AIBOC CIRCULAR NO. 5 DATED 19TH JANUARY 2011

AIBOC issued its circular No. 5 dated 19th January 2011 on the demand of AIBOC for an exclusive meeting on new pension scheme. We are reproducing the same here for our readers.

CIRCULAR NO.5                                                   19TH JANUARY 2011

TO ALL AFFILIATES/MEMBERS:

AIBOC DEMANDS AN EXCLUSIVE MEETING ON NEW PENSION SCHEME

Our members are aware that the Confederation has been demanding a full-fledged meeting on the question of finalisation of the New Pension Scheme, which is now in operation with effect from 01.04.2010, in order to ensure that the funds collected are properly invested, and the scheme takes off in the banks.  The IBA is yet to respond to our requests.  We have today sent another communication reviving our demand for an early meeting. A copy of our communication is enclosed.

All our affiliates/members are requested to wait for further developments in the matter.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No./1452/77/11                                                                           19.01.2011

To,

The Chairman,

Indian Banks’ Association,

MUMBAI.

Dear Sir,

FORMULATION OF NEW PENSION SCHEME FOLLOW-UP MEETING

The New Pension Scheme has come in to effect from 01.04.2010 in Banks. The understandings at the time of signing of 2nd Option on Pension joint note on 27.04.2010 was that the details in regard to the New Pension Scheme will be worked out, and appropriate schemes will be formulated and forwarded to the Banks as per the New Pension Scheme, introduced by the Pension Fund Development and Regulatory Authority of India. The representatives of the Confederation have conveyed to IBA that the Confederation be consulted on finalising the New Pension Scheme to avoid unnecessary hardship to our members at the time of the implementation of the scheme. The Confederation also sent a communication seeking an exclusive meeting on the subject.

The funds collected at the banks are lying dormant and the banks are using the same by offering different rate of interest.  We understand that, there is no uniform guidelines as regards the maintenance of the account, payment of interest on the corpus held by the banks etc. This apart, there is no other communication to the members of the Scheme about the end use of the funds and the actual returns that they are entitled.

We have also studied the scheme formulated by the Pension Regulatory Authority and the manner in which it is being implemented. There are number of formalities required to be completed before the actual utilization of the funds collected by the Pension Fund Managers. There are also instructions as regards the responsibility of the institutions which collect and their relationship with the members who are subscribing to the New Pension Scheme.  Thus, there are  number of issues that needs to be clarified by the Indian Banks’ Association and appropriate safeguards are required to be provided to ensure the safety of the collections made towards the funds.

It is more than nine months the joint note was signed. In the meanwhile, we are witnessing a huge intake of the employees and officers in the banking industry since the introduction of the New Pension Scheme in the Banking Industry.

We, therefore request you to kindly convene an exclusive meeting with us on the subject with the representatives of the Confederation to enable us to clarify to the rank and file on the scores of doubts that they have been raising during our interaction with them.

Please treat the matter as urgent.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY