AIBOC issued its circular No. 142 dated 18.10.2010 on calculation of basic pension for employees/officers retired between 1.11.2007 and 31.7.2008.
CIRCULAR NO. 142 18-10-2010
ALL AFFILIATES/MEMBERS
DEAR COMRADES,
CALCULATION OF BASIC PENSION FOR EMPLOYEES/OFFICERS RETIRED BETWEEN 1-11-2007 AND 31-7-2008.
Since Basic Pension is calculated on the basis of Average Pay of last 10 months, there have been queries about calculation of Basic Pension of employees/officers who have retired between November, 2007 to July, 2008 in whose case the last 10 months service covers emoluments both under pre-revised pay scales as well as revised pay scales. We took up the matter with the IBA for appropriate direction; as otherwise, it would reduce the benefit to the pensioner. During 1993/95, under similar circumstances IBA had issued appropriate clarification.
We are glad that IBA has issued its Circular No. 1502 dated 13-10-2010 clarifying the method by which the Basic Pension has to be arrived at in such cases of retirees. Accordingly, while for the period from November, 2007, the revised Pay will be taken, for the months covered by pre-revised scales, the Pay will be notionally taken as actual Pay under old pay scales + DA thereon at 2836 points ( i.e. 24.66 % ).
We request our affiliates /members to take note of the clarification, while fixing basic pension of those opting for pension under the present dispensation.
With greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
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1 comment
Dear Sir,
IBA has repeated the old modus operandi which it followed as per central govt norms of 1986. But from 1.1.2006, as per the V pay commission, 50% of last pay will be the basic pension for all the retirees w.e.f.1.1.2006.
Accordingly IBA has to modify its out dated formula and advise all banks to fix pension as 50% of pay drawn on the date of retirement.
For a senior officer who has completed more than 3 decades of service and all increments were stagnated long back, where is the question of arriving the average of 10 months basic ? It must be always the peak leavel scale of that grade of the officers designation.
Once the officer enters in the era of new settlement period, the pension must be fixed as per new scales for all retiree from 1.11.2007, especially for those who retires on VRS. Otherwise the bank/union have to caution the officer about this average system before his retirement itself.
The guidelines gives by IBA for all retirees from 1.11.2007,post retirement, is illegal and not correct. The IBA has to follow V pay commission norms and modify their decission in favour of the retirees from 1.11.2007 by making 50% of last pay drawn on the date of retirement, as basic pension, instead of the out dated formula.
s.m.basha
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