24/07/2012 11:49
Cyprus Popular Bank offers voluntary retirements to 185 employees, as part of its reorganization and under the pressure of the conditions created by the broader financial crisis.
According to information collected by StockWatch, early retirements are offered to employees retiring in 2017.
Voluntary retirements are offered in a critical period for the banking system and the banking economy.
The capital needs of the banks and the arrival of troika signal the shrinkage of the banking sector and do not exclude arrangements that would affect the pension benefits of bank employees.
With the retirement, the bank employees receive their provident fund, which until recently accounted for 78 wages for those working in the bank for 36 years.
The state does not tax the provident funds or the lump sum of civil servants. The possibility of taxing lump sums has accelerated early retirements over the last year.
The bank’s move, which has not been discussed with the trade unions, is expected to emulate in other banks, which are required to rationalize the management of human resources, based on the new conditions created.
Early retirements were notified by letters to those who fall within this age group, who are invited to respond within the next week.
The Bank offers to those who opt for early retirement a few extra monthly salaries, depending on their years of service and payroll.
The Bank currently employs 2.500 staff in Cyprus and believes that with the early retirement of 7% of its employees, it will give opportunity for advancement to younger employees.
The offer of voluntary retirement is, in part, responding to the concerns of the employees, who see conditions changing.
Cyprus Popular Bank was nationalized in July with the state participation reaching 84%.
The main condition for the government support is the reduction of the payroll in Cyprus by 12% in 2012 and the restructuring of the activities in Cyprus and Greece based on the plan that KPMG will prepare.
According to information collected by StockWatch, early retirements are offered to employees retiring in 2017.
Voluntary retirements are offered in a critical period for the banking system and the banking economy.
The capital needs of the banks and the arrival of troika signal the shrinkage of the banking sector and do not exclude arrangements that would affect the pension benefits of bank employees.
With the retirement, the bank employees receive their provident fund, which until recently accounted for 78 wages for those working in the bank for 36 years.
The state does not tax the provident funds or the lump sum of civil servants. The possibility of taxing lump sums has accelerated early retirements over the last year.
The bank’s move, which has not been discussed with the trade unions, is expected to emulate in other banks, which are required to rationalize the management of human resources, based on the new conditions created.
Early retirements were notified by letters to those who fall within this age group, who are invited to respond within the next week.
The Bank offers to those who opt for early retirement a few extra monthly salaries, depending on their years of service and payroll.
The Bank currently employs 2.500 staff in Cyprus and believes that with the early retirement of 7% of its employees, it will give opportunity for advancement to younger employees.
The offer of voluntary retirement is, in part, responding to the concerns of the employees, who see conditions changing.
Cyprus Popular Bank was nationalized in July with the state participation reaching 84%.
The main condition for the government support is the reduction of the payroll in Cyprus by 12% in 2012 and the restructuring of the activities in Cyprus and Greece based on the plan that KPMG will prepare.
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