AIBOC CIRCULAR NO. 115 DATED 06.08.2010

AIBOC issued its circular No. 115 on minimum pension/family pension payable to bank officers. We are reproducing the same here for our readers.

CIRCULAR NO: 115                               DATE: 06.08.2010

TO ALL AFFILIATES/MEMBERS:

MINIMUM PENSION / FAMILY PENSION

As a sequel to the revision of Pay scales under the 9^th Bipartite settlement, the Family Pension and Minimum Pension payable have been revised and we reproduce herein the text of IBA Circular No.714 dated 02.07.2010 in this regard, which is self-explicit.

Affiliates / Members are requested to take note of the same.

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

TEXT

IBA CIRCULAR NO.CIR/HR & IR/ G2 / 90 / 665 / 2010-11/ 714 dt. July 2, 2010

Designated Officers of Member Banks

Which are parties to the Bipartite Settlement

Dear Sirs,

Revision in Pension of employees who retired on or after 1.11.07 consequent upon the wage revision as per 9^th Bipartite Settlement and Joint Note dated 27.4.2010

Please refer to our letters No.CIR/HR&IR/76/90/665/2010-11/269 dated 08.05.10 and No.CIR/HR&IR/G2/665/90/2010-11/626 dated 18.6.10 with regard to wage revision to Award Staff/Officers respectively in terms of Bipartite Settlement/Joint Note dated 27.4.10.

Consequent upon the above wage revision, the pension, dearness relief, family pension, minimum pension, etc., payable in respect of those employees who ceased to be in service on or after 01.11.07 and are eligible for pension need to be revised. We give below for your guidance, the details in this regard. Pending amendments to Pension Regulations, Banks may effect the revision.

(I)              PENSION:

              The basic pension will be revised on the basis of the revised pay w.e.f.               01.11.07.

(II)              DEARNESS RELIEF:

              The dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 2836 points in the monthly average of All India Consumer price index for Industrial Workers in the series 1960 = 100 at the rate 0.15 per cent of basic pension.

(III)        FAMILY PENSION:

              In respect of employees (other than part-time employees) who retire /retired from service on or after 01.11.07 the ordinary rate of pension shall be as under:

Scale of pay per month	Amount of monthly family pension
Upto Rs.7,090/-	30 per cent of the ‘pay’ shall be the basic family pension plus 30 percent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension.  The aggregate of basic and additional family pension shall not be less than Rs.1,779 per month.
Rs.7,091 to Rs.14,180	20 per cent of the ‘pay’ shall be the basic family pension plus 20 per cent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension. The aggregate of basic and additional family pension shall not be less than Rs. 2,186 per month.
Above Rs. 14,181	15 per cent of the ‘pay’ shall be the basic family pension plus 15 per cent of allowances which are counted for making contributions to Provident Fund but not for the dearness allowance shall be the additional family pension.  The aggregate of basic and additional family pension shall not be less than Rs.2,841 per month and more than Rs. 5,930 per month

Note:    In the case of part-time employees, the minimum amount of family pension and the maximum amount of family pension shall be in proportion to the rate of scale wages drawn by the employee.

(IV)              MINIMUM PENSION:

              In respect of employees other than part-time employees, who retired on or after 01.11.07, the amount of minimum pension shall be Rs. 1,779 p.m.

In respect of part-time employees who retired on or after 1.11.07, the minimum pension payable shall be:

              Rs. 595 p.m. in respect of part time employees drawing 1/3 scale wages,

              Rs. 892 p.m. in respect of part time employees drawing 1/2 scale wages and

              Rs. 1,339 p.m in respect of part time employees drawing 3/4 scale wages.

Pending amendments to Bank Employees’ Pension Regulations, 1995, banks may compute pension as above.  Before, however, giving effect to the revised pension, a suitable undertaking may be obtained from the pensioners as well as from family members/nominees, to enable the pension fund to make adjustments, if any, at a later date. We are enclosing a draft of the irrevocable letter to be obtained from the pensioners.  Member banks may please be guided as above.

Yours faithfully,

Sd/-

(M.VENUGOPALAN)

OFFICER ON SPECIAL DUTY