We reproduce herewith the circular no 119 dt.12082010 issued by aiboc for our members
CIRCULAR NO:119 DATE: 12.08.2010
TO 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
CIRCULAR NO:119 DATE: 12.08.2010
TO 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
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