## Report on Small Industries Development Bank of India Defined Contributory New Pension Amendment Regulations, 2022
**1. Executive Summary:**
This report analyzes the Small Industries Development Bank of India (SIDBI) Defined Contributory New Pension Amendment Regulations, 2022, as published in the Gazette of India. This amendment modifies the original 2012 regulations concerning the defined contributory new pension scheme for SIDBI employees. The key changes involve substituting Regulations 4.1.1 and 5.2, clarifying the contribution mechanism for both employee and bank contributions, particularly regarding the inclusion of Dearness Allowance (DA) and potential arrears. The changes are effective from January 1, 2020.
**2. Introduction:**
This report aims to provide an informative overview of the Small Industries Development Bank of India Defined Contributory New Pension Amendment Regulations, 2022, based solely on the text provided from the Gazette of India. It outlines the amendment's purpose, key changes, affected parties, and potential impact.
**3. Policy Overview:**
* **Original Policy:** Small Industries Development Bank of India Defined Contributory New Pension Regulations, 2012.
* **Core Objective(s):** Based on the text, the core objective of the original policy is to establish a defined contributory new pension scheme for SIDBI employees. The amendment aims to clarify and modify the contribution process within this existing framework.
**4. Background and Rationale:**
This amendment likely addresses ambiguities or operational challenges within the original 2012 regulations regarding the calculation and deduction of pension contributions. The amendment clarifies the inclusion of Dearness Allowance (DA) and any arrears thereof in the contribution calculation and addresses potential default scenarios. The text suggests a need for precise and consistent application of the contribution rules.
**5. Key Provisions / Changes:**
This section focuses specifically on the changes introduced by the amendment text:
* **Regulation 4.1.1 (Changed):** This regulation is entirely replaced.
* **New Rule (4.1.1.A):** Every subscriber employee is required to contribute a fixed percentage (determined by the Bank from time to time) of their Basic Pay plus Dearness Allowance (DA) and any arrears thereof. The bank is authorized to deduct this amount for credit into the Tier-I Pension Account.
* **New Rule (4.1.1.B):** The Bank will contribute/subscribe to the Tier-I Pension Account at rates decided by the Bank from time to time.
* **Difference/Effect:** The amendment mandates a specific contribution methodology for employees, explicitly including DA and arrears in the calculation. It also reaffirms the Bank's commitment to contributing at rates determined internally.
* **Regulation 5.2 (Changed):** This regulation is entirely replaced.
* **New Rule:** The contributions/subscriptions will include the fixed percentage of Basic Pay plus Dearness Allowance (DA) as decided by the Bank and any arrears. It clarifies that the Bank will deduct contributions if an employee defaults, using the prevailing rates on the relevant dates for past contributions from when the employee became eligible.
* **Difference/Effect:** This clarifies the composition of the contributions and explicitly states the process for handling employee defaults in contribution payments, providing clarity on how the bank will recover outstanding amounts.
**6. Target Audience and Stakeholders:**
Based on the provided text, the primary target audience and stakeholders are:
* Employees of the Small Industries Development Bank of India (SIDBI) who are subscribers to the Defined Contributory New Pension Scheme.
* The Board of Directors of SIDBI.
* The HR department of SIDBI, responsible for implementing these regulations.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Board of Directors of SIDBI approved and adopted these amendments. The HR department is likely responsible for implementing the changes.
* **Timelines/Procedures:** The amendments came into effect on January 1, 2020. The bank will need to establish procedures for calculating and deducting contributions based on Basic Pay, DA, and any arrears. The bank will have to decide the fixed percentage of contribution from time to time. The amendment also requires the Bank to establish a process for deducting outstanding contributions from employees who default on payments.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes include:
* **Increased Clarity:** Clearer guidelines on the calculation of pension contributions, reducing ambiguity and potential disputes.
* **Improved Compliance:** A well-defined process for handling contribution defaults should lead to improved compliance and reduce the risk of shortfalls in employee pension accounts.
* **Consistent Application:** Ensuring consistent application of the contribution rules, promoting fairness and transparency in the pension scheme.
**9. Conclusion:**
The Small Industries Development Bank of India Defined Contributory New Pension Amendment Regulations, 2022, represent a refinement of the existing pension scheme. By clarifying the inclusion of DA and addressing default scenarios, these amendments aim to enhance the clarity, compliance, and consistent application of the pension contribution process for SIDBI employees. The effective date of January 1, 2020, suggests a retrospective application of these clarified rules.
Key Entities Referenced
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA: Name of the organization issuing the notification.
Lucknow, Uttar Pradesh: City and state where the notification was issued.
Small Industries Development Bank of India Defined Contributory New Pension Amendment Regulations, 2022: Title of the amendment regulations being introduced.
Small Industries Development Bank of India Act, 1989: Act under which the powers are conferred to make the amendments.
Small Industries Development Bank of India Defined Contributory New Pension Regulations, 2012: Original regulations being amended.
TierI Pension Account: Pension account mentioned in the context of employee and bank contributions.
Basic Pay: Component of pay on which contributions are based.
Dearness Allowance: Component of pay on which contributions are based.
Board of Directors of Small Industries Development Bank of India: Approving authority for the Defined Contributory New Pension Amendment Regulations, 2022.
Mumbai, Maharashtra: City in Maharashtra where the meeting of the Board of Directors of Small Industries Development Bank of India was held.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-यू.पी.-अ.-30062022-236917
xxxGIDHxxx
CG-UP-E-30062022-236917
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 331] नई कदल्ली, बृहस्ट्प जतिार, िनू 30, 2022/आषाढ़ 9, 1944
No. 331] NEW DELHI, THURSDAY, JUNE 30, 2022/ASHADHA 9, 1944
भारतीय लघ ुउद्योग जिकास बकैं
अजधसचू ना
लखनऊ, 21 िून, 2022
"भारतीय लघ ुउद्योग जिकास बकैं (नई जनजित अिं दायी पिें न) [सिं ोधन] जिजनयमािली, 2022"
मासजं िउ. स.ं L001268839/स्ट्टाफ 35बी.—भारतीय लघु उद्योग जिकास बैंक अजधजनयम, 1989 (1989 का 39)
की धारा 52 की उप-धारा (1) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, भारतीय लघु उद्योग जिकास बैंक का जनदेिक
मंडल एतद्वारा भारतीय लघु उद्योग जिकास बैंक (नई जनजित अंिदायी पेंिन) जिजनयमािली, 2012 (इसके बाद मलू
जिजनयमािली के रूप में संदर्भति ) म ेंजनम्नजलजखत संिोधन करता ह:ै -
1. इन जिजनयमों को भारतीय लघु उद्योग जिकास बैंक (नई जनजित अंिदायी पेंिन) [संिोधन] जिजनयमािली,
2022 कहा िाएगा।
2. ये संिोधन 01 िनिरी, 2020 से लाग ूहोंगे।
3. मूल जिजनयमािली के जिजनयम 4.1.1 को जनम्नजलजखत द्वारा प्रजतस्ट्थाजपत ककया िाएगा:
“4.1.1.अ प्रत्येक अजभदाता कमिचारी को मूल िेतन और महगं ाई भत्ते, जिसका भुगतान बैंक द्वारा उसे ककया गया
हो, और उस पर बकाया राजि यकद कोई हो, पर बैंक द्वारा समय-समय पर तयिुदा एक जनजित प्रजतित का
योगदान करना होगा। अपेजित कटौती को टटयर-I पेंिन खाते में िमा करने के जलए अजभदाता कमिचारी द्वारा बैंक
को अजधकृत ककया िाएगा।
4.1.1.ब बैंक, टटयर-I पेंिन खाते में बैंक समय-समय पर जनधािटरत दरों पर अंिदान/अजभदान करेगा।”
4349 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
4. मूल जिजनयमािली के जिजनयम 5.2 को जनम्नजलजखत द्वारा प्रजतस्ट्थाजपत ककया िाएगा:
“ककए िाने िाल े अिं दानों /अजभदानों म ें मलू िेतन और महगं ाई भत्त,े और उसपर बकाया राजि यकद कोई हो, का
बैंक द्वारा समय-समय पर तय जनजित प्रजतित िाजमल ह,ै और यह स्ट्पष्ट ककया िाता ह ै कक यकद अजभदाता
कमिचारी जिस कदन स े इस योिना के तहत पात्र होता ह,ै उस तारीख को और उस तारीख से जपछल े अंिदानों
/अजभदानों के संबंध म,ें संबंजधत तारीखों पर प्रचजलत दरों पर अपने अंिदान/अजभदान के भुगतान म ें चूक
करता/ती ह,ै तो बैंक उसकी कटौती करेगा।”
जचत्रा कार्तिक आल,ै मख्ु य महाप्रबंधक
[जिज्ञापन-III/4/असा./150/2022-23]
प्रमाजणत ककया गया ह ै कक भारतीय लघ ु उद्योग जिकास बैंक के जनदेिक मडं ल ने 17 मई, 2022 को मुंबई म ें आयोजित
अपनी बैठक म ें भारतीय लघ ु उद्योग जिकास बैंक (नई जनजित अंिदायी पिें न) [संिोधन] जिजनयमािली, 2022 को मंिूरी
दी और अगं ीकार ककया।
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
NOTIFICATION
Lucknow, the 21st June 2022
“Small Industries Development Bank of India (Defined Contributory New Pension) [Amendment]
Regulations, 2022”
HRDV No. L001268839/Staff. 35B.—In exercise of the powers conferred by sub-section (1) of
Section 52 of the Small Industries Development Bank of India Act, 1989 (39 of 1989), the Board of
Directors of the Small Industries Development Bank of India hereby makes the following amendments to
the Small Industries Development Bank of India (Defined Contributory New Pension) Regulations, 2012
(hereinafter referred to as Original Regulations):-
1. These Regulations may be called the Small Industries Development Bank of India (Defined
Contributory New Pension) [Amendment] Regulations, 2022.
2. These Amendments shall come into force with effect from January 01, 2020.
3. The Regulation 4.1.1 of the Original Regulations shall be substituted by the following:
“4.1.1.A. Every Subscriber Employee shall have to make a contribution at a fixed percentage, as
decided by the Bank from time to time, of Basic Pay plus Dearness Allowance (DA), and arrears
thereof, if any, paid by the Bank to the Subscriber Employee, by authorizing the Bank to make requisite
deduction for credit in the Tier-I Pension Account.
4.1.1.B The Bank will make contribution/subscription at the rates as decided by the Bank from time to
time, in the Tier-I Pension Account.”
4. The Regulation 5.2 of the Original Regulations shall be substituted by the following:
“The contributions / subscriptions to be made includes the fixed percentage of Basic Pay plus Dearness
Allowance (DA), as decided by the Bank from time to time, and arrears thereof, if any, and it is clarified
that the Bank shall deduct the same in case the Subscriber Employee commits default in the payment of
his / her contributions / subscriptions at the rates prevailing on respective date(s), in respect of the past
contributions/subscriptions on and from the date the Subscriber Employee becomes eligible for the
benefit under the Scheme”
CHITRA KARTIK ALAI, Chief General Manager
[ADVT.-III/4/Exty./150/2022-23]
Certified that the Board of Directors of Small Industries Development Bank of India in its meeting held
on May 17, 2022 at Mumbai had approved and adopted the Small Industries Development Bank of India
(Defined Contributory New Pension) [Amendment] Regulations, 2022.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.