of three months. Where the Board of Directors decides that the order passed by the Competent Authority is not justified, the concerned officer shall be reinstated as though the Competent Authority has not passed the order. Provided also that nothing in this regulation shall be deemed to preclude an officer employee from retiring earlier pursuant to the option exercised by him in accordance with the rules in the Bank. EXPLANATION : An officer employee will retire on the last day of the month in which he completes his age of retirement. Provided that an officer employee whose date of birth is on the first day of the month, shall retire from the service on the afternoon of the last day of the preceding month on attaining the age of retirement. (2) The Bank shall constitute a Special Committee / Special Committees consisting of not less than three members, to review, whether an officer employee should be retired in accordance with the first proviso to this regulation. Such Committee / Committees shall, from time to time, review the case of each officer employee and no order of retirement shall be made unless the Special Committee / Special Committees recommends in writing to the Competent Authority, the retirement of the officer employee.‘The Govt. guidelines effective from 2.5.98 in respect of age of retirement are as under:~ a) Age of retirement of officer employees of the Bank would be 60 years. b) It is also clarified that: i) Every officer employee shall retire from the service on the afternoon of the last day of the month in which he attains the age of 60 years provided that the officer whose date of birth is 1st of month, shall retire from the service on the afternoon of the last day of the preceding month on attaining the age of 60 years. li) No extension shall be given to any officer employee beyond 60 years of age. The procedure to be adopted for review for continuation in service as provided in Regulation quoted above is as under:~ a) Review for continuation in Bank's service in respect of all the officers is to be made on attaining the age of 55 years, or, on or at any time after the completion of 30 years of service as an officer employee or otherwise, whichever is earlier, irrespective of the date of joining of the Bank's service by the officer. b) If the bank feels that performance / health of an officer has deteriorated to the extent of impairing his efficiency or for whatever other reasons considers it necessary, it shall have the right to cause a special review any time after the review as mentioned at clause (a) above has been made, SUBMISSION OF REVIEW PROPOSALS The proposal for review of an officer shall be initiated suo moto by the concerned higher authority as given hereunder: ')LIn respect of officers in Junior Management Grade Scale I (other than officers Incharge). Proposals for review shall be submitted by the Incumbent Incharge to the Circle Head in format I (enclosed) and by the Managers of Administrative Offices in respect of Officers ‘working in their offices to the Circle Head / Chief Manager of the respective office / Division. li) In respect officers in Junior Management Grade Scale I (Officers Incharae! Proposals should be prepared in format II (enclosed) in respective Circle Offices. i) In respect of officers in Middle Management Grade Scale II & IIL Proposal in respect of Incumbent Incharge shall be prepared in format II (enclosed) and in respect of Officers working in Administrative Offices in format III (enclosed) in respective Circle Offices/Divisions. In case of review of Managers in Scale - II/III (other than Incumbent Incharge), the proforma should be the same as prescribed for Incumbent Incharge but it should be accompanied by a separate report on his performance in the department (s) being headed by him. Proposals in respect of Inspectors / Concurrent Auditors should be submitted on Format-IV (enclosed). The review proposal in respect of officers working in the Circles shall be prepared in Circle Offices. For officers working in FGMO/HO Divisions, the concerned Chief Manager of FGMO/Divisional Head at HO should initiate necessary action. iv)In respect of officers in Senior Management Grade and Top Executive Grade Review proposals of officers be submitted to HRD Division HO.PREPARATION OF REVIEW PROPOSALS The performance of the Officer concerned must be reviewed for the preceding 3 years. In the case of Incumbent Incharge / Second Man, the figures regarding development of business for the last 3 years on half yearly basis should invariably be incorporated. These figures besides aggregate deposits and advances must contain break-up of priority sector advances, i.e. outstanding, disbursement and recovery percentage. In order to make proper assessment, it is desired that percentage of recovery as existing as at the time of previous half year of taking over and as at the end of each subsequent half years should be given. It should be particularly noted that percentage of recovery only is required to be given and not the amount recovered, In case an Officer has worked in more than one office during the last 3 years, figures regarding development of business and priority sector advances on half yearly basis and as on the date of handing over charge should be conveyed for each office separately The position of Inspection Reports and also individual appendices relating to the period of stay of an officer at a branch should be mentioned with the overall assessment of the branch, While giving performance towards rectification of audit irregularities, itis not sufficient to say merely “satisfactory / unsatisfactory’. It should also indicate number of irregularities appearing under different appendices at the time of inspection and number of irregularities appearing at the time of review and efforts being made by the officer to remove them. Whenever there is a fall in the figures of development of business, i.e. Deposit, Advances and Priority Sector, Recovery percentage is down or there is a ‘Below Average’ inspection report during the period under review the same must be explained with cogent reasons. In case of officers under suspension /against whom disciplinary proceedings are pending or are in the process of initiation, this fact should be given in the format and the latest position with regard to the case should also be incorporated. In case of review of Lead District Managers / Chairman of Regional Rural Banks, the proposals duly completed should be forwarded through the PS & LB Division indicating therein the targets fixed for the Bank and the results achieved by concerned officer. A report from the Vigilance Dept. Head office must be called, in time, while initiating the process for reviewing case of an officer. The report should invariably be incorporated in the review case as and when placed for consideration of the Competent Authority. All cases must be diarised for six months before due date. The cases which are delayed for any reason should invariably include reasons for their late submission. CONSTITUTION OF SPECIAL COMMITTEE The Special Committee to review for continuation in service in terms of Regulation 19 shall comprise of the following : Officer to be reviewed Committee A) Junior Management Grade - CM and Two Managers or Sr. Managers From Controlling Office/HO Division B) Middle Management Grade i) Officers working in Field - Head of Controlling Office, AGM and CM of Offices/ Branches / Controlling Office Controlling Office il) Officers working in Head - ‘AGM(HR),CM(HR) and CM/AGM/ DGM of Office Divisions of respective Divn, 207) Senior Management Grade Scale IV &V - GM-HR and Two other GMs or CGM D) Top Executive Grade Scale VI & VII- CMD & 2 Directors All review proposals of officers on completion of 55 years of age or 30 years of total service, whichever is earlier, must be reviewed six months in advance and formation in this respect is to be sent to HRD Division quarterly by all Circle Offices/FGMOs in the format as per Annexure so that it can be compiled at HO and furnished to the Government in time. After completion of Review, the same also be updated in HRMS. The Competent Authority to take decisions as to whether an officer should be retired on the recommendations of the Special Committee in terms of Regulation 19(1) is as under: Grade Competent Authority Junior Management General Manager Middle Management Chairman & Managing Director Senior Management Chairman & Managing Director Top Executive Board. VOLUNTARY RETIREMENT ‘An officer employee may be allowed to seek voluntary retirement after attaining 55 years of age or at any time after completion of 30 years of total service as an officer employee or otherwise, whichever is earlier. The Competent Authority to accept voluntary retirement as above is as under: Grade Competent Authority a) Junior Management Grade & Head of Controlling Office(in the Middle Management Grade rank of AGM & above)/AGM-HR b) Senior Management Grade GM-HR ©) Top Executive Grade Chairman & Managing Director 2. PROVIDENT FUND @) (b) © @ The officers who are presently covered under the Bank Employees’ Pension Regulations, 1995/96 shall continue to contribute 10% of the Pay towards Provident Fund and there shall be no matching contribution. Officers of State Bank of India will continue to be covered by Contributory Provident Fund Scheme as hitherto. Officers who are presently covered under Contributory Provident Fund Scheme who did not opt for Pension Scheme available under Joint Note dated 27th April, 2010 shall continue under the Contributory Provident Fund Scheme as hitherto. There shall be no_Provident Fund to officers joining the services of banks on or after Ast April 2010. They shall be covered by a Defined Contributory Pension Scheme, where the officer will contribute 10% of Pay plus Dearness Allowance and the bank will make @ matching contribution. The Scheme shall be governed by the provisions of the Contributory Pension Scheme as introduced for employees of Central Government w.e.f. ist January 2004 and modified from time to time.3. PENSION 1, The terms of the Bank Employees’ Pension Regulations, 1995 dated 29th September 1995 / 26" March 1996 shall not apply to the officers who join the services of Banks on or after 1* April 2010; and they shall be covered by a Defined Contributory Pension Scheme, which shall be governed by the provision of the Contributory Pension Scheme introduced for officers of the Central Government wae,f. 1st January 2004, and as modified from time to time. Necessary amendments to the relevant ‘provisions of the Bank Employees’ Pension Regulations, 1995 dated 29" September 1995/ 26" March 1996 shall be carried ‘out following the procedure in this regard. 2. Further to Clause 6 of the Joint Note signed on 2” June 2005 between representatives of Officers’ Associations and IBA, it is agreed between the parties as under: () With effect from ist May 2005, the pension of officers who retired or died while in service during the period 1* April 1998 to 31® October 2002 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 5 of the Joint Note dated 14” December 1999. No arrears of pension and commuted value of pension will be payable on account of such re-fixing of pension. (ii) With effect from 1" May 2005, the pension of officers who retired or died while in service during the period 1* November 2002 to 30" April 2005 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 6 of the Joint Note dated 2! June 2005. No arrears of pension or commuted value of pension will be payable on account of such re-fixation of pension, 3. Further to Clause 2(b) of the Joint Note dated 2" June 2005, it is agreed between the parties as under: On and from 1.5.2005, in the case of officers who retired during the period 14.1998 to 31.10.2002, dearess relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1684 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below: Retired Scale of Basic The rate of Dearness Relief payable as a between | Pension per month percentage of Basic Pension 1) 01/04/98 | () Upto Rs. 3550 0.24 percent 31/0/2002 Ti) RS.3551 to Rs.5650 | 0.24 per cent of pension exceading Rs.3550 plus 0.20 per cent of the basic pension in excess of 5.3550 RS5651 to] 0.24 per cent of RS3550 plus 0.20 per cent of Rs,6010 the difference between Rs.5650 and Rs. 3550 plus 0. 12 per cent of basic pension in excess of Rs.5650 (W) Above Rs.6010 [0.24 per cent of Rs. 3550 plus 0.20 per cent of the difference between Rs.5650 and Rs.3550 plus 0.12 per cent difference between Rs.6010 and_Rs.5650_plus 0.06 per cent of basic pension in excess of Rs. 6010Retired Scale of Basic The rate of Dearness Relief payable as a between | Pension per month percentage of Basic Pension T1)01/11/2002 [Any Basic Pension & | 0.18% of basic pension for every rise or fall for to 30/4/2005 |Pay every 4 points over 2288 points in quarterh average of all India Consumer Price Index. TM) on and any Basic Pension & 0.15% of basic pension for every rise or fall for jafter 01/5/2005] pay every 4 points over 2836 points in quarterh to 31/10/2012 average of all India Consumer Price Index. ['V) on and after! any Basic Pension & 0.10% of basic pension for every rise or fall for 01/11/2012 pay every 4 points over 4440 points in quarterh average of all India Consumer Price Index, Note: The Dearness Relief as above shall be payable for the half year commencing from the 1* day of February and ending with 31% day of July on the quarterly average of index figures published for the months October, November and December of the previous year and for the half year commencing from 1% day of August and ending with the 31® day of January on the quarterly average of the index figures published for the months of April, May and June of the same year, "Pay" for the purpose of pension shall be the pay last drawn by the officer prior to his retirement/death. Note: a) The Bank (Employees’) Pension regulations, 1995 does not apply to the officers of State Bank Of India, b) "Pay" for the purpose of Provident fund and Pension shall mean Basic Pay including stagnation Increment, POP, increment component of FPP & Officiating Allowance. CALCULATION OF PENSION Basic Pension (Pay) = 50% of Average Pay of last 10 months X No. of Qualifying Service including arace period ( Max 33 Yrs) /33 DA on Basic Pension = Basic Pension X No. of s 100 Qualifying service - No of years service from the date of appointment til retirement / death. Broken period of Service : a) Upto & including 6 months - Nil ( to be ignored ) ) More than 6 months - Full Year ( to be reckoned for qualifying services ) 210COMMUTATION VALUE : 13rd of Basic Pension pay as calculated above X 12 X commutation value NEXT BIRTHDAY of retirement as per chart given hereunder :- AGE | FACTOR ]AGE | eactor | AGE FACTOR | AGE | FACTOR FOR FOR FOR FOR vawueron, pau] \tuelode| ——ALUEFOR - Rs 1/- Rs 1/- Rsi/ 17 19.28 35 16.92 53 12.35 71 6.60 18 19.20 36 16.72 54 12.05 72 6.30 20 19.01 38 16.31 56 11.42 74 5.72 21 18.91 39 16.09 57 11.10 75 5.44 23 18.70 41 15.64 59 10.46 77 4.90 24 18.59 42 15.40 60 10.13 78 4.65 26 18.34 44 14.90 62 9.48 ‘80 4.17 27 18.21 45 14.64 63 9.15 81 3.94 30 17.78 48 13.82 66 8.17 84 3.32 32 17.46 50 13.25 68 7.53 33 17.29 51 12.95 69 7.22 One can apply for commutation of pension just prior to superannuation or within one year of superannuation. However, seeking commutation after one year of superannuation shall require medical certificate from Bank’s Doctor. 2PAY FOR THE PURPOSE OF PENSION IN TERMS OF BANK EMPLOYEES’ PENSION REGULATIONS - AS PER 10th BIPARTITE SETTLEMENT / JOINT NOTE DATED 25.05.2015. (PF & Pension Fund Deptt. circular No. 11/2015 at. 02.07.2015) The calculation of average emoluments and Basic Pension in respect of the employees retired between 1.11.2012 and 31.7.2013 is as given in Annexure A. This adjustment is required as the employees who retired from services on or after 1.11.2012, the Dearness Relief they will be getting along with basic Pension shall be the Dearness Relief payable over and above 4440 Points in the All India CPI 1960=100. (Model Calculation for an officer employee retired on 31.3.2013 having 33 years of qualifying service with Basic Pay of Rs.42,020/- as on the date of retirement) 1. For the period of service prior to 41.11.2012 (Rs) (ue. from 1,6.2012 to 34.10.2012 (5 months) (a) Pay’ as in Bipartite Settlement / Joint Note dated | 25700x5 |= | 128500.00 274.2010 (b)Dearness Allowance payable @0.15% for every | 15458.55x |= | 7729275 slab of 4 points over and above the Index numbers | 5 2836 points and upto 4440 points in All India CPI 1960=100 (4440-2836 = 1604/4 =401 stabs * 0.15, i.e 60.15%) Total of (a) and (b) above 205792.75...(A) 2. For the service rendered on or after 1.11,2012 upto the date of retirement, Corresponding revised i.e. 31,3.13 (5 months) (a) Pay’ as in Bipartite Settlement / Joint Note dated [42020x5 [= | 210100.00...(B) 25.5.2015 Total of (A) and (B) 415892.75...(C) 3, Average emoluments for the preceding 10 months [415892.75 |= | 41590.00 ...(0) of retirement, /10 4, Basic Pension in terms of Regulation 35(2) of the | = 50% of 41590 x 33/33 = 20795 Bank Employees’ Pension Regulations NEW PENSION SCHEME FOR STAFF MEMBERS Consolidated PF & Pension Fund Deptt. Circular no.15 /2014 dt._1.11.2014 & PF & Pension Fund Deptt. Circular no. 12/2015 dt..03.07.2015 ‘A. NPS STRUCTURE 1. Pension Fund Regulatory and Development Authority (PFRDA) PFRDA is the regulator for the NPS. PFRDA is responsible for appointment of various intermediaries in the system such as Central Record Keeping Agency (CRA), Pension Fund Manager (PFM), Custodians, NPS Trustee Bank, Annuity Service Provider (ASP) etc. PFRDA. shall also monitor the performance of the various intermediaries. PFRDA has a significant role to play in safeguarding the interest of subscribers. It will regulate the manner in which 22subscriber contributions are invested by PFM (s) and will make all efforts to ensure fair play for subscribers. It shall also ensure that all stakeholders comply with the uidelines/regulations issued by PFRDA from time to time. The PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY ACT, 2013 came into force on September 19, 2013. The Act to provide for the establishment of an Authority to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto, 2. NPS Trust PFRDA has established the NPS Trust under Indian Trust Act, 1882 w.e. 27th February, 2008 and appointed NPS Board of Trustees in whom the administration of the "National Pension System" vests under Indian Law. The Trust is responsible for taking care of the funds under the NPS, The Trust holds an account with the bank which is designated as the NPS Trustee Bank. Function of NPS Trust: - * To call for any information, report etc. from PFM(s), Trustee Bank and custodian, + To issue direction to PFM for protecting the interest of the subscriber. * To appoint a panel of independent auditors to undertake compliance audit. + To verify that Trustee Bank is performing its function as per the provisions of the agreement with NPS Trust. + To verify that PFM(s) are strictly following the terms and conditions of investment management agreement (IMA) with NPS Trust. 3. NPS Trustee Bank The NPS Trust holds an account with a Bank and this Bank would be designated as NPS Trustee Bank. NPS Trustee Bank will facilitate fund transfers across various entities of NPS System viz. PFM, Annuity Service Providers, Subscribers, etc. Presently AXIS BANK is functioning as NPS Trustee Bank. Functions ~ * The Bank would interface with PFMs for '= Transfer of functions to the PFMs bank account based on the instructions received from CRA and information flow for the same. '= Receipt of funds from the PFMs bank account to the NPS Trust Bank's account based on the instructions received from CRA and information flow for the same, = Report on discrepancies, if any, to / from the PEM regarding fund transfer/receipt of funds based on information flow received from PFM/CRA and actual fund transfer. * The Bank would interface with the CRA for © Upload of details of contribution received from Pay and Accounts office in specified file format to CRA. © Transfer of funds based on the instructions received from CRA during the settlement process to various entities. 213‘© Confirmation report by CRA to the bank and the discrepancy report by CRA to the bank. © Electronic Fund Transfer/Preparation of cheques for disbursement from withdrawal account and forwarding it to CRA. ‘© Upload of statement of closing balance of the NPS Trust account with the Bank to the CRA system. ‘© Daily reconciliation between balances in various CRA related accounts of the bank with the details available in CRA system. © Downloading of incremental PAO Master File and Transaction id list file (© Transfer of funds based on the instructions of CRA to the Bank to Annuity Service Provider and or to the withdrawal account, ‘+ The Bank would interface and provide such reports as may be required by Trustees, Custodians and other entities of the NPS architecture as may be prescribed by PFRDA from time to time. Trustee Bank is AXIS BANK 4, CENTRAL RECORDKEEPING AGENCY (CRA) National Securities Depository Limited (NSDL) has been appointed as Central Record Keeping Agency and its functions and responsibilities include: = Recordkeeping, Administration and Customer Service Functions for all subscribers of the NPS. Sending Annual Account statements: Providing subscribers with periodic PRAN account statements detailing the total contribution, time wise credits into the account and other relevant information. lm Issuance of unique Permanent Retirement Account Number (PRAN) to each subscriber, maintaining a database of all PRANs issued and recording transactions relating to each subscriber's PRAN. 5. PENSION FUNDS (PFS)/PENSION FUND MANAGERS (PFM) PFRDA has appointed, through a process of competitive bidding following Pension Fund Managers under Government Sector for corporate: DDLIC Pension fund Limited + SBI Pension Fund Private Limited + UTT Retirement Solutions Limited. The investment objective of the PFMs is to invest in accordance with the Investment Guidelines laid down by PFRDA. The Fund Manager should follow a conservative style of management, looking to offer stable returns with low volatility, with more weightage to higher credit rated and longer duration investment options. The PFMs expect to earn steady returns and capital appreciation with low risk, over a long term horizon, by consistently focusing on risk and credit parameters. * In terms of PFRDA Circular No. PFRDA/CIR/1/corporate-CG/1 dated 18 ' October 2012 and corrigendum dated 31° October 2012 Corporate (including Banks) opting for ‘Corporate CG Scheme’ have to choose any one PFM out of above three PFMs offering Corporate CG Scheme’. 214‘As per PFRDA norms, the Corporate have the option, if so desired, of shifting to another Public sector PFM at any time later. However PFRDA has permitted the Banks to change public sector PFM once in a financial year. Therefore, financial and other information were called from all the three public sector PFMs and a Comparative study was undertaken, On the basis of comparative study Bank has decided to continue with SBI Pension Funds Private Limited as the PFM for all the PNB employees registered under New Pension Scheme, for the financial year 2014-15. CURRENT ALLOCATION: SBI Pension Funds Private Limited (100%) i) Investment Choice The bank has chosen the Govt. Sector Model, as the Joint note and Memorandum of Settlement signed at industry level provides for a scheme which will be as governed by the Provisions of the NPS introduced for Central Govt. employees. Investment Pattern/PFM, as specified by NPS Trust, will be as per Central Govt. Scheme, ii) Returns on Investments The returns are dependent on Investment Pattern and market linked. The investment pattern for our employees, as specified by NPS Trust, is as per Central Govt. Scheme: ‘S.No | Securities Max. limit % 1 | Central Govt./State Dev. Loans 55, 2___| Corporate Bonds/Debentures/Bank Deposits 40 3___| Money Market Instruments 05, 4 [Equity 15 6. Annuity Service Provider (ASP) A life insurance company registered and regulated by Insurance Regulatory and Development Authority (IRDA) and empanelied by Pension Fund Regulatory and Development Authority (PFRDA) for providing annuity services to the subscribers of New Pension Scheme. Annuity Service Provider (ASP) will play a vital part in the NPS as a certain percentage of the accumulated long term pension wealth of the subscribers shall be converted into annuities from wherein they shall derive a monthly income post-retirement. The ASPs shall, with respect to the NPS, function as per the terms of appointment prescribed by PFRDA. The role of ASPs starts after exit / superannuation of the employee. Employee will have a choice of Annuity Service Providers, from whom he can choose his annuity schemes on their exit from NPS on attainment of 60 years of age. Pension Fund Regulatory and Development Authority (PFRDA) has empanelled the following seven IRDA approved life insurance companies for providing annuity services to the subscribers of National Pension System (NPS). 