AIBOC CIRCULAR NO. 98 DATED 29TH JUNE 2010

AIBOC issued its circular No. 98 on 2^nd option on pension proposal, which is cleared by the Government. We are reproducing the same here for our readers.

CIRCULAR NO:98                          29^th JUNE, 2010

TO ALL AFFILIATES/MEMBERS:

2^ND OPTION ON PENSION PROPOSAL CLEARED BY THE GOVERNMENT

We are glad that, an understanding, reached between the IBA and UFBU on extension of one more pension option to the CPF Optees on certain terms and conditions, has been approved by the Ministry of Finance, Government of India and necessary communication will be received shortly at IBA office for extending the pension offer to CPF Optees.  There will be 60 days time; thereafter available to exercise the option. 

In the mean time, few CPF Optees have filed suits in various courts challenging the said understandings and demanded extension of one more option on pension without recovery of contribution to pension fund at 2.8 times of revised pay from the arrears of salary and allowance payable under 9th bipartite.  We understand that, Hon’ble High Court of Madras has granted a stay on the operation of the understandings of IBA with UFBU on 2nd Option on Pension.  Apart from IBA, workmen organisations are also made parties to the suit. Unless, the said stay is vacated, IBA cannot issue offer letter on pension.

The case came up for hearing to-day, and the Hon’ble High Court has adjourned it to 6th July, 2010 for final hearing and order.

We are in constant touch with the IBA and the Convenor of UFBU, to initiate appropriate steps to vacate the stay, at the earliest, to enable IBA to issue necessary instructions to member Banks on the Pension offer. 

We shall keep you advised of the further developments in due course.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY