AIBEA Wage Revision complete report
Advertisement:AIBEA has just published the complete report on the wage revision talks. The report and the message on the wage revion talks has been published on the AIBEA website whose link has been given below.
For AIBEA Wage Revision Talk Report and Signed Agreement Details: Click Here
Here is the quote on the report:
ShareThe much-awaited Settlements on wage revision and pension option have been signed today with the IBA, achieving another landmark in our trade union movement. The 9th successive Bipartite Settlement has been signed and the wages and service conditions of bank employees have been improved. The Pension option Settlement has also been signed today which enables all the remaining employees to be covered by the D.A. linked Defined Benefit Pension Scheme, which is the best social security measure in the post-retiral life of employees.
We are happy that under the banner of UFBU, all the 9 unions have simultaneously signed the Agreements covering both employees and officers, manifesting the true spirit of the UFBU.
The Settlement covers 46 Banks (26 Public Sector Banks, 12 Private Sector Banks and 8 Foreign Banks) and would benefit 4,77,000 workmen employees and 2,75,000 officers. The Settlement would cost the Banks an additional increase in wages by Rs.5,200 crores per year (Rs.4,816 crores for Public Sector Banks and around Rs.400 crores for private and Foreign Banks). The Settlement will be effective from November 2007 to October 2012.
Under the Settlement all the remaining 2,60,000 employees and officers who are now covered by CPF would be given a chance to join the Pension Scheme – a long time demand of the Unions. More than 50,000 retirees will also get the option to join the pension scheme.
The Settlement is preceded by 30 months of protracted negotiations between the IBA and the unions, and was backed by various agitational programmes and strike actions, which were enthusiastically implemented by the members. There were many anxious moments during this period coupled with loads of misinformations, orchestrated columnies and virulent propaganda against all our efforts to settle. Added to this were the attempts to undermine the organistion, decry the leadership and derail the negotiations. But overcoming this and these, we have concluded the Settlement successfully.
Hats off to your unity, patience and co-operation. You have done proud to AIBEA.
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Comments/Queries
( 135 Comments so far )
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deep
Jul 19, 2010 at 09:39:amwhy is the delay in implementing the pension settlement in various banks?
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P.C.Parikh
Jul 19, 2010 at 01:07:pmwhy is the delay in implementing the pension settlement in various banks?
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vijayaraghavan p
Jul 24, 2010 at 05:22:pmThere seems to be delay in implementing pension plans..as envisaged in the Bipartite Settlements dt 27.4.2010,,
May be some court cases are pending…and awiting decision..
But delay seems to be the net result in any including wage settlemets/second option pension ultimately penalsing the retired persons who are compeeled to undergo unnecessary pecuniary loss.. as it can be obvious that pension schemes are not made effective from
previous dates like date of retirement of the employees. instead made effective from date of settlement which itself take place late after say 2 years …etc
Looking forward to hear better decisions/action in favour of the retired people before long -
vijayaraghavanp1
Jul 26, 2010 at 12:38:pmALL INDIA BANK OFFICERS’ CONFEDERATION
(Registered under the Trade Unions Act 1926, Registration No: 3427/Delhi)
State Bank of Buildings, St. Mark’s Road, Bangalore – 560 001CIRCULAR NO:106 DATE: 24.07.2010
TO ALL AFFILIATES/MEMBERS:
2ND OPTION ON PENSION – IMPLEMENTATION OF AGREEMENT
HURDLES OF LITIGATION ETC.,
We have been receiving anxious enquiries from the entire bank officers’ fraternity all over the country as to the process of the implementation of the 2nd option on Pension as agreed at the industry level between the Constituents of the United Forum of Bank Unions and the Indian Banks’ Association. Our comrades may recollect that, the issue was being pursued by the Confederation and it was taken up with the Indian Banks’ Association as well as the Government authorities for speeding up the entire process of issuance of notification and extension of offer of the scheme as required under the agreement. However, in the meanwhile, some of the CPF Optees have approached the Hon’ble High Court of Madras for bringing stay on the grounds that the contribution of 2.8 times of the “pay” as on 01.11.2007 as per the agreement dated 27.04.2010 by the P.F.Optees alone is discriminatory and hence the Court should stay the operation of the agreement. The Court has granted a temporary stay on 29.06.2010 against recovery of 2.8 times of pay from the arrears of salary and allowances from CPF optees subject to the hearing of the case.
2. The case is getting listed but could not reach the stage of hearing so far. We have been in touch with the Indian Banks’ Association and the Government authorities for early moving of the court to get the matter resolved so that the implementation of the agreement can be smooth one. Unfortunately, there are certain developments in between. The payment of arrears in Canara Bank took place after the temporary stay was granted by the Court; the petitioners have raised the issue of contempt of court and compelled the Management of Canara Bank to refund the amount recovered. Fearing the contempt proceedings Bank has returned the amount recovered from the award staff. As the Confederation or any other Officers’ organization is not a party to this petition, they have not returned the amount recovered from the Officers concerned.
3. It is in this background we have taken up the matter with the IBA for immediate action on their part. We are now given to understand that in view of the inordinate delay and the frustration it is causing to the entire workforce, the IBA is now planning to go before the Bench of Hon’ble High Court of Madras, raising the issue of urgency in getting the agreement implemented and seeking quashing of the case. We are confident that the issue is expected to be sorted out by the end of next week.
4. We are in touch with the Convener of United Forum of Bank Unions and he is also seized of the matter and had a detailed discussion with the Indian Banks’ Association. We have also decided to raise the issue in the meeting of the United Forum of Bank Unions which is scheduled on 26th of July 2010 at Mumbai to deliberate on all these developments and take appropriate decision in the matter.
5. We have been receiving a number of communications and anxious enquiries from different parts of the country. Our affiliates should keep a close watch about these developments and should ensure that the interests of the Officers are protected. If there are any unsavory developments they should be in touch with the leadership of the Confederation for necessary guidance. They should also convey to their respective management that as regards the Officers the status will continue and there is no question of return of the contribution.
6. We note to keep advised of further developments in the matter.With greetings,
(G.D.NADAF)
GENERAL SECRETARY -
vijayaraghavanp1
Aug 09, 2010 at 09:33:pmThere is no news about second option of pension…court case position etc.
pfoptees are in utter darkness..when will the sun shine…and enlighten all..?????????
????
PLESE CLARIFY SIRS,COMRADES, GENTLEMEN, ASSOCIATION EXECUTIVES,PROLETARIAT…AND ALL…
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PVRAGHAVAN
Aug 10, 2010 at 09:19:pmFINAL POINTS IN FAVOUR OF PF OPTEES
BY
P.KUMAR
From the day Pension settlement signed and announced that PF optees to pay 2.8 times of their basic pay as on 01.11.2007 and retirees to pay 156% of the PF amount they have received from Bank, Arguments from both Pension optees and PF optees are going around in websites.
After reading all these letters/write-ups the following points emerged in support of PF optees.
1. In the Pension Regulations 1993/1995 there is no provision for collecting money from employees to make up the short-fall in pension fund. If at all any short fall is faced it should be made good by the banks itself. Then on what basis banks are now asking employees to contribute for short fall?
2. In 7th, 8th, 9th bi-partite settlements 8.25%, 9.25%, 13% of additional cost of pension was carved out of wage load and given to banks to make-up the shortfall in pension fund. This amount belongs to both Pension Optees and PF optees, but used for paying pension to Pension Optees only. Therefore is there any logic in asking funds now from PF optees only?
3. In the Pension Regulation 1993/1995 there was a clause stating that pension will not be paid to those employees who participates in any strike. In 1999, this clause has been removed, but no fresh option is given to PF optees to join pension scheme then. Why?
4. In Railways and RBI fresh options were given to employees to join Pension Scheme several times without asking single paisa. Then why in Banks Employees are asked to contribute towards Pension Fund?
5. If all the employees have opted for Pension in 1996/1995 itself, how banks would have managed Pension Fund?
6. In State Bank of India three retirement benefits are being given to employees. viz.PF+Pension+Gratuity. In Public Sector Banks only two benefits are available. Even for that second benefit Employees have to pay in every wage revision settlement. Does it mean Bank Employees are not given two retirement benefits, but they are given only 1.5 benefits i.e. half of what SBI employees are getting?
I wish to appeal to comrades who are in legal battle to concentrate on these points and arrange to submit sufficient material evidence to support the above points.
Further I appeal to all PF optees to print the above points (any valid arguments other than those above also can be added in shorter form) and sent to all bank/branches. Then only PF optees will understand how they are cheated by the Bank management and UFBU.
In my opinion this is the only way to reach out the ground level PFoptees.
Quote : “An economist is an expert who will know tomorow why the things he predicted yesterday didn’t happen today”. Laurence J. Peter
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VIJAYARAGHAVAN P
Aug 13, 2010 at 11:03:amALL INDIA BANK OFFICERS’ CONFEDERATION
(Registered under the Trade Unions Act 1926, Registration No: 3427/Delhi)
State Bank of Buildings, St. Mark’s Road, Bangalore – 560 001
CIRCULAR NO:119 DATE: 12.08.2010TO ALL AFFILIATES/MEMBERS:
2ND OPTION ON PENSION IMPLEMENTED
LEGAL HURDLES WARDED OFF
MEMBERS REJOICE THE SUCCESS OF THE CONFEDERATION ALL OVER
Kudos to our members across the country for their patience and perseverance. They did not lose their cool and were at the beck and call of the Confederation for any action at short notice. The agreement which was signed by the Confederation in regard to the 2nd option on Pension was challenged by some mischievous elements in the rival unions thereby creating unnecessary hurdles in the implementation of the agreement on 2nd option on Pension. The 2nd option on Pension and the salary revision agreements were signed simultaneously. We had advised the members in detail as to the various aspects of the 2nd option on Pension and the various provisions of the agreement to provide them necessary guidance for taking a positive decision in this regard. The salary revision was implemented whereas the details sent to the Government in regard to the 2nd option got struck due to the stay granted by the Madras High court on a writ petition filed by some of the disgruntled elements in the banks. We sought the immediate intervention of the IBA since people are getting upset about this unwanted delay and IBA could effectively intervene and get the stay vacated.
2. Hence, the 2nd option is now offered to the members who are eligible for the Pension Scheme as well as the retirees from the banks with immediate effect. A detailed communication has since been issued by the IBA. The salient features of the instructions issued by the IBA are as follows:- (Gist of IBA Circular No.CIR/HR&IR/G2/665/90/2010-11/999 dated 10.08.2010)“a. To facilitate early implementation, Government has consented IBA advising all banks that they may undertake the exercise for seeking the option from the employees both serving and retirees who did not opt for pension earlier, explaining the terms and condition for such option.
b. Sanction of the Government is also accorded to implement the terms of Settlement/Joint Note dated 27th April 2010 between IBA and Unions/ Associations for the grant of option to the retirees and payment of pension to such retirees w.e.f 27th November 2009, who opt for pension and comply with terms and conditions set out in the Settlement/Joint Note for the grant of pension, pending necessary amendments in the Bank (Employees’) Pension Regulations, 1995.
c. The existing pension scheme will not be applicable to those, who join the services of banks on or after 1st April 2010. Officers/workmen employees, joining services of banks on or after 1st April 2010 shall be eligible for Defined Contributory Pension Scheme on the lines of New Pension Scheme introduced for employees of Central Government. The Officer/Workmen employees joining service on or after 1st April 2010 shall contribute 10% of Pay and DA towards the Defined Contributory Pension Scheme.
d. Officer/Workmen employees, who opted for Voluntary Retirement under special Voluntary Scheme after rendering a minimum of 15 years, service, shall be eligible to exercise option to join the Pension Scheme subject to terms and conditions applicable to retirees.
e. Pension/Family Pension will be payable to those, who opt to join pension scheme and comply with terms and conditions set out in the Settlement/Joint Note dated 27.4.2010.
f. The cost of another option of pension for the serving employees and the grant of option to the retirees assessed by the Actuaries, based on the estimates of each Bank, will be closely supervised by the Monitoring Committee. The Banks which exceed the cost than the Actuarial report would need to explain to the Government.
g. The monitoring in this regard may be carried out every quarter at the Board level.
h. We are enclosing a draft of the Option letters to be obtained from serving employees and retirees for guidance. You are requested to take immediate steps to circulate the terms and condition on which another option is granted to non-optees as contained in the enclosed Settlements/Joint Note among the staff members, with the approval of the Bank’s Board,
i. You are also requested to advise those who retired from service on or after 29th September 1995/26th March 1996 in the last known address, the following information as available in the Bank’s records:
i. The amount of Bank’s contribution to Provident Fund with interest paid to him at the time of retirement.
ii. 56% of the above amount representing his share in the funding gap.
iii. The lumpsum amount he may get if he exercises his option to join the Pension Scheme and choose to commute the maximum permissible pension (1/3rd of Basic Pension) based on the commutation value on his next date of birth from the date of option.j. IBA is arranging to publish an advertisement in English in a National daily and other newspapers in Regional Languages advising the retirees to approach the banks in this regard.
k. Banks may consider setting off the commutation amount of the optees against the amount due from him for joining the Pension Scheme.
l. In terms of Memorandum of Settlement dated 27th April 2010, in the case of workmen employees and Joint Note dated 27th April 2010, in the case of Officer employees, those who ceased to be in service on account of retirement on superannuation, death or on account of VRS under special scheme prior to 27th April 2010 but after 29th September 1995 from Nationalised Banks and after 26th March 1996 from Associated Banks of State Bank of India are eligible to opt for joining the pension scheme now as retired employees subject to the terms and conditions stipulated, Those who were in the service of the Banks as on 27th April 2010 will be eligible to join the pension scheme as serving employees subject to the terms and conditions stipulated.
m. Once the Scheme is implemented and funds received from those who opted to join the Pension Scheme complying with the terms and conditions for such option, please advise us the details in respect of:
i. Bank’s contribution with interest paid to the retirees at the time of retirement refunded by them
ii. 56% of the above remitted by them towards their share of funding gap.
iii. Bank contribution towards Provident Fund and interest accrued thereon transferred to the pension in respect of serving employees who opt to join the pension scheme now.
iv. 2.8 times of revised pay for November 2007 contributed by serving employees who opted to join the pension scheme now.n. You may kindly approach us for any clarification in respect of implementation of the Settlement/Joint Note in extending another option to join the Pension Scheme to employees/retirees as above.”
3. Comrades, with this development the long pending demand of the Confederation gets resolved due to its persistent struggle and sacrifice of several members over the last several years. We thank all our members and affiliates as well leaders of the present as well past for their unflinching faith and commitment towards the cause and participation in all the struggles in ensuring the success of the demand raised on behalf of over 3,00,000 serving employees and officers and 65,000 retirees from the Banking Industry.
4. We request all our members and retirees who are eligible for the benefit of 2nd option to kindly take advantage of the scheme and see that they exercise the option within the time limit available so that they are able to get the full advantage of the Pension Scheme.
With greetings,(G.D.NADAF)
GENERAL SECRETARY -
vijaaraghavan p
Aug 18, 2010 at 11:11:amSuthakar and K S Viswanathan.
GOVERNMENT CLEARS AND IBA ISSUES CIRCULAR:
Consequent to this, the Government has given its clearance to IBA to go ahead and IBA has issued their Circular dated 10th August, 2010 to all the Banks for implementing the pension option settlement.
