PERMANENT

INDIAN OVERSEAS BANK Misc. No: EST /62 /2010-11

CENTRAL OFFICE Dated : 30.08.2010
CHENNAI Issuing Dept. : Pension Cell -
Personnel Administration Department.

Extension of another option to join the Existing Pension Scheme In terms of 9th Bi-partite
settlement (Workmen Employees)/Joint note (Officers) dated 27.04.2010

********************

A joint Note and Settlement dated 27.04.2010 was signed by IBA with Officers’
Organisations and Workmen Unions respectively on extending another option for
pension to the non-optees who were in the service of the Nationalised Banks prior to
29th September 1995 and continued to be in service on or after the said date and did
not opt for pension earlier.

Government has consented Indian Banks’ Association 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.

We are pleased to inform that Our Board in the meeting held on 21.08.2010 has
accorded approval to extend another option to join the Pension Scheme to both the
serving workmen/officers and retirees and eligible dependents of deceased
workmen/officers and to circulate the terms and conditions on which another option is
granted to non–optees in terms of Joint Note/ Settlement dt 27.04.2010 signed by
Indian Banks’ Association with Officers’ Organisations and Workmen Unions, pending
amendments to Indian Overseas Bank (Employees’) Pension Regulations 1995.

The terms and conditions to join the existing pension scheme are furnished in the
Annexure.

Branches/Regional Offices are advised to bring this Circular to the notice of all staff
members working at their branch/office.

[S CHANDRASEKHARAN]
GENERAL MANAGER
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Annexure to Circular No.Per/Misc/EST/62/2010-11 dated 30.08.2010

Another option for joining the existing Pension Scheme shall be extended to
Officers/Workmen Employees who:

1. (i) were in the service of the bank prior to 29th Sept. 1995 and continue in the service
of the bank on the date of the Joint Note /Settlement dated 27th April 2010.
Workmen/Officers who are in the service of the bank as on the date of this Joint
Note/Settlement who exercise the option to join the pension scheme in terms of this
Joint Note/Settlement will contribute from their arrears on account of wage revision
towards funding gap. The said amount is worked out at 2.8 times of the revised pay for
the month of November 2007 for individual Officers/Employees.

(ii) exercise an option in writing within 60 days from the date of offer to become a
member of the Pension Fund and

(iii) 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.

2. (i) were in the service of the Bank prior to 29th Sept. 1995 and retired after that date
and prior to the date of this Joint Note / Settlement.

(ii) exercise an option in writing within 60 days from the date of the offer to become the
member of the Pension Fund and

(iii) refund within 30 days after expiry of the said period of 60 days the entire amount of
the bank’s contribution to the provident fund and interest accrued thereon received
by the employee on retirement together with his share in contribution towards meeting
the funding gap. On an individual basis, the payment over and above the bank’s
contribution to Provident Fund and interest thereon has been worked out at 56% of the
bank’s contribution to the Provident Fund and interest thereon received by the
Employee/Officer on retirement.

3. (i) were in the service of the bank prior to 29th Sept. 1995 retired after that date and
died, will be eligible for family pension provided,

(ii)the family of the deceased employee exercises option in writing within 60 days of the
offer to become a member of the Pension Fund and

(iii) refund within 30 days after expiry of the said period of 60 days the entire amount of
bank’s contribution to the Provident fund and interest accrued thereon received by
the deceased employee on retirement together with his share in contribution towards
meeting the funding gap. On an individual basis, the payment over and above the
bank’s contribution to Provident Fund and interest thereon has been worked out at 56%
of the bank’s contribution to the Provident Fund and interest thereon received by the
Employee/Officer on retirement.

4.(i) were in the service of the bank prior to 29th Sept.1995 but have died while in service
of the bank after that date will be eligible for family pension provided,
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(ii) the family of the deceased employee exercises option in writing within 60 days of
the offer to become a member of the Pension Fund and

(iii) refund within 30 days after expiry of the said period of 60 days mentioned above
the entire amount of bank’s contribution to the Provident fund and interest accrued
thereon received upon death of the employee together with his share in contribution
towards meeting the funding gap. On an individual basis, the payment over and
above the bank’s contribution to Provident Fund and interest thereon has been worked
out at 56% of the bank’s contribution to the Provident Fund and interest thereon
received on death of the Employee/Officer.

5. Officer/Workmen employees, who ceased to be in service on or after 29th September

1995 on account of voluntary retirement under special scheme [VRS-2000] after
rendering service for a minimum period of 15 years, shall be eligible to exercise option
to join the pension scheme subject to terms and conditions mentioned for retiring
Officers/Workmen opting for joining the pension scheme.

6. (i) The existing pension scheme will not be applicable to those who joined the
services of the bank on or after 01.04.2010.

(ii) Officers / Workmen employees joining the services of the bank on or after 01.04.2010
shall be eligible for the Defined Contributory Pension Scheme, the bank will be
introducing for them. The Defined Contributory Pension Scheme proposed to be
introduced for them will be one as governed by the provisions of New Pension System
introduced for employees of Central Government with effect from 01.01.2004 and as
modified from time to time. The scheme shall be regulated and administered by the
Pension Fund Regulatory and Development Authority (PFRDA).

