AIBOC CIRCULAR NO. 91 DATED 9TH JUNE 2010

AIBOC issued its circular No. 91 on pension option to members quitting under voluntary retirement/resignation etc. We are reproducing the same here for our readers.

CIRCULAR NO: 91                              9^th JUNE, 2010

TO ALL AFFILIATES/MEMBERS:

PENSION OPTION MEMBERS QUITTING UNDER VOLUNTARY RETIREMENT/RESIGNATION ETC.,

One of the issues that has been taken up by the Confederation with the IBA is to provide an opportunity to all those who left the service under resignation/voluntary retirement other than the special scheme introduced by the Bank, the benefit of the Pension Scheme, since the Pension regulations do not include these category of officers.  We have therefore sent an appropriate communication to IBA seeking relaxations in the Pension Regulations to include all such cases which come under the minimum qualifying service for Pension eligibility under the scheme.  The IBA is yet to respond.  We need to follow-up the issue together so that a large number of employees who left the banks’ services by way of resignation but have completed the minimum years of pensionable service for the purpose of Pension, as in the case of the Pension optees.

We are now given to understand that some of the CPF Optees are putting in their papers for voluntary retirement without being conscious of the implications of such acts on their part although they have completed the minimum qualifying service under the Pension Regulations.  All such members are requested to await the implementation of the 2^nd Option on Pension Scheme, the process of which involves, issuance of the Notification, acceptance of the offer and completion of the formalities of transfer of Provident Fund balance accumulated in their accounts as per the understandings before venturing to submit their papers presumably under the impression that they would be eligible to Pension benefit in the normal course.

This communication is meant to alert all such members who are not aware of the extant provisions and may be submitting their papers under the impression that Pension will be automatically extended to them once the 2^nd Option on Pension Notification is issued, since they were on the rolls of the banks on the date of signing the settlement.  It is better to await until the formalities are completed rather to take the risk of getting into technical wrangles at a later date.

All our affiliates are requested to keep their members properly informed to avoid difficulties to all such members at a later date.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY