Bank of Baroda: Salary & Allowances

Split Duty Allowance

            Split Duty Allowance shall be payable at Rs 165/- p.m.

Provident Fund

(a) While the officers who are presently covered under the Pension Scheme and those who will join the Pension Scheme in terms of option being made available under joint note dated 27^th April,2010 shall continue to contribute 10% of the pay towards Provident fund, there shall be no matching contribution.

(b) Officers who are presently covered under Contributory Provident Fund Scheme who do not opt for Pension Scheme being made available under Joint Note dated 27^th 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 1^st 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 of Baroda will make a 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. 1^st January 2004 and modified from time to time.

Non refundable withdrawal from Provident fund

All confirmed employees and regular member of PF Trust of the Bank who have

Completed 10 years of Service and against whom no disciplinary action has been initiated /pending as on date of application. Purpose and quantum of non-refundable withdrawal are

Reference Circular No.HO:BR:100/130 dated 26.08.2008

New Pension Scheme

In terms of Joint Note dated 27.04.2010 between IBA & Officers Organisations on extending another option for pension, Officers  joining the services of the Bank on or after 01.04.2010 are eligible for the Defined Contributory Pension Scheme, which is similar to the one governed by the provisions of New Pension Scheme introduced for the employees of Central Government w.e.f. 01.01.2004 and as modified from time to time.  Hence they are not eligible for becoming members of Bank’s Provident Fund Scheme and Pension Scheme.

In view of the above, in respect of officers of the Bank who have joined the service of the Bank on or after 01.04.2010, deduction towards New Pension Scheme at the rate of 10% of Pay and Dearness Allowance from the salary with a matching contribution from Bank is being made and kept separately till the New Pension Scheme  is implemented and operationalised.

Indian Bank’s Association has advised that Bank’s may choose the Government  Sector Pension Fund Model Scheme(PFMS) as the Joint Note and signed at industry level  provides for a scheme which will be as governed by the provisions of the New Pension Scheme introduced for Central Government Employees.

Bank has decided to implement and make New Pension Scheme (NPS) operational who have joined the Bank’s service on or after 01.04.2010 under Government Sector Model through Bank of Baroda as Point of Presence (POP).

Accordingly, the Board of Directors has authorised the Bank to implement and make NPS Scheme operational for employees who have joined the Bank’s service on or after 01.04.2010 , under Government Sector Model through Bank of Baroda as Point of Presence(POP)

Bank  has already enlisted itself as a Point of Presence (POP) in order to enable the Bank for opening of Permanent Retirement Account and obtaining Permanent Retirement Account Number (PRAN) for every staff member joining the Scheme.  Head Office Baroda is arranging to forward the APPLICATION FORM for SUBSCRIBER REGISTRATIION  for filling the same by the employees who have joined on or after 01.04.2010 and who are still in service.  Bank has chosen Government Sector Pension Fund Model Scheme (PFMS).  Details guidelines for submission of  application form are given in the circular. Last date 31.01.2012.

BRIEF SALIENT FEATURES OF THE NEW PENSION SCHEME(GOVERNMENT SECTOR MODEL)

• The new Pension Scheme will work on defined contribution basis and will have two Tiers i.e. Tier I & II
• The contribution to Tier I  will be mandatory for all the members of the scheme whereas  contribution to Tier II will be optional and at the discretion of the employee.
• At present Tier II Fund is not operational as the modalities of the same are yet not finalized by the Government.  All members of the scheme will be advised suitable, as and when the modalities of Tier II  Fund are finalized
• In Tier I Fund, the members of the scheme are required to make contribution of 10% of his/her Basic Pay and Dearness Allowance which are being deducted from their Salary and Bank is making an equal matching contribution towards the said fund.
• Contribution in Tier I will be kept in non-withdraw able Pension Account.
• There will be a Central Record Keeping Agency.

• There will be three Pension Fund Managers namely :

a)    LIC Pension Fund Limited

b)    SBI Pension Fund Limited

c)    UTI Retirement Solutions Limited

• The deployment of Funds will be done by NPS Trustees among LIC Pension Fund Limited, SBI Pension Fund Limited and UTI Retirement Solutions Limited.  The current allocation of the fund is in proportion of 35%, 33%, and 32% respectively. The maximum equity exposure is restricted to 15%.
• Employees can exit at or after 60 years of age from Tier I Fund.  40% of Pension Wealth Fund mandatory for investment on exit.  This will provide for pension for lifetime and his/her dependent..
• To leave the scheme before 60 years of age, 80% of the Pension Wealth Fund is mandatory for investment.