To avoid Old Age Tension; Income by way of Pension

To avoid Old Age Tension; Income by way of Pension INDIAN OVERSEAS BANK (EMPLOYEES ) PENSION REGULATIONS 1995 The Pension Scheme in our Bank is introduced under Indian Overseas Bank (Employees ) Pension Regulations, 1995, which has been approved by Our Board of Directors and published in the Official Gazette on 29.09.1995 as per Section 19(1) of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. These regulations are effective from the Notified date, i.e.29.09.1995. I. DEFINITIONS: In these Regulations, unless the context otherwise requires. Act means the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. Average Emoluments means the average of the pay drawn by an employee during the last ten months of his service in the Bank. Bank means the Board of Director of the Bank. COMPETENT AUTHORITY means the authority appointed by the Board for the purpose of these Regulations. CONTRIBUTION means any sum credited by the Bank on behalf of employee to the Fund, but shall not include any sum credited as interest. A Hand Guide Book to Your on Duties and Rights - 2017-251 251

DATE OF RETIREMENT means the last date of the month in which an employee attains the age of superannuation or the date on which he is retired by the Bank or the date on which the employee voluntarily retires; or the date on which the officer is deemed to have retired. DEEMED TO HAVE RETIRED means cessation from service of the Bank on appointment by Central Government as a whole time Director or Managing or Chairman in the Bank. EMPLOYEE MEANS any person employed in the service of the bank on full time work on permanent basis or on part-time work on permanent basis on scale wages and who opts and is governed by these Regulations, but not include a person employed either on contract basis or daily wages basis or on consolidated wages. FAMILY means (a) (b) wife in the case of a male employee or husband in the case of a female employee; a judicially separated wife or husband such separation not being granted on the ground of adultery and the person surviving was not held guilty of committing adultery. (c) Son or unmarried daughter or widowed/divorced daughter, was not attained age of 25 years including such son or daughter adopted legally. (d) Parents who were wholly dependent on the employee when he/she was alive, provided the deceased employee had left behind neither a widow/ widower nor a child. (e) on or after 01.11.2007. FUND means the Indian Overseas Bank (Employees ) Fund NOTIFIED DATE means the date on which these Regulations are published in the official Gazette i.e. 29.09.1995. PAY includes. (a) (i) (ii) in relation to an employee who has either retired or died on or after 01.01.1986 but before 01.11.1992 in case of workman and for officers on or after 01.01.1986 but before 01.07.1993. The Basic Pay including stagnation increments, if any and all allowances counted for the purpose of making contribution to the Provident Fund and for the payment of dearness allowance. 252 A Hand Guide Book to Your on Duties and Rights - 2017

(b) (i) (ii) in relation to an employee who retires or dies while in service or dies while in service on or after 01.11.1992 since for OFFICERS on or after 01.07.1993. the Basic Pay including stagnation increments PQA if any, and all allowances counted for the purpose of dearness allowance; and (iii) increment component of Fixed Personnel Allowance. (c)on or after 01.04.1998 (d) on or after 01.11.2002 PENSION includes the basic pension and additional pension. PENSIONER means an employee eligible for pension under these Regulations. QUALIFYING SERVICE means the service rendered while on duty or otherwise which shall be taken into account for the purpose of pension under these Regulations. RETIREMENT means cessation from Bank s service. (a) (b) (c) on attaining the age of superannuation. On voluntary retirement On premature retirement by the Bank before attaining the age of superannuation. SERVICE REGULATIONS means Indian Overseas Bank (Officers ) Service Regulations 1979. TRUST means the trust of the Indian Overseas Bank (Employees ) Pension Fund. II APPLICATION AND ELIGIBILITY These Regulations shall compulsorily be applicable to all employees who joined the bank on or after the notified date,i.e.29.09.1995. However, an employee who joins the service of the Bank on or after the notified date at the age 35 years or more, may, within a period of ninety days from the date of his/her appointment, elect to forego his/her right to pension, whereupon these Regulation shall not apply to him/her. For those employees who are in the service before the notified date, i.e.29.09.1995 the pension is optional. If they opt for pension, they are not eligible for Bank s contribution to the Provident Fund as their retirement benefit. Instead, their share of Bank s contribution to the Provident Fund will be transferred to the Pension Fund along with interest accrued thereon. III PENSION FUND Pension will be disbursed to the pensioner from the Indian Overseas Bank (Employees ) Pension Fund constituted under an irrevocable trust. The Bank shall be a contributor to the Fund and ensure the Trustees to disburse pensions. The accounts of the Fund is subject to audit. A Hand Guide Book to Your on Duties and Rights - 2017-253 253

ONE MORE OPTION FOR PENSION (SECOND OPTION) Another option for joining existing pension scheme shall be extended to officers who : a) Were in the service of the Bank prior to 29.09.1995 and continue in the service of the bank on the date of Joint Note dated 27.04.2010. b) Were in the service of the bank prior to 29.09.1995 and retired / deceased after that dtae and prior to the date of joint note dated 27.04.2010. To become member of pension fund, they have to refund the bank s contribution of PF along with 56% of the amount settled to them on retirement / quitting the service. Pension / Family pension to those who opt to join the pension scheme second time shall be payable from 27.11.2009 or the next date of retirement / deceased whichever is later. IBA vide its communication dated November 9, 2012 have advised all the banks to extend the benefit of exercising another option to join the existing pension scheme to those officers who took voluntary retirement within the meaning and provision of Regulation 19 (1) of Officers Service Regulation, 1979 subject to the terms and conditions laid down in the Joint Note dated 27.04.2010. Accordingly, our Board has accorded its approval and extended another option to join the Pension Scheme for those who have taken voluntary retirement from bank s service on or after 29.09.1995 in the case of Nationalised Banks, in terms of Regulation 19(1) of Officers Service Regulation and to the family of those officers who were in service prior to 29.09.1995 and voluntarily retired under OSR after that date and dies thereafter. IV TYPES OF PENSION : 1. SUPERANNUATION PENSION: This is a pension granted to an officer who is compelled to retire from service on attaining a particular age, i.e.60 years. Superannuation pension will be allowed for a minimum service of 10 years of qualifying service. 2. PENSION ON VOLUNTARY RETIREMENT: (1) On or after 01.11.1993, at any time after an employee has completed 20 years of qualifying service he may, by giving notice of not less than three months in writing to the appointing authority, retire from service, under Regulation 29 of Indian Overseas Bank (Employees ) Pension Regulations, 1995. Provided that this sub-regulation shall not apply to an employee who is on deputation or on study leave abroad unless after having been transferred or having returned to India he has resumed charges of the post in India and has served for a period of not less than one year. 254 A Hand Guide Book to Your on Duties and Rights - 2017

Provided that this sub regulation shall not apply to deemed to have retired. an employee who is (2) The notice of voluntary retirement shall require acceptance by the Appointing Authority provided that where the appointing authority does refuse to grant the permission for retirement before the expiry of the period specified in the said notice, the retirement shall become effective from the date of expiry of the said period. (3) (a) An employee referred to in sub-regulation (1) above, may make a request in writing to the appointing authority to accept notice of voluntary retirement of less than three months giving reasons thereof. (b) On receipt of such request, the appointing authority may subject to the provisions of sub-regulation (2), consider such request for the curtailment of the period of notice of three months on merits and if it is satisfied that the curtailment of the period of notice will not cause any administrative inconvenience, the appointing authority may relax the requirement of notice of months on the condition that the employee shall not apply for commutation of a part of his pension before the expiry of the notice of three months. (4) An employee, who has elected to retire under this Regulation and has given necessary notice to that effect to the appointing authority, shall be precluded from withdrawing his notice except with specific approval of such authority; provided that the request for such withdrawal shall be made before the intended date of his retirement. (5) ADDITIONAL WEIGHTAGE: The qualifying service of an employee retiring voluntarily under this Regulation shall be increased by period not exceeding five years, subject to the condition that the total qualifying service rendered by such employee shall not in any case exceed thirty-three years and it does not take him beyond the date of superannuation. Weightage allowed based on service Weightage allowed based on age Between 20-28 years - 5 years 53 years and below age - 5 years For 29 years - 4 years 54 years age - 4 years For 30 years - 3 years 55 years age - 3 years For 31 years - 1 years 56 years age - 2 years For 32 years - 1 years 57 years age - 1 year A Hand Guide Book to Your on Duties and Rights - 2017-255 255

(6) The pension of an employee retiring under this Regulation shall be based on the average emoluments and the increase, not exceeding 5 years in his qualifying service, shall not entitle him to any notional fixation to pay for the purpose of calculating his pension. 3. INVALID PENSION: on or after 01.11.1993 Invalid pension may be granted to those who has rendered 10 years of service and retires due to mental infirmity or physically injury, which permanently incapacitates him for the service. Commutation is payable only after Medical examination by the Government Civil Surgeon/Bank s Doctor. 4. PREMATURE RETIREMENT PENSION: Premature retirement pension may be granted to an employee who: (a) (b) has rendered minimum ten years of service and retires from service on account of orders of the Bank to retire prematurely in the public interest or for any other reason specified in service Regulation or Settlement, if otherwise he was entitled to such pension on superannuation on that date. 5. COMPULSORY RETIREMENT PENSION Compulsory retirement pension is granted to an officer where he is made to retire compulsorily as a measure of penalty by the Competent Authority. This is applicable only for those who retired under compulsory retirement on or after 01.11.1993. Whenever the Competent Authority passes an order (whether original, appellate or exercise of power of review) awarding a pension less than the full compensation pension admissible under these Regulations, the Board of Directors shall be consulted before such order is passed. Commutation payable only after Medical examination by the Government. Civil Surgeon/ Bank s Doctor if it is more than one year from the date of order. 6. COMPASSIONATE ALLOWANCE: Such dismissal, removal or termination is on or after 01.11.1993. Compassionate allowance is granted to an officer who is dismissed or removed from service and in the case deserving special consideration, the Competent Authority sanction the allowance, not exceeding twothirds of the pension which would have been admissible to him on the basis of the qualifying 256 A Hand Guide Book to Your on Duties and Rights - 2017

service rendered upto the date of his dismissal, removal or termination. The Compassionate Allowance sanctioned, however, shall not be less than the minimum pension. Commutation is payable only after Medical examination by the Government. Civil Surgeon/Bank s Doctor. v. QUALIFYING SERVICE 1. Qualifying service: Subject to the other conditions contained in these Regulations, an employee who has rendered a minimum of ten years of service in the Bank on the date of his retirement or the date on which he is deemed to have retired shall qualify for pension. 2. Commencement of qualifying service: Subject to the provisions contained in these Regulations, qualifying service of an employee shall commence from the date he takes charge of the post to which he is first appointed on a permanent basis. 3. Counting of service on probation: Service on probation against a post in the Bank if followed by confirmation in the same or any other post shall qualify. 4. Counting of periods spent on leave: All leave during service in the Bank for which leave salary is payable shall count as qualifying service. Provided that extraordinary leave on loss of pay shall not count as qualifying service except when the sanctioning authority has directed that such leave not exceeding twelve months during the entire service, may count as service for all purposes including pension. 5. Broken period of service of less than one year: If the period of service of an employee includes broken period of service less than one year, then if such broken period is more than six months, it shall be treated as one year and if such broken period is six months or less, it shall be ignored. For example, if the service of an employee is 26 years and 7 months, than his qualifying service will be taken is 27 years. If the service is 26 years and 5 months, then the qualifying service will be 26 years only. 6. Counting of period spent on training: Period spent by an employee on training in the Bank immediately before his appointment shall count as qualifying service. A Hand Guide Book to Your on Duties and Rights - 2017-257 257

7. Counting of past service in the erstwhile Bank: In the case of an employee who is permanently transferred to a service in the Bank from any other Bank on merger, amalgamation of any other Bank with the Bank to which these Regulations apply, the continuous service rendered by such an employee in any other Bank on permanent basis, if any, followed without interruption, by permanent appointment, or the continuous service rendered under that Bank in a permanent capacity, as the case may be shall qualify; provided that nothing contained in the Regulation shall apply to any such employee who is appointed on contract basis or on daily wage basis or on consolidated wages. 8. Period of suspension: Period of suspension of an employee pending enquiry shall count for qualifying service where, on conclusion of such enquiry, he has been fully exonerated or the suspension is held to be wholly unjustified, and in other cases the period of suspension shall not count as qualifying service unless the Competent Authority passing the orders under the Service Regulations or Discipline and appeal Regulations or Settlements governing such cases expressly declares that it shall count in such a manner as such Authority may declare. 9. Forfeiture of Service: i. Resignation or dismissal or removal or termination of an employee from the service of the Bank shall entail forfeiture of his entire past service and consequently shall not qualify for pensionary benefits ii. An interruption in the service of a Bank employee entails forfeiture of his past service, except in the following cases, namely;- a. authorized leave of absence; b. suspension, where it is immediately followed by reinstatement, whether in the same or a different post, or where the bank employee dies or is permitted to retire or is retired on attaining the age compulsory retirement while under suspension. c. Transfer to non-qualifying service in a establishment under the control of the Government or Bank if such transfer has been ordered by a Competent Authority in the public interest. d. Joining time while on transfer from one post to another. iii. notwithstanding anything containing in sub-regulation (ii), the appointing authority may, order, commute retrospectively the periods of absence without leave as extraordinary leave. 258 A Hand Guide Book to Your on Duties and Rights - 2017

iv. a. In the absence of a specific indication to the contrary in the service record, an interruption between two spells of service by a bank employee shall be treated as automatically condoned and the pre- interruption service treated as qualifying service. b. Nothing in clause (a) shall apply to interruption caused by resignation, dismissal or removal from service. 10. Period of deputation to foreign service: An employee deputed on foreign service to the United Nations or any other foreign body or organisation may at his option. a. Pay pension contribution in respect of his foreign service and count such services as qualifying service under these Regulations; or b. Avail of the retirement benefits admissible under the rules of the foreign employee and not count such service as qualifying service under these Regulations; provided that where an employee opts for clause (b), retirement benefits shall be payable to him in India in rupees from such date and in such manner as the Bank may, by order specify. 11. MILITARY SERVICE An employee who has rendered military service before appointment in the Bank shall continue to draw the military pension, if any, and military service rendered by the employees shall not count as qualifying service for pension. 12. PERIOD OF DEPUTATION TO AN ORGANISATION IN INDIA Period of deputation of an employee to another organisation in India will count as qualifying service provided the organisation to which he is deputed or the employee pays the pensionary contributions at the rates specified by the Bank. 13. ADDITION TO QUALIFYING SERVICE IN SPECIAL CIRCUMSTANCES An employee, appointed under special circumstances, shall be eligible to add to his service qualifying for superannuation pension (but for any other class of pension) the actual period not exceeding one fourth of the length of his service or the actual period by which his age at the time of recruitment exceeded the upper age limit specified by the Bank for direct recruitment or a period of five years, whichever is less. 14. ADDITION UNDER VOLUNTARY RETIREMENT The qualifying service shall be increased by a period not exceeding five years. A Hand Guide Book to Your on Duties and Rights - 2017-259 259

VI. RATE OF PENSION 1. various elements required for calculating pension are; i. Gross service : calculation of the total number of years of service rendered by an employee from the date of his appointment on permanent basis to the date of retirement. This is Gross service. ii. iii. iv. Non qualifying service : period under suspension, leave on loss of pay, etc will be treated as non qualifying service. Net qualifying service : if you deduct the period of non qualifying service from the Gross service, we get Net qualifying service. To this, we may add the weightage of service, if any, given for voluntary retirement and for appointment under special circumstances. Total Basic Pay : Basic pay received by the member during the last 10 months period preceeding the date of retirement. If during the last 10 months period, an employee had been on leave and drawing leave salary or had been suspended and reinstated without forfeiture of past service, the pay which he would have drawn had he not been on leave or on suspension should be taken into account to determine the Average Emoluments. If during the last 10 months, an employee had been on extra ordinary leave on loss of pay or had been under suspension (suspension treated as penalty and ordered as such), corresponding back period so as to make up 10 months, should be taken. v. Total Allowances Allowances like Fixed Personal Allowance, Professional Qualification Allowance, etc, which count for Provident Fund, drawn by the member during the last 10 months. vi. Average Emoluments : Average of the last 10 months Basic Pay and average of the Allowances shall be arrived at separately because pension calculated on Average Basic Pay is treated as Basic Pension, which is eligible for dearness allowance relief. HOW TO CALCULATE PENSION: In case of an employee retiring on superannuation after completing 33 years of qualifying service, the amount of Basic pension is calculated on 50% of the Average Emoluments (Basic Pay) and other allowances such as FPA & PQA. In case of any employee retiring before completing qualifying service of 33 years, but after completing qualifying service of 10 years, the amount of pension shall be proportionate. 260 A Hand Guide Book to Your on Duties and Rights - 2017

The formula is: Average Emolument 50 x No. of years of qualifying service 100 33 ILLUSTRATION: An officer joined the Bank on 01.08.1990. He takes voluntary retirement form the Bank on 31.07.2016. His Average Basic Pay is Rs.57520/-. He also draws F.P.A. of Rs.1310/- and P.Q.P. of Rs.1680/-. His date of birth is 05.08.1965. His Pension is Calculated as follows: Total years of Service Date of Retirement 31.07.2016 Date of entry is Service 01.08.1990 Gross Service is 26 years Qualifying Service is 26 years To Add Additional weightage 5 years Total qualifying Service 31 years He has retired at the age of 51 years. For the Net qualifying service of 31 years, his Basic pension will be Rs. 57520 + 1310 + 1680 = 60510 x 50/100 x 31/33 = 28422 Commutation 28422/3 = 9474 Rs.9474 x 12.95 x 12 = 14,72,260/- Note : Charts shows the basic pension for different periods of qualifying service are given in the table. 2. Other salient features of Pension 1. Pension shall become payable from the date following the date on which he retires. 2. Pension will be paid monthly, in arrears, on or after the first day of the following month 3. Pension will be paid in Indian Rupees in India only. 4. Pension will be rounded off to next higher rupee 5. The amount of minimum pension shall be Rs.1060/- in respect of an employee A Hand Guide Book to Your on Duties and Rights - 2017-261 261

who retires on or after 1-4-98 and for those retired after 1-11-2002 the minimum shall be Rs.1435/ and the minimum pension shall be Rs.1779/- for those who retire on or after 01.11.2007. 6. Pension will be paid for the day of death of the pensioner. 3. Accounting procedure In our bank, pension payments to our ex staff are computerised at Pension cell, Personnel Administration Department, Central Office. The monthly pension will be credited by Central Office to the branch from where the pensioner desires to receive his pension. The monthly pension will be credited to the branch through Finacle on the last working day of the month for March and every year pension will be credited on first working day in April. Dearness relief shall be granted on basic pension or family pension or invalid pension or on compassionate allowance as per the rates specified below. VII DEARNESS RELIEF The rate of dearness allowance as a percentage on Basic Pension who retires on or after 01.11.2012: For entire basic pension 0.10 X No. Of slabs NOTE Dearness relief shall be payable for the half year commencing from the 1st day of February and ending with 31st day of July on the quarterly average of the index figures published for the months of October, November and December of the previous year and for the half year commencing form the 1st day of August and ending with the 31st day of January on the quarterly average of the index figures published for the months of April, May and June of the same year. VIII. COMMUTATION 1. An employee shall be entitled to commute (surrender) for a lumpsum payment, a fraction of pension, not exceeding one third of his pension. 2. If fraction of pension to be commuted results in fraction of rupee, such fraction of a rupee shall be ignored for the purpose of commutation. 3. Such commuted portion of pension shall be reduced from pension amount monthly, with effect from the date of commutation / date of payment. 4. The lumpsum payable to an applicant shall be calculated as per table below. 262 A Hand Guide Book to Your on Duties and Rights - 2017

TABLE Commutation value of pension of Re one per annum AGE Commutation value Age next birthday Commutation value expressedas number expressed as number of year s purchase of year s purchase 17 19.28 51 12.95 18 19.20 52 12.66 19 19.11 53 12.34 20 19.01 54 12.05 21 18.91 55 11.73 22 18.81 56 11.42 23 18.70 57 11.10 24 18.59 58 10.78 25 18.47 59 10.46 26 18.34 60 10.13 27 18.21 61 09.81 28 18.07 62 09.48 29 17.93 63 09.15 30 17.78 64 08.82 31 17.62 65 08.50 32 17.46 66 08.17 33 17.29 67 07.85 34 17.11 68 07.53 35 16.92 69 07.22 36 16.72 70 06.91 37 16.52 71 06.60 38 16.31 72 06.30 39 16.09 73 06.01 40 15.87 74 05.72 41 15.64 75 05.44 42 15.40 76 05.17 43 15.15 77 04.90 44 14.90 78 04.65 45 14.64 79 04.40 46 14.37 80 04.17 47 14.10 81 03.94 48 13.82 82 03.72 49 13.54 83 03.52 50 13.25 84 03.32 85 03.13 A Hand Guide Book to Your on Duties and Rights - 2017-263 263