6.1, Life Insurance Corporation of India 6.2. SBI Life Insurance Co. Ltd. 6.3. ICICI Prudential Life Insurance Co. Ltd. 6.4. Bajaj Allianz Life Insurance Co. Ltd, 6.5. Star Union Dai-ichi Insurance Co. Ltd. 6.6. Reliance Life Insurance Co. Ltd 6.7. HDFC Standard Life Insurance Co. Ltd. 2157. Type of Annuities or Annuity Choices: Currently, the following types of annuities are generally available with the ASP’s. i. Annuity/ pension payable for life at a uniform rate. il. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive. ili, Annuity for life with return of purchase price on death of the annuitant. iv. Annuity payable for life increasing at a simple rate of 3% p.a. v, Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant. vi. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant. vii. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor. 7.1 What happens in case of death of annuitant after the purchase of the annuity in the above given types of annuity? a. Under option (i) annuity ceases after the annuitant dies. b. Under option (ii) + On death of the annuitant during the guaranteed period - annuity is paid to the nominee tll the end of the guaranteed period after which the same ceases. * On death after the guaranteed period - annuity ceases. . Under option (iii) annuity ceases after death of the annuitant and the purchase price is paid to the nominee. d. Under option (iv) annuity ceases after death of the annuitant. e. Under option (v) payment of 100% annuity ceases after death of the annuitant and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases after death of the annuitant, . Under option (vi) payment of annuity ceases after death of the annuitant and full annuity is payable to the surviving named spouse during his/her life time, If the spouse predeceases the annuitant, the annuity ceases after death of the annuitant. 9. Under option (vii) payment of annuity ceases after death of the annuitant and full ‘annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases after death of the annuitant and purchase price is paid to the nominee. 7.2 Default option for annuity service provider and annuity scheme: AA default option for Annuity Service Provider and annuity scheme has been provided by PFRDA to assist the NPS subscribers. The default option may not suit the requirement of all the subscribers and the subscribers are advised to exercise the annuity option basing on their specific requirements and use the default option as a last resort. The following default annuity service provider along with the annuity scheme is available to all the subscribers under National Pensions System, i, Default Annuity Service Provider ~ Life Insurance Corporation of India (LIC) ii, Default Annuity Scheme - Annuity for life with a provision of 100% of the annuity payable to spouse during his/her life on death of annuitant’ and Under this option, 216payment of monthly annuity would cease once the annuitant and the spouse die or after death of the annuitant if the spouse pre-deceases the annuitant, without any return of purchase price. ii, However, where the corpus is not adequate to buy the default annuity variant and from the default ASP, the subscriber has to compulsorily choose an ASP who offers an annuity at the available corpus in the account of the subscriber. Please note that LIC does not offer an annuity for a purchase price below Rs,1,00,000/-. 8, Custodian: Custodian is Stock Holding Corporation of India Limited (SHCIL) ‘The Custodian under the NPS is responsible for the custody of underlying assets. Custodian is a SEBI registered Custodial Services provider fulfiling conditions on foreign holdings and cross-holdings as Government may prescribe. 9, Point of Presence (POP) Pension Fund Regulatory and Development Authority (PFRDA) has granted certificate of Registration and Commencement of Business to Punjab National Bank as 2 Point of Presence (PoP). PoP is the first point of interaction between the subscriber and the NPS architecture. POP-Service Providers (POP-SPs) are the designated branches of registered POP(s) to extend the reach of NPS. POP/POP-SP performs the functions relating to registration of subscribers/corporate, undertaking Know Your Customer (KYC) verification, receiving contributions and instructions from subscribers/corporate and transmission of the same to designated NPS intermediaries. All the functions relating to NPS of PNB employees are performed by HO PF & Pension Fund Department. The registration numbers are - PoP Registration No. 5000505 CHO Registration No. 5500611 CBO Registration No. 6500605 For convenience of our eligible employees we have arranged to display the Permanent Retirement Account Number (PRAN) in HRMS as per following navigation Employee Self Service> > Personal Information> >Personal Information Summary B. NPS FEATURES: Under NPS following two types of accounts are be available: (2) Tier - I account - Mandatory + Non - withdrawable, purely retirement planner. + Both, Bank and Employee will contribute Minimum Contributions (Tier 1) ‘+ Minimum amount per contribution - Rs 500 ‘+ Minimum contribution per year ~ Rs 6,000 ‘+ Minimum number of contributions - 01 per year 27If the subscriber contributes less than Rs. 6,000 in a year, then + He would have to bear a default penalty of Rs 100 per year of default and the account would become dormant, ‘+ In order to reactivate the account, the subscriber would have to pay the minimum: contributions, along with penalty, due for the period of dormancy. ‘+ A dormant account shall be closed when the account value falls to zero. The fee structure may change as may be decided by PFRDA/NPS Trust from time to time. (b) Tier-IE account: This is 2 voluntary savings facility, where the subscriber can get fund management facility at very low costs. Subscriber will be free to withdraw savings from this account whenever they want. Minimum contribution requirement — 1. At the time of account opening - Rs.1000/- 2. Amount per contribution - Rs.250/- 3. Account balance at the end of FY ~ Rs.2000/- 4. Number of contributions in a year — 01 Penalty of Rs.100/- to be levied on the subscriber for not maintaining the minimum account. balance and/or not making the minimum number of contributions. Eligible subscribers A citizen of India, whether resident or non-resident can join NPS subject to the following conditions: + Subscriber should be between 18 ~ 60 years of age as on the date of Submission of his / her application. + Subscriber should comply with the Know Your Customer (KYC) norms as per details given in the Subscriber Registration Form, + Pre-existing account holders under NPS cannot join again as existing account is portable across geographies and employees. ++ Entity may regulate within these norms but shall not breach these norms. ‘= Copy of PAN Card and Bank’s details are mandatory for opening Tier ~ II accounts. Tier 11 accumulations can be switched to Tier I account but not vice versa. REGISTRATION OF EMPLOYEES