AIBOC CIRCULAR NO. 26 DATED 17.03.2011

AIBOC issued its circular No. 26 dated 17.03.2011 on counting of military service of short service commissioned officers for pension purpose. We are reproducing the same here for our readers.

CIRCULAR NO. 26                                                             DATE: 17.03.2011

ALL AFFILIATES / MEMBERS

COUNTING OF MILITARY SERVICE OF SHORT SERVICE COMMISSIONED OFFICERS FOR PENSION PURPOSE.

The Military officers of Short Service Commission are not eligible for pensionary benefits for their service in the Defence forces. These officers, when they join the service in the Bank are deprived of the benefit of adding the period of military service to the qualifying service for the purpose of Pension.

We have addressed a letter to the Chairman, IBA requesting him to take-up the issue with the Ministry of Finance, Government of India, for inclusion of the period of service in the armed forces to the qualifying service while calculating the pensionary benefit.

We have annexed the text of the letter which is self- explicit.

Further developments in this regard will be informed to you.

With greetings

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1457/ 169 /11                                               Date: 17.03.2011

The Chairman

Indian Banks’ Association

World Trade Centre

Centre -1, 6th Floor, Cuffe Parade

Mumbai- 400 005

Dear Sir,

COUNTING OF MILITARY SERVICE OF SHORT SERVICE COMMISSIONED OFFICERS FOR PENSION PURPOSE.

As per the Bank Employees’ Pension Regulations 1995, under the qualifying service, in case of military service, it is stated that;

“An employee who has rendered Military Service before appointment in the Bank shall continue to draw the Military Pension, if any and military service rendered by the employee shall not count as qualifying service for pension.”

However, short service commissioned officers are not eligible for Pension for their service in the Defence forces. When such officers join the service of the Bank, are not eligible for the benefit of such service in the Defence forces, while calculating the qualifying service for the purpose of pension. There is a genuine need to add the number of years of military service to the qualifying service while calculating the eligible service at  Bank   level for pension purpose.

We have been receiving a number of representations from officers working in the Banking Industry and we feel that such category of officers who render Military Service as short Service Commissioned Officers, should be made eligible for the benefit of such service while determining the qualifying service for pension purpose.

We request you to take –up the matter with the Ministry of Finance Government of India for including the service of the above category of military officers in the qualifying service for the purpose of pension. It may please be noted that, many such officers have rendered meritorious service and have been decorated for this.

Please keep us posted of the further developments in the matter.

Thanking you.

Yours faithfully

Sd/-

(G.D.NADAF)

GENERAL SECRETARY