PUNJAB NATIONAL BANK

PF & PENSION FUND DEPARTMENT

HO: Rajendra Bhawan, Rajendra Place NEW DELHI TEL : 25744812, 25744827, 25744377 FAX : 25744855,

PF & PENSION
CIRCULAR NO. 8/10

August 16, 2010

TO ALL OFFICES

PF & PENSION FUND DEPARTMENT CIRCULAR NO.8/2010 ANOTHER PENSION OPTION IN TERMS OF SETTLEMENT (WORKMEN EMPLOYEES)/JOINT 27.04.2010 (OFFICERS) 9TH BI-PARTITE NOTE DATED

Memorandum of Settlement dated 27th April 2010, in the case of Workmen Employees and Joint Note dated 27th April 2010 in the case of Officer Employees (copies enclosed as Annexure A & Annexure B) have been signed between Indian Banks Association (IBA) on behalf of Management of Banks and Representatives of Workmen Employees Unions and Officers Association offering another Pension Option. 2. Indian Banks Association (IBA) vide their Circular No. CIR/HR&IR/G2/665/90/2010-11/999 dated August 10, 2010 has informed as under: 1. To facilitate early implementation, Government has consented IBA advising all Banks that they may undertake the exercise for seeking the option from the employees both serving and retirees who did not opt for pension earlier, explaining the terms and conditions for such option. Sanction of the Government is also accorded to implement the terms of Settlement/Joint Note dated 27th April 2010 between IBA and Unions/ Associations for the grant of option to the retirees and payment of pension to such retirees w.e.f. 27th November 2009, who opt for pension and comply with terms and conditions set out in the Settlement/ Joint Note for the grant of pension, pending necessary amendments in the Bank (Employees) Pension Regulations, 1995. The existing pension scheme will not be applicable to those, who join the services of the banks on or after 1st April 2010. Officers/Workmen employees joining services of banks on or after 1st April 2010 shall be eligible for Defined Contributory Pension Scheme

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on the lines of New Pension Scheme introduced for employees of Central Government. The Officer/Workmen employees joining service on or after 1st April 2010 shall contribute 10% of Pay and DA towards the Defined Contributory Pension Scheme. 4. Officer/Workmen employees, who opted for Voluntary Retirement under special Voluntary Scheme after rendering a minimum of 15 years service, shall be eligible to exercise option to join the Pension Scheme subject to terms and conditions applicable to retirees. Pension/Family Pension will be payable to those, who opt to join pension scheme and comply with terms and conditions set out in the Settlement / Joint Note dated 27.04.2010. In terms of Settlement/Joint Note dated 27th April 2010, another option for joining the existing Pension Scheme shall be extended to: EMPLOYEES/OFFICERS WHO WERE IN THE SERVICE OF THE BANK PRIOR TO 29TH SEPTEMBER 1995 AND CONTINUED TO BE IN THE SERVICE OF THE BANK ON THE DATE OF SETTLEMENT/ JOINT NOTE DATED 27.04.2010 AND THEREAFTER OR HAVE RETIRED ON OR AFTER 27.04.2010 PROVIDED THAT THEY: 1. 2. Exercise an option in writing within 60 days from the date of offer, to become a member of the Pension fund and Authorize the Trust of the Provident Fund of the Bank to transfer the entire contribution of the bank along with interest accrued thereon to the credit of the Pension Fund. Employees/Officers in service including those who retired on or after 27.04.2010 will also have to contribute their share in contribution towards meeting 30% of funding gap from their arrears received on account of Wage Revision. It has been worked out @ 2.8 times of the Revised Pay for the month of November 2007. However, the employees who had retired on or after 27.04.2010 will in addition to the said 2.8 times of revised pay have to refund Banks Contribution to the Provident Fund along with up to date interest paid to them on retirement.

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EMPLOYEES/OFFICERS WHO WERE IN THE SERVICE OF THE BANK PRIOR TO 29TH SEPTEMBER 1995 AND RETIRED AFTER THAT DATE BUT PRIOR TO THE DATE OF SETTLEMENT/JOINT NOTE DATED 27.04.2010 PROVIDED THAT THEY: 1. 2. Exercise an option in writing within 60 days from the date of offer, to become a member of the Pension fund and Refund within 30 days after expiry of the said period of 60 days, the entire amount of the banks contribution to the Provident Fund and interest accrued thereon received by him on retirement together with his share in contribution towards

meeting 30% of the funding gap. On an individual basis, the payment over and above the banks contribution to Provident Fund and interest thereon has been worked out at 56% of the said amount of Banks contribution to Provident Fund and interest thereon received by the officer/employee on retirement. 3. THE FAMILY OF THOSE OFFICERS/EMPLOYEES WHO WERE IN THE SERVICE OF THE BANK PRIOR TO 29TH SEPTEMBER 1995, RETIRED AFTER THAT DATE AND HAD DIED WILL BE ELIGIBLE FOR FAMILY PENSION PROVIDED: 1. The family of the deceased officer/employee exercises an option in writing within 60 days from the date of the offer to become a member of the Pension Fund and Refund within 30 days after expiry of the said period of 60 days, the entire amount of the banks contribution to the Provident Fund and interest accrued thereon received by the officer/employee on retirement together with his share in contribution towards meeting 30% of the funding gap. On an individual basis, the payment over and above the banks contribution to Provident Fund and interest thereon has been worked out at 56% of the said amount of Banks contribution to Provident Fund and interest thereon received by the officer/employee on retirement.

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THE FAMILY OF THOSE OFFICERS/EMPLOYEES WHO WERE IN THE SERVICE OF THE BANK PRIOR TO 29TH SEPTEMBER 1995 BUT HAVE DIED WHILE IN SERVICE OF THE BANK AFTER THAT DATE BUT PRIOR TO 27.04.2010 WILL BE ELIGIBLE FOR FAMILY PENSION PROVIDED: 1. The family of the deceased officer/employee exercises an option in writing within 60 days from the date of the offer to become a member of the Pension Fund and Refund within 30 days after expiry of the said period of 60 days, the entire amount of the banks contribution to the Provident Fund and interest accrued thereon received by the officer/employee on retirement and by the family of the officer/employee after death together with his share in contribution towards meeting 30% of the funding gap. On an individual basis, the payment over and above the banks contribution to Provident Fund and interest thereon has been worked out at 56% of the said amount of Banks contribution to Provident Fund and interest thereon received by the officer/employee on retirement.

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THE FAMILY OF THOSE OFFICERS/EMPLOYEES WHO WERE IN THE SERVICE OF THE BANK PRIOR TO 29TH SEPTEMBER 1995 BUT HAVE RETIRED/DIED WHILE IN SERVICE OF THE BANK ON OR AFTER 27.04.2010 WILL BE ELIGIBLE FOR FAMILY PENSION PROVIDED: 1. The family of the deceased officer/employee exercises an option in writing within 60 days from the date of the offer to become a member of the Pension Fund and Refund within 30 days after expiry of the said period of 60 days, the entire amount of the banks contribution to the Provident Fund and interest accrued thereon received by the officer/employee on retirement/ by the family after death together with his share in contribution towards meeting 30% of the funding gap which has been worked out @ 2.8 times of the revised pay for the month of November 2007.

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SUBMISSION OF PENSION OPTION FORMS CATEGORY The employees/officers who are in the service of the Bank The employees/officers who were in the service of the Bank as on 27.04.2010 but have retired thereafter The employees/officers who retired on or after 29th September 1995 but prior to 27.04.2010 The widow/ widower/ son/ unmarried daughter/ legally divorced daughter/guardian of the minor son/daughter of the retired employee/officer who were in service as on 29.09.1995 but have expired prior to 27.04.2010 The widow/ widower/ son/ unmarried daughter/ legally divorced daughter/guardian of the minor son/daughter of the employee/officer who were in service on 27.04.2010 and thereafter but have expired ANNEXURE Annexure I Annexure IA

Annexure II

Annexure III

Annexure IV

The Option Forms are to be submitted within 60 days from the date of offer i.e. 27.08.2010 to 25.10.2010 through HRMS. The detailed guidelines and navigation for submission of Pension Option forms in HRMS are being issued separately. (ii) The employees/officers in service will submit the Option form (4 copies - system generated) at the Branch in which they are working, the Branch will keep one copy with them, acknowledge second copy

and give it to the employee and forward the remaining two copies to the Circle Office who will keep one copy each for their record and forward the fourth copy after consolidating the records of Pension Optees received from all branches of their Circle in one lot to PF & Pension Fund Department, Head Office New Delhi. The employees working in the office of GM (Field) will also send two copies of Pension Option Forms to the concerned Circle as per location in HRMS. However, in case of HO Divisions, they will forward one copy each from their record after consolidating the records of Pension Options received from their employees to PF & Pension Fund Department, Head Office, directly. The last date for submission of Pension Option letters by Branches to concerned Circle Offices will be 28.10.2010 and by Circle Offices/HO Divisions to PF & Pension Fund Department, it will be 03.11.2010. (iii) The employees/officers who have retired and widow/widower/son/unmarried daughter/legally divorced daughter/guardian of the minor son/daughter of the deceased retired employees eligible for pension can approach any nearest Branch of Punjab National Bank for submitting the Option Forms (5 copies system generated). The said Branch will keep one copy with them, acknowledge second copy and give it to the employee/family member, forward one copy to the Branch from where the employee had retired and forward the remaining two copies to the Circle Office (in which the said Branch falls) who will keep one copy each for their record and forward the fifth copy after consolidating the records of Pension Option received from all Branches of their Circle to PF & Pension Fund Department, Head Office, New Delhi. However, in case of employees who had retired from HO Divisions, the Branch which will receive Pension Option will forward two copies to the HO Division/Circle Office from where the employee had retired who will keep one copy each for their record and forward the other copy after consolidating the records of Pension Options received relating to their Division to PF & Pension Fund Department, Head Office. The last date for submission of Pension Option letters by receiving Branch to the Branch/Circle Office/HO Division from where the employee/officer had retired will be 28.10.2010 and thereafter by Circle Offices/HO Divisions to PF & Pension Fund Department will be 03.11.2010. 5. (a) At the time of submission of consolidated list along with option forms of the employees/officers who are in service including those who were in service on 27.04.2010 but had retired on or after 27.04.2010 and also from the family members of such employees/officers who have died on or after 27.04.2010, the Circle Office will also remit the amount kept in respect of those in Sundries (2.8 times of revised Pay), to PF & Pension Fund Department, HO,

New Delhi. In addition, such retired employees/family members shall also ensure refund of entire Banks contribution along with interest as paid to them, latest by 24.11.2010. (b) The retired employees/officers/family members of the retired deceased employee/officer who had retired/died prior to 27.04.2010 and are eligible to opt for pension/family pension would also be required to refund the amount of Banks Contribution to Provident Fund with interest paid at the time of retirement along with 56% of the said amount within the stipulated period i.e. 24.11.2010. 6. The amount to be refunded by the retired employees/officers/family members can be deposited by them at any Branch of Punjab National Bank for credit of A/c No. 0153002100170723. While depositing the amount, it should be ensured that PF Number and Name of the employee/officer is invariably mentioned/entered in the system. Pension Proposals of eligible optees will, however, have to be submitted only at the Branch/Office from where the employee/officer had retired/ceased to be in service. The amount to be refunded by the retiring employees/officers or their family members (in case of deceased employees/officers) who opt for Pension Option shall be advised to the Branches separately for advising/communicating the same to them. However, the commuted value of pension will be ascertained only after the pension proposal is received from the Branches/ Circle Offices/HO Divisions (as per the existing system for submission of Pension Proposals). The commuted value will be value based on next date of birth of the employee from the date of commencement of Pension option i.e. 27.08.2010. 9. IBA has also informed that they are arranging to publish an advertisement in English in a National Daily and other newspapers in Regional Languages advising the retirees to approach the Banks in this regard. Incumbents Incharge of Branches/Divisional Heads of HO Divisions/Departments and Circle Heads of Circle Offices are requested to bring the contents of the Circular to the Notice of all Staff Members working at their Branch/Office and display the instructions on the Notice Board of the Branch/Office and suitably inform about the same to the employees/officers who have retired from their Branch/Office or also the employees on sabbatical leave/under suspension/gone abroad/ long leave/unauthorizedly absent, etc. at the last given/available address. Employees/ Officers on deputation to other Banks/Departments be also informed at their present office of posting. They are also requested to extend necessary assistance to the retired employees/family members in the matter.

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For the convenience of the authorities as well as employees including retired employees, we are giving below the period up to which various formalities have to be completed by the concerned employee/Officer/Office. Within 60 days from the date of pension offer through HRMS. (27.08.2010 to 25.10.2010) Within 30 days after expiry of the said period of 60 days. (26.10.2010 to 24.11.2010)

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Date of submission of Option letters by existing employees as well as retired employees/family members of the deceased employees who are eligible for pension option. Refund of amount by the retired employees/family members of the deceased employees

Any option not received or full amount of refund not made by the stipulated dates will render the pension option invalid. All the copies of Pension Option Forms should be duly signed by the applicant and countersigned by the authorized officials of the receiving Branch in original. No photo copy would be entertained. All other terms and conditions as per PNB (Employees) Pension Regulations, 1995 as amended from time to time would remain applicable. Note: The above instructions have been issued to facilitate the employees/officers/retired employees/officers to understand the modalities of submitting pension option and for refunding the amount but the same ARE SUBJECT TO APPROVAL OF THE BANKS BOARD.

DY. GENERAL MANAGER

ANNEXURE-I OPTION FORM TO BE FILLED IN BY THE EMPLOYEES WHO ARE IN SERVICE OF THE BANK. Date _________ To, The Chief Manager, PF & Pension Fund Department, Head Office, Rajendra Bhawan Rajendra Place, NEW DELHI. I hereby declare that I have read and understood the terms of the Settlement/ Joint Note dated 27.04.2010 for extending another option to join Pension Scheme. I have understood that the terms of the Settlement/Joint Note have been arrived at on the basis of the Unions/Associations offering to contribute 30% of the initial funding gap assessed for extending another option for joining the pension scheme. I am agreeable to the said contribution of 30% towards the initial funding gap and hereby voluntarily opt to become a member of the Banks Pension Scheme as per the provisions of the said Settlement/Joint Note and cease to be a member of Contributory Provident Fund Scheme and irrevocably authorize the Bank/Trustees of the Contributory Provident Fund to transfer the entire contribution of the Bank along with entire interest accrued thereon to the credit of Pension Fund to be created for this purpose. I also authorize the Bank to transfer to the pension fund an amount an amount equal to 2.8 times of my revised pay for the month of November 2007 representing my share in the 30% contribution mentioned above from the arrears paid on account of Wage Revision in terms of Bipartite Settlement/Joint Note dated 27.04.2010. Signature

Name in Full Designation PF Account No. Present Residential Address

_______________________________ (Signature/Thumb Impression Attested)* Name of the Official _______________ GBPA No.______________________ Name of the Branch/Office ________________ Note: Additions/alterations in the text of the above form will render the option invalid. *To be attested by the Incumbent Incharge/Establishment Incharge with GBPA and seal where option submitted.

ANNEXURE-IA OPTION FORM FOR EMPLOYEES/OFFICERS WHO WERE IN SERVICE OF THE BANK ON 27.04.2010 BUT RETIRED THEREAFTER Date _________ To, The Chief Manager, PF & Pension Fund Department, Head Office, Rajendra Bhawan Rajendra Place, NEW DELHI. I hereby declare that I have read and understood the terms of the Settlement/ Joint Note dated 27.04.2010 for extending another option to join Pension Scheme. I have understood that the terms of the Settlement /Joint Note have been arrived at on the basis of the Unions/Associations offering to contribute 30% of the initial funding gap assessed for extending another option for joining the pension scheme. I am agreeable to the said contribution of 30% towards the funding gap and hereby voluntarily opt to become a member of the Pension Scheme as per the provisions of the said Settlement/Joint Note and cease to be a member of Contributory Provident Fund Scheme. I undertake to refund the Banks contribution to Provident Fund together with interest thereon paid to me and also irrevocably authorize the Bank to transfer an amount equal to 2.8 times of revised pay for the month of November 2007 representing 30% contribution mentioned above from the arrears paid on account of Wage Revision in terms of Bipartite Settlement/Joint Note dated 27.04.2010 to the Pension Fund. Signature

Name in Full Designation PF Account No. Present Residential Address

_______________________________ (Signature/Thumb Impression Attested)* Name of the Official _______________ GBPA No.______________________ Name of the Branch/Office ________________ Note: Additions/alterations in the text of the above form will render the option invalid. *To be attested by the Incumbent Incharge/Establishment Incharge with GBPA and seal where option submitted.

ANNEXURE-II OPTION FORM TO BE FILLED BY THE EMPLOYEES RETIRED ON OR AFTER 29TH SEPTEMBER 1995 BUT PRIOR TO 27.04.2010 Date _________ To, The Chief Manager, PF & Pension Fund Department, Head Office, Rajendra Bhawan Rajendra Place, NEW DELHI. I hereby declare that I have read and understood the terms of the Settlement/ Joint Note dated 27.04.2010 for extending another option to join Pension Scheme. I have understood that the terms of the Settlement /Joint Note have been arrived at on the basis of the Unions/Associations offering to contribute 30% of the initial funding gap assessed for extending another option for joining the pension scheme. I am agreeable to the said contribution of 30% towards the funding gap and hereby voluntarily opt for Banks Pension Scheme as per the provisions of the said Settlement/Joint Note. I undertake to refund the Banks contribution to Provident Fund together with interest thereon paid to me on my retirement plus an amount equal to 56% of the Banks Contribution to Provident Fund with interest received at the time of retirement being 30% contribution towards the initial funding gap in terms of Clause 3(c) of Joint Note dated 27.04.2010 and Clause 2(IV)(b) of the Settlement dated 27.04.2010. Signature

Name in Full Designation PF Account No. Present Residential Address

_______________________________ (Signature/Thumb Impression Attested)* Name of the Official _______________ GBPA No.______________________ Name of the Branch/Office ________________ Note: Additions/alterations in the text of the above form will render the option invalid. *To be attested by the Incumbent Incharge/Establishment Incharge with GBPA and seal where option submitted.