It is pertinent to note that Canara Bank Workers Union who had filed the Writ Petition is not affiliated to any of our UFBU constituent units and hence is not a party to the Settlement also. In the entire country, this Union has a membership of 244 employees only. It is also known that this union is a well-known anti-AIBEA outfit right from its inception and they are known for their anti-employee positions. No wonder, this time too they have tried to work against the employees and even the retired employees and to prevent the pension benefit to the PF Optees who have been eagerly waiting for the same for so many years.
It is also evident that the stay order has been obtained based on wrong premises that there are stay orders in Allahabad and Andhra Pradesh High Courts.
With this vacation of stay order and IBA’s instructions to the Banks to proceed with the implementation of the Settlement and extend the pension option to the PF Optee employees/retirees, all the Banks will be issuing their respective Circulars seeking the option.
All our units should ensure that the PF Optees submit the option letter and join the pension scheme as pension is the best social security measure. Pension option has been achieved with great struggles and difficulties and this opportunity should not be missed. Similarly, our units should also try to reach all the eligible retirees so that they may submit the option letter well in time. This is an important organizational task and all our units should ensure the same.
PENSION IS THE BEST SOCIAL SECURITY SCHEMEPENSION BENEFITS ALL
OPT FOR PENSION SCHEME
OPT TODAY
OPT ALL
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vijayaraghavanp
Aug 21, 2010 at 06:34:pmFrom Allbanking solutions…
The Joint Note signed with IBA is not an elaborate document and bankers have been running from pillar to post since April, 2010 for certain clarifications. Although, some unions certain circulars but even those were were well guarded and lacked transparency. Now slowly some clarifications are being received in the shape of feedback / news. We will be publishing such feedback / news as and when the same are received. Readers are free to send these whenever they come across certain authentic material in the shape of circulars issued by IBA or banks etc. We give below few of such feedback / news:
Whether Resignee and Voluntary Retirees Are Eligible for 2nd Pension option :
Although from the date of signing the joint note, it was accepted that resignees will not be eligible for 2nd pension option, yet there was hope that voluntary retirees will be eligible for the 2nd pension option. However, the circular issued by IBA and by some the public sector banks, indictes that even voluntary retirees under normal scheme will not be eligible for 2nd pension option. Only officer / workmen employees, who opted for the voluntary retirement under special voluntary scheme after rendering of 15 years service will be elligible to exercise the pension option. This is a major set back to all such employees.
What will be the date from which commuted value will be calculated ?
Bankers have been discussing this issue for quite long now. Some were even hoping that this cut off date may be from the date when they retired. The recent feedback / news will be a major set back to all such retirees. A preliminary circular issued by one of the leading public sector bank clearly indicates that the commuted value will be the value based on next date of birth of the employee from the date of commencement of the pension option. Thus, this date is likely to be different for different banks as the commencmenet of the pension option date will be different for different banks as each bank has to first get the details passed from its Board. Thus, in almost all cases, the date will be later than 20th August, 2010.
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RAJINDER ARORA
Aug 24, 2010 at 08:08:amPLEASE INFORM ME WHETHER DEPUTATION ALLOWANCE IS PAYABLE TO OFFICER UNDER LEAVE ENCASHMENT TAKEN FOR LFC
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vijayaraghavanp1
Aug 28, 2010 at 11:34:amLatest feedback / news on 2nd Pension option (to be updated as and when the same is received)
The Joint Note signed with IBA is not an elaborate document and bankers have been running from pillar to post since April, 2010 for certain clarifications. Although, some unions certain circulars but even those were were well guarded and lacked transparency. Now slowly some clarifications are being received in the shape of feedback / news. We will be publishing such feedback / news as and when the same are received. Readers are free to send these whenever they come across certain authentic material in the shape of circulars issued by IBA or banks etc. We give below few of such feedback / news:
Whether Resignee and Voluntary Retirees Are Eligible for 2nd Pension option :
Although from the date of signing the joint note, it was accepted that resignees will not be eligible for 2nd pension option, yet there was hope that voluntary retirees will be eligible for the 2nd pension option. However, the circular issued by IBA and by some the public sector banks, indictes that even voluntary retirees under normal scheme will not be eligible for 2nd pension option. Only officer / workmen employees, who opted for the voluntary retirement under special voluntary scheme after rendering of 15 years service will be elligible to exercise the pension option. This is a major set back to all such employees.
What will be the date from which commuted value will be calculated ?
Bankers have been discussing this issue for quite long now. Some were even hoping that this cut off date may be from the date when they retired. The recent feedback / news will be a major set back to all such retirees. A preliminary circular issued by one of the leading public sector bank clearly indicates that the commuted value will be the value based on next date of birth of the employee from the date of commencement of the pension option. Thus, this date is likely to be different for different banks as the commencmenet of the pension option date will be different for different banks as each bank has to first get the details passed from its Board. Thus, in almost all cases, the date will be later than 20th August, 2010.
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V R Sridharan
Sep 10, 2010 at 09:17:amBank of Baroda has issued circular for 2nd pension option on 09 Sept 2010
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M.C.AGRAWAL
Sep 10, 2010 at 02:39:pmKindly arrange to take up the matter with MOF and IBA for injustice in
granting pension option to voluntary retired in banks by IBA through
news in your esteemed COLUMN which will save thousand of employees
from going in litigation for restoration of their fundamental right in
view of clear cut guidelines and rulings of supreme court.However the
legal recourse will be the last resort and i am sending the legal
issues for your kind perusal and taking up the matter please which will
save money,time and energy of thousands of voluntary retired…PENSION OPTION FOR RETIREES UNDER NORMAL VRS – LEGAL POSITION
O1. VRS Scheme of Banks:
VRS scheme is prevailing in some banks as per Officers’ Service
Regulations (OSR). The entire regulations contained in OSR are approved
by Govt of India through Official Gazette Notifications from time to
time based on the modifications effected. In other words, the entire
OSRs are permitted/ approved by the Govt of India.Therefore, it is deemed that the Officers who have gone under this VRS
scheme have done so as per the Govt guidelines.02. Joint Note dt 27.04.2010 & IBA Circular dt 10.08.2010
In terms of IBA circular No. CIR/HR&IR/G2/665/90/2010-11/999 DT
10.08.2010, among others, it clearly states that “Government has
consented IBA to advise banks for seeking option from the employees
both serving and RETIREES who did not opt for Pension earlier,
explaining the terms and conditions for such Option”.It is very clear that the Govt has consented for offering one more
option for Pension to the Retirees who had not opted earlier.In terms of Para No 3 of aforesaid IBA circular, Government has
accorded sanction to implement the terms of settlement as per Joint
Note dt 27.04.2010 for the grant of option to the Retirees and payment
of pension to such Retirees w.e.f 27.11.2009, who opt for pension and
comply with the terms and conditions set out in the settlement/ Joint
Note for the grant of Pension.Therefore, Govt has accorded permission to IBA for extending Pension
Option to all the Retirees as per the Joint Note dt 27.04.2010.In effect, all Retirees without any QUALIFICATION are entitled to opt
for Pension.03. Contradiction in IBA Circular dt 10.08.2010 with that of the Joint
Note dt 27.04.2010
As per para No 3 of the IBA circular dt 10.08.2010, IBA has obtained
the consent of the Govt for implementation of the Pension scheme and
in this para nowhere the word SUPERANNUATION is used.However, under Para No 13 (page 2) IBA states “ …….. in terms of Joint
Note dt 27.04.2010 Officer Employees who ceased to be in the service on
account of retirement on SUPERANNUATION are eligible to opt for
joining the pension scheme now as retired employees subject to the
terms and conditions stipulated.Therefore, it is clear that while obtaining the permission from the
Govt, IBA has not included the word “Superannuation” and only under
para No 13 it is for the first time IBA used the word “Superannuation”.In effect, IBA has arbitrarily put this word without the permission of
the Govt to create avoidable confusion and contradiction to only delay
implementation of the pension settlement.This can be further corroborated by the following acts of IBA:
IBA PRESS RELEASE dt 27.04.2010:
In terms of this Press release, another option of pension is given to
all existing employees who did not opt earlier and also who have
retired/died after pension regulations 1995/96.IBA PAPER AD/ NOTICE TO THE RETIRED EMPLOYEES TO OPT FOR PENSION:
IBA’s notice to all the Retirees to opt for joining the Pension scheme
appeared in all the major newspapers of the country. The entire notice
carried eligibility criteria linked to the Joint Note dt 27.04.2010.
Nowhere in this Notice the word is “Superannuation” used.In fact, Joint Note Para No 13 reads “ any difference of opinion
regarding interpretation of any of the provisions of this Joint Note,
the matter will be taken up at the level of IBA and the Officers’
Association for discussion”IBA without discussing this issue with Officers’ Association has
wrongly and orbitrarily incorporated the word “Superannuation” thus
violating the sanctity of Joint Note and the Bi-partite settlement and
also has misled the Govt as Govt permission is available for
implementation of Joint Note dt 27.04.2010.This is nothing but the breach of trust reposed by the Govt /UFBU on
IBA.04. DEFINITION OF “RETIREMENT” AND “SUPERANNUATION”
FOR THE PURPOSE OF PENSION OPTION.
(A): DEFINITION OF RETIREMENT:
Regulation 2(k) of Bank (Employees) Pension Regulations 1995 defines
Date ofRetirement as “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 deemed to have Retired.
Therefore, it is very clear that as per Pension Regulation 1995,
Retirement alsoincludes employees who have gone under VRS
Regulation 2(y) of Pension Regulations 1995 defines Retirement as:
(a) On attaining the age of Superannuation specified in the service
regulations(b) ON VOLUNTARY RETIREMENT IN ACCORDANCE OF THE PROVISIONS CONTAINED
IN REGULATION 29(c) On premature Retirement by the Bank before attaining the age of
SuperannuationUnder Regulation 2(y) also it is very clear that Retirement includes
VOLUNTARY RETIREMENT as per the provisions of Regulation 29.Regulation 29 of Bank (Employees) Pension Regulations 1995 states about
Pension on Voluntary Retirement:(1) ……….. at any time an Employee has completed 20 Years of
qualifying service by giving notice of not less than 3 months in
writing to the Appointing Authority to Retire from service.(2) The Notice of Voluntary Retirement shall require acceptance by
the Appointing AuthorityFROM THE PENSION REGULATIONS IT IS VERY CLEAR THAT AN OFFICERS WHO
HAVE GONE UNDER VRS SCHEME OF THE BANK HAVING COMPLETED 20 YEARS OF
SERVICE ARE ENTITLED FOR PENSION.(B): DEFINITION OF SUPERANNUATION:
(i) Regulation 2 of Bank (Employees) Pension Regulations 1995 defines
various terminologies of the Act.Nowhere under this Regulation, the word” Superannuation” is defined
like other terminologies.However, Regulation 2[y(a)] while defining the Retirement mentions that
“on attaining the age of “Superannuation” specified in the Service
Regulations or Settlements”.On a detailed perusal of Officers’ Service Regulations (OSR), nowhere
the word ” Superannuation” is found. In other words, it is not
there in the entire OSR.However, under Regulation 19 of OSR, while mentioning the AGE OF
RETIREMENT it is stated:1. The age of Retirement of an Officer Employee shall be as
determined by the Board in accordance with the guidelines issued by the
Govt from time to time.2. Provided also that nothing in this regulation shall be deemed
to PRECLUDE an Officer Employee from Retiring earlier pursuant to the
Option exercised by him in accordance with the Rules in the Bank.FROM THE ABOVE IT IS ABUNDANTLY CLEAR THAT “SUPERANNUATION” MEANS AND
INCLUDES :- Officers retired in accordance with Govt guidelines
- And also those Retired under Voluntary Retirement Scheme of
the Bank in accordance with the Rules in the Bank.IN OTHER WORDS, ALL THE OFFICERS WHO HAVE OPTED FOR VRS AFTER
COMPLETING THE REQUIRED NUMBER OF YEARS OF SERVICE IN THE BANK AND DULY
COMPLYING WITH THE RULES OF THE BANK HAVE ACTUALLY RETIRED OR
SUPERANNUATED.Hence, even if interpreted that para no 13 of IBA circular dt
10.08.2010 mentions retirement on account of Superannuation, Officers
under VRS are covered by the same and hence eligible to opt for pension
as per joint note dt 27.04.2010 and IBA circular dt 10.08.2010.Further confirmations to the above can be undoubtedly confirmed by the
following:01. MOU between IBA and UFBU dt 27.11.2009:
In the MOU, among others, it is agreed by the parties to the MOU that
one more option for Pension to be extended to all the Retirees who were
in the service of the Bank prior to 29.09.1995/26.03.1996 and Retired
after that date and prior to the date of the Joint Note (27.04.2010).
Here, Retiree does not have any suffixes or prefixes.This MOU was discussed by IBA and the UFBU with the Hon’ble Finance
Minister and upon his concurrence only the MOU was culminated into
Joint Note dt 27.04.2010. Therefore, IBA has obtained concurrence from
the Hon’ble Finance Minister for providing one more Pension option to
all Retirees without any qualification.02. DISCUSSIONS BETWEEN IBA AND UFBU ON 9TH AND 10TH DECEMBER
2009:
The Circular issued by AIBEA and UFBU dt 10.12.2009 is appended
hereunder:ALL INDIA BANK EMPLOYEES’ ASSOCIATION
Central Office: “ PRABHAT NIVAS ”
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522,6543 1566 & Fax: 4500 2191, 2535 8853
e mail ~ chv.aibea@gmail.com &
aibea@vsnl.comCIRCULAR NO. 26/48/2009/43
10th December, 2009TO ALL UNITS AND MEMBERS:
Dear Comrades,
We reproduce hereunder the text of UFBU Circular No. 19 of date on the
details of the talks with IBA held on 9th and 10th December, 2009.With greetings,
Yours comradely,
(C. H. VENKATACHALAM)
GENERAL SECRETARY
TALKS WITH IBA
Further to the signing of the Minutes with the IBA on 27-11-2009 on our
demands for wage revision and pension option, yesterday i.e. 9-12-2009,
a round of discussions took place between IBA and UFBU. IBA’s team was
led by Mr. Allen Pereira, (CMD, Bank of Maharashtra) and Vice Chairman
of their Negotiating Committee. From the UFBU, all the 9 constituent
unions participated in the Talks.During this meeting, the broad approach to expeditiously finalise the
full settlement was discussed. It was decided that construction of new
pay scales, revision of allowances, drafting of the Settlement, etc.
would be taken up in subsequent meetings to be held separately with the
5 Workmen Unions and 4 Officers Associations.It was further decided that the drafting of the settlement on wage
revision and pension option be simultaneously undertaken so that both
the settlements can be signed together.Arising out of the Minutes on pension option, it was mutually clarified
and understood that ‘Retirees’ would mean and include
employees/officers who have retired on normal superannuation, those who
have retired under VRS/Special VRS and families of the PF optees who
had died during the period all of whom would be eligible for the
pension option. Issues like cut off date, formula for sharing of the
additional cost of pension option, etc. were taken up and would be
discussed further.Today (10-12-2009), IBA held separate meetings with the Workmen Unions
and Officers Associations during which proposals for construction of
pay scales, etc. were discussed. Since the construction of revised pay
scales is the most important issue, the matter needs further
discussions. It was decided that the discussions would be further
continued in the next round of meeting for which dates would be fixed
up shortly.With greetings,
Yours comradely,
Sd..
(C. H. VENKATACHALAM)
CONVENER
FROM ALL THE ABOVE LEGALLY TENABLE FACTS IT IS VERY CLEAR THAT OFFICERS
UNDER VRS OF THE BANKS ARE ELIGIBLE TO OPT FOR PENSION BASED ON JOINT
NOTE DT 27.04.2010 AND IBA CIRCULAR DT 10.08.2010.05. Where Officers under VRS have been reckoned for the purpose of
computation of Load Factor by Actuaries:As per the format devised by IBA/ Actuary, banks were advised to
furnish information relating to both Serving and Retired Employees as
on 31.03.2008 as under:- Number of Serving Employees who are PF Optees as on
31.03.2008- Names of the Retired Employees and the Banks PF
contributions in respect of each of them.Each bank has furnished the above information. Therefore, every
employee of the bank either serving or retired as on 31.03.2008 has
been reckoned for computing the Load factor and hence VRS optees should
be given the opportunity to opt for pension.06. PROVIDING OPPORTUNITY TO RETIREES UNDER SVRS AND CREATING
DISCRIMINATION AMONG RETIREES;As per Joint Note dt 27.04.2010 and IBA circular dt 10.08.2010,
opportunity has been provided to Retirees under SVRS to opt for
Pension. The ridicule part is that Option is allowed even to those
Officers who had just completed only 15 years of service as against the
minimum required Pensionable service of 20 years as per Pension
Regulation 29.Banks and IBA were generous to launch SVRS in 2001 and allowed Officers
to prematurely Retire by offering a very BIG BOOTY of Advance salary
for the remaining years of service subject to a maximum of 5 years.Each of the SVRS Retiree at an young age got a huge Purse from the bank
that too in 2001 when the value of money was good and the bank Deposit
interest rates were good.In respect of already Pension Optees, they got the Double benefit, in
terms of 5 years Advance salary by way of Golden shake hand and also
started drawing pension from the first day of their Retirement. It
meant that, these Retirees got both Salary and Pension for the first 5
years of their Retirement from the very day of their Retirement.WHEREAS BANK AND IBA ARE TRYING TO EXCLUDE HONEST RETIREES WHO HAVE
OPTED FOR VRS AS PER BANK SCHEME WITHOUT GETTING EVEN A SINGLE PAISA
BENEFIT FROM THE BANK APART FROM NORMAL ENTITLEMENTS.From the above, it is very clear that IBA has taken partisan stand in
providing extra benefits to SVRS optees by bending laws to accommodate
them and leave out deserving and Legally eligible Retirees.THIS IS HEIGHT OF DISCRIMINATION AND INFRINGMENT ON THE RIGHTS OF
RETIREES UNDER VRS AS CONFERRED IN OUR CONSTITUTION.The Discrimination in allowing Pension Options to Retirees have been
strongly condemned by several Courts including the Supreme Court in
the past in various cases filed by aggrieved Retirees at different
points of time and BOTH THE CONCERNED BANK AND IBA HAVE BEEN STRONGLY
REPRIMANDED FOR THISBoth the IBA and the concerned banks are very well aware of these facts
and the records are very much available with them.For the ready information, certain decided cases where Courts have held
a strong condemnation views against IBA and Banks for creating
discrimination while awarding the verdict in favour of the aggrieved
Retired employees of the Bank are furnished hereunder ( few select
paragraphs are furnished):(a). Canara Bank Vs B.M. Ramachandra & others, Judgment by Sri.R.P.
Sethi, Hon,ble Chief Justice, High Court, Karnataka on 30.05.1997“ It is acknowledged principle of interpretation and the rule of
construction that if any impugned action is reasonably capable of
construction which does not involve the infringement of fundamental
rights, that construction must be preferred …….. Applying such a test
in the present case it would be seen that if the interpretation sought
to be put by the appellants is accepted, the same would amount in
violation of fundamental rights of equality as enshrined in Articles 14
and 16. If the construction is assumed in favour of the employees, the
SAME WOULD NOT RESULT IN THE VIOLATION OF ANY RIGHT MUCH LESS A
FUNJDAMENTAL RIGHT…………..Having regard to the facts and circumstances of the case, and the
position of law as noted herein above, it can be safely held that the
REGULATIONS WERE INTENDED TO BE MADE APPLICABLE TO ALL THE VOLUNTARILY
RETIRED EMPLOYEES NOTWITHSTANDING THE CUT OFF DATE”.“ It is now well settled that Pension is granted in lieu of long
service rendered by an employee and considered as deferred portion of
compensation for past service. IT CANNOT BE TERMED TO BE A CHARITY OR
BOUNTY NOR IS GRATUITOUS PAYMENT SOLELY DEPENDENT UPON THE WHIM OR
SWEET WILL OF THE EMPLOYER. In a democratic country like India, its
origin is referred to SOCIAL SECURITY plans which are CONSISTENT with
the SOCIO ECONOMIC REQUIREMENTS OF THE CONSTITUTION.
………………………………………….”“ It is held that the persons like the writ petitioners were entitled
to the pensionary benefits on account of the services rendered by them
upon satisfaction of the conditions specified in the Regulations and
that grant of such pension was neither a concession nor a charity or
bounty”.The Judgments refers to the various cases and a landmark Judgment of
Supreme Court is quoted by the Hon,ble Chief Justice while delivering
the Judgment as under:A constitutional Bench of Supreme Court in Nakara,s case( D.S.Nakara &
others Vs Union of India.“ With the expanding horizons of socio economic justice, the
Socialist Republic and Welfare State which the country endeavors to
set up and the fact that the old men who retired when the emoluments
were comparatively low are exposed to vagaries of continuously rising
prices, falling value of rupee, inflationary inputs, BY INTRODUCING
ARBITRARY ELIGIBILITY CRITERIA THEREBY DIVIDING A HOMOGENEOUS CLASS,
THE CLASSIFICATION BEING NOT BASED ON ANY DISCERNABLE RATIONAL
PRINCIPLE AND BEING WHOLLY UNRELATED TO THE OBJECTS SOUGHT TO BE
ACHIEVED BY GRANT OF LIBERALISED PENSION AND THE ELIGIBILITY CRITERIA
DEVISED BEING THOROUGHLY ARBITRARY…. VIOLATES ARTICLE 14 AND IS
UNCONSTITUTIONAL AND LIABLE TO BE STRUCK DOWN”The Judgment also refers to the All India Reserve Bank Retired
Officers Association’s case where the Supreme Court again relied upon
Nakara’s case and held that:“ If the choice of the date results in classification or division of
members of homogeneous group it would be OPEN TO THE COURT to insist
that it be shown that the classification is based on an INTELLIGIBLE
DIFFERENTIA and on RATIONAL CONSIDERATION which bears a nexus to the
purpose and object thereof. The differential treatment must be
justified on the touchstone of Article 14 FOR OTHERWISE IT WOULD BE
OFFENSIVE TO THE PHILOSOPHY ENSRINED IN THE CONSTITUTION”07. IBA’s Clarification to one Bank:
Whether IBA is authorized to clarify:
As per Joint Note dt 27.04.2010 Para No 13 “ any difference of opinion
regarding interpretation of any of the provisions of this Joint Note,
the matter will be taken up at the level of IBA and the Officers’
Association for discussion”It is understood that one of the nationalized bank had sought some
clarification from IBA about the eligibility for opting for Pension and
IBA had reportedly clarified that VRS optees are not eligible.IBA without discussing this matter with Officers’ Association has
wrongly clarified as above without reference to either Pension
Regulations OR Officers’ Service Regulations and thus discriminated the
homogeneous group. Also, IBA has violated the sanctity of Joint Note
and the Bi-partite settlement and also has misled the Govt as Govt
permission is available for implementation of Joint Note dt 27.04.2010.HENCE THE REPORTED CLARIFICATION GIVEN BY IBA IS ULTRAVIRES THE JOINT
NOTE DT 27.04.2010 AND TO BE STRUCK DOWN.FROM A DETAILED ANALYSIS AS ABOVE, IT IS VERY CLEAR AND LEGAL THAT
OFFICERS UNDER VRS AS PER OSR BE GIVEN THE OPTION FOR PENSION AS PER
JOINT NOTE DT 27.04.2010.Hope you will be kind enough to draw attention of government and IBA
for rendering justice to voluntary retired.With regards,
Yours faithfully,(M.C.Agrawal)
and Thousands of vrs retirees
29-B,Kirti Nagar,Tonk Road,Jaipur-302018
Ph-0141-2712388,m-919462119372
e-mail mca1957@rediffmail.com -
V S GOOMBER
Jan 08, 2011 at 08:50:pmWORKMEN IS NOT ENTITLED FOR ANY BENEFITS OF OFFICER CADRE, YET HE IS SUPPOSSED TO WORK AS OFFICERS. ANY SOLUTION
-
P.VIJAYARAGHAVAN
Jan 18, 2011 at 09:03:pmFwd: POSITION OF PENSION PAYMENTS, ARRAERS,ETC ..IN ALL BANKS……WHERE SENIOR CITIZEN ARE WAITING……
Reply
vijayaraghavan Iyer to bankpensioner, allbankingsolu., bcc: retired.bankers
show details 08:31 (1 hour ago)
PLEASE ENLIGHTEN….
+++++++++++++++++DEAR FRIENDS/COMRADES/PENSIONERS/WAITING PENSIONERS…./FAMILIES OF
PENSIONERS…ETC….ETC…..AND EXISTING PENSIONERS……EXISTING
EMPLOYEES WHO HAVE OPTED TO JOIN PENSION STREAM……AND ANY OTHER
TYPE OF BANK PENSIONER…….
A long delay is being continued in respect of payment of
pension..arrears to many retired bank employees….
COULD SOMEONE GIVE THE FINAL LIST SHOWING THE NAMES OF BANKS WHICH
HAVE PAID PENSION ARREARS…AS OF NOW?
AND THE PROBABLE DATE OF RECEIPT OF PENSION ARREARS IN OTHER
BANKS…/?????????????
IS IT NOT CREATING TENSION AMONG RETIRED COMRADES…….????????
PENSION APPLICANT…
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