UNDER NPS + Employees joining on or after 1.4.2010 ate required to submit subscription form CSS-1 for registration under NPS at the time of joining the bank alongwith required KYC documents i.e. copy of PAN card, copy of address proof and bank account details. No candidate will be allowed to join the bank's service without completion of NPS formalities. + For employees joining PNB, already registered under NPS through their previous employer, required to submit CSS-3 form (for corporate subscriber) / ISS-1 form (other than corporate subscriber) for shifting their PRAN to PNB. + Joining formalities of newly recruited staff are completed at HO/CO/CSC/RSC/ZTC. Concerned officials ensure that duly checked and verified forms are sent to HO PF & 218Pension Fund Deptt along with required documents for registration of employees under NPS. If @ subscriber moves from one sector to another (e.g. from ‘Government’ sector to ‘All Gitizens of India’ or 'Corporate' to ‘Government! Sector etc.) due to change in employment, PRAN remains same and subscriber need not apply for a fresh PRAN each time. As subscriber has to maintain his / her PRAN tll the age of 60, itis imperative that the PRAN is tagged to the appropriate sector to which subscriber belongs. Various scenarios identified for shifting of employee from one sector to another are explained hereunder: ‘Sr. | Subscriber Joining | Procedure for shifting No. |leaving (Source) | _ (Target ) 1. [Public Sector Bank | Public Sector | Shifting request will be initiated by POP of Bank target bank. Form CS-S3 2. | Public Sector Bank | Not employed or | Source Bank POP will execute the shifting Joined other | request to “All Citizen of _India-UOS. corporate not | Subscriber will have to select the agency and offering NPS___| scheme preference Form ISS-1 3._| Public Sector Bank | Corporate The respective POP of the target corporate offering NPS | will initiate the shifting request. If target corporate has given choice of scheme preference to the subscriber, scheme preference will have to be selected by subscriber at the time of shifting. Form ISS- 1 4. | Public Sector Bank [Government [The concerned offices of the Prospective Sector ‘employer will initiate shifting request. organization | Scheme preference of the target sector will be applicable. Form ISS-1 NOTE - Annexure A2 - In case the applicant is literate or blind or incapable of writing, the thumb impression of the applicant should be attested by a person of standing whose identity can easily be established but not related to CRA/PFRDA and this declaration should be made by him/her. (Annexure available in Branch Kit) FOR CORRECTION/CHANGE/RE-ISSUE/RE-ISSUE OF I-PIN / T-PIN / PRAN CARD + Employee may submit request for correction in subscriber master details and Reissue of I- Pin / T-Pin / PRAN Card in Annexure CS-S2 to HO PF & Pension Fund Department through their respective Controlling Offices. + ‘The subscriber has an option to reset I-PIN online. The request needs to be initiated online in CRA system (https//cra-nsdl.com) by clicking on the ‘Forgot Password’ link and selecting “Instant Reset I-PIN’. After providing the respective user ID (Permanent Retirement Account Number), the subscriber is required to enter certain mandatory details (* marked fields) along with the new password (IPIN) as per his/her own choice and then click on either "Send To Nodal Office” button or “Generate OTP” button. If Generate OTP button is clicked, the subscriber will have to enter the OTP sent to the registered mobile number. After entering the OTP, the IPIN will be reset and 219subscriber can use the new password (provided during the initiation of request) to login in the system. = Alternatively, if Send to Nodal Office button is clicked, an acknowledgment number will be generated in the next screen. The subscriber needs to print the acknowledgement and handover the same to HO PF & Pension Fund Deptt. After successful authorization by the department, subscriber can use the new password (provided during the initiation of request) to login in the system. * The subscriber can reset T-PIN by calling on CRA toll free number 1800 222 080 to access IVR (Interactive Voice Response) system. After selecting the appropriate option, system will prompt the subscriber to reset T-PIN by providing the existing T-PIN and the required new T-PIN. In case subscriber has forgotten T-PIN, upon successful verification of the personal details, the subscriber will be transferred to a helpline executive to enable to change the T- PIN online. All types of NPS Forms can be downloaded from Knowledge Centre Site -> Branch Kit -> Forms> NPS Forms. WITHDRAWAL OF AMOUNT [Withdrawal not exceeding twenty-five per cent of the contribution made by the subscriber, may be permitted from the individual pension account subject to the conditions, such 2s Purpose, frequency and limits, as may be specified by the regulations.(Purpose, Frequency and limit yet to be decided by PFRDA) EXIT FROM NPS Procedure and Formalities to be completed at the Time of Exit before age of 60 years / Superannuation / Death of Employees. Criteria Benefit i) Exit at any point before 60 | Where the subscriber who, before attaining the age of years of age. (Pre mature exit) | sixty years or the age of superannuation as prescribed by service rules, voluntarily opts to exit from the national pension system, the option so exercised shall be allowed only upon such subscriber having subscribed to the national pension system for at least a minimum period of ten years. In case of such subscriber, at least eighty percent out of the accumulated pension wealth shall be mandatorily utilized for purchase of annuity and the balance of the accumulated pension wealth, after such utilization, shall be paid to the subscriber in lump sum. Subscriber will have to submit request for withdrawal through Online process from his/her NPS account . i) On attaining the Age of 60 At exit, subscriber required to invest minimum 40 years and upto 70 years of age | percent of accumulated savings (pension wealth) to purchase a life annuity from any IRDA-regulated life insurance company. Subscriber may choose to purchase an annuity for an amount greater than 40 percent.Criteria Benefit ‘A “Deferred withdrawal” option is given to the subscriber. Subscriber can withdraw the lump sum amount (maximum 60%) allowed under NPS at the time of exit, with immediate effect. Under the Deferred withdrawal facility, the subscribers at the time of exit from National Pension System (NPS) can exercise an option to defer the withdrawal of eligible lump sum withdrawal and stay invested in the NPS, However, it may be noted that no fresh contributions are accepted and also no partial withdrawals are allowed during such a period of deferment. The subscriber can withdraw the deferred lump sum amount at any time before attaining the age of 70 years by giving a withdrawal application or notice. If no such notice is given, the accumulated pension wealth would be automatically monetized and credited to his bank account upon attaining the age of 70 years. Subscriber will have to submit his request for withdrawal under NPS in Form 301 alongwith the required documents. ii)Death due to any cause In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. However, if the nominee wishes to continue with the NPS, he/she shall have to subscribe to NPS individually after following due KYC procedure. Subscriber will have to submit his request for withdrawal under NPS in Form 303 alongwith the required documents . Tax Benefits ‘Tax benefits would be applicable as per the Income Tax Act, 1961 as amended from time to time. Exemption from tax withdrawals at the time of Exit is proposed in the Direct Taxes Code (OTC) likely to be implemented. Moreover, investment earnings / accrual to the Pension Account (Tier-l) is exempt from tax. ‘Tax Benefit for the Bank Banks’ contribution up to 10% of Basic (+DA) towards Pension for the Employee, is a permissible business expense u/s 36 (1)(Wva) Tax Benefit for the Employee + A deduction not exceeding ten per cent of salary (includes Dearness Allowance) ‘or Rs 1,00,000, whichever is LOWER is allowed in the previous year in computing the taxable income in respect of amount paid or deposited in his account in a pension scheme. (Refer Finance Division Cir. No. HO/FD/15/2014 (8.3) dated 21.8.2014),+ Employers’ contribution (if any) up to 10% of Basic (+DA) will not form part of the Employee's Taxable Income u/s 80 CCE + Earnings/Accrual to the Pension account is Exempt from Tax (EE) Exemption from Tax on withdrawals, at the time of exi Taxes Code (DTC) likely to be implemented - (EEE) proposed in the Direct C. CHARGES + Central Recordkeeping Agency charges Charge Head Service charges PRA Opening charges Rs. 50 ‘Annual PRA Maintenance of units cost per Rs.190 account (Charge per transaction Rs. Reissue of PRAN Rs.50 + POP Charges Service Charges Initial subscriber registration Rs. 100 Initial contribution upload 0.25% (RS.2.50 per 1000/-) of the initial contribution amount from subscriber subject to a minimum of Rs.20/- and a maximum of s.25000/- ‘Any subsequent transaction involving 0.25% (RS.2.50 per 1000/-) of the amount contribution upload subscribed by NPS Subscriber, subject to minimum of Rs.20/- and a maximum of, Rs.25000/-. ‘Any other transaction not involving a Rs. 20/- contribution from subscriber. Our bank is registered as POP and it has been decided to ws respect of PNB staff member. * Custodian Charges Asset Servicing charges- 0.0075% p.a for Electronic segment & 0.05% p.a. for Physical segment, e POP charges in + Trustee Bank charges Charge Head Service Per transaction emanating from a RBI location Zero Per transaction emanating from a non- RBI location. Rs.15 Fund Management Charges (Charged by PFM) Based on the recommendations of the ‘Expert Committee to determine the Upper ceiling of the Investment Management Fees or other Fees (if any) to be charged by the PFMs in the Private Sector of NPS' and with the approval of the Competent Authority, the upper ceiling ofthe Investment Management Fees has been fixed at 0.25% p.a. of the AUM (Asset Under Management) with effect from 1st November 2012. ‘The PFMs can fix their own Investment Management Fee for different schemes subject to the upper ceiling of 0.25% p.a. This fee is inclusive of brokerage except Custodian charges and applicable taxes Investment Management Fee - presently 0.20% p.a. Subscriber Grievances Redressal Mechanism NPS has a multi-layered Grievance Redressal Mechanism which is easily accessible, simple, quick, fair, responsive and effective. Employee has the option of registering grievance/complaint through the following alternatives: + Call Centre/ Interactive Voice Response System (IVR) He can contact the CRA call centre at toll free telephone number 1-800-222-080 and register the grievance, He will have to authenticate himself through the use of T-pin allotted to him at the time of opening a Permanent Retirement Account under the NPS. On successful registration of his grievance, a token number will be allotted by the Customer Care representative for any future reference. * Web based interface Employee can register the grievance at the website www.cra-nsdl.co.in with the use of the I- pin allotted to him at the time of opening a Permanent Retirement Account. On successful registration, a token number will be displayed on the screen for future reference. + Physical forms Employee can submit the grievance in a prescribed format to the POP who would forward it to CRA Central Grievance Management System (CGMS). He will have to mention his PRAN as the means of authentication. Upon submission of form with the POP-SP, he will get an acknowledgement receipt. The token number would be emailed to him (if the email id is mentioned), otherwise the same will be emailed to the concerned POP. He can get the token number from the POP upon presentation of the acknowledgement receipt. How to check the status of the Grievance? Employee can check the status of the grievance at the CRA website www.cra-nsdl.co.in or through the Call Centre by mentioning the token number. He can also raise a reminder through any one of the modes mentioned above by specifying the original token number issued. If he does not receive any response within 30 days or not satisfied with the resolution by CRA, he can apply to the Grievance Redressal Cell (GRC) of PFRDA. Grievances received by the GRC directly from the subscribers only shall be entertained. GRC shall not entertain any complaints written on behalf of the subscribers by advocates, agents or third parties unless formally authorized by the subscriber.Complete address of the GRC of PFRDA is as under: Grievance Redressal Cell Fund Regulatory and Development Authority Ast Floor, ICADR Building, Plot No 6, Vasant Kunj, Institutional Area, Phase - II, New Delhi - 110070, Tel no - 011 26897948-49, Fa Email: [email protected] 11-26892417, OTHER MATTERS 1. PERDA issue directions and guidelines to NPS intermediaries for protecting the interest of the subscribers, 2. There is no guarantee on the investment. NPS is a defined contributory pension scheme and the benefits would depend upon the amount of contributions invested and investment growths up to point of exit from NPS. Past performance of the Fund Manager does not Quarantee future performance of the investment. 3. There is no provision in NPS, for marking lien/caution on PF balances of the employees after extending various loan facilities to them i.e. V/L, H/L, Clean OD etc. No Provision of appropriation of PF contribution made by the bank on dismissal, removal, termination of employee from service on account of financial losses. 5, Under NPS, Banks do not have right over the fund transferred to NPS trust. Bank's role as a registered corporate is to act as interface between its employees and different bodies under NPS as formulated by PFRDA. Revised Application form for Subscriber Registration under New Pension Scheme (PF & Pension Fund De ptt. Circular no. 9/ 2015 dt.19.05.20 15) PFRDA has now revised the application form for Subscriber Registration under New Pension Scheme. Therefore, now onwards, application from the employees covered under New Pension Scheme is sent on the following revised application form. 1, CSRF-1 - Application form for Subscriber Registration, 2. Annexure II (CSRF-1) - For PRAN in Hindi. (if required) 3. Annexure III (CSRF-1) - For Additional nominee. (if required) The above prescribed three forms can be downloaded from Knowledge centre site -> Branch Kit-> Form -> New Pension Scheme form. SANCTIONING OF PENSION PROPOSAL IN CASE OF PUNISHMENT OF ‘COMPULSORY RETIREMENT FROM THE BANK’S SERVICE IMPOSED UPON ‘THE EMPLOYEES (Pension & Provident Fund Department Circular No 14/2014 dt. 30.09,2014) As per regulation 33 of PNB Employees Pension Regulation 1995: 224Compulsory Retirement Pension 1) An employee compulsorily retired from service as a penalty on or after Ist day of November, 1993 in terms of Punjab National Bank Officer Employees’ (Discipline and Appeal) Regulations,1977 or awards/settlement may be granted by the authority higher than the authority competent to impose such penalty, pension at a rate not less than two-thirds and not more than full pension admissible to him on the date of his compulsory retirement if otherwise he was entitled to such pension on superannuation on that date. 2) Whenever in the case of a bank employee the Competent Authority passes an order (whether original, appellate or in exercise of power of review) awarding a pension less than the full compensation pension admissible under these regulations, the Board of Directors shall be consulted before such order is passed. To avoid delay in settlement of Pension proposals, in case of compulsory retirement the sanction of pension should be obtained from the authority higher than the authority ‘competent to impose such penalty. Circle Offices/ HO Divisions/ FGM offices are to send the pension proposals duly sanctioned by the Competent Authority PAYMENT OF PENSION/ FAMILY PENSION