AIBOC CIRCULAR NO. 38 DATED 26TH MARCH 2010

AIBOC issued a circular on implementation of New Pension Scheme in the Banking Industry. We are reproducing the same here for our readers.

Circular No: 38                        26^th March 2010

TO ALL AFFILIATES/MEMBERS

IMPLEMENTATION OF NEW PENSION SCHEME IN THE BANKING INDUSTRY

We have addressed a letter to the IBA against their decision to instruct  the Member Banks to adopt a decision to implement the New pension Scheme  for the new recruits /appointees w.e.f 01.04.2010  at a time when we are in the thick of  converting  the MoU signed on 27.11.2009 into a reality .

The letter is self–explicit and a copy is annexed herewith. We advise our affiliates to protest strongly if the Managements of the Banks come forth with an agenda in the Board Meeting for introduction of the New Pension Scheme before signing a regular settlement on Pension Issue. Such agenda should be got deferred by our representatives on the Boards.

With Warm greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

Encl:

No:1452/96/10                                   26.03.2010

To,

The Chairman,

The Indian Banks’ Association,

Stadium House,

Block II & III,

Vir Nariman Road,

Church Gate,

MUMBAI – 400 020.

Dear Sir,

IMPLEMENTATION OF NEW PENSION SCHEME

We have gone through the instructions given by you to the Member Banks on 04.03.2010, advising the Banks to seek the approval of the respective Bank Boards  on the following .

a.           Implementation of New Pension Scheme.

b.           Incorporating a clause in the appointment orders of the new recruits/appointees from 01.04.2010  intimating them that they would  be governed by the New Pension Scheme.

These instructions have been issued to the Member Banks at a time when the bipartite discussions/negotiations on finalization of Second Option on Pension settlement are still going on and the MoU signed by the Unions on 27.11.2009 is yet to be turned into a reality.

In fitness of things, the New Pension Scheme can be introduced only after signing the settlement on the pending second option on pension. Only after signing a full pledged settlement, the Bank Boards can adopt the New Pension Scheme . In this background it is not prudent on part of the IBA to instruct the Banks Boards to adopt a decision to implement the New Pension Scheme. We are not in agreement with your decision. We suggest that the instructions to the Member Banks may please be withdrawn\held in abeyance.

As the New Pension Scheme is going to be implemented from 01.04.2010 and the new recruits/appointees would be covered by the above scheme as agreed in MoU, it would be sufficient if the Banks are advised to incorporate the clause in the appointment letters to be issued to those who will be appointed in the service of the Banks from 01.04.2010 to the effect that they would be governed by the new pension scheme being introduced in the Banking Industry wef 01.04.2010 and they would not be covered by PF and  existing Pension Scheme.

We request you to send revised instructions to the Member Banks, keeping in view our above observations.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY