AIBOC CIRCULAR NO. 86 DATED 20.09.2011

AIBOC issued its circular No. 86 dated 20.09.2011 on 100% DA neutralization to pensioners. We are reproducing the same here for our readers.

CIRCULAR NO.86                                       DATE: 20.09.2011

TO ALL AFFILIATES/MEMBERS:

100% DA NEUTRALISATION TO PENSIONERS

The Pensioners in the Banking Industry have been getting pension on the basis of the Bipartite settlements right from 01.11.1993. We have been demanding 100% DA neutralization to all the pensioners /family pensioners who retired from service of the bank prior to 01.11.2002. You are aware of the fact that, 100% DA neutralization has been secured to the employees as well as pensioners with effect from 01.11.2002. However Reserve Bank of India has considered 100 % DA neutralization to all its employees retired / deceased prior to 01.11.2002. But, this is implemented wef., 01.02.2005. Our Pension Scheme is akin to the scheme available at RBI.

We have today addressed a letter to IBA highlighting the need to extend 100% DA neutralization to pensioners and family pensioners in the banking industry who retired before 01.11.2002 on par with RBI scheme w.e.f.,  01.05.2005. The letter is annexed to this circular and is self-explicit.

Further developments in the matter will be informed.

With greetings

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No:1003/324/11                                19.09.2011

The Chairman,

Indian Bank’s Association,

Mumbai.

Dear Sir,

100% DA NEUTRALISATION TO PENSIONERS

We refer to Pension settlement between IBA & Unions in Banking Industry dated 29th October, 1993.

The Pension Scheme introduced in the Banking Industry w.e.f. 01.11.1993; was to be broadly based on central Govt./RBI pattern. 

Dearness relief to Pensioners will be granted at such rates as may be determined from time to time to fall in line with the “Dearness Allowance Formula in operation in Reserve Bank of India”, vide its Circular No. HRDD No 10139/21 -01/2007-08 dated 01.04.2008, with instructions for payment of Dearness Relief with cent percent neutralization for the entire pension amount to all its pensioners, retired beore 01.11.2002 with effect from 01.03.2008.

Subsequently, in January 2010, the Reserve Bank of India issued instructions to all its offices to pay Dearness Relief to all its employees retired/deceased before 01.11.2002, with cent percent neutralistion for rise in CPI from the month of February 2005 to February 2008, vide its Circular No. CO HRDD No.6223/21 dated 01.09.2010 and 01.01.2010.

100% D.A neutralization was extended to employees and pensioners in the Banking Industry, w.e.f. 01.11.2002. We therefore, request you to extend 100% D.A neutralization to pensioners and family pensioners who retired before 01.11.2002, at par with RBI Scheme w.e.f 01.05.2005.

Thanking you,

Yours faithfully,

Sd/-                                          

(G. D. NADAF)

GENERAL SECRETARY