The table indicates the commuted value of pension expressed as number of years purchase with reference to the age of the pensioner as on his next birth day. For example the commuted value in the case of an employee retiring at the age of 58 years is 10.46 years purchase and if he desires to commute Rs.1000/ from his pension within one year of retirement, the lumpsum amount (commuted value) payable to him is Rs.1000 x 12 x 10.46 = Rs.1,25,520/- 5. Commuted portion of pension will be restored after a period of 15 years from the date of payment of commuted value. 6. If the commutation is sought after one year of the date of retirement, it will be granted only after medical examination by the Bank s medical officer. 7. Commutation is admissible in respect of superannuation pension, voluntary retirement, pension, premature retirement pension, invalid pension and Compassionate Allowance. 8. In the case of a pensioner eligible for superannuation pension or pension on voluntary retirement or premature retirement pension, no medical examinations is necessary. If the application for commutation is made within one year from the date of retirement. 9. An employee against whom department or judicial proceedings have been instituted before the date of his retirement or a person against whom such proceedings are instituted after the date of his retirement shall not be eligible to commute a fraction of his provisional pension or pension, as the case may be, authorised under these Regulations during the pendency of such proceedings. Forms relating to Pension / Family Pension may be obtained from Pension Department, Central Office. In case of superannuations the Pension Department generally mails the forms in advance to the retiring Pension Optees. If necessary one can conduct the Association Office for any assistance. (List of phone numbers of Office Bearers is provided in this book.) 264 A Hand Guide Book to Your on Duties and Rights - 2017

IX. FAMILY PENSION 1. Ordinary rate of family pension (i). Without prejudice to the provisions contained in these Regulations where an employee dies - a. after completion of one year of continue service; or b. before completion of one year of continuous service provided the deceased employee concerned immediately prior to his appointment to the service or post was examined by a medical officer approved by the Bank and declared fit for employment in the Bank c. after retirement from service and was on the date of death in receipt of a pension or compassionate allowance; The family of the deceased shall be entitled to family pension, the amount of which shall be determined as follows: (ii) In respect of employees other than part time employees retired from 1.11.2007. Scale of pay per month Upto Rs.7,090 Rs.7091 to Rs.14180/- Above Rs,.14,181/- Amount of monthly Family Pension 30 per cent of the PAY shall be the basic family pension plus 30 percent of allowances which arecounted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension. The aggregate of basic and additional family pension shall not be less than Rs.1,779 /- per month. 20 percent of the PAY shall be the basic family pension plus 20 per cent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension. The aggregate of basic and additional family pension shall not be less than Rs.2,186/- per month. 15 percent of the PAY shall be the basic family pension plus 15 percent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension. The aggregate of basic and additional family pension shall not be less than Rs.2841/- per month and more than Rs.5930/- per month. A Hand Guide Book to Your on Duties and Rights - 2017-265 265

(iii) In respect of employees other than part time employees retired or retiring on or after 1.11.2002. Note: Scale of pay per month Upto Rs.5720/- Amount of monthly Family Pension 30 percent of the PAY shall be the basic family pension plus 30 percent of allowances which arecounted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension. The aggregate of basic and additional family pension shall be subject toa minimum of Rs.1435 per month. Rs.5720 to Rs.11440/ 20 percent of the PAY shall be the basic pension plus 20 percent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additionalfamily pension. The aggregate of basic and additional family pension shall be subject to a minimum of Rs.1715 per month. Above 11440/- 15 per cent of the PAY shall be the basic family pension plus 15 percent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension. The aggregate of basic and additional family pension shall be subject toa minimum of Rs.2292 per month and a maximum of Rs.4784 per month. 1. Dearness relief is not payable on additional family pension. 2. Scale of pay for the purpose of calculation of family pension as above shall be the aggregate of PAY and ALLOWANCES as defined in these Regulations. For the above two categories, Family pension will be revised from 01-05-2005. 3. Enhanced Rate of Family Pension. Where at the time of death, the employee has completed 7 years of continuous service, family pensions may be paid at 50% of the pay last drawn or twice the ordinary rate of family pension, whichever is less, for a period of 7 years or till the deceased employee 266 A Hand Guide Book to Your on Duties and Rights - 2017

would have attained the age of 65 years had he survived, whichever is less, provided the enhanced family pension shall not exceed the normal pension admissible on retirement. 4. Commencement of family pension The family pension will become payable form the date following the date of death of the employee/pensioner. 5. Period of payment: The period for which family pension is payable is as follows: a. in the case of widow or widower, upto the date of death or re marriage whichever is earlier b. in the case of son, until he attains the age of 25 years or until he get married whichever is earlier. c. In the case of unmarried daughter, until she attains the age of 25 years or until she gets marriage whichever is earlier. d. For own sons and daughters, income should not exceed Rs.2550/- e. For parents who were wholly dependent on the employee when he / she was alive, provided the deceased employee had left behind neither a widow/ widower nor a child and parents income should not exceed Rs.2550/- However, family pension shall be payable to the son or daughter for life, if he/she suffers from any disorder or disability of mind or is physically crippled or disabled so as to render him or her unable to earn a living even after attaining the age of 25 years. 6. Order of payment of family pension: After the death of the employee/pensioner, the family pension will be paid in the following order. a. first to the widow or widower, if she/he is not remarried b. next to the children the order of their birth, The younger of them is not eligible for family pension until the elder next above him or her has become ineligible for the grant of family pension. c. After exhausting all these members, the disabled child will receive family pension for life. A Hand Guide Book to Your on Duties and Rights - 2017-267 267

7. Payment to Twins family pension is payable to twins children, it shall be paid in equal shares. Similarly, family pension payable to more than one widow, the same is paid in equal shares. 8. Receipt of two family pensions: In case both the husband and wife are employees of our bank and in the event of death of both of them, the surviving eligible child be granted two family pensions subject to ceiling on the total amount of pension. 9. Suspension of family pension: a. If a person who, in the event of death of an employee while in service, is eligible to receive family pension under these Regulations, is charged with the offence of murdering the employee or for abetting in the commission of such an offence, the claim of such a person, including other eligible member or members of the family to receive the family pension, shall remain suspended till the conclusion of the criminal proceedings institute against me. b. If on the conclusion of the original proceedings referred to in clause (a) the person concerned. (i) (ii) is convicted for the murder or abetting in the murder of the employee, such a person shall be debarred from receiving the family pension which shall be payable to the other eligible member of the family, from the date of death of the employee. is acquitted of the charge of murder or abetting in the murder of the employees, the family pension shall be payable to such a person from the date of death of the employee. b. The above provisions shall also apply for the family pension becoming payable on the death of an employee after his retirement. X GENERAL CONDITIONS 1. Pension subject to future good conduct: Future good conduct shall be an implied condition of every grant of pension and its continuance under these Regulations. 268 A Hand Guide Book to Your on Duties and Rights - 2017

2. Withholding or withdrawal of Pension: The Competent Authority may, by order in writing, withhold or withdraw a pension or a part thereof, whether permanently or for a specified period, if the pensioner is convicted of a serious crime or criminal breach of trust or forgery or acting fraudulently or is found guilty of grave misconduct. Provided that where a part of pension is withheld or withdrawn, the amount of such pension shall not be reduced below the minimum pension per month payable under these Regulations. 3. Conviction by Court Where a pensioner is convicted of a serious crime by a Court of law, action shall be taken in the light of the judgement of the court relating to such conviction. 4. Pensioner guilty of grave misconduct: If the Competent Authority considers that the pensioner is prima facie guilty of grave misconduct, it shall, before passing an order, follow the procedure specified in Indian Overseas Bank Officer Employees (Discipline and Appeal) Regulations, 1976. 5. Provisional Pension: a. An employee who has retired on attaining the age of superannuation or otherwise and against whom any departmental or judicial proceedings are instituted or where departmental proceedings are continued, a provisional pension, equal to the maximum pension which would have been admissible to him, would be allowed subject to adjustment against final retirement benefits sanctioned to him upon conclusion of the proceedings but no recovery shall be made where the pension finally sanctioned is less than the provisional pension or the pension is reduced or withheld, etc, either permanently or for a specified period. b. In such cases the gratuity shall not be paid to such employee until the conclusion of the proceedings against him. The gratuity shall be paid to him on conclusion of the proceedings subject to the decision of the proceedings. Any recoveries to be made from an employee shall be adjusted against the amount of gratuity payable. 6. Recovery of Pecuniary loss caused to the Bank: A The Competent Authority may withhold or withdraw a pension or a part hereof, whether permanently or for a specified period, and order recovery from pension of the whole or part of any pecuniary loss caused to the Bank if in any departmental or judicial proceedings the pensioner is found guilty or grave misconduct or negligence or criminal breach of trust or forgery or acts done fraudulently during the period of his service. A Hand Guide Book to Your on Duties and Rights - 2017-269 269

Provided that the Board shall be consulted before any final are passed. Provided further that departmental proceedings, if instituted while the employee was in the employee, be deemed to be proceedings under these Regulations and shall be continued and concluded by the authority by which they were commenced in the same manner as if the employee had continued in service. Provided also that no departmental or judicial proceedings, if not initiated while the employee was in service, shall be instituted in respect of a cause of action which arose or in respect of an event which took place more than four years before such Institution. c. where the Competent Authority orders recovery of pecuniary loss from the pension, the recovery shall not ordinarily be made at a rate exceeding one- third of the pension admissible on the date of retirement of the employee. 7. Recovery of Bank s dues: The Bank shall be entitled to recover the dues to the Bank on account of housing loans, advances licences fees, other recoveries and recoveries due to staff co- operative credit society from the commutation value of pension or the pension or the family pension. 8. Commercial employment after retirement : If a pensioner takes up any commercial employment at any time before the expiry of one year from the date of his retirement without the prior permission of the Bank or commits a breach of any condition subject to which the permission to take up any commercial employment has been granted to him, it shall be competent for the Bank to declare by order in writing and for reasons to be recorded therein that he shall not be entitled to whole or such part of the pension and for such period as may be specified in the order, provided no order shall be made without giving the employee an opportunity of show cause against such declaration. 9. Nomination: The pensioner can nominate one or more persons, specifying their share, to receive the amount of pensionary benefits (life time arrears) that may be payable in the event of his death. Nomination can be modified or revoked by the pensioner at any time after giving a written notice to the Trust. 10. Power to issue instruction: The Chairman and Managing Director of the Bank may from time issue instructions as may be considered necessary or expedient for the implementation of these Regulations. 270 A Hand Guide Book to Your on Duties and Rights - 2017

CHART SHOWING BASIC PENSION W.R.T"AVERAGE EMOLUMENTS AND SERVICE" QUALIFYING SERVICE IN YEARS AVE EMO 20 21 22 23 24 25 26 27 28 29 30 31 32 33 LUMENTS BASIC PAY 23700 7182 7541 7900 8259 8618 8977 9336 9695 10055 10414 10773 11132 11491 11850 24680 7479 7853 8227 8601 8975 9348 9722 10096 10470 10844 11218 11592 11966 12340 25660 7776 8165 8553 8942 9331 9720 10108 10497 10886 11275 11664 12052 12441 12830 26640 8073 8476 8880 9284 9687 10091 10495 10898 11302 11705 12109 12513 12916 13320 27620 8370 8788 9207 9625 10044 10462 10881 11299 11718 12136 12555 12973 13392 13810 28600 8667 9100 9533 9967 10400 10833 11267 11700 12133 12567 13000 13433 13867 14300 29580 8964 9412 9860 10308 10756 11205 11653 12101 12549 12997 13445 13894 14342 14790 30560 9261 9724 10187 10650 11113 11576 12039 12502 12965 13428 13891 14354 14817 15280 31705 9608 10088 10568 11049 11529 12009 12490 12970 13451 13931 14411 14892 15372 15853 32850 9955 10452 10950 11448 11945 12443 12941 13439 13936 14434 14932 15430 15927 16425 34160 10352 10869 11387 11904 12422 12939 13457 13975 14492 15010 15527 16045 16562 17080 35470 10748 11286 11823 12361 12898 13436 13973 14510 15048 15585 16123 16660 17198 17735 36780 11145 11703 12260 12817 13375 13932 14489 15046 15604 16161 16718 17275 17833 18390 38090 11542 12120 12697 13274 13851 14428 15005 15582 16159 16737 17314 17891 18468 19045 39400 11939 12536 13133 13730 14327 14924 15521 16118 16715 17312 17909 18506 19103 19700 40710 12336 12953 13570 14187 14804 15420 16037 16654 17271 17888 18505 19121 19738 20355 42020 12733 13370 14007 14643 15280 15917 16553 17190 17827 18463 19100 19737 20373 21010 43330 13130 13787 14443 15100 15756 16413 17069 17726 18382 19039 19695 20352 21008 21665 44640 13527 14204 14880 15556 16233 16909 17585 18262 18938 19615 20291 20967 21644 22320 45950 13924 14620 15317 16013 16709 17405 18102 18798 19494 20190 20886 21583 22279 22975 47260 14321 15037 15753 16469 17185 17902 18618 19334 20050 20766 21482 22198 22914 23630 48570 14718 15454 16190 16926 17662 18398 19134 19870 20605 21341 22077 22813 23549 24285 50030 15161 15919 16677 17435 18193 18951 19709 20467 21225 21983 22741 23499 24257 25015 51490 15603 16383 17163 17943 18724 19504 20284 21064 21844 22624 23405 24185 24965 25745 52950 16045 16848 17650 18452 19255 20057 20859 21661 22464 23266 24068 24870 25673 26475 54410 16488 17312 18137 18961 19785 20610 21434 22259 23083 23907 24732 25556 26381 27205 55870 16930 17777 18623 19470 20316 21163 22009 22856 23702 24549 25395 26242 27088 27935 57330 17373 18241 19110 19979 20847 21716 22585 23453 24322 25190 26059 26928 27796 28665 58790 17815 18706 19597 20487 21378 22269 23160 24050 24941 25832 26723 27613 28504 29395 57520 17430 18302 19173 20045 20916 21788 22659 23531 24402 25274 26145 27017 27888 28760 59170 17930 18827 19723 20620 21516 22413 23309 24206 25102 25999 26895 27792 28688 29585 60820 18430 19352 20273 21195 22116 23038 23959 24881 25802 26724 27645 28567 29488 30410 62470 18930 19877 20823 21770 22716 23663 24609 25556 26502 27449 28395 29342 30288 31235 64270 19476 20450 21423 22397 23371 24345 25318 26292 27266 28240 29214 30187 31161 32135 66070 20021 21022 22023 23024 24025 25027 26028 27029 28030 29031 30032 31033 32034 33035 68680 20812 21853 22893 23934 24975 26015 27056 28096 29137 30178 31218 32259 33299 34340 70640 21406 22476 23547 24617 25687 26758 27828 28898 29968 31039 32109 33179 34250 35320 72600 22000 23100 24200 25300 26400 27500 28600 29700 30800 31900 33000 34100 35200 36300 74560 22594 23724 24853 25983 27113 28242 29372 30502 31632 32761 33891 35021 36150 37280 76520 23188 24347 25507 26666 27825 28985 30144 31304 32463 33622 34782 35941 37101 38260 78640 23830 25022 26213 27405 28596 29788 30979 32171 33362 34554 35745 36937 38128 39320 80760 24473 25696 26920 28144 29367 30591 31815 33038 34262 35485 36709 37933 39156 40380 82880 25115 26371 27627 28882 30138 31394 32650 33905 35161 36417 37673 38928 40184 41440 85000 25758 27045 28333 29621 30909 32197 33485 34773 36061 37348 38636 39924 41212 42500 A Hand Guide Book to Your on Duties and Rights - 2017-271 271

PENSIONERS LOAN SCHEME : (Ref. Retail Banking & Marketing Department Circular No.ADV/002/2011 2012 dated 05.04.2011) Our bank has been extending loan facility to pensioners since 2003 with various modifications as and when required. Following are the norms presently in vogue as per circular cited above. PURPOSE : To meet any personal expenses (end use need not be verified) ELIGIBILITY : All pensioners receiving pension through our bank branch except Malaysian Government pensioners. QUANTUM : Age of the pensioner Quantum Upto 70 years 15 times of monthly pension (or) Rs. 5 lacs whichever is less Above 70 years 15 times of monthly pension (or) Rs. 3 lacs whichever is less FOR FAMILY PENSIONERS Age of the pensioner Upto 70 years Above 70 years Quantum 10 times of monthly pension (or) Rs. 3 lacs whichever is less 10 times of monthly pension (or) Rs. 2 lacs whichever is less REPAYMENT PERIOD : Repayable out of pension amount in 60 Equated monthly instalments for those upto 70 years 36 Equated monthly instalments for those above 70 years. INTEREST RATE : MCLR + 1.75 % for IOB pensioners. SECURITY : NIL. Obtaining undertaking letter is waived for Ex-staff members of the Bank who are drawing pension from the Bank. FESTIVAL LOAN (INTEREST BEARING) FOR IOB PENSIONERS : (Ref. Marketing & Development Circular No.ADV/86/2011-2012 dated 21.10.2011) Bank has been extending Festival Loan to all IOB retirees who are drawing pension from the bank, once in a year, for celebrating festivals. PURPOSE To celebrate festival, once in a year. ELIGIBLE PENSIONERS To IOB pensioners only. However, IOB Family pensioners are not eligible. 272 A Hand Guide Book to Your on Duties and Rights - 2017

NORMS FOR ELIGIBILITY Eligible to avail once in a calendar year only. Under any circumstances, not eligible for more than one festival loan in a calendar year. There should be no outstanding under earlier festival loan, if any, availed. The Festival Loan instalment, including that of Pensioner s Loan, if any availed, should not exceed 50% of the monthly pension. QUANTUM OF LOAN Equivalent to previous one month pension amount. Outstanding under Pension Loan and Festival Loan be granted should not exceed Rs.5.00 lacs for those not above 70 years of age and Rs.3.00 lac for those who are over 70 years of age. Repayment Repayable in 10 Equated Monthly Instalment, irrespective of age group. Instalment should be recovered from the pension amount every month. Interest MCLR + 1.75% for IOB Pensioners Security N I L REVERSE MORTGAGE LOAN : ( Ref. Retail Banking & Marketing Department Circular No.ADV/188/2012-13 dated 06.06.2013) In order to provide regular cash flow to senior citizens supplementing the pension or any other income and addressing their financial requirements, National Housing Bank has introduced the scheme called Reversed Mortgage. This is considered as a structured Social Security Scheme for the senior citizens in our country. Salient features of the scheme : ELIGIBILITY : Applicant should have completed 60 years of age. Loan jointly with spouse is permitted provided the first named applicant is a Senior Citizen and the age of the spouse is not below 55 years. In the event of death of the prime borrower, his/her spouse will become eligible to receive the loan amount irrespective of her / his age. Applicant must own a self-acquired, self occupied residential property (house or flat) located in India with clear and transferable title, free from any encumbrance. A Hand Guide Book to Your on Duties and Rights - 2017-273 273

The residual life of the property should be not less than 20 years as per certificate of Bank s approved Valuer / Engineer. Commercial property is not eligible for this loan. PURPOSE : For anyone of the following purposes. Medical expenses or maintenance of family. Supplementing pension or any other income. For up-gradation, repair, renovation or extension of the house property or any other expenses relating to maintenance of the property. Meeting any other need. Loan amount should not be used for speculative, trading or business proposals. QUANTUM OF LOAN : Minimum Rs.5.00 lacs and maximum is restricted to Rs.100 lacs subject to : - Loan amount will be decided based on Market Value of the property, Age of the borrower and the Rate of Interest prevailing. The quantum of loan may undergo revision based on revaluation of property ( to be done once in every 3 years. The option is left with the borrower to continue the loan with revised value and interest OR to discontinue the loan. Expected future increase in property value will not be reckoned for determining the loan amount. Bank will ensure that the equity of the borrower in the residential property (Loan to Value Ratio LTV) does not fall below 10% at any time during the tenor of the loan. MARGIN : 75% of the Market Value of the mortgaged property is taken as eligible loan amount. 45% of this eligible loan amount is dispersed to the borrower as monthly annuity with maximum cap of Rs.50,000/ - and the balance 55% is apportioned towards Interest accumulated during the loan period. TENURE OF THE LOAN : Uniform loan period of maximum of 15 years. INTEREST RATE : MCLR + 0.75%. PROCESSING CHARGES : 0.50% of the loan amount subject to a maximum of Rs.10,000/-. 274 A Hand Guide Book to Your on Duties and Rights - 2017

SECURITY : Registered Memorandum of deposit of title deeds of the house (residential) property against which the loan is granted. DISBURSEMENT OF LOAN : The loan amount will be disbursed as fixed monthly payments over the duration of the loan or till the demise of last surviving borrower or till the last surviving borrower leaving the house property permanently, whichever is earlier. A lump sum payment of Upto 50% of total eligible amount of loan subject to a cap of Rs.15 lacs will be disbursed for meeting Medical treatment for self, spouse and dependents. Where the borrower require lump sum amount after few years of commencement of the loan, the residual value arrived for the property will be disbursed subject to a maximum of Rs.15.00 lacs. Balance will be eligible for periodic payment. FORECLOSURE OF LOAN : Repayment concept is not applicable to this scheme. If the borrower desires, quarterly or half yearly repayments can be made to the loan account. The borrower has the option at any time during the loan period to pay the entire loan amount with accumulated interest. No pre payment charges will be levied. SETTLEMENT OF THE LOAN : The loan will become due for recovery and payable six months after the death of the last surviving spouse. Loan along with accumulated interest will be adjusted by sale of the property mortgaged and any surplus will be paid to the Heirs. However, the legal heirs of the deceased borrowers will be given an option to settle the loan along with the accumulated interest without sale of the property. A Hand Guide Book to Your on Duties and Rights - 2017-275 275