All persons who join public sector banks on or after April 1, 2010 would come under the government’s new pension system (NPS).
Public sector banks are set to hire 30,000-40,000 employees in the next two years, with about 35 per cent of the total staff set to retire by 2011.
“All new recruits would come under the NPS, the move would also give a push to the new system,” a senior finance ministry official said on the condition of anonymity.
Despite several incentives that were announced by Finance Minister Pranab Mukherjee in the Union Budget, there have been few takers for the NPS.
Trade unions have opposed the move to bring new employees under the NPS. “We are trying to find a solution,” CH Venkatachalam, general secretary, All India Bank Employees’ Association, told Hindustan Times. “We are holding talks with the government and the bank managements… to ensure that their rights are fully protected.”
The Pension Fund Regulatory and Development Authority Bill needs to be reintroduced in Parliament, as it had lapsed with the dissolution of the Lok Sabha before the general elections.
The government had made it mandatory for all central government employees who joined on or after January 1, 2004 to be brought under the NPS. Several public sector undertakings have also switched to the NPS for their employees.
Government officials say the bill is likely to be taken up in the forthcoming Parliament session, and that even though financial sector reforms are critical, the government would go ahead with them only when there is consensus among all coalition partners.
