AIBOC CIRCULAR NO. 25 DATED 11.03.2011

AIBOC issued its circular No. 25 dated 11.03.2011 on grant of ex-gratia to the surviving pre-01.01.1986 retirees of banks and the surviving spouses of pre-01.01.1986 retirees of banks. We are reproducing the same here for our readers.

Circular No. 25                                                       Date: 11.03.2011

ALL AFFILIATES / MEMBERS

GRANT OF EX-GRATIA TO THE SURVIVING PRE-01.01.1986 RETIREES OF BANKS - GRANT OF EX-GRATIA TO THE SURVIVING SPOUSES OF PRE-01.01.1986 RETIREES OF BANKS.

Grant of Ex-gratia of Rs.300/- with Dearness Relief thereon, to the surviving pre-01.01.1986 retirees and of Rs.1000/- without Dearness Relief to the spouses/widows of pre-01.01.1986, was considered by the Ministry of Finance Government of India and the same  have been kept at the same level for the last more than a decade and the amount of Ex-gratia is a pittance, too meagre to take care of the barest minimum living expenses, leave alone the whopping medical expenses, this category of people have to encounter.

We have addressed a letter to the Finance Minster, Government of India urging upon him to revise the Ex-gratia amount, with Dearness Relief thereon and provide support and succour to the above category of retirees or widows/ spouse of retirees.

The text of the letter is annexed and the same is self explicit.

Further developments in this regard will be informed to you.

With greetings

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1454/164/11                                                             Date:11.03.2011

Sri. Pranab Kumar Mukherjee,

Hon’ble Minister for Finance,

Government of India,

New Delhi:

Respected Sir,

GRANT OF EX-GRATIA TO THE SURVIVING PRE 01.01.1986 RETIREES OF THE BANKING INDUSTRY - GRANT OF EX-GRATIA TO THE SURVIVING SPOUSES OF PRE 01.01.1986 RETIREES.

The Ministry of Finance, Government of India did a  yeoman service to the officers who retired from the service of the Banks on or before 31.12.1985 by granting them Ex-gratia of Rs.300/- pm, with dearness allowances relief, as this section of officers were not eligible for pension scheme implemented in the Banking Industry w.e.f 01.01.1986, vide the Notification issued by Department of Economic Affairs (Banking Division) Ministry of Finance, Government of India No.F/11/3/92/IR/dated 26.11.1998.

Though Dearness Relief is payable to the above category  of retirees, as per the Index, the total amount of Ex-gratia including the Dearness Relief per month is too meagre and such of the  beneficiaries of this scheme have been put to considerable inconvenience in view of the spiraling prices and erosion in the value of money. The amount is not adequate to take care of the bare minimum necessities of life, leave alone the ever increasing medical expenses of the retirees who are in the sunset of their life.

We wish to bring to your kind notice the fact that, the number of this category of officers is very small. We request you to initiate steps to revise the Ex-gratia amount by enhaning the amount to a level where the retiree officers will get substantial relief so as to lead a normal life, without the compulsion of depending on their children.

Similarly, the spouses of the Pre- 01.01.1986 retirees of the Banking Industry, have   been given Ex-grtia of Rs.1000/-pm without any Dearness relief, with the condition that the officer employees had rendered at least 20 years of continuous service prior to their superannuation and the spouses are not in receipt of any pensionary benefit from the Bank. Subsequently the eligibility criteria of the scheme was modified, extending the benefit to all such surviving widows as also to families of officers retiring under Special Voluntary Retirement Scheme 2000 and the modified scheme was implemented from 11.10.2007.

Sir, you will appreciate that, the amount of Ex-gratia of Rs.1000/- without any Dearness Relief, does not  give any relief to the widows in these days of high cost of living with spiraling prices. The amount is too meagre to lead an independent life.

Therefore, we urge upon you to enhance the amount of Ex-gratia of Rs.1000/- per month or make the Ex-gratia amount eligible for Dearness Relief on the same logic and footing as in the case of surviving retirees of pre. 01.01.1986, which will provide substantial relief to the spouses/widows, who need the support and succour during their senile period of life.

We have the confidence that, our suggestions will be viewed from a practical and pragmatic angle and the government  as benevolent authority, it should not be a difficult matter to settle the issue in favour of this infinitesimally small category, who are in need of support for living a life of self-respect and dignity, with some semblance of economic independence.

Sir, we once again request you to consider the above requests  positively and help both the above category of the retirees and surviving spouses/widows, by suitably enhancing the amount of Ex-gratia and making the amount eligible for Dearness relief.

Thanking you,

Yours faithfully

Sd/-

(G.D. NADAF)

GENERAL SECRETARY