The Hindu Business Line : Bank unions, IBA agree on common actuaries

New Delhi, March 21 Bank unions under the aegis of the United forum of Bank Unions (UFBU) and the Indian Banks’ Association (IBA) have agreed on a common panel of actuaries to compute the additional cost involved in providing one more round of option for bank employees to join the pension scheme.

About 2.85 lakh bank officers and employees are looking forward to opt for pension scheme. They had in the mid-nineties opted for provident fund as a retirement benefit as against pension. The changes in the economic environment in the recent years has made pension more attractive than provident fund. They are now demanding that another chance be given to them to opt for the pension benefit.

“Two actuaries would now work together to determine the cost. UFBU and IBA have agreed on the names. There will be further talks on March 25 to decide on the common parameters under which they would function”, Mr C.H. Venkatachalam, convenor of the UFBU told Business Line here.

The two actuaries are Mr D. Basu (from Kolkata) and Mr K.P. Sharma (from Hyderabad). The names of these two actuaries were decided at the recent meeting between the UFBU and IBA held on March 18.

As of now, there is a wide discrepancy on the cost estimates of the IBA and that of the bank unions. While IBA contends that another round of pension option would imply an additional cost of Rs 26,000 crore, the bank unions are pegging it about Rs 4,700 crore.

In February this year, both IBA and the UFBU signed a memorandum of understanding (MOU) to discuss the unions’ demands on pension, outsourcing and compassionate appointments.

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