AIBOC issued its circular No. 125 on 2nd option for pension to the officers who retired under VRS of the individual banks. We are reproducing the same here for our readers.
CIRCULAR NO: 125 28th AUGUST, 2010
TO ALL AFFILIATES/MEMBERS:
ANTOHER OPTION TO JOIN THE PENSION SCHEME TO THOSE WHO DID NOT OPT FOR PENSION EARLIER - THE CASE OF OFFICERS WHO RETIRED UNDER VOLUNTARY RETIREMENT SCHEME OF THE INDIVIDUAL BANKS
We have addressed a letter to the Chairman, Indian Banks’ Association on the captioned issue, urging upon him to accord an option to those officers who retired under Voluntary Retirement Scheme of individual Banks to join the Pension Scheme now settled as per the Joint Note dated 27.04.2010.
A copy of the letter is annexed to this and the same is self-explicit.
We request the members to have patience.
With warm greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
No./1452/302/10 28.08.2010
To,
The Chairman,
The Indian Banks’ Association,
World Trade Centre Complex,
Centre 1, 6th Floor, Cuffe Parade,
MUMBAI – 400 005.
Dear Sir,
JOINT NOTE WITH OFFICERS’ ORGANISATIONS FOR EXTENDING ANOTHER OPTION TO JOIN THE PENSION SCHEME TO THOSE WHO DID NOT OPT FOR PENSION EARLIER
We draw your kind attention to the letter issued by IBA vide CIR/HR&IR/G-2/665/90/2010-11/999 dated 10.08.2010, Para 13, wherein, interalia, it is indicated that, “In terms of Memorandum of settlement dated 27th April, 2010, in the case of workmen employees and Joint Note dated 27th April, 2010, in case of officer employees, those who ceased to be service on account of retirement on superannuation, death or on account of VRS under special scheme prior to 27th April, 2010 but after 29th September, 1995 from Nationalised Banks and after 26th March, 1996 from Associated Banks of State Bank of India are eligible to opt for joining the Pension Scheme now as retired employees subject to terms and conditions stipulated. Those who were in the service of the Banks as on 27th April, 2010 will be eligible to join the Pension Scheme as serving employees subject to the terms and conditions”.
We wish to inform you that the above statement totally negates the contents of the Joint Note on agreed conclusions reached on 27.04.2010 between Indian Banks’ Association on behalf of the Managements of Banks and All India Bank Officers’ Confederation (AIBOC). Nowhere in the original Joint Note dated 27.04.2010 it is mentioned that the Officers who ceased to be in service on account of retirement on superannuation, death or on account of VRS under special scheme; only are eligible to opt for joining the pension scheme now, as retired employees and the above position is in total contradiction of the agreed conclusions in the Joint Note dated 27.04.2010.
We draw your kind attention, to the Joint Note dated 27.04.2010, item No. 3(a), under the caption “The parties held various rounds of discussions in the matter and have now reached conclusions as set out hereunder:
Another Option for joining the existing Pension Scheme shall be extended to those officers who “were in the service of the Bank prior to 29th September, 1995 in case nationalised Banks/26th March, 1996 in case of Associate Banks of State Bank of India and retired after that date and prior to the date of this Joint Note”.
The Joint Note makes a mention about the officers, who retired under special Voluntary Retirement Scheme: 2000 mooted by the Govt. of India. Please refer clause No.8 of the Joint Note, which states that:
“Pension/Family Pension to those who opt to join the Pension Scheme complying with the terms of this Joint Note shall be payable with effect from 27th November, 2009, provided that Officers who “retired” after that date shall get pension from the respective dates of their retirement. All the Regulations of the Bank Employees’ Pension Regulations 1995/1996 shall be applicable to those who opt for the Pension Scheme in terms of this Joint Note except to the extent mentioned in the foregoing clauses of this Joint Note”.
As the Joint Note provisions are bound by the Bank Employees’ Pension Regulations 1995/1996, all the “retirees” who retired from the service of the Banks during the period 29.09.1995 and 27.04.2010 are eligible to opt for the Pension Scheme introduced now. It is pertinent to note here the provisions of the Bank Employees’ Pension Regulations 1995/1996, as to the definition of “Retirement”, eligibility criteria for opting for Pension etc.
We invite your kind attention to the following:
Chapter: I: Preliminary:
Definitions:
“Date of Retirement” means: “The last date of the month in which an employees attains the age of superannuation or the date on which he is retired by the Bank or the date on which the employee voluntarily retires or the date on which the officer is deemed to have retired”.
“Retirement” means cessation from Bank’s service:
Ø On attaining, the age of “Superannuation” specified in service Regulations or settlements.
Ø On “Voluntary Retirement” in accordance with provisions contained in Regulation 29 of these Regulations.
Ø On “Premature retirement” by the Bank before attaining the age of superannuation specified in Service Regulations or settlement.
Chapter V: Classes of Pension: Regulation 29: Pension on Voluntary Retirement:
(i) On or after the 1st day of November, 1993 at any time after an employee has completed twenty years of qualifying service he may, by giving notice of not less than three months notice in writing to the appointing authority, retired from service
Provided that this sub-regulation shall not apply to an employee who is on deputation or study leave abroad unless, after having been transferred or having returned to India he has resumed the charge of the post in India and has served for a period of not less than one year;
Provided further that this sub-regulation shall not apply to an employee who seeks retirement from service for being absorbed permanently in an autonomous body or a public sector undertaking or company or institution or body whether incorporated or not to which he is on deputation at the time of seeking voluntary retirement.
Provided that this sub-regulation shall not apply to an employee who is deemed to have retired in accordance with clause (I) of regulation 2.
(ii) The notice of voluntary retirement given under sub-regulation (1) shall require acceptance by the appointing authority.
Provided that where the appointing authority does not refuse to grant the permission for retirement before the expiry of the period specified in the said notice, the retirement shall become effective from the date of expiry of said period.
(iii) (a) An employee referred to in Sub-regulation may make a request in writing to the appointing authority to accept notice of voluntary retirement of less than three months giving reasons thereof
(b) On receipt of a request under clause (a), the appointing authority may subject to the provisions of sub-regulation (2), consider such request for the curtailment of the period of notice of three months on merits – and if it is satisfied that the curtailment of the period of notice will not cause any administrative inconvenience, the appointing authority may relax the requirement of notice of three months on the condition that the employee shall not apply for commutation of a part of his pension before the expiry of the period of notice of three months.
(iv) An employees, who has elected to retire under this regulation and has given necessary notice to that effect to the appointing authority, shall be precluded from withdrawing his notice except with the specific approval of such authority; provided that the request for such withdrawal shall be made before the intended date of his retirement.
(v) The qualifying service of an employee retiring under this regulation shall be increased by a period not exceeding five years, subject to the condition that the total qualifying service rendered by such employee shall not in any case exceed thirty-three years and it does not take him beyond the date of superannuation.
(vi) Pension of an employee retiring under this regulation shall be based on the average emoluments as defined under clause (d) of regulation 2 of these regulations and the increase not exceeding five years in his qualifying service shall not entitle him to any notional fixation of pay for the purpose of calculating his pension.
You may be aware of the fact that there is a provision in the Bank Officers’ Service Regulations 1976/1979 for taking “Voluntary Retirement” which was introduced in some Banks in the late 80’s. Rules regarding Voluntary Retirement of Officers under proviso to Regulation (1) of Officers’ service Regulations, make it abundantly clear that:
“a. An Officer employees retiring voluntarily shall be entitled to all benefits available under the normal retirement in accordance with the provisions of Officers’ Service Regulations, including encashment of accumulated privilege leave as also all other terminal benefits”.
Therefore, it is very clear that the Bank’s Voluntary Retirement Scheme is as per the Officers’ Service Regulations which are approved by the Central Government. Thus, it can be concluded that the VRS Scheme introduced by the Banks is the Government approved Scheme.
From the above it is crystal clear that an officer having completed 20 years of service and who gives 3 months notice to retire from service and is permitted to retire under VRS, is entitled for pension option now.
From the foregoing it is crystal clear that the “retirees” for the purpose of opting for Pension as per the Joint Note dated 27.04.2010 comprise:
Ø Officers who have retired from the service of the Bank on attaining superannuation i.e., after attaining 58/60 years of age as per Service Regulations.
Ø Officers who have retired under the “Voluntary retirement Scheme” of the Bank after completing 20 years of service, in conformity with Officers’ Service Regulations
Ø Officers who retired voluntarily in conformity with the provisions of Regulation 29 of Bank Employees’ Pension Regulations, 1995/1996 under the Voluntary Retirement Schemes of the Banks.
Ø Officers who retired from the service of the Bank on account of voluntary Retirement under special scheme: 2000 after rendering a minimum service of 15 years.
Ø Officers who were retired by the Bank on account of orders of the Bank to retire prematurely including employees who are compulsorily retired from service as a penalty on or after 29.09.1995 but before 27.04.2010.
In this background your communication restricting the Pension Option only the Officers who:
Ø retired on superannuation
Ø death
Ø retired on account of VRS under special scheme
and precluding the officers who voluntarily retired from the service of the Bank is a unilateral, arbitrary decision and therefore we request you to issue a corrigendum to your circular letter dated 10.08.2010 to the above effect immediately. We have been informed by some of our affiliates that you have offered clarification to the effect that the officers who have retired under normal Voluntary Retirement Scheme of the Bank are not eligible for pension, has come as a shocking surprise to us.
Moreover, the provisions of the Bipartite settlement dated 29.10.1993 have not been amended/modified or superseded by the Joint Note and therefore your communication dated 10.08.2010 is ultra-vires the Bank Employees’ Pension Regulations 1995.
We wish to reiterate that your communication is totally misleading, in abject contradiction of what is stated in the Joint Note dated 27.04.2010 and in contravention of the Bank Employees’ Pension Regulations 1995/1996. It is totally unjust and discriminatory and we once again request you to correct the position and issue a communication stating that the officers who have retired under Voluntary Retirement Schemes of the individual Banks, the Officers who are prematurely retired on account of imposition of punishment such as Compulsory Retirement etc., are also eligible to opt for Pension in conformity with the Joint Note dated 27.04.2010.
We request you to arrange for a meeting with us to have a thorough discussion on this matter, which calls for your immediate attention.
An early action in this regard is highly appreciated.
Thanking you,
Yours faithfully,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
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1 comment
please inform the out come of meeting of iba managing committee with unions regarding inclusion of pension option by voluntary retired in banks.
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