AIBOC CIRCULAR NO. 167 DATED 30th DECEMBER 2010

AIBOC issued its circular No. 167 dated 30^th December 2010 on 2^nd option on pension to Exit Option Retirees in Associate Banks of SBI. We are reproducing the same here for our readers.

CIRCULAR NO:167                                     30^TH DECEMBER, 2010

TO ALL AFFILIATES/MEMBERS:

2^ND OPTION ON PENSION -  “EXIT OPTION” – RETIREES IN ASSOCIATE BANKS OF SBI

The 2^nd Option on Pension is not made available to the retirees in Assoicate Banks, who retired under “Exit Option” during 2006 – 2007. The facility is denied, although the “exit” scheme was approved by Govt. of India and which was similar to the special VRS – 2001 extended in the Banking Industry. 

We have today sent a communication to IBA, urging upon them to reconsider the matter and extend the 2^nd Option on Pension to the retirees under the said “Exit” scheme, if otherwise they are eligible for the same.  Text of the communication is appended. We will keep you posted of the developments in the matter.

With seasons greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No./1452/484/10                                              29.12.2010

To,

The Chairman,

The Indian Banks’ Association,

World Trade Centre Complex,

Centre 1, 6^th Floor, Cuffe Parade,

MUMBAI – 400 005.

Dear Sir,

2^ND OPTION ON PENSION

One of the terms and conditions of MoU dated 27.04.2010 on 2^nd Option on Pension is to offer the Pension Scheme to the existing CPF Optees in Nationalised Banks and Associate Banks, and also those retired after 1995/96. It also covers, CPF Optees under voluntary retirement special scheme of Govt. of India.

In case of Associate Banks, during 2006, State Bank Management, came out with another Special Scheme “Exit Option” with exgratia amount linked to the remaining service of officers with a maximum 36 months salary. This Scheme is in addition to existing voluntary retirement provision under Associate Banks Officers Services Regulations. The Scheme was offered to officers between the age group of 45 and 58 years. The Pension Optees, with 20 years of pensioable service were eligible for pension.  The ‘exit’ scheme was approved by the Govt. of India.

We understand that, for want of clarification from the IBA, 2^nd Option on Pension to CPF Optees in Associate Banks, retired under the Special Retirement Scheme “Exit Option” are not extended the offer.  The “Exit Option in Associate Banks is similar to that of Special Voluntary Retirement Scheme of 2001.

The retirees under the said, “Exit Option” who had put in 20 years of pensionable service will be eligible to opt for Pension, under the 2^nd Option on Pension.  Hence, we request you to please arrange to issue necessary clarifications to the Associate Banks to extend 2^nd Option on Pension to CPF Optees retired under “Exit” Scheme.

With greetings,

Yours sincerely,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY