IBIEPGF RULES AND REGULATIONS

THE IMPERIAL BANK OF INDIA EMPLOYEES' PENSION AND GUARANTEE FUND

S.No
RULES AND REGULATIONS

1.

The fund intended to be hereby created and to be maintained as hereinafter provided shall be called "THE IMPERIAL BANK OF INDIA EMPLOYEES' PENSION AND GUARANTEE FUND" and its objects and business shall be to provide pensions to the Bank's employees and security to the Bank against losses arising from dishonesty on the part of employees required to furnish guarantees for the faithful discharge of their duties to the Bank. India.

2.

In these rules unless there is anything repugnant in the subject or context "Bank" means the State Bank of India provided that in regard to matter relating to the period prior to the 1st July 1955 it shall mean the Imperial Bank of India.

"Service or Service in the Bank" includes service in any of the former Presidency Banks by employees who were on the staffs of those Banks on the 26th January 1921 and who are members of this fund.

"The Staff in India" mean all employees in India who are members of this fund. "India" includes Pakistan, Burma and Ceylon. "The Staff in London" mean all employees in the London Office who are members of this fund.

"Substantive Salary" means substantive or basic pay, provided that in respect of the period 1st January 1962 to 31st July 1966 "Substantive Salary" shall mean (i) in the case of employees other than those covered by the Award of the National Industrial Tribunal in Reference 1 of 1960 (hereinafter referred to as "the Award" in respect of pay and allowances, substantive or basic pay, (ii) in the case of employees, other than subordinate staff so covered by the Award, eighty percent of the awarded basic pay and (iii) in the case of the subordinate staff, so covered by the Award, seventy five percent of the awarded basic pay.

From 1.9.78 "Substantive Salary" shall include other emolument or such portion thereof of a member as may for the time being be permitted by the Bank to rank for superannuation benefits under the rules of service applicable to the member.

3.

The trustees of the fund shall be the Directors of the Bank for the time being and at every meeting of such trustees one of the Directors not being an executive officer shall be elected chairman of the meeting.

4.

The presence of at least five trustees of whom two shall be executive officers of the Bank shall be necessary to form a board for the transaction of business. Each trustee shall have one vote, and in all cases of an equal division the chairman shall have a casting vote.

The trustees may appoint any one from their number, who shall be an executive officer of the Bank, to exercise on behalf of the trustees all powers and discretions vested in the trustees in connection with the sanctioning of payments under rule 5A (vi) and sanctioning of pensions admissible under these rules. The trustees may also appoint a committee from their number to carry on other ordinary business of the fund including the sale of securities and investment of funds. Three trustees shall form a quorum of the committee subject however to the overriding condition that two of the trustees present shall be Directors who are not executive officers of the Bank. All decisions of the committee must be unanimous, failing which the matter on which there is a division of opinion shall be referred to a meeting of the board of trustees.

4A.

Membership of the fund shall be confined to persons who were in the service of the Imperial Bank of India on the 30th June 1955 and were eligible to become members of the fund on that date.

5.

Every employee required to provide security to the Bank shall, xx he is a member of the fund, be required, to contribute to the guarantee section of the fund as hereinafter provided.

5A.

(i) Every employee being a member of the fund on the 1st November 1931 shall, as from that date, and every employee admitted to the fund thereafter shall as from the date of his admission contribute monthly to the pension section of the fund five per cent on his substantive salary but subject as from 1st July 1932 to a maximum of five per cent on Rs.1800 per mensem, such contributions being made by deduction from salary. The trustees shall have power at their discretion to suspend the operation of this rule or reduce the percentage of employees' contributions at any time and for such period as they shall it necessary but without retrospective effect. In respect of any period in which the full substantive salary of an employee is not payable to him, his contributions shall be calculated on his reduced substantive contribution during such period of his service as shall not be reckoned as service for pension in terms of Rule 16. Nothing contained in the above clause shall apply, on or after the 1st April 1968, to members of the fund on the staff in India.