ANNEXURE-III OPTION FORM FOR FAMILY PENSION (FOR RETIRED EMPLOYEES/OFFICERS WHO WERE IN SERVICE AS ON 29.09.1995 BUT HAD EXPIRED PRIOR TO 27.04.2010) Date _________ To, The Chief Manager, PF & Pension Fund Department, Head Office, Rajendra Bhawan Rajendra Place, NEW DELHI. Shri/Smt. ______________________ (Full Name) was an employee of Punjab National Bank last working at ________________________________________ Branch/Office. I, the spouse/son/unmarried daughter/legally divorced daughter/guardian of the minor son/daughter of the above named deceased employee, hereby declare that I have read and understood the terms of Settlement/ Joint Note dated 27.04.2010 for extending another option to join Pension Scheme. I have understood that the terms of the Settlement/ Joint Note have been arrived at on the basis of the Unions/Associations offering to contribute 30% of the initial funding gap assessed for extending another option for joining the pension scheme. I am agreeable to the said contribution of 30% towards the funding gap and hereby voluntarily opt for Banks Pension Scheme as per the provisions of the said Settlement/Joint Note. I undertake to refund the Banks contribution to Provident Fund together with interest thereon paid to Shri/Smt. ___________________________ on his/her retirement/ to the nominee or legal heirs on his/her death while in service plus an amount equal to 56% of the Banks contribution to Provident Fund with interest received at the time of retirement being 30% contribution towards the initial funding gap in terms of Clause 3(c) of Joint Note dated 27.04.2010 and Clause 2(IV) (b) of the settlement dated 27.04.2010. Signature or Thumb Impression of Widow/ Widower/ Guardian/ Son/ Unmarried daughter/legally divorced daughter Name of the widow/ widower/ Guardian/ Son/ Unmarried daughter/legally divorced daughter Relationship with the deceased employee PF No. Last Designation Date of Retirement Date of Death Present Residential Address

_______________________________ (Signature/Thumb Impression Attested)* Name of the Official _______________ GBPA No.______________________ Name of the Branch/Office ________________ Note: Additions/alterations in the text of the above form will render the option invalid. *To be attested by the Incumbent Incharge/Establishment Incharge with GBPA and seal where option submitted.

ANNEXURE-IV OPTION FORM FOR FAMILY PENSION (FOR EMPLOYEES/OFFICERS WHO WERE IN SERVICE ON OR AFTER 27.04.2010 BUT HAVE EXPIRED) Date _________ To, The Chief Manager, PF & Pension Fund Department, Head Office, Rajendra Bhawan Rajendra Place, NEW DELHI. Shri/Smt. ______________________(Full Name) was an employee of Punjab National Bank last working at ________________________________________ Branch/Office. I, the spouse/son/unmarried daughter/legally divorced daughter/guardian of the minor son/daughter of the above named deceased employee, hereby declare that I have read and understood the terms of Settlement/ Joint Note dated 27.04.2010 for extending another option to join Pension Scheme. I have understood that the terms of the Settlement/ Joint Note have been arrived at on the basis of the Unions/Associations offering to contribute 30% of the initial funding gap assessed for extending another option for joining the pension scheme. I am agreeable to the said contribution of 30% towards the funding gap and hereby voluntarily opt for Banks Pension Scheme as per the provisions of the said Settlement/Joint Note. I undertake to refund the Banks contribution to Provident Fund together with interest thereon paid to Shri/Smt. ___________________________ on his/her retirement/death to the nominee or legal heirs and also irrevocably authorize the Bank to transfer an amount equal to 2.8 times of revised pay for the month of November 2007 representing 30% contribution mentioned above from the arrears paid on account of Wage Revision in terms of Bipartite Settlement/Joint Note dated 27.04.2010 to the Pension Fund. Signature or Thumb Impression of Widow/ Widower/ Guardian/ Son/ Unmarried daughter/legally divorced daughter Name of the widow/ widower/ Guardian/ Son/ Unmarried daughter/legally divorced daughter Relationship with the deceased employee PF No. Last Designation Date of Retirement Date of Death Present Residential Address

_______________________________ (Signature/Thumb Impression Attested)* Name of the Official _______________ GBPA No.______________________ Name of the Branch/Office ________________ Note: Additions/alterations in the text of the above form will render the option invalid. *To be attested by the Incumbent Incharge/Establishment Incharge with GBPA and seal where option submitted.