AIBOC CIRCULAR NO. 87 DATED 23.11.2012

AIBOC issued its circular No.87 dated 23.11.2012 on 2nd option on pension extended to Officers retired voluntarily. We are placing the same here for our readers.

CIRCULAR NO.87                                                    23rd November, 2012

TO ALL OUR AFFILIATES/MEMBERS:

2ND OPTION ON PENSION EXTENDED TO OFFICERS RETIRED VOLUNTARILY

One of the contentious issues that was engaging the attention of the Confederation in the matter of the interpretation of the agreement signed on the 2nd option on pension under joint note on 27th April 2010 with the Officers’ organization by IBA under the leadership of the United Forum of Bank Union was the option to be granted in respect of all the Officers’ who retired under the service rules of the respective banks voluntarily.  The IBA in the subsequent clarification issued to the banks denied the benefit of 2nd option to all such members on the grounds that the joint note does not provide for the extension of this benefits to other than those who have retired under the special scheme formulated by the Government and introduced by the banks with a view to reduce the workforce in the banking industry.

The issue was raised by the Confederation immediately on receipt of the clarification issued by the Indian Banks’ Association by way of several communication urging upon the IBA for the removal of this anomaly created by them through a wrong interpretation of the understandings reached between the IBA and the Officers’ organizations.  There were several litigations by the individual members apart from the issue being flagged in the subsequent agitation call given by the UFBU at the industry level as well.

The leadership of the Confederation also met the Chairman of IBA and sought his intervention in the matter.  The issue was also independently raised with the Ministry of Finance for a proper clarification to IBA so that the anomaly which was created is rectified by the IBA.  After protracted correspondence and persuasion, we are happy to inform all our members who are affected across the country that the matter has since been clarified by IBA on the direction of the Ministry of Finance and a detail communication has been sent to all the members banks for extending the benefit of the 2nd option to all those members who had retired voluntarily under the service rules provided by the bank.

 

A copy of the communication issued by the IBA to the member banks is enclosed for information.

All our affiliates are requested to ensure the proper implementation of the instructions issued by the IBA in their respective banks and also see that the members so affected are properly guided to take advantage of this revised instructions by the IBA.

Comrades, with this development one of the major issues that was unnecessarily created by the authorities concerned is resolved.  We are also happy that the continuous efforts on the part of the leadership of the Confederation has provided the necessary relief to all those affected members and the members of the families of the deceased members who were otherwise entitled for the benefit of the Pension Scheme.

With greetings,

Sd/-

(D.S.RISHABADAS)
GENERAL SECRETARY