AIBOC CIRCULAR NO:65 DT.14.05.2010

We reproduce herewith the AIBOC circular no:65 dt14.05.2010 for our readers

CIRCULAR No.65 Dt.14.05.2010

TO ALL AFFILIATES/MEMBERS:

IMPLEMENTATION OF 9TH BIPARTITE SETTLEMENT
PROCESS ON – IBA ISSUES GUIDELINES TO BANKS
GOVERNMENT’S CLEARANCE IN RESPECT OF OFFICERS’ AWAITED

We are happy to inform our members that the process of implementation of the 9th Bipartite is on. The Indian Banks’ Association has since issued detail communication to all the banks in respect of the Award Staff who signed 9th Bipartite Settlement under the provisions of the Industrial Dispute Act, 1947, which does not require further approval of the Government. The communication in regard to the payment as well as the recovery towards the contribution to Pension Fund on account of the 2nd Option is as under:
a) An amount equal to 2.8 times of the “Pay” for the month of November, 2007 be withheld and kept in a suspense account for crediting to the Pension Fund in case the employee opts to join the Pension Scheme complying with the terms of the Settlement dated 27th April, 2010.
b) If any employee gives in writing an irrevocable letter stating that he does not intend to join the Pension Scheme in terms of the Settlement, 2.8 times of the November 2007 pay as above need not be withheld.
c) Once the offer is made to join the Pension Scheme, on expiry of the period of option, the amount withheld in respect of those who exercised the option to join the Pension Scheme should be transferred to the Pension Fund. The arrears withheld in respect of those who did not opt for pension within the stipulated time, be refunded to them.
d) No portion of arrears be withheld in respect of non-optee employees who retired from 1st November 2007 to 27th April 2010. They will be joining the Pension Scheme by making contribution towards funding gap as retired employees in terms of the Settlement.
2. We are keeping in touch with the IBA to ascertain the latest position as regards in-principle approval, pending amendment to the service regulations in respect of the Officers in the banking industry. We understand that the approval is expected at any time. The first phase in respect of the Award Staff for the payment of arrears etc., as per the 9th bipartite settlement having been already initiated we are confident that the process in respect of the Officers will get speeded up now.
3. In the meanwhile, we have been receiving anxious enquiries on implementation of 2nd Option on Pension. The process of obtaining in-principle approval from Govt. is also in progress. We therefore advise members to have patience for a few days more as the instructions are awaited at the earliest. We also understand that the bank managements have already initiated necessary steps and the calculations have since been kept ready so that no delay takes place once the guidelines are received from the banking department for the implementation of the 9th bipartite.
4. Comrades, the technical requirement of obtaining the approval of the Ministry of Finance including the Finance minister should not take much time since the Government is conscious of the pressures that are built across the country, awaiting implementation of the 9th bipartite.
5. We note to keep all our affiliates/members informed of further details in due course.

With greetings,


Sd..
(G.D.NADAF)
GENERAL SECRETARY