AIBOC CIRCULAR NO.29 DATED 10.03.2010

AIBOC issued its circular No. 29 on Improvements in Pension Regulations, which is reproduced here for our readers:


CIRCULAR NO.29                 Date;10.03.10                                                                                                 

TO ALL AFFILIATES/MEMBERS

IMPROVEMENTS IN PENSION REGULATIONS

We have addressed a letter to the Chairman, IBA suggesting amendments to Pension Regulations 1995 for Bank employees with regard to family pension, revision of rate of family pension to be on par with the government employees and revision in commutation value etc.

A copy of the communication is annexed to this Circular, for information.

With warm greetings

Sd/-

(G.D.NADAF)

GENERAL SECRETARY

No./1452/85 /10                      05.03.2010

To,

The Chairman,

The Indian Banks’ Association,

Stadium House,

Block II & III,

Vir Nariman Road,

Church Gate,

MUMBAI – 400 020.

Dear Sir,

IMPROVEMENTS IN PENSION REGULATIONS 

         

We invite your kind attention to the Recommendations of V Central Pay Commission, wherein the Govt. of India in partial modification of Rule 54(3)a of CCS (Pension) Rules, 1972, has decided that the payment of family pension at enhanced rates will be payable for 7 years or till the Government servant/pensioner would have attained the age of 67 years against the existing provision of 65 years.  This was necessitated in the wake of increase in the age of retirement from 58 to 60 years. These provisions have not been implemented in the Banking Industry although the age of retirement has been revised from 58 to 60 years.

In view of the foregoing, we suggest the following amendments to Pension      Regulations 1995 for Bank employees, with regard to payment of Family Pension:

1)    Enhancing the Age upto 67 years for the purpose of Family Pension:

As per the Bank Employees’ Pension Regulations 1995, Regulation 39 Sub-rule 3(i) (ii), in the event of death of an employee after retirement, the Family Pension as determined under clause (a) of this sub-regulation shall be payable for a period of seven years or for a period upto the date on which the retried/deceased employee would have attained the age of 65 years, had he survived, whichever is less.

It may please be noted that the upper age of 65 years was fixed when the normal retirement age was fixed at 58 years.  For all the Bank employees in the Banking Industry the retirement age is increased to 60 years and hence, the payment of family pension should be for 7 years or till the Bank employee would attain the age of 67 against the existing provision of 65 years.

2) Revision of rate of family Pension to be at par with Government Employees:

As per the Bank (Employees’) Pension Regulations 1995, Regulation 39, Appendix III, the ordinary rate of family pension shall be determined as per scale of pay.  For example, the employees, who retired / died on or after 01.11.2007 family pension payable is as follows:


Upto Basic Pension of Rs. 5720/- - 30% with a minimum of   Rs.1,435.00
Basic Pension of above Rs. 5720/- and below Rs.11,440/- - 20% with a minimum of Rs. 1715.00         

Basic Pension of above Rs. 11,440- 15% with a minimum of Rs.2,292/- and a maximum of Rs. 4,724/-


The family of an employee, who unfortunately dies during the fag end of his career, gets a low family pension which is not sufficient even for sustenance and hence there is an urgent need to revise the family pension rates which is already in vogue as per the family pension scheme 1964.  As per the family pension scheme 1964, family pension shall be payable at a uniform rate of 30% of Basic Pay in all cases, instead of the slab system as per Bank (employees’) pension Regulation 1995.

3)  Revision in the Commutation Value:

          As per the Bank (employees’) Pension Regulations 1995, an employee shall be entitled to commute for a lump sum payment of a fraction not exceeding one third of his basic pension i.e., 33% whereas in the case of Government employees, they are entitled for lumpsum payment of an amount not exceeding 40% of his basic pension.

         The foregoing suggestions are in tune with the Recommendations of the V Central Pay Commission and we request you to arrange for a bipartite Meeting to have a threadbare discussion on the issues.  A positive consideration of the above suggestions will benefit a large number of families of Bank employees/ officers.

Thanking you,

Yours faithfully,

Sf/-                                                                                                                                                                                  (G.D.NADAF)

GENERAL SECRETARY