AIBOC CIRCULAR NO. 82 DATED 07.09.2011

AIBOC issued its circular No.82 dated 07.09.2011 on refixation of basic pay to the officers who retired between 01.04.1998 to 30.04.2005. We are placing the same here for our readers.

CIRCULAR NO.82                                                         07.09.2011

TO ALL AFFILIATES/MEMBERS:

REFIXATION OF BASIC PAY TO THE OFFICERS WHO RETIRED BETWEEN 01.04.1998 TO 30.04.2005

The Officers who retired after 01.04.2008 were given salary Revision with merger of DA at 1684 points and for the purpose of pension merger of DA was at 1616 points as per the Joint Note signed between IBA and Officers’ Associations on 14.12.1998. This had created an anomalous situation for the retirees after 01.04.1998, whose pension was reduced to 41% of their Basic Pay as against 50% of the Basic Pay as per Regulation 35(2) of Bank Employees’ Pension Regulations 1995.

This anomaly was rectified during 8th bipartite by signing the Joint Note by IBA and Officers’ Associations on 02.06.2005, wherein it was agreed to, merge 1684 points of DA for the purpose of payment of pension for all the retirees after 01.04.1998, however the arrears of pension to be paid prospectively from 01.05.2005.

Meanwhile, the aggrieved Retired Officers had moved the Hon’ble High Court of Adjudicature, Madras and the Hon’ble High Court has ordered to pay pension to all the officers who retired from service of the Banks after 01.04.1998 on the revised salary as per the VI Bipartite settlement. The Hon’ble Court has also ordered payment of differential commutation to all the affected officers.

We have addressed a letter to the Chairman, IBA to implement the orders of the Hon’ble High Court. We have annexed the text of the letter, which is self-explicit.

Further developments in this regard will be posted to you.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No./1452/314/11                                              08.09.2011

To,

The Chairman,

The Indian Banks’ Association,

World Trade Centre Complex,

Centre 1, 6th Floor, Cuffe Parade,

MUMBAI – 400 005

Dear Sir,

REFIXATION OF BASIC PAY TO THE OFFICERS WHO RETIRED BETWEEN 01.04.1998 TO 30.04.2005

We invite your kind attention to the Joint Note signed between the Officers’ Associations and IBA on 14.12.1999 wherein it was agreed, inter alia, the following:

Ø  The Revised Salary, Dearness Allowance and Pension will be implemented from 01.04.1998. For Salary Revision merger of DA was at 1684 points.

Ø  The retirees will get their pension on the basic pay with merger of DA at 1616 points as per the Joint Note signed on 14.12.1999 and from 01.04.1998.

The above provisions of the Joint Note created an anomalous situation for the officers who retired during the period 01.11.1997 to 31.03.1998 who were denied the benefit of VII Bipartite settlement.  Such officers continued to get their pension on the Basic Pay as per the VI Bipartite settlement.

The Officers retiring after 01.04.1998 got pension at less than 50% of their last drawn Basic Pay, which was in contravention of the Pension Regulations.

The anomaly with regard to merger of DA at 1616 points was set right with signing of the Joint Note on 02.06.2005 but the retirees were denied the benefit of the full merger of DA at 1684 points as the Pension Scheme for the above category of officers was implemented with effect from 01.05.2005.  Thus, the officers who retired during the period 01.04.1998 to 30.04.2005 were denied the benefit of the salary Revision of the VII Bipartite settlement, i.e., 50% of the Basic Pay as Pension along with DA thereon for the above period.

Aggrieved by the above blatant injustice done to them, many retirees across the country had approached the Courts of law.  The Retirees of Bank of Baroda had filed a writ Appeal in the Hon’ble High Court of Judicature at Chennai, the Hon’ble High Court upholding the contentions of the petitioners, has delivered a judgement in favour of the petitioners, and the Hon’ble Judges have averred that:

“In the absence of any amendment to the Regulations 2(d) and 35(2) (of the pension Regulations 1995), the attempt made on the part of respondents, curtailing this benefit to the appellants and such other similarly standing persons by introducing the impugned amendment is illegal. It would have been a completely different thing, had the Joint Note agreed for all corresponding amendments including definitions for all corresponding amendments, including the definitions for Regulations 2(d) and 35(2), which is not the case herein.  Therefore, without any hesitation, we can say that the impugned amendments brought by the respondents 1 & 2 are quite against the Regulations 2(d) and 35(2) and the very intent and purport of the Regulations is null and void”.

The Hon’ble Judges have further ordered that:

“The respondents 1 & 2 are directed to calculate and pay the difference of monetary benefits to the appellants within twelve weeks from the date of receipt of a copy of this judgement”.

From the foregoing it is crystal clear that the curtailment of benefit by introducing the impugned amendment is held to be illegal and all the retirees between the period 01.04.1998 to 30.04.2005 are eligible for the benefit of 50% of the revised Basic Pay as at 01.04.1998 with merger of DA at 1684 points and also for differential commutation amount.

The arguments of the learned Judges are supported by different decided cases.  We have enclosed a copy of the judgement for your perusal and necessary orders in the matter.  As the Judgement applies to all the affected officers in an omnibus way, we request you to implement the pension payment to all the affected officers at your earliest.

We also would request you to take-up the matter with the Ministry of Finance, Government of India for an early clearance of the matter and render justice to all the aggrieved officers.

Thanking you,

Yours sincerely,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY