AIBOC CIRCULAR NO. 27 DATED 18.03.2011

AIBOC issued its circular No. 27 dated 18.03.2011 on grant of ex-gratia to the surviving pre-01.01.1986 retirees and the surviving spouses/widows of pre-01.01.1986 retirees of the banks. We are reproducing the same here for our readers.

CIRCULAR NO.27                                       DATE: 18.03.2011

TO ALL AFFILIATES /MEMBERS:

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

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

The Ministry of Finance, Government of India have granted ex-gratia of Rs. 300/- p.m with Dearness Relief, to the surviving pre - 01.01.1986 retirees and of Rs. 1000/- p.m without Dearness Relief to surviving spouses/widows of pre - 01.01.1986 in the Banks and the amount of ex-gratia granted by the Government is a pittance and too little to take care of the barest minimum living expenses, leave alone the mounting medical expenses at this advanced stage of their life.

Hence, there is an urgent need to enhance the ex-gratia amount payable to the above category of our colleagues or spouses/widows of the officers.  We have addressed a letter to IBA to take-up the issue with the Government of India to consider enhancement in the ex-gratia amount, which also should be linked to DA index.

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

Further developments will be informed to you.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No./1452/173/11                                                                18.03.2011

To,

The Chairman,

The Indian Banks’ Association,

World Trade Centre Complex,

Centre 1, 6th Floor, Cuffe Parade,

MUMBAI – 400 005.

Dear 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/WIDOWS OF PRE - 01.01.1986 RETIREES OF BANKS

We draw your kind attention to the notification issued by the Department of Economic Affairs (Banking Division), Ministry of Finance, Govt. of India, No.F/11/3/92-IR dated 26.11.1998, wherein, the Govt. of India has granted ex-gratia amount of Rs. 300/- per month along with Dearness Relief as per Index to the Officers who retired from the service of the Bank on or before 31.12.1985. The surviving pre-01.01.1986 retirees are presently getting monthly pension of Rs. 2092.93 (i.e. Rs. 300/- + D.A. Rs. 1792.92)

We observe that the ex-gratia amount paid to the surviving pre-01.01.86 retirees are getting meager amount of ex-gratia, which is too inadequate even to meet the barest minimum living expenses, leave alone the ever-mounting medial expenses during the sunset of this category of retirees. There is an urgent need to revise the ex-gratia amount from the present Rs. 300/- linked to D.A index.

Similarly, the spouses or widows surviving pre-01.01.1986 retirees are being paid an ex-gratia amount of Rs. 1000/- p.m without any Dearness Relief; with the condition that the widows/spouses of such officers who retired on the before 31.12.1985 had completed at least 20 years of continuous service prior to their superannuation or retirement and the spouses are not in receipt of any pensionary benefit from the Bank.

Subsequently, the eligibility norms were modified and the scheme was extended to all surviving widows as also to families of officers who retired under Voluntary Retirement w.e.f 11.10.2007. Accordingly, the surviving spouses are receiving an ex-gratia of Rs. 1000/- p.m.

You will appreciate that in both the cases referred above the amount of ex-gratia paid to the retirees and the spouses/widows of pre-01.01.1986 retirees, is too meager, inadequate in the present days of high cost of living with sky rocketing prices and the pressure of inflation.

Therefore, we have addressed a letter to the Finance Minister Government of India, urging upon them to revise the amount of ex-gratia to a reasonable level with the amount being eligible for Dearness Relief, so that the above category of retirees are afforded an opportunity to live the life of self-respect and dignity, without the compulsions of depending on their children.

We request you to take-up the issue with the Ministry of Finance Government of India and urge upon them to consider our above suggestions at the earliest.

We have enclosed a copy of the letter addressed to the Hon’ble Finance Minister, Government of India for your perusal and necessary action in the matter.

Kindly keep us informed of the further developments.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY