e-Circular

P&HRD.
Sl. No. : 160/2006 - 07
Circular No. : CDO/P&HRD-PM/12/2006 - 07
Saturday,July 01,2006.
.


The Chief General Manager,
State Bank of India,
All Local Head Offices,
All Heads of the Depts. of
Corporate Centre/CO estbs.

Dear Sir,


EXPEDITIOUS SETTLEMENT OF TERMINAL DUES
TIME NORMS IN CASE OF VOLUNTARY RETIREMENTS/
RESIGNATION AND EXIT OPTION


In terms of Rule 33 of SBI Employees Pension Fund Rule, interest on monies
standing in the books of the provident fund to the credit of member ceases on the
date he leaves the service of the Bank or the day on which he dies, whichever
happens first. As such all terminal benefits viz. Provident Fund Balance,
Pension, Gratuity and other benefits should be paid/settled on the date of
retirement of the member. We have, therefore, advised all branches/offices that
entire processing of terminal benefits should commence 6 months prior to the
date of retirement of an employee. It has also been advised that in respect of
deceased cases, controller should depute an employee to call on legal heirs of
the deceased employee as early as possible to guide and help them in
completing the necessary papers so that the family of the deceased should
receive the payment within three months following submission of completed
application by them.

2. However, in respect of employees seeking voluntary retirement, resignation, or
exit option etc., it is difficult to ensure refund of terminal benefits on the day of
retirement/release from the Bank's service, despite the notice period of three months in
case of officers (maximum four months in case of exit option) and one month in case of
award staff. As the processing of terminal benefits starts only after receipt of approval
for resignation, exit option, voluntary retirement, from the competent authority, sufficient
time is not left for processing the proposals before the due date of retirement/release from
the service and Bank has to pay interest on delayed payment of terminal dues. We have
to find the ways and means to avoid this extra cost.


3. It has accordingly been decided with the approval of the appropriate authority that
the following procedure be followed henceforth to reduce the delay in processing of the
proposals in respect of officers/employees retiring under voluntary retirement/ leaving the
Bank's service under exit-option/resignation.

i) On receipt of the application for exit option/voluntary retirement/resignation,
while giving the acknowledgement to the employee (on proforma I enclosed
to our Circular no.PA/CIR/99 dated the 29
th
March,1994 in case of voluntary
retirement and proforma as per Annexure II to our Circular no.
CDO/PM/1437-A08 dated the 29
th
April, 2005 in case of Exit Option Scheme)
a suitable clause has been incorporated therein advising that since the
employee is leaving Bank's service as per his own convenience under exit
option/voluntary retirement/resignation, sufficient time is not available for
processing the terminal benefits in time, therefore, his terminal benefits will
normally be settled within 30 days from the date of his actual release from
service provided he has given the required notice as provided for in State
Bank of India Officers Service Rules/instructions under Exit-option Scheme
and Bipartite Settlement/ instructions on resignation for award staff
employees. Interest on delayed payment of terminal benefits will become
payable only after 30 days from the date of actual exit /voluntary
retirement/resignation. In cases where resignation/voluntary retirement
requests are made by serving only partial notice, interest on settlement of
terminal dues shall become payable only if these are not paid even after lapse
of period equal to the shortfall in notice period and adding thereto 30 more
days. Such period shall be counted from the actual date of release of the
employee/officer. Amended specimen letters to be addressed to
employees/officers who submit application for resignation/voluntary
retirement or exit option are enclosed which should be brought in use with
immediate effect.

ii) The application for payment of terminal benefits should also be obtained
from the concerned employee by the Branch/ establishment simultaneously
and the processing of terminal benefits should begin without waiting for the
approval of the Competent Authoritys sanction for resignation/voluntary
retirement/release under exit option.

iii) PPG Department should submit their recommendations to the Trustees for
sanction of the terminal benefits and follow up should be done for obtaining
approval of the Competent Authority.

iv) The sanction of the Trustees/appropriate authority, as the case may be, should
be advised to the Branch/establishment where the employee is posted with the
condition that terminal benefits should be released only after the date on
which the voluntary retirement/exit option, resignation takes effect. The
Branch/establishment would have already received the approval of the
voluntary retirement/exit option before that. A copy thereof should be sent by
the concerned department/branch to the PPG Department at LHO/Corporate
Centre, as the case may be as also to the Central Account Office, Kolkata.

v) In case the request of the employee/officer is declined by the Competent
Authority for resignation/voluntary retirement/release under Exit Option
Scheme, or if the request for leaving the Bank's service is withdrawn by the
employee/officer before the due date of his sanctioned release, following steps
should be taken immediately.
a. Branch/office concerned should immediately advise his controller and
PPG Department at LHO/Corporate Centre (as the case may be) directly
by fax/courier advising that request of the employee/officer for leaving the
service has been declined/withdrawn;
b. Conditional sanction of Trustees for settlement of terminal dues received
at the branch/office wherefrom the employee/officer was due to be
relieved under exit option/voluntary retirement/resignation should not be
acted upon. It should be returned in original to the PPG Department at
LHO/Corporate Centre, as the case may be.

c. PPG Department at LHO/Corporate Centre should advise Central
Accounts Office, Kolkata regarding non-utilisation of sanction of Trustees
for settlement of terminal dues advising reasons therefor.

4. Please arrange to issue suitable instructions and bring the contents of this circular
to the notice of all officers/staff members working in offices/branches under your control.

Yours faithfully,



for Dy. Managing Director &
Corporate Development Officer

vk/cir-time/Encl :




Ref: Circular No. PA/CIR/99
dated the 29.3.1994
Modified Proforma I


Shri Date :



Dear Sir,

VOLUNTARY RETIREMENT/RESIGNATION

We acknowledge receipt of your letter dated
requesting for voluntary retirement/resignation from Bank's service w.e.f on
service of due notice/without/ partial notice.

2. Please note that your application is being forwarded to the competent authority
through proper channel for consideration. Meanwhile, unless and until approval of the
competent authority is communicated to you, you will continue to be in the Bank's
service and report for duty as usual. You shall not be deemed to have retired from the
service of the Bank.

3. Please note that as you have submitted application for Voluntary
Retirement/Resignation from the Banks service as per your own convenience by serving
three months notice, sufficient time is not available for settlement and final payment of
terminal dues to you on the date of your release. Therefore, interest on terminal dues
shall become payable if these are not paid even after lapse of 30 days period from the
date of your actual release from the Bank's service.

OR

* Please note that as you have submitted application for Voluntary
Retirement/Resignation from the Banks service as per your own convenience by serving
only partial notice, sufficient time is not available for settlement and final payment of
terminal dues to you on the date of your release. Therefore, interest on terminal dues
shall become payable if these are not paid even after lapse of period equal to the shortfall
in notice period and 30 more days thereafter from the date of your actual release from the
Bank's service.

4. In view of the pending disciplinary proceedings against you/your suspension from
service, you cannot leave Bank's service in terms of Rule 20(2) of the SBI Officers
Service Rules, until you hear from the competent authority.

5. Please return the duplicate copy of this letter as a token of having noted the
contents.

Yours faithfully,



Branch Manager/Dy. General Manager/
Departmental Head.

* Strike out whichever is not applicable. Signature of the employee
with date.
______________________



REFER: CDO/PM/1437-A/CIR/08 DATED 29
th
April, 2005

Modified Annexure II


ACKNOWLEDGEMENT


Received an application from Shri/Smt.____________________________________ for
voluntary release of service under Exit Option on _____________________________.
He/ She is requested to please note that the application is being forwarded to the
Competent Authority through proper channel for consideration. Meanwhile unless and
until decision of the Competent Authority is communicated to him he will continue to be
in the Banks service and report for duty as usual.

2. Please note that as you have submitted application for exit option from Bank's
service as per your own convenience, sufficient time is not available for settlement and
final payment of terminal dues to you on the due date of release. Therefore interest on
terminal dues shall become payable if these are not paid even after lapse of 30 days
period from the date of your actual release from the Bank's service.

3. Please return the duplicate copy of this letter as a token of having noted the
contents.






Place:______________
Date: BRANCH MANAGER/HEAD OF DEPT.


Received



__________________________
Signature of the officer with date.