(iii) The employees joining in the services of the bank on or after 1st April 2010 shall
contribute 10% of pay and dearness allowance towards the Defined Contributory
Pension Scheme and the bank shall make a matching contribution in respect of these
employees.

(iv) There shall be no separate Provident Fund for employees joining the services of the
Bank on or after 01.04.2010.

TERMS AND CONDITIONS:

1. Pension/Family pension to those who opt to join the Pension Scheme complying with
the terms of Joint note/Settlement dated 27.04.2010 shall be payable with effect from
27th November, 2009, provided that employees who retired after that date shall get
pension from the respective dates of their retirement. All the regulations of the Indian
Overseas Bank [Employees’] Pension Regulations 1995 shall be applicable to those who
opt for the Pension Scheme in terms of joint note / settlement dated 27.04.2010.

2. The option to join the pension Scheme shall be exercised by submitting the
appropriate option form prescribed hereunder:
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CATEGORY OPTION FORM

Employees/Officers who are in the service of the bank Annexure I
Employees/Officers who retired on after 29th September 1995 Annexure II
Family of those Employees/ Officers who are eligible for family Annexure III
pension

3. The Option forms are to be submitted within 60 days from 01.09.2010 i.e., the date of
offer to 30.10.2010.

OPERATIONAL INSTRUCTIONS:

1. The Employees/Officers in service have to submit option form to the branch as per
Annexure I. The branch will forward the option forms received from the employees to
the respective Regional Offices. On receipt of option forms from branches, Regional
Office should consolidate the option forms and forward to PAD-Pension Cell then and
there.

1.1. While forwarding the option letters received from branches for those
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, Regional Office should
confirm having recovered 2.8 times of the revised pay for the month of Nov.2007 and
furnish the details as per CO PER. Circular No. EST/57/2010-11 dated 20.05.2010 for
Award Staff/TranSeries Cir No.11 of 2010 dated 10.06.2010 for Supervisory Staff to PAD-
Pension Cell, Central Office.

1.2. The Employees/Officers who have retired and family of deceased retired
employees eligible for pension are advised to approach any nearest branch of Indian
Overseas Bank for submitting their option form as per Annexure II for retirees and
Annexure III for family of the deceased employees. The said branch will forward the
option forms directly to PAD-Pension Cell, Central Office.

1.3. In respect of Employees/Officers who had retired from Central Office/Regional

Office also, the branch will receive pension option form and forward to PAD Pension
Cell, Central Office.

1.4. Branches on being advised by PAD-Pension Cell, Central Office shall communicate
in writing to the Retired Employees/Family of the deceased employees from whom
option forms were received the amount to be refunded by them.

2. While remitting the amount to be refunded by retired Employees/family of the

deceased employees subsequent to their exercising option to join pension scheme by
them at the branch where they submitted their option forms, Branches should maintain
record of refund received memberwise by mentioning the Name, Roll Number and the
last branch/office attached and amount of refund received.

2.1. In terms of the provisions of the Indian Overseas Bank [Employees] Pension
Regulations, 1995, medical examination is mandatory for a retired employee who seeks
commutation of pension after one year from the date of his retirement and shall be
permitted by submitting option form subject to the medical examination only. Such
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retirees who opt for pension and seek commutation of pension shall approach PAD-
Pension Cell, Central Office to the modalities to complete the medical examination as
per existing guidelines. Commutation facility shall not be available for family pension.

2.2. Branches may remit the refund amount then and there to PAD-Pension Cell,
Central Office by means of MANUAL IBSA DRAWN ON PAD-PENSION CELL, CENTRAL
OFFICE [CODE NO.9040], furnishing full details of the retired Employees/ family of the
deceased employees.

3. Branches are advised to extend necessary assistance to the retired employees/

family of the deceased employees to exercise their option to join the existing pension
scheme.

3.1. Branches/Regional Offices/Central Office Departments are advised to bring the

period stipulated for forwarding the option forms given below to the notice of the
employees eligible to opt for pension.

1. Date of submission of option form by existing Within 60 days from the date of
employees, retired employees and family pension offer
members of the deceased employees who (01.09.2010 to 30.10.2010)
are eligible for pension option.
2. Refund of amount by the retired Within 30 days after expiry of the
employees/family members of the said period of 60 days.
deceased employees. (31.10.2010 to 29.11.2010)

4. Branches may advise the employees/ family of deceased employees that an option
not received within the stipulated date i.e., on or before 30.10.2010 and non refund of
Bank's Contribution to Provident Fund with accrued interest and their share in
contribution towards funding gap within the stipulated date i.e., on or before
29.11.2010 will render the option to join the Pension Scheme invalid.

5. Branches/Regional Office are advised to display in the notice board with regard to
extension of another option for pension as per annexure-IV.

6. Branches/Regional Office are advised to forward the option forms to DGM (VCR),
PAD-Pension Cell, Central Office in a separate cover superscribing “ANOTHER OPTION
FOR PENSION”.

7. All other terms and conditions of Indian Overseas Bank [Employees’] Pension
Regulations, 1995 as amended from time to time shall remain unaltered for the purpose
of this pension option.

*****************************************
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ANNEXURE – I

OPTION FORM TO BE FILLED IN BY THE EMPLOYEES

WHO ARE IN THE SERVICE OF THE BANK
To

The Trustees
Indian Overseas Bank, Staff Provident Fund
Central Office, Chennai 600 002.

I 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 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 Bank’s Pension Scheme as per the provisions of the said
Settlement/Joint Note and to 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 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 payable to me on account of wage revision in terms of Bipartite
Settlement/Joint Note dated 27.04.2010.

Signature
Name in full
Roll No.
Designation
Branch/Office attached

Seal ……………………………...
Signature Attested **
For Indian Overseas Bank

Date: Branch Manager/Dept. Head

-----------------------------------------------------------------------------------------------------------------------------------
For Official Use Only
Option Noted at Pension Cell, Personnel Administration Department, Central Office.

Senior Manager,
PAD-Pension Cell, Central Office
-----------------------------------------------------------------------------------------------------------------------------------
** [to be attested by an Officer designated by the Bank]
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ANNEXURE - II

Option form to be filled in by the employees Retired on or after

29th September 1995 in case of Nationalized Banks
To
The General Manager
Indian Overseas Bank
PAD Pension Cell
Central Office
Chennai 600 002.

I 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 Bank’s Pension Scheme as per the provisions of the
said Settlement/Joint Note. I undertake to refund the Bank’s contribution to Provident Fund
together with accrued interest thereon paid to me on my retirement plus an amount equal to
56% of the Bank’s contribution to Provident Fund with interest received at the time of retirement
being 30% contribution towards the initial funding gap in terms of Joint Note dated 27.04.2010
and the Settlement dated 27.04.2010.

Signature
Name in full
Roll No.
Designation
Type of retirement
Present Residential Address

Seal ……………………………...
Signature Attested **
For Indian Overseas Bank

Date: Branch Manager/Dept. Head

-----------------------------------------------------------------------------------------------------------------------------------
For Official Use Only
Option Noted at Pension Cell, Personnel Administration Department, Central Office.

Senior Manager,
PAD-Pension Cell, Central Office
-----------------------------------------------------------------------------------------------------------------------------------
** [to be attested by an Officer designated by the Bank]
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Annexure III

Option form is to be filled by the FAMILY of those employees,

who are eligible for family pension
To
The General Manager
Indian Overseas Bank
PAD Pension Cell
Central Office
Chennai 600 002.

I 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 Bank’s Pension Scheme as per the provisions of the
said Settlement/Joint Note. I undertake to refund the Bank’s contribution to Provident Fund
together with accrued interest thereon paid to my husband/wife/father/mother/son/daughter
(delete whichever is not applicable) on his/her death while in service/retirement from bank’s
service on my retirement plus an amount equal to 56% of the Banks’ contribution to provident
fund with interest received at the time of death/retirement being 30% contribution towards the
initial funding gap in terms of Joint Note dated 27.04.2010 and the Settlement dated 27.04.2010.

Signature
Name in full
Name of the Deceased employee &
Roll No.
Type of retirement
Last Working Branch / Office
Date of Retirement / Death
Present Residential Address

………………………………….
Seal Signature Attested **
For Indian Overseas Bank

Date: Branch Manager/Dept. Head

-----------------------------------------------------------------------------------------------------------------------------------
For Official Use Only
Option Noted at Pension Cell, Personnel Administration Department, Central Office.

Senior Manager,
PAD-Pension Cell, Central Office
----------------------------------------------------------------------------------------------------------------------------------
** [to be attested by an Officer designated by the Bank]
 9

Annexure IV

TO BE DISPLAYED IN THE NOTICE BOARD OF ALL BRANCHES/OFFICES FOR THE

INFORMATION OF ALL CONCERNED.

Sub: Attention of all Indian Overseas Bank employees and families of retired and
deceased employees- Another option for joining the pension scheme.
*********

This is to inform all concerned that a Memorandum of Settlement/Joint Note dated

27.04.2010 has been entered into between the Indian Banks’ Association and the
Workmen Union/Officers’ Associations extending another option to all those employees
who were in the services of the bank prior to 29th September, 1995 and retired after that
date and prior to 27.04.2010 and to the families of those employees who were in the
services of the bank prior to 29.09.1995 and retired and died before 27.04.2010 or died
while in service after 29.09.1995. The Salient features and the details of the eligibility and
the conditions for joining the pension scheme is detailed in our CO Circular No.
Per/Misc./EST/62/2010-11 dated 30.08.2010.

Please note that the last date for submitting the option and the refund of amount by
the retired employees/family members of the deceased employees is 30.10.2010 and
29.11.2010 respectively.

For any further assistance / clarification, you may contact:

1. Phone No: 044-2851 9644 / 2851 9731

2. email : pension@iobnet.co.in

General Manager
Personnel Administration Department
Central Office
Chennai-600002.