IN CASES WHERE THE PUNISHMENT OF REMOVAL HAS BEEN IMPOSED UPON THE EMPLOYEES UNDER CLAUSE 6(b) OF ‘THE BIPARTITE SETTLEMENT DATED 10.04.2002 (PAD CIRCULAR NO. -277 dated 13/07/2015) In view of the judgement of Hon’ble Supreme Court and the clarification received from the Indian Banks’ Association, it has been decided to allow pension/ family pension in respect of those workmen who have been inflicted with the punishment of "Removal from service with superannuation benefits i.e., pension, provident fund and gratuity as would be due otherwise under the rules or regulations prevailing at the relevant time and without disqualification from future employment” in terms of Clause 6 (b) of the Bipartite Settlement dated 10.04.2002. It is further clarified that those employees who have not put in required number of years of qualifying service shall not be entitled to the superannuation benefit though removed from service in terms of clause 6(b) of the Bipartite Settlement. PF & PENSION FUND DEPARTMENT CIRCULAR No. 09/2014 Date: 20.05.2014 The Board of Directors vide its Resolution No. 9 in meeting dated 25 & 26.07.2013 has also desired that “ordinarily full pension be allowed to the employee in case no reference regarding reduction in the Terminal Dues by Disciplinary Authority (DA) in the final order is made. However, where the Disciplinary Authority makes a reference in the final order to reduce pension, the matter be placed before the competent authority as per Pension Regulations” SUBMISSION OF LIFE CERTIFICATE AT THE TIME OF FIRST CREDIT IN CASE OF ‘STAFF PENSIONERS IN PENSION PAYING BRANCH. (PF & Pension F und Deptt. circular NO. 01/2015 DATED 02 .01.2015) It has been decided that Pension Paying Branches need not insist for submission of Life Certificate to staff pensioner at the time of credit of First Pension.However, the existing pensioners have to submit the Life Certificate in the month of November every year. Mandatory issue of acknowledgement to pensioners on submission of Life Certificates. (PF & Pension Fund Deptt. Circular No. 8 / 2015 at. 18.05.2015) In order to alleviate the hardships faced by pensioners , all pension paying branch will issue @ duly signed acknowledgement to pensioners on the receipt of the life certificate submitted in physical form as per annexure PAD Cir. No. 262 dated. 26/04/2015 dtd. 16/05/2015 to be read with Personnel Division Gircular No. 1758 dated 11.10.2000 Punjab National Bank Officer Employees’ (Acceptance of jobs in Private Sector Concerns after Retirement) Regulation,2000 - Amendment to Regulation 4 (1). In Regulation 4 of the Punjab National Bank Officer Employees'(Acceptance of Jobs in Private Sector Concerns after Retirement) Regulations, 2000, in sub-regulation (1), the words “two years’, shall be substituted with “one year’, 4. GRATUITY (PF Or. No. 1/86 dt. 1/1/86, PF Dep. Gr. No. 4/97 dt. 8/10/97, PD Gr. No. 1565 dt. 16/1/97, PD Cir. No. 1595 dt. 21/10/97 and PD Cir No. 1726 dt. 15/5/2000, HRD Cir No. 626 dt 04/06/2010) ‘A. UNDER GRATUITY ACT 1792: 1. Eligibility Every officer shall be eligible for gratuity on (On superannuation or, (ii) On retirement or resignation or, (iil) On death or discharge on the ground of total disablement due to an accident or a disease. 2. Minimum Service Required : Minimum 5 years continuous service, + Any service in excess of 6 months to be taken as full year . + Less than 6 months to be ignored, Note :- Under the Act, the completion of continuous service of 5 years shall not be necessary where the termination of employment of any employee is due death or disablement 3. Calculation of Gratuity For every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to the employee at the rate of 15 days wages based on the rate of wages last drawn by him (without any stipulation on wages) on the basis that a worker earns a month’s wages for attending to work on 26 working days, as per the following formula Monthly wages x 15 x No of years services /26Wages means: Last drawn wages/ pay comprising of Basic pay (including stagnation increment ) + Special Pay + Dearness allowance. (It does not include Bonus, HRA, CCA and Adjustment Pay J. + For the purpose of Gratuity Act, an employee shall be said to be in continuous service for a period if he has, for that period been in uninterrupted service including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave(not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing orders, rules and regulations covering the employees of the establishment), lay off strike' or a lock out or cessation of work not due to any fault of the employees, whether such uninterrupted service was rendered before or after the commencement of this Act. ‘ The term "wages" for the purpose of determining the amount of gratuity payable Under the Act, means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes Dearness Allowance but does not include any Bonus, HRA,CCA, overtime. * Average Salary/wage for the purpose of Gratuity Act is the average of preceding 12 months’ full salary payable/paid to the officer. Subsistence allowance is not be treated as salary/wage. Last full pay drawn , prior to suspension or leave without pay , should be taken for the purpose of gratuity calculation. If the pay is less than a month, then Notional Salary for the full month is to be given. ‘ While Calculating 12 months average pay under award for payment of gratuity, if employee has remained absent for any period during the previous 12 months then notional salary for the period should be included for Calculating the average monthly pay. Maximum Payable amount: Rs. 10 Lac . (HRD 626 dt. 04.06.10) However, no Income Tax is to be deducted. B, Under Officers’ Service Regulations : 1. Minimum Service Required : Minimum 10 years service, In case of workmen fraction in excess of 6 months beyond completed years of service to be paid on pro rata basis. Less than 6 months to be ignored. 4 In case of officers fraction of service in excess of 6 months to be taken on prorate basis including number of days. Less than 6 months to be ignored. 2. Eligibility & Calculation 1. Upon Normal Retirement | @ The amount of gratuity payable to an officer shall be of the officer at or after age of | one month's pay for every completed year of 57 service, subject to 2 maximum of 15 months’ pay. ‘ Provided that where an officer has completed more than 30 years of service, he shall be eligible by way of gratuity for an additional amount at the rate of one half of a month's pay for each completed year of service beyond 30 years. 2272. Upon death whilst in | Same rates as given in No. 1 above. service of the Bank 3. On VRS oF resignation before | Nil 10 years’ continuous service 4, on dismissal on account of | Same rates as given in No. 1 above subject to deduction ‘misconduct of the financial loss therefrom which the Bank may incur due to misconduct of an officer 5. on VRS or resignation after 10 | Same rates as given in No. 1 above, /ears’ continuous service %. on becoming physically or | Same rates as given In No. 1 above. mentally incapable of further service 7. on termination of service by | Same rates as given in No. 1 above. ‘the Bank “Pay” for the purpose of Gratuity under OSR means :~ Average of last 12 months pay comprising Basic salary + Stagnation increment + Increment Component of Fixed personal allowance ( on account of computerization ) + Special Allowance + Professional qualification allowance/ Education qualification allowance (ranking for superannuating benefits) + officiating allowance ( in higher cadre in case of workmen staff only) Maximum payable amount : No ceiling. However subject to deduction of Income Tax as per income tax rules Cc. Ent Under Act 1972 and under Awards/ Settlement/ requlations :- ‘As per provision, gratuity payable under the act as well as payable under Awards/ Settlement/ regulation, as the case may be, will be calculated and higher of the two would be payable to concerned employee irrespective of cadre / grade D. Forfeiture of Gratuity (PAD Cir. No. 280 dated 14/08/2015) lement :~ + The gratuity payable under the Payment of Gratuity Act, is liable to full or partial forfeiture under different circumstances, Section 4 (1) of Payment of Gratuity Act deals with payment of gratuity whereas Section 4 (6) of the Act deals with forfeiture of ‘gratuity - Section 4 (1) reads as under: "Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, - . © on his superannuation, or ©. on his retirement or resignation, or © on his death or disablement due to accident or disease: Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement." (PF & Pension Fund Department Circular No. 09/2014 at. 20.05.2014) * Section 4(6) provides as under:“Notwithstanding anything contained in sub- section (1), the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence ‘causing any damage or loss to, or destruction of property, belonging to the employer, shall be forfeited to the extent of the damage or loss so caused: ‘+ The gratuity payable to an employee may be wholly or partially forfeited. olf the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or olf the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by ‘him in the course of his employment. ii) Under Awards/ Settlement/ regulations: For workmen Gratuity can be forfeited only in case of dismissal / discharge/ termination ‘causing financial loss to the bank and in such cases to that extent. In case of officers, there is no provision for forfeiture of gratuity under Officer's Service regulations. In cases where the amount of gratuity is higher under the Officer's Service regulations in comparison to that of Gratuity Act, the same shall be paid to him/her, irrespective of the quantum of loss, if any, caused the bank. However, it may be clarified here that gratuity is not payable to officers under Officer’s service regulations when the termination of the officer from service is by way of punishment of Dismissal or Removal. (Amendment to PAYMENT OF GRATUITY IN CASES WHERE EMPLOYEES HAVE BEEN RETIRED ON ATTAINING THE AGE SUPERANNUATION AND AGAINST WHOM JUDICIAL PROCEEDINGS WERE INSTITUTED/PENDING AT THE TIME OF THEIR RETIREMENT is circularized vide PAD Cir, No. 276 dated 10/07/2015). Whereas in the cases where services of the employees are terminated by way of punishment like CRS, Dismissal & Removal, the gratuity proposals be sanctioned, for payment to the concerned employee, by the authority competent to forfeit the gratuity. In cases where the competent authority has decided to forfeit the gratuity, gratuity proposal duly sanctioned as well as forfeited be sent to PF & Pension Fund Department along with copy of speaking orders passed for the gratuity forfeiture. E. Time Limit for Payment of Gratuity i, Under Gratuity Act ‘As per provisions of the payment of Gratuity Act 1972, the bank has to pay full ‘amount of gratuity within 30 days from the date it becomes payable to the person to whom gratuity is payable. If the amount of gratuity payable is not paid by the bank within the specified period (30 days), the bank has to pay from the date on which the gratuity becomes payable to the date on which itis paid, simple interest @10% p. a. provided that no such Interest shall be payable for delay in the payment due to the fault of the employee. ii, Under Officers' Service Regulation “Where payment is not made within the period of 3 months from the date of retirement / resignation ete, interest @ applicable to the time deposits on ex-employees is payable. 229Interest is to be paid to the ex-employee by the branch office concerned from where the ‘employee has retired / resigned etc. from the date of his retirement / resignation etc. It is inot necessary in such cases, to await sanction from Regional office. PAYMENT OF OVERDUE INTEREST FOR DELAY IN SETTLEMENT OF GRATUITY (PAD Grcular No 220 dt. 18.06. 2014) + in case payment of gratuity under Punjab National Bank (Officers’) Service Regulations/Bipartite Settlements is not made within 3 months from the date of retirement/resignation/death etc, interest as payable under Section 7(3A) of the Payment of Gratuity Act, 1972, be paid (As per notification no. S0-874(E) dated 01.10.1987, the simple interest on delayed payment of gratuity under the Payment of Gratuity Act, 1972 has been specified as 10% per annum) + where gratuity is withheld on account of invocation of Regulation 20(3)(il) of PNB (Officers’) Service Regulations or for any other reason and the amount becomes refundable subsequently, the interest as specified above be paid. 5. REFUNDABLE LOANS / NON REFUNDABLE WITHDRAWALS AGAINST BALANCE OUTSTANDING IN PROVIDENT FUND (Pension Fund Cireu lar No.1 /2004 dt 15.07.200 4) Pension & Provident Fu nd Greular No.01/2010 DT. 19.01.2010 Pension & Provident Fund Circular No.09/2012 DT. 21.08.2012 (Consolidated PF & Pension Fund Greul ar No.7/2014 dt 17.02 .2014) 1) REFUNDABLE PF LOANS: PURPOSE OF LOAN PERMISSIBLE LIMIT REPAYMENT PERIOD. ) ‘To meet expenses in connection | Three Basic Pay or total | 36 months with illness of the member or | accumulation of own contribution member of his family including interest thereon whichever is less. ii) | To pay cost of passage to a o Do- © Do- place out of India of a member or any member of his family iil) | To meet expenses in connection © Do- © Do- with marriage / funeral or any other social obligation. iv) | To meet the expenses to repair o Do- © Do- the damage caused to the movable/ immovable property ‘or to meet the expenses of normal repair to self owned immovable property v) | To meet expenses in connection |6 Basic Pay or _ total with marriage of self, brother, | accumulation of own contribution sister, daughter or son, including interest thereon | 60 months whichever is less.Si. PURPOSE OF LOAN PERMISSIBLE LIMIT REPAYMENT No. PERIOD vi)a) [To mest cost of higher[6 Basic Pay or total education including traveling | accumulation of own contribution] Do expenses of any child of the | including interest thereon member actually dependent on | whichever is less.- him/her for education outside India for undertaking academic [technical professional/ vocational course beyond b) | matriculation stage. -Do- -Do- To meet cost of higher education for medical, engineering or other technical or specialized course in India beyond the matriculation stage. 11) NON REFUNDABLE PF WITHDRAWALS Purpose of loan Permissible ii Eligibility To meet the cost of treatment | 100% of own contribution plus | Minimum — completed for any serious ailment like 100% of additional contribution kidney transplant or heart | (VPF) if any, minus outstanding | due surgery of member or | balance of refundable loans if member's spouse of children._| any service of 10 years or is to retire within 10 years. To pay/incur expenses in| 75% of own contribution plus connection with marriage of member's son or daughter. 100% of outstanding balance of refundable loans if any Minimum 20 years of (VPF) if any, minus | service or 45 years of age. To meet expenditure on] 100% of own contribution plus 100% of VPF, if any, — minus | service of 10 years or is outstanding “balance —_of | due building a house / flat or purchasing a site or to repay loan previously raised for | refundable loans if any or cost of | next construction purchase of | actual_construction of house house whichever is less. Minimum ‘completed to retire within the 10 years. Withdrawal within 12 months before retirement 90% of own contribution and 90% of VPF, if any Meeting the cost of higher education including where | exceeding necessary the traveling ional expenses of any child of the member actually dependent ‘on him/her in the following cases, namely : (© Education outside India | higher for academic /technical/ | amount professional or vocational courses beyond the | member matriculation stage. Non ~ refundable withdrawal not terms_of_rule_8A_and_interest thereon ie, VPF contributions of the member to the extent of shortfall between the cost of education and the ‘of education loan sanctioned by the bank. The in each case shall provide the proper_documents/ 100% of the tributions made in