(ii) Each employee's contributions to the pension section of the fund shall be credited in the books of the fund to an account in his name and a statement of the account shall be supplied to him half yearly.

(iii) Interest at such rate as may be prescribed by the Trustees from time to time shall accrue from day to day and shall be credited half yearly to each member's account by debit to the general balance of the pension section of the fund. Provided that interest on the balance of a member's account shall cease to accrue from the date of his leaving the service of the Bank otherwise than by retirement on pension and in any event from the date of his death.

(iv) In the event of a member retiring from the Bank's service, or on the event of a member dying, in each case before such member has qualified for a pension there shall be payable to him or, in the event of his death, to the persons and in the manner named in clause (vi) hereof, and in addition to any other benefit competent to him or them, the amount of such member's own contribution with interest accrued thereon.

(v) In the event of a member dying after he shall have qualified for a pension but before the total amount of the pension payments he shall have received equals the amount of his contributions to the pension section of the fund with interest accrued thereon, the residue shall be payable to the persons and in manner named in clause (vi) hereof.

(vi) On the death of a member the amount, if any, due to the member according to these rules shall be paid to his heirs, executors or administrators, or at the absolute discretion of the trustees the amount or any part or parts thereof may be paid to the widow, child or children or his, her or their guardian or custodian or other nearest relative of a deceased member or any other person appearing to the trustees to be entitled to receive same without any representation to the estate of such deceased member or any succession certificate being obtained and such payment shall be a good discharge to the trustees against all claims whatsoever in respect of the fund by any one whomsoever claiming through the said deceased member or otherwise.

6.

The Bank will subscribe monthly to the pension section of the fund a sum equal to five percent, of the salary payable by the Bank in respect of all employees who are required to contribute in terms of clause (i) of Rule 5A and ten per cent in respect of the other members of the fund. However, where an employee ceases to be in pensionable service in terms of Rule 16, no subscription will be made by the Bank for the period of such service. The amount of the Bank's subscription thus calculated, if it contains element of paise, will be rounded off to the next higher rupee.

7.

No employee shall have any right of property in fund beyond the amount of his contributions to the pension section of the fund with interest accrued thereon nor shall he have any voice in its management unless qualified as a trustee to the fund as hereinbefore provided.

8.

The Bank shall pay interest on all money of the pension and guarantees sections of the fund in deposit with the Bank at the rate fixed by it from time to time to be credited at the close of each half year, w.e.f. 1.4.86.

9.

The trustees may invest the moneys of either or both sections of the fund or any portion thereof in stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force.

The securities for the investments made under this rule shall be registered or held in the name of the State Bank of India and shall be deposited in safe custody in the Bank in the name of the trustees of the fund.

10.

An employee dismissed from the Bank's service for wilful neglect or fraud shall forfeit all claims upon the fund for pension.

11.

The retirement of all officers of the Bank shall be subject to the sanction by the competent authority designated by the Executive Committee of the Central Board of the Bank from time to time, provided however that a decision to deny sanction under these rules to an officer shall need the previous approval of the Executive Committee of the Central Board.The retirement of all other employees of the Bank shall be subject to the sanction of the competent authority designated by the Executive Committee of the Central Board of the Bank from time to time, provided however that a decision to deny sanction under these rules to an employee shall need the previous sanction of the Executive Committee or the Local Board concerned with his/her employment. Any officer or other employee who shall leave the service without sanction as required by this rule shall for forfeit all claim upon the fund for pension.

12.

A pension shall be regarded as only alimentary and therefore not assignable.It shall ipso facto cease in the event of an assignment being made.

13.

Pensions shall begin to accrue on the first day succeeding that of retirement and shall be payable monthly to the beneficiary personally or to his order when supported by a life certificate bearing his signature and attested by a magistrate, justice of the peace or banker.

13A.

Pensions shall in each case be debited to the member's account in the pension section of the fund until the balance thereof is exhausted and thereafter to the general balance of the pension section of the fund.

14.

If an officer of the Bank who is entitled to pension under these rules wishes to accept employment in any other bank at any time or any other commercial employment within two years from the date of retirement, he should obtain the previous sanction of the Competent Authority designated by the Executive Committee of the Central Board from time to time. The Competent Authority shall consider such proposals in accordance with the guidelines laid down from time to time by the Executive Committee.In exceptional circumstances, where the proposal does not conform to the guidelines laid down by the Executive Committee or the permission is proposed to be declined, it shall be considered by the Executive Committee.Should the officer undertake such employment without the sanction required under this rule it shall be competent for the trustees to withdraw the pension payable to him either in whole or in part at their discretion.

Provided that an officer permitted by the Executive Committee to take up a particular form of commercial employment during his leave preparatory to retirement shall not be required to obtain subsequent permission for his continuance in such employment after retirement.

Note : The term officer hereinabove shall also cover the Assistants who were governed by the rules governing the services of the Assistants in the Imperial Bank of India.

15.

No employee on the staff in India shall be entitled to pension until he shall have completed twenty-five years' service in India and no employee on the staff in London shall be entitled to pension until he shall have completed forty years' service except as hereinafter provided.

15A.

If an ex-employee rejoins the Bank's service the trustees in their absolute discretion may allow the period of his service prior to his rejoining to count for pension as if there had been no break in the continuity of such service.

16.

Save as hereinafter provided, service rendered in India before completing the age of twenty one years one after completing the age of 58 years shall not be reckoned as service for pension provided that if on the date of completion of the age of 58 years the employee has to his credit any ordinary or privilege leave the period of such leave shall be reckoned as service for pension to such extent of the leave as is availed of or to some extent of the leave for which service is rendered.Service in England shall count for pension from the date of first employment in London irrespective age.

17.

Leave granted by the proper authority and availed of up to the maximum permitted by the rules of the Bank shall be reckoned as service.

18.

Subject to the other provisions of these rules and regulations pensions shall, in the case of members on the staff in India, be payable at the rate of one-sixtieth part for every year's service of the average monthly substantive salary drawn during last twelve months'pensionable service and in the case of members on the staff in London, one-sixtieth part for every year's service of the salary at the date of retirement.Subject to the provision of Rule 20, the amount of pension payable under this rule or any other rule, if it contains an element of paise, shall be rounded off to the next higher rupee.

19.

(i) An employee retiring from the Bank's service after having completed twenty years' service with the Bank shall be entitled to pension provided the employee has attained the age of fifty years if employed on the staff in India or the female staff in London or sixty years if employed on the male staff in London.

(ii) An employee retiring from the Bank's service after having completed twenty years' service on the staff in India and/or on the staff in London shall be entitled to pension irrespective of the age he shall have attained if he shall satisfy the authority competent to sanction his retirement by approved medical certificate or otherwise that he is incapacitated for further active service.(Notwithstanding anything to the contrary in these rules and regulations the total of such employee's service whether in India or London shall count for pension under this rule)

(iii) An employee who has attained the age of fifty-five or who shall be proved to the satisfaction of the authority competent to sanction his retirement to be permanently incapacitated by bodily or mental infirmity from further active service (such infirmity not being the result of irregular or intemperate habits) may, at the discretion of the trustees be granted a proportionate pension.

20(1).

The maximum pension shall not exceed:

(a) In the case of employees on the staff in India, one-half of the average monthly substantive salary drawn during last twelve months pensionable service or Salary drawn during last twelve months pensionable service or Rs. 2,400/- p.m. Whichever is less:

(b) In the case of employees on the staff in London who have not done previous service in India, pounds 600 per annum.

Provided that the pension payable to the staff in India under the revised rules from 1.1.86 shall not be less than that payable under the previous rules.

20(2).

The minimum pension shall not be less than Rs.300/- per mensem to employees on staff in India.

20A(1).

In the event of death of a member (I) while in service of the Bank after completion of pensionable service of one year or (II) after retirement, the trustees may sanction family pension to the dependent(s) of the employee on the terms and conditions approved by the Central Board.

21.

Members of the fund on the London staff who may be transferred to the staff in India shall be governed by the pension rules relating to the staff in India. Their pensionable services shall count from the date of their joining the India staff plus 7 1/2 months for every year of service in the London Office after they have attained the age of twenty-one.

22(a).

Members of the fund on the staff in India who may be transferred to the London staff shall continue to be governed by the pension rules applicable to the staff in India save that one year on the London staff shall count as the equivalent of seven and a half months'pensionable service and may be added to the years of service on the Indian staff. Provided that if the transfer is purely temporary, service in London shall count the same as service in India.

The pensions of members retiring under this section shall be payable in rupees and shall be calculated as follows:- Under 1 1/2 years' service On the average substantive salary drawn during the last In London 5 years in India Over 1 ½ " " " 4 " Over 3 " " " 3 " Over 4 ½ " " " 2 " Over 6 " " On the last years' substantive salary in India

OR

(b) They may elect to draw their pensions in sterling, in which case they shall be governed by the pension rules applicable to the staff in London, save that every seven and half months of service on the Indian staff shall count as the equivalent of one year's pensionable service and may be added to the years of service on the London staff, and leave earned but not availed of owing to transfer to London Office shall be reckoned as extra pensionable service.

The pensions of members retiring under this section shall be calculated on the final salary drawn on date of retirement.

22A.

(1) Notwithstanding anything contained in Rule 11, in the case of a member against whom disciplinary proceedings under the Rules of Service applicable to him have been continued after he ceases to be in the Bank's service or where for the purpose of considering whether sanction for retirement should be granted by Executive Committee or the Local Board, as the case may be, any investigation or enquiry in respect of any act committed by the member while in service has been initiated or continued by the Bank after he ceases to be in the Bank's service, the member may be paid at the discretion of the Trustees a provisional pension of an amount not exceeding the maximum amount of pension which would have been admissible to such member under these Rules on the basis of qualifying service up to the date he ceases to be in the Bank's service or if the member was under suspension on such date unto the date immediately preceding the date of such suspension.

(2) The amount paid as such provisional pension shall be adjusted against the amount of final pension if sanctioned on conclusion of such disciplinary proceedings or investigation or enquiry but no recovery of such amount shall be made if the member is ultimately dismissed from the Bank's service and the retirement benefits are forfeited.

(3) If at any time in the opinion of the Bank, such member is found not co-operating with the conduct of such disciplinary proceedings or investigation or enquiry, the payment of the provisional pension may, at the discretion of the Trustees, be stopped.

23.

The trustees shall be empowered, after giving notice to the members, to add to, to alter or to modify and of the foregoing rules as circumstances in their opinion may necessitate.

24.

The guarantee fund shall accept liability for all loss occasioned by the dishonesty of an employee save as hereinafter mentioned.

25.

Every member of the fund required to provide security to the Bank shall contribute in advance half-yearly on the 31st March and 30th September in each year five-eights or ten annas per cent per annum on the amount of the guarantee. The trustees may at their discretion reduce the contributions as follows :-

After 10 half yearly payments by 10 per cent to 9/16ths per cent.

After 20 half yearly payments by 30 per cent. To 7/16ths per cent.

After 30 half yearly payments by 50 per cent. To 5/16ths per cent.

And may at their discretion re-impose the full charge of five-eights per cent or such lesser charge within the above limits as they may decide.

26.

All moneys received as premia or otherwise on account of guarantees shall be kept in separate account from the moneys proper of the pension section of the fund.

27.

In the event of loss arising of the Bank from the dishonesty of a guaranteed employee the Bank shall as early as practicable give intimation to the trustees of the fund of the claim made by the Bank in respect of such loss.

28.

Any loss which the Bank may sustain by the dishonesty of a guaranteed employee shall be made good in the following order:-

(i) From the defaulting employee's special security if he has been required by the and to provide special security.

(ii) From the guarantee section of the fund.

(iii) From the general balance of the pension section of the fund.

29.

No claim upon the fund shall exceed the actual sum for which the defaulting employee shall have been under guarantee at the time of default.

30.

The amount of claim on the fund in respect of loss arising to the Bank from the dishonesty of a guaranteed employee shall be fixed by the Directors of the Bank and their decision shall be final subject to what is otherwise herein provided.

31.

After the expiry of six months from the date on which an employee's service terminated, the Bank shall not be entitled to raise any claim on the fund on account of any loss occasioned by such employee's dishonesty during the period he was under the guarantee of the fund.

32.

No premia paid for guarantees shall be repayable but shall become the absolute property of the fund.

33.

If in the opinion of the trustees the balance at credit of the guarantee section of the fund is in excess of the sum necessary to provide the required guarantees the surplus may be transferred to credit of the pension section of the fund.

34.

The books and accounts of the fund shall be balanced on the 31st March and 30th September in every year, and a statement of affairs made up annually to 31st March shall be submitted to a meeting of the trustees to be held not later that the 31st August in every year.

35.

The amount of security to be required by the Bank (irrespective of any special security otherwise provided by employees) in London and India respectively, shall be regulated according to the following Scale :-

In London, salaries from pound 150 upto and including pound 500 per annum £ 500 In London, salaries over 500 upto and including 750 per annum £ 1,000 In London, salaries pound 750 per annum £ 2,500 In India, salaries from Rs.100 up to and including Rs.500 per mensem Rs. 5,000 In India, salaries over Rs.500 up to and including Rs.750 per mensem Rs. 10,000 In India, salaries from Rs. 750 per mensem Rs. 25,000

36.

I hereby declare that I have read and understood the rules of the Imperial Bank of India Employees' Pension and Guarantee Fund and I hereby subscribe and agree to be bound by the rules.

Name in full.............................................

Date of Birth.....................

Nature of appointment ..............................

Date of joining service.............................................

Date from which service counts for pension.............................................

Salary per month.......................

Dated..............day of..........19.........

Witness.............................................

(Insert here in the case of an employee taken on probation the date of his confirmation in the Bank's service; in the case of an employee on the staff in India confirmed before he completes the age of 21, the date on which he completes the age should be inserted)

EXAMPLE OF RULE 18

If a member had served, say, 27 years 5 months 23 days at date of retirement, the pension payable to him would be (275/12 /60 )of the average monthly substantive salary drawn during the last five years' service, in the case of a member on the staff in India, and (275/12 /60 ) of the salary at date of retirement in the case of a member on the staff in London. N.B. Complete months are taken in to the calculation but odd days are excluded.

EXAMPLE OF RULE 21

A member of the fund is transferred from London to India at the age of 24 after eight years; service in London. His first five years of service rendered before he attained the age of 21 do not count for pension but the three years' service after he attained that age will count as 1 Yr. 101/2 months.

To complete 25 years of pensionable service he would require to serve a further 23 Yrs. 11/2 months

If he then retired his pension would be 25/60ths of his average salary during his last five years' service subject to the prescribed maximum.

Should he retire before or after completing 25 years' pensionable service he would receive 1/60th less or more for each year short or in excess of 25 years' pensionable service subject to the same maximum. This applies to the examples given under rule 22(a)

Examples of rules 22(a)

I. A' member of the fund if transferred from India to London after 15 years' service in India.

15 years' service in India counts as

To complete 25 years' pensionable service he would have been required to serve a further 10 years in India. One year's service in London equals 71/2 month's service in India. To complete 25 years pensionable service he would be required to service in London for 16 years

If he then retired his pension, payable in rupees, would be 25/60ths of his average salary calculated as provided for in the rule 22(a).

I. A member of the fund is transferred from India to London after 22 years service in India. 22 years in India counts as 22 years

To complete 25 years in India he would have been required to serve a further three years but in London he will be required to serve a further 412/15 years .

If he retired his pension would be 25/60ths of his average salary as in Example I.