Chennai, Nov 12: Indian Bank has decided to implement its voluntary retirement scheme (VRS) for a month from November 27, 2000, as part of its restructuring plan. Employees who have completed 15 years of service or have attained 40 years of age are eligible for the scheme. The compensation package includes ex-gratia payment of 60 days of salary for each completed year of service, or full salary for number of months left, whichever is less, besides gratuity, pension, leave encashment, as per rules. Fifty per cent of ex-gratia is payable in cash and the balance is payable in bonds or fixed deposits or in installments. Indian Bank is proposing to set up a post-VRS counselling cell at its head office, as a welfare measure to assist the staff, in deploying the benefits from VRS in a safe and beneficial manner, said a press release from the bank here on Sunday.The bank management has reserved its right to accept or reject the application of the employees.
Eligibility: All permanent employees or officers with a minimum of 15 years of completed service or forty years of age as on 26-12-2000 are eligible to apply under the scheme. Officers or employees who have executed Special Service Bonds and have not completed the requirements of the bond as regards tenure or otherwise, specialist officers or employees who have executed such service bonds and have not completed such requirements, and officers or employees serving abroad under special arrangement or bonds are not eligible to avail of the scheme. Specialist officers or workmen, and highly skilled and qualified employees who have been sent abroad or given specialised training in the area of foreign exchange, investment and information technology, are also not eligible to avail of the scheme.
Employees or officers against whom disciplinary action has been contemplated or is pending or under suspension are not eligible to avail of the scheme.
Amount of ex-gratia: Sixty days salary (pay, plus stagnation increments, plus special allowances, plus dearness relief) for each completed year of service, or, salary for the number of months service left, whichever is less. While completed years of service will be reckoned for arriving at the minimum eligible service, fraction of service of six months and above will be reckoned as one year for the purpose of calculating the ex-gratia.
Other benefits: Gratuity will be as per the Gratuity Act or Service Gratuity as the case may be. Pension will be (including commuted value of pension) as per Indian Bank rules. Mode of payment of ex-gratia: Having regard for the financial position and cash-flow, while 50 per cent of the amount of ex-gratia stated above will be paid in cash, the balance will be paid in bonds or fixed deposits or in installments as may be decided by the board of the bank.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.