AIBOC CIRCULAR NO. 106 DATED 20.12.2011

AIBOC issued its circular No. 106 dated 20.12.2011 on fixation of pay to ex-servicemen discharged from services after 01.01.2006 and re-employed in banks thereafter. We are placing the same here for our readers.

CIRCULAR NO.106                                           DATE: 20.12.2011

TO ALL AFFILIATES /MEMBERS:

FIXATION OF PAY TO EX-SERVICEMEN DISCHARGED FROM SERVICES AFTER 01.01.2006 AND RE-EMPLOYED IN BANKS THEREAFTER

The Ministry of Personnel, Public Grievances & Pensions, Govt. of India have passed an order that on re-employment in civilian organisations including Banks the ex-servicemen who retired from service of the armed forces after 01.01.2006 will be eligible for MSP (Military Service Pay) as part of “Pay” while fixing pay after re-employment. We have addressed a letter to Indian Bank’s Association to implement the order immediately so as to provide relief to all the ex-servicemen who retired after 01.01.2006 and have been re-employed in the Banking Industry.

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

Further developments will be informed to you.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

ENCL: Text of the letter addressed To IBA.

No.1452/378/11                                                         20.12.2011

To,

The Chairman,

Indian Banks’ Association,

Stadium House,

6th Floor, Block No.3,

Veer Nariman Road,

MUMBAI – 400 020.

Dear Sir,

FIXATION OF PAY TO EX-SERVICE MEN DISCHARGED FROM SERVICES AFTER 01.01.2006 AND RE-EMPLOYED IN BANKS THEREAFTER

We invite your kind attention to our letter No.1452/466/10 dated 16.12.2010 wherein we had brought to your kind notice the fact that, as per the Government guidelines, the emoluments of ex-servicemen drawn by them at the time of discharge from the armed forces/services are protected when they join the Banks and their Basic Pay is fixed in the Banks accordingly. In the wake of the Vth Central Pay Commission, the emoluments of the defence personnel were revised and new concepts like grade pay etc. were introduced.

We had also informed you that in the case of Ex-servicemen who were discharged from the services of the armed forces after 01.01.2006 and re-employed in the service of the Banks, the Government did not revise the guidelines on the emoluments to be protected while getting re-employed in the Banks. Such ex-servicemen were deprived of their legitimate emoluments, grade pay etc. as Government did not revise the guidelines on protection of emoluments for ex-servicemen.

We are happy to note that, the Government of India, vide the Office Memorandum dated 8th November, 2010 issued by the Ministry of Personnel, Public Grievances and Pensions, have advised that:

Ø  For the purpose of pay fixation as well as pension, on re-employment in the Banks, the reckonable emoluments are: Basic Pay + Grade Pay + MSP (Military Service Pay) + NPA (Non- Practicing Pay).

Ø  Earlier, MSP was not reckoned for pay fixation on re-employment. We request you to implement the above guidelines issued by the Government to reckon MSP as “Pay” for the purpose of Pay fixation on re-employment of all the post-2006 retirees in the Banking Industry.

Ø  As the recommendations of the VIth Central Pay Commission have been implemented w.e.f 01.01.2006, the guidelines may please be implemented at the earliest to provide relief to the ex-servicemen re-employed in the Banking Industry.

A copy of the Office Memorandum dated 8th November, 2010 is enclosed herewith for your perusal and necessary action.

We look forward to your decision at the earliest.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY