Wednesday, May 26, 2010

MACP JOINT COMMITTEE MEETING ON ANOMALIES


A joint Committee on MACP met on 25th May 2010 under the chairmanship of Joint Secretary Establishment of DOPT. Following issues were discussed:

1. Item No:1:Provide Grade Pay of the next promotional post under MACP.
Staff Side pressed for placement in the Grade Pay of the Promotional Post instead of next higher Grade Pay in the hierarchy of revised Pay Band and Grade Pay. It was insisted because the career progression only means the promotion in the hierarchy and not to a Grade Pay which is not present in the hierarchy of the respective department.

The Staff Side also gave an alternative that first two MACPs after 10 and 20 years should be to the next promotional post as per the hierarchy of respective department as under the erstwhile ACP scheme and thereafter the third MACP in the next Grade Pay of the Revised Pay Band and Grade Pay.

2. Item No:2:Date of Effect.It was demanded that MACP scheme may be introduced with effect from 1.1.2006. A scheme which has been recommended by the 6th CPC will be not available to those employees who have opted for revised pay scales w.e.f. 1.1.2006 but had retired or died before 1.9.2008, which is very anomalous.

3. Item No:3:Option for earlier ACP Scheme.
Staff Side pointed out that the benefit which employees were getting through two ACPs after 12 and 24 years of service is much higher than the benefit that they will get under MACP after three financial upgradations. It was therefore urged that the service conditions which were available to the existing employees cannot be adversely revised and if that happens then an option to retain the old scheme is inherent. And if the present MACP is not converted to hierarchical pattern, then at least an option may be given to retain the erstwhile scheme of ACP.

4. Item No:7:Grant of financial upgradation between 1.1.2006 and 31.8.2008.
In Para 9 of the DOPT OM dated 19.5.2009, it had been provided that earlier ACP scheme will continue to operate for the period from 1.1.2006 to 31.8.2008. However, this is not being allowed to officials who have opted for revised Pay Band and Grade Pay with effect from 1.1.2006. In some offices, it is being insisted that financial upgradation under the earlier ACP would be granted only in the pre-revised pay scales and they will have to opt for the revised pay scales only from the date they are granted the financial upgradation under earlier ACP. It was demanded that earlier ACP benefit may be given also to those officials who have come over to the Revised Pay Band and Grade Pay with effect from 1.1.2006.

5. Item No:8:Anomaly on introduction of MACP Scheme.
By an illustration in respect of Junior Engineer of CPWD, it has been pointed out that under earlier ACP they will go up to the revised Pay Band 3 with Grade Pay of 6600/- on completion of 24 years of service, whereas under the MACP Scheme, even after 30 years of service and getting third MACP they will get the Grade Pay of 5400/- only in PB-2. This is obviously less advantageous and therefore the demand for option to retain the old ACP scheme has been insisted.
The Official Side indicated that they will consider all these demands and in the next meeting they will indicate how far they can go.

6. Item No:4: Applicability of MACP Scheme to Group D employees who have been placed in the Grade Pay of 1800/-.The DOPT had already stated that all promotions and upgradations granted under ACP Scheme of 1999 in the post of four pay scales S-1, S-2, S-3 and S-4 shall be ignored for the purpose of MACP. In other words all the three MACP will be available to all the Group D employees who have since been placed in the grade pay of 1800/-. If an employee has completed 10 years of service he should be granted the GP of 1900/-; if completed 20 years of service he should be granted the GP of 2000/-; and if he has completed 30 years of service he should be placed in the GP of 2400/-. In some departments these MACP has not been granted to the Group D employees. The staff side therefore insisted an enabling clarificatory instructions may be issued. The Official Side agreed to issue such clarificatory instructions.

7. Item No:5: Counting 50% of service rendered by Temporary Status CLs for reckoning 10,20, and 30 years of service under MACP scheme.It was pointed out that the Railways have already issued orders for counting 50% of service rendered by Temporary Status Casual labourers for reckoning 12 and 24 years of service under the old ACP scheme. It was also pointed out that Courts have also ordered that total service rendered as TS CLs may be counted for the purpose of ACP. The Official Side were of the opinion that 50% of service rendered by TS CLs has been counted only for the purpose of pension. The Staff Side pointed out that the TS CLs have been granted all the facilities admissible to a Temporary Employee in respect of leave, increment, pay scale etc and therefore this may be deemed as a regular service for the purpose of MACP also as has been done by the Railways. The Official Side wanted the order of the Railway Department regarding ACP and the Orders of the Courts for their examination.

8. Item No:6: Supervised staff placed in higher Grade Pay than that of the supervisor.The Staff Side suggested that this item may be transferred to National Anomaly Committee item and discussed there. This has been agreed to.
There are 23 more items which have been suggested by the Staff Side leaders of Railways. It was pointed out that leaders of other departments may also suggest many other anomalies related to MACP. The Staff Side stated that as and when these additional items are received they may be included in the Agenda for discussion in the subsequent meetings. The Official Side agreed to.

Source : Confederation of Central Govt. Employees.

Central Govt. employees may get special LTC package for Jammu & Kashmir


A special incentive to boost tourism in Jammu and Kashmir is being finalised by the Centre ahead of the PM’s visit to the Valley next month. Central government employees wanting to travel to Jammu and Kashmir on leave will soon be able to avail of a special LTC (Leave Travel Concession) package for Jammu and Kashmir. Proposed along the lines of a similar and hugely successful initiative for the Northeastern states, this will entitle Central government employees to fly to the state for a vacation along with their immediate family. The proposal is being finalised by a Committee of Secretaries and is likely to be announced before the Prime Minister’s visit, sources said.
They said the incentive was aimed at encouraging more people to travel to Jammu and Kashmir and increasing people to people contact with the residents of the Valley. The move is also likely to generate revenue for the state from tourism and result in some income for Air India.
The incentive would be valid for travel to any of the three regions of the state —- Jammu, Kashmir and Ladakh.

Tuesday, May 25, 2010

Jammu and Kashmir announces 8% D.A. ** Air India appeals to striking staff to rejoin duty

JK govt increases DA to employees
Jammu and Kashmir Government has increased dearness allowance (DA) to its employees with effect from January this year.

"The decision to this effect was taken yesterday at a meeting of the state cabinet. The employees, including work charges and whole time contingent paid employees working on regular time scale, will get DA with effect from January at the rate of 35 per cent instead of 27 per cent," an official spokesman said today.

The DA accumulation with effect from January to June shall be credited into the respective GP fund accounts of the employees, he said, adding that the enhanced DA instalment shall be payable in cash along with the salary of the July.



AI appeals to striking staff to rejoin duty
Hit by the flash strike by a large number of staffers that led to cancellation of several flights, Air India management today appealed to the agitators to return to work at "this hour of crisis" following Saturday's air crash that claimed 158 lives.

Confirming cancellation and delays of several flights across different regions, an official statement said Air India was "making every possible effort to maintain normalcy in operations".

"The airline has been able to operate 116 of the 123 scheduled flights on the network till 1430 hours. While there have been four cancellations, some flights have been delayed or combined", it said.

While flights from the major Metro cities have not been affected, there have been a few dislocations at some of the non-Metro airports, it said.



Source : PTI

Nagaland Govt. employees on mass Casual Leave, demand pay hike.


Kohima, May 24: The three-day mass casual leave called by the Confederation of All Nagaland State Services Employees Association from today took full effect, paralysing work in all government offices throughout Nagaland.
The agitation is being staged in protest against non-implementation of the Sixth Pay Commission’s recommendations.
Despite the government warning its staff that the “no work, no pay” policy would be applied against the agitating employees, they defied orders and stayed away from their offices on the first day of the three-day protest today.
“Full pay benefits have been given to the central government employees in the name of escalation of price rise of commodities in the market. When the state employees demand the same, the government says that the staff have no fundamental right to claim for it,” association president Dr K. David Sema, alleged.
He said the association had given ample time to the state government to act on their representation and ultimatum, but it had fallen on deaf ears.
“We are demonstrating our anger through democratic means of wearing black badges and resorting to mass casual leave in protest. The ‘no work, no pay’ rule should be defied and instead ‘no pay, no work’ be applied,” Dr Sema said.
The association said unlike Manipur, which resorted to violence while demanding pay revision, employees in Nagaland had applied restraint, for which the authorities should be grateful.
“Casual leave is our entitlement,” secretary of the association Vekho Vero, said.
The association also informed that other service bodies not affiliated to CANSSEA but supporting its demand for pay parity, were also expected to join the protest.
The CANSSEA, however, reminded the employees not to indulge in any untoward activities during the protest.
The association also directed the divisional and sub-divisional units to keep vigil during the period of the casual leave and see that the order of the central office-bearers of CANSSEA were followed to the fullest.
The state government, however, said the employees had no right to claim for the pay revision.
Chief secretary Lalthara said it was up to the state government whether to implement the pay revision or not and that the employees had no fundamental right to ask for it.
The CANSSEA has demanded the pay revision with effect from January 1, 2006. However, the state government, citing financial constraints, decided to implement the hike from April 1, 2010.
To resolve the impasse, the state government had constituted a committee to negotiate with the agitating employees. However, even after a few rounds of talks, there was no breakthrough.
Total implementation of the recommendations of the Sixth Pay Commission will cost the state government around Rs 600 crore.
Chief minister Neiphiu Rio, who also holds the finance portfolio, has failed to convince the central government to bail him out from the funds crunch.
The Opposition Congress has criticised the ruling Democratic Alliance of Nagaland government on the issue and said it was the fundamental right of the employees to claim their benefits.

Source The Telegraph.

Friday, May 21, 2010

New Pension Scheme for Central Govt employees fetched 14.82% return

Central Government Employees NPS gives 14.82% average returns

Central government employees who joined as a part of the contributory New Pension Scheme (NPS) have earned a weighted average return of 14.82 per cent during 2008-09, the first year when three fund managers managed a corpus of around Rs 2,000 crore.

This has outperformed any another form of Investment like PF etc. Its a Win Win situation for both Govt as well as Employees.

This is in contrast to the annual 8 per cent returns between January 2004 and March 2008 when the government had not transferred the money to the three fund managers – SBI Pension Fund, UTI Retirement Solutions and LIC Pension Fund.

The Centre moved all employees joining from January 1, 2004 to NPS, where they have to chip in with a contribution of 10 per cent of their basic salary with a matching contribution made by the government. While the money was being deducted, it was parked in a government account and earned a fixed rate of return.

While the corpus will increase this year, partly due to higher contribution and also due to the release of some of the arrears following the implementation of the Sixth Pay Commission’s recommendations, the equity investment is also expected to go up.

At present, around 5 per cent of the corpus is invested in equities against the permissible limit of 15 per cent.

This year onwards, the fund management fee is also going to decrease to 0.0009 per cent (or 0.09 basis points), in line with the pension scheme for non-government employees, as against up to 5 basis points last year.

In addition, state governments are expected to join the scheme. While 21 states have shown their willingness to join NPS, none of them have started releasing the funds as some of them, unlike the Centre, are reluctant to bear the costs, such as those related to the record-keeping agency.

Thursday, May 20, 2010

Punjab announces 8% Dearness Allowance for it's employees.

The dearness allowance paid to government employees in Punjab has been hiked from 27 to 35 per cent on the pattern of central government employees.

Making the announcement here today, Punjab Finance Minister Manpreet Singh Badal said the hike which takes effect from January one this year would put an additional burden of Rs 713.89 crore on the state exchequer in the current fiscal.

The Minister said that the decision would also benefit the pensioners and they would be paid 8 per cent Additional DA.

He said that the arrears of the DA till May 31, 2010 would be deposited in the GPF of the employees and would be paid in cash from June one, 2010.



Source : PTI

Manipur accepts central pay scale in toto

Completing 125 days of agitation demanding the implementation of the 6th Central revised Pay Commission in Manipur, the All Manipur Trade Union Council (AMTUC), All Manipur Government Employees’ Organisation (AMGEO) and Council of Teachers’ Association (COTA) on Wednesday called of its strike with effect from May 19 and appealed to all government employees to resume their duties beginning from today. The state employees under the aegis of AMTUC, AMGEO and COTA on Wednesday called off the strike after signing a memorandum of understanding (MoU) with the state government.        
Following the MoU signed between the employees’ representatives and the state government, all agitating employees who were arrested by the state police earlier have been released today.
The government employees launched its strike since January 16 last demanding complete implementation of the 6th Central Pay Commission in Manipur.
As per the MoU, the Manipur government has accepted the revised pay scales based on the Central pay scales in toto. The state government also agreed to pay arrears in cash in two installments for six months with effect from October 1, 2009 to March 31 of this year. The first installment will be paid on November 1 of this year while the second installment will be paid on June 1, 2011. Dies-non orders of the employees would be cancelled and considerations of legitimate demand were included among others.



Source : The Morung Express.

Tuesday, May 18, 2010

Central employees are likely to get at least 9% Dearness allowance with effect from 01.07.2010

 As per the figures available from Labour Bureau, Government of India it can be assumed that 9% DA hike can be assumed from June 2010, provided the All India Consumer Price Index (AICPI) doesnt come  down from current level.
The DA from June 2010 can be 45%.
This is calculated assuming that the All India Consumer Price Index (AICPI) remains unchanged at 170 During April to June, which are yet to be announced.
These figures for January 2010 was 172 and came down to 170 during February and remained same at 170 for March.

Source : Labour Bureau, Govt. of India.

Model Recruitment rule for stenographers and LDCs

No. AB- 140 17/8/20 10-Estt (RR)
Government of India
Ministry of Personnel, PG & Pensions
Department of Personnel and Training
New Delhi
Dated the ! & ~ a ~20, 1 0
OFFICE MEMORANDUM
Subject:- Model RRs for Stenographer Grade 11 post in non-Secretariat
Organizations.
---
A reference is invited to this Department OM of even no. dated 10Ih
March, 20 10 enclosing the Model RRs for the post of Stenographer Grade I1
in Non-secretariat Organizations.
2. The matter relating to Skill Test norms for recruitment to the post of
Stenographer has been considered. Staff Selection Commission (SSC) will
conduct all skill tests in typing and transcription of stenography 'only on
computers' from the Financial Year 2010-1 1 onwards. Accordingly, the
entries pertaining to Skill Test Norms prescribed in the Col. 8 of the Model
RRs for the post of Stenographer Grade I1 may be modified to include the
Skill Test Norms 'only on computers' . All the MinistriesIDepartments are,
therefore, requested to amend the M s for the posts of Stenographer Grade I1
accordingly.
3. Ministry of Home Affairs etc. @re requested to bring the contents of
this OM to the notice of their attachedlsubordiqate offices also.
4. Hindi version will follow.
View the OM



NO. AB-14017/32/2009-Estt (RR)
Government of India
Ministry of Personnel, PG & Pensions
Department of Personnel and Training
New Delhi
Dated the 17'~ May, 2010
OFFICE MEMORANDUM
Subject:- Model RRs for the post of Lower Division Clerk
---
A reference is invited to this Department OM of even no. dated 7'
October 2009 enclosing the Model RRs for the post of Lower Division
Clerk.
2. The matter relating to Skill Test norms for recruitment to the post
of I,DC has been considered. Staff Selection Commission will conduct
all skill tests in typing only on computers from the Financial Year 2010-
11 onwards. Accordingly, the entries pertaining to Skill Test Norms
prescribed in the Col. 8 of the Model RRs for the post of LDC may be
modified to include the Skill Test Norms 'only on computers'. All the
MinistrieslDepartments are, therefore, requested to amend the RRs for the
post of LDC accordingly.
3. Ministry of Home Affairs etc. are requested to bring the contents of
this OM to the notice of their attachedlsubordinate offices also.
4. Hindi version will follow.



View the O.M.



Sunday, May 16, 2010

BSNL Pay revision : Order issued. View the salient features.

  1. Fitment Method -  Pay as on 01.01.2007:
 Basic Pay in the pre-revised scale  +68.8 IDA  and fitment  30% on ( Pay plus IDA(68.8%)  rounded off to next Rs. 10
  1. Bunching increments:  For every two stages of pay, fixed at the same stage.
           Benefit of one increment will be given.
    2. Increment:
        a.  3% of pay rounded to off next Rs.10.
        b.  Stagnation increment at 3% for every two years-maximum 3 increments.
        c. On promotion 3% of revised basic pay will be given.
        d. For increments falls on 01.01.2007,it will be given in new scales.
        e  Extra increment given prior to 01.01.2007in lieu of Grade IV will be merged as basic pay  for fixation of pay in the new scale.  After 01 10 2007, it will   be 3% of pay.

       Options:
Can opt for revised pay   from 01.01.2007or from the date of next increment or from the date of next promotion. Options to be given within three months. i.e.  before 7.8.2010.    
3. Dearness  Allowances:  0% as on 01 01 2007 and  will be revised for every 3 months.
 4. HRA: Payable from 27 02 2009 for the revised pay.
5 CCA : Abolished from 27 02 2009 –already paid CCA will be adjusted in arrears.
 6. Perks and Allowances: Payable from 07.05.2010. i.e. from the date of signing of the             Agreement.
a.       No increase in the following allowances:Existing rates will continue.-Transport allowance, Special duty allowance, Island Special Duty Allowance, Hard area allowance, Children education allowance, rural duty allowance, OTA, TA, DA and Hotel rates.
b.      50% increase CMA, Cash handling allowance, escort allowance, fixed conveyance allowance.
c.       75% increase –Special compensatoy allowance, hill allowance tribal area allowance.
d.      Food allowance: Discontinued
e.       Special upgradation allowance: At 2% of basic pay from 0-7 05 2010.
f.        Training allowance: 7.5% of revised pay.
     7.   No change in the existing arrangements for the following.
            Holidays, Casual leave, EL,  HPL, Commuted leave, Paternity leave, Working hours,   LTC,EL encashsment, Uniform, Stitching charges, Rain            coats,   Chappals, Shoes,          Washing allowance , Family planning increment and other    special pay.
     8.  Six months salary already paid as advance for arrears will be adjusted in the arrears.
   9.  It is presumed that it will be paid in one lump sum.


Jammu and Kashmir : Govt Agrees to Employees Demands, Stalemate Ends

The stalemate between the employees and the state government ended today[15th May] after latter agreed to most of the demands of its agitating employees.
A meeting took place between a cabinet sub-committee, headed by Finace Minister A R Rather, authorised by the government to deal with the situation following a fresh threat of agitation by the employees, and union representatives late Saturday evening.
The cabinet sub-committee was asked to engage in a 'meaningful' dialogue with the government employees, who went on strike April 3 but called it off later that month after the state high court ruled there was “no justification” for the agitation.
Minister for PHE, Irrigation and Flood Control, Mr.Taj Mohi-ud-Din, Minister for Rural Development, Law & Parliamentary Affairs, Mr. Ali Mohammad Sagar, Minister for School Education, Peerzada Mohammad Sayeed, Minister for Industries & Commerce, Mr. S.S. Slathia, Chief Secretary, Mr. S.S.Kapur, Principal Secretary to Chief Minister, Mr. Khursheed Ahmad Ganai, Commissioner/Secretary, Finance, Mr. Sudhanshu Panday, Commissioner/Secretary,  GAD, Mr. Basharat Ahmad Dhar, Secretary Law, Mr. G.N. Tantray and various representatives of employees Unions, including Khursheed Alam and Nazir A Mir participated in the meeting.
Rather later announced that the employees will get increase of two and half percent HRA from the month of June this year while rest two and half percent will be released in June 2011 next year.
Regarding the release of dearness allowance, Mr. Rather said that it was decided that orders for release of 8% DA will be issued soon. He said that long pending demand of PSU employees has been solved by conversion of COLA into DA and will be effected from 1st July 2010.
To remove the pay anomalies, Mr. Rather said that the pay anomaly committee shall submit its report to the Government by the end of June this year for taking further action in this regard.
Regarding release of 6th Pay Commission arrears, Finance Minister said that the assurances given by the Chief Minister will be adhered strictly and road map for the release of arrears will be accordingly prepared within three months on the basis of which appropriate decisions will be taken. For acquiring the full pension benefits, the Committee has decided to reduce the qualifying services from 30 years to 28 years, Mr. Rather added. For the regularization of daily wagers, the Cabinet Sub-Committee already framed shall submit its report to the cabinet within six months.
The Finance Minister also announced the release of salaries in favour of the employees for the striking period and the period shall be considered as leave what-so-ever due to them as one time exception. He said the process will be initiated to look into the cases of those employees against whom action was taken under ESMA and a positive and lenient view shall be taken after following the due process of law.
Rather said that the Government has always been  employee-friendly and has taken several measures including implementation of  6th Pay Commission due to which State ex-chequer has to face burden of Rs 1800 crore.
Confirming the deal Nazir Ahmad Mir, a representative of the Civil Secretariat Employee’s Union said, “The state government has agreed to an eight percent increase in dearness allowance with effect from Jan 1. The government has also agreed to a 2.5 percent increase in house rent allowance which would be paid with the salaries at the end of this month.”
The employees were demanding payment of arrears as per the recommendations of the Sixth Pay Commission, enhancement of retirement age from the present 58 to 60 years, as well as revocation of the principle of no work, no pay for those employees who had remained on strike in April.
The government also agreed to reduce the pension qualifying service from the present 30 years to 28 years, he said.
As for the enhancement of the retirement age, the cabinet sub-committee has promised the employees their demand would be sympathetically considered and a decision on this would be taken in the near future. 



Source : Kashmir Observer.

Saturday, May 15, 2010

National Council of JCM for Central Government Employees Meets

Government for Consensus Building With Employees: Cabinet Secretary
National Council(JCM), the apex body of the Joint Consultative Machinery for the Central Government Employees, met under the Chairmanship of the Cabinet Secretary Shri K.M. Chandrasekhar today. Senior Leaders of the Central Government Employees’ Unions/Federations and Secretaries of various Ministries/Departments actively participated in the deliberations.

In his opening remarks, Cabinet Secretary referred to the discussions held during the meetings of the Standing Committee of the National Council and the meetings of the National Anomaly Committee and reiterated the endeavour of the Government to maintain a sustained level of contact with the staff side to take forward the process of consensus building. He also enumerated some important decisions, taken in the recent past to increase the welfare, morale and productivity of the employees.

Cabinet Secretary also emphasized the need for the Staff Organizations to work in harmony with the official side to enhance productivity and efficiency.

Various issues of importance to the Central Government Employees and their families were discussed with a view to find amicable solutions and to ensure a harmonious relationship.



Source : PIB Press Release.

Friday, May 14, 2010

Defence Minister asks to expedite Pension and Arrears for Ex-Servicemen

The Defence Minister Shri AK Antony has called for early disbursal of revised pension and arrears to Ex-Servicemen. Inaugurating the Controllers’ Conference of the Defence Accounts Department here today, Shri Antony asked the Defence Finance officials to expedite and further streamline the pension system for the Armed Forces personnel.

“Even now, I am getting a lot of complaints from people that they are not getting pensions... Considering the past, things have improved, but even then complaints are there still... So you must take all steps possible so that they get their dues at the earliest,” Shri Antony said.

Commending the Defence Accounts Department for facilitating the procurement of weapons and systems, Shri Antony noted that the capital expenditure, utilised last year, has been an all-time record. He called for transparent, timely and judicious use of Defence Expenditure. He said that the Government has tried to infuse more transparency in the huge Defence outlay, which is over Rs. 1.52 lakh crores for the current financial year.

“Defence expenditure and procurement issues are complex and time-consuming and have a direct bearing on our national security. We have tried to infuse more transparency and efficiency into our procedures and systems. It is my firm belief that expenditure of public money must have an appropriate system of checks and balances”, he said.

In his address to the gathering, the Minister of State for Defence Dr. MM Pallam Raju said that the Defence Pension Adalats have become an effective mechanism for grievance redressal on the ground. He hoped that the pension arrears for pre-2006 PBORs would soon be disbursed. Dr. Pallam Raju said that the Principal Controller of Defence Accounts (PCDA) would soon roll out the e-ticketing system for air travel. The PCDA Rail Booking System for e-ticketing would be introduced in another 200 Armed Forces units by next month and all units would be covered by the yearend, added Smt Nita Kapoor, Controller General of Defence Accounts (CGDA). The Secretary Defence Finance, Smt Indu Liberhan stressed the need for continuing institutionalized interaction between the Defence Finance and the three Services. The Comptroller and Auditor General of India Shri Vinod Rai said that since Defence Finance relates to a sensitive national security concern, the keyword for its success is the outcome and not simple accounting.

The Chief of the Army Staff General VK Singh and Scientific Advisor to the Defence Minister Dr. VK Saraswat were among the dignitaries present at the inauguration of the three-day biennial conference. 



Source : PIB Press Release

IBA issued guideline for implementation of 9th Bipartite Settlement.

CIRCULAR NO.65                                                                          14.05.2010
TO ALL AFFILIATES/MEMBERS:
IMPLEMENTATION OF 9TH BIPARTITE SETTLEMENT
PROCESS ON – IBA ISSUES GUIDELINES TO BANKS
GOVERNMENT’S CLEARANCE IN RESPECT OF OFFICERS’ AWAITED
          We are happy to inform our members that the process of implementation of the 9th Bipartite is on.  The Indian Banks’ Association has since issued detail communication to all the banks in respect of the Award Staff who signed 9th Bipartite Settlement under the provisions of the Industrial Dispute Act, 1947, which does not require further approval of the Government. The communication in regard to the payment as well as the recovery towards the contribution to Pension Fund on account of the 2nd Option is as under:
a)                     An amount equal to 2.8 times of the “Pay” for the month of November, 2007 be withheld and kept in a suspense account for crediting to the Pension Fund in case the employee opts to join the Pension Scheme complying with the terms of the Settlement dated 27th April, 2010.
b)                     If any employee gives in writing an irrevocable letter stating that he does not intend to join the Pension Scheme in terms of the Settlement, 2.8 times of the November 2007 pay as above need not be withheld.
c)                      Once the offer is made to join the Pension Scheme, on expiry of the period of option, the amount withheld in respect of those who exercised the option to join the Pension Scheme should be transferred to the Pension Fund.  The arrears withheld in respect of those who did not opt for pension within the stipulated time, be refunded to them.
d)                     No portion of arrears be withheld in respect of non-optee employees who retired from 1st November 2007 to 27th April 2010.  They will be joining the Pension Scheme by making contribution towards funding gap as retired employees in terms of the Settlement.
2.       We are keeping in touch with the IBA to ascertain the latest position as regards in-principle approval, pending amendment to the service regulations in respect of the Officers in the banking industry. We understand that the approval is expected at any time. The first phase in respect of the Award Staff for the payment of arrears etc., as per the 9th bipartite settlement having been already initiated we are confident that the process in respect of the Officers will get speeded up now.
3.       In the meanwhile, we have been receiving anxious enquiries on implementation of 2nd Option on Pension. The process of obtaining in-principle approval from Govt. is also in progress.  We therefore advise members to have patience for a few days more as the instructions are awaited at the earliest.  We also understand that the bank managements have already initiated necessary steps and the calculations have since been kept ready so that no delay takes place once the guidelines are received from the banking department for the implementation of the 9th bipartite.
4.       Comrades, the technical requirement of obtaining the approval of the Ministry of Finance including the Finance minister should not take much time since the Government is conscious of the pressures that are built across the country, awaiting implementation of the 9th bipartite. 
5.       We note to keep all our affiliates/members informed of further details in due course.

With greetings,

                                                                                               (G.D.NADAF)
GENERAL SECRETARY
Source : AIBOC


Wednesday, May 12, 2010

9th B.P.S. : Cruel deal for retired Bank Employees who were PF optee.


Retired bank employees, who had opted for provident fund (PF) at the time of retirement instead of a pension, are feeling left out from the benefits of the new wage settlement signed between the Indian Banks Association (IBA) and the United Forum of Bank Unions (UFBU), a body comprising nine bank unions.
According to the new wage agreement signed on 27 April 2010, about 8 lakh employees from 26 public sector banks (PSBs), 12 private sector and 8 foreign banks will get a salary hike of about 17.5%. The revision will cost banks Rs4,816 crore, including arrears payment from November 2007, which will be given in a lump sum, K Unnikrishnan, deputy chief executive, IBA said.
A total of 2.7 lakh employees and 60,000 pensioners will be benefited by the second pension option in the agreement. For employees who had not joined the pension scheme in 1995, the new agreement gives them another opportunity to join the scheme. However, there is a catch. They will have to refund the entire amount of the bank's contribution to their PF and interest accrued thereon received on retirement with the employee’s share in the contribution.
"On an individual basis, this payment over and above the bank's contribution to PF and interest thereon has been worked out at 56% of the said amount of the bank's contribution to the PF and interest thereon received by the employee on retirement," the agreement, a copy of which is with Moneylife, says.
As a result of the new wage settlement new pension optees will have to pay 2.8 times of their November 2007 revised salary from the earlier agreed 1.6 times. "All unions kept mum on this, which came to light only after signing and yet they say this is historic. 
CH Venkatachalam, general secretary, All India Bank Employees Association (AIBEA) and convener for the UFBU, said, "People had made the mistake of not joining the pension scheme earlier and some of them are still not ready to accept it. What they are not willing to understand is with the pension scheme, they can receive a regular income more than the interest they may earn. Plus this pension has a provision for dearness allowance to be revised every six months."
Refunding the entire amount of the bank's contribution to their PF and interest accrued thereon received by the employee on retirement with the share in contribution has not gone down well with some retired bank employees. Whether the employee retired in 1997 or in 2007, there is no differentiation and both have to refund the entire amount of bank’s contribution along with interest. For example, an employee who retired in 1997 might have received Rs6 lakh as terminal dues. If he invests the same amount at an average interest rate of 8%, then he would receive about Rs48,000 per year just as interest. From 1997 to 2010, he most probably would have received more amount as interest than his investment. 
"This second pension offer is nothing but a cruel joke on retired bank employees. Retired bank employees, especially those above the age of 66, are finding this offer unviable and unfair since they have to pay a heavy sum and chances of recovering the principal amount are less," said a retired bank employee in condition of anonymity.
When asked to explain the contribution and pension per month, Mr Venkatachalam said that if for example, an employee had received Rs10 lakh as PF and gratuity on retirement, then he will have to refund this Rs10 lakh plus around Rs5.5 lakh as his own contribution. However, the bank will also contribute around the same amount and the actual amount an employee has to refund comes to Rs10 lakh. To add to this, he will receive pension arrears of eight months at a rate of about Rs15,000 per month. If he can use this money for the refund amount, then his actual contribution to the new pension scheme comes to just about Rs8.5 lakh. He will continue to receive Rs15,000 every month thereafter. In addition, after every six months, the dearness allowance component in his pension will increase, so he will receive more money. On the other hand if he invests Rs8.5 lakh, then he would get an interest of about Rs68,000 for a year or  Rs5,700 per month. Now he has to decide whether to opt for Rs15,000 per month or Rs5,700 per month, Mr Venkatachalam said.
One problem with the pension scheme is that some of the retired employees may not have enough cash left with them since usually people try to buy expensive things such as a home or a four-wheeler from the money earned at retirement. They most likely would find it very difficult to garner the required money so as to receive monthly pension or regular income.
Vishwas Utagi, secretary, AIBEA said, “We have been advising employees to keep the funds they received at the time of retirement separate, in case they plan to opt for the new pension scheme. So, I think refunding the bank’s contribution and interest should not be an issue.”
The UFBU has been asking the IBA to allow another option to for those to join the pension scheme—employees who were in the service of banks prior to 29 September 1995 in case of PSBs, and 26 March 1996 in case of associate banks of the State Bank of India (SBI) and who did not opt for the scheme. IBA, however, was not ready for the same due to cost considerations. The UFBU then offered to share a portion of the initial funding liability on a one-time basis for extending pension to the non-optees.
An actuarial valuation of liability by actuaries showed an estimated funding gap of Rs6,000 crore. The UFBU offered to contribute 30% or about Rs1,800 crore to bridge the gap for retired employees. An actuarial valuation on similar lines as conducted for serving employees had estimated the funding gap as Rs3,115 crore for those retirees or their families.
“Moreover, as per the new wage agreement, bank employees, both in service and retired, will receive arrears effective from November 2007 and it would help them while contributing to the 30% funding gap,” Mr Utagi said.
UFBU is receiving calls from children of retired bank employees asking how much their parents will have to pay to get a regular monthly income and these children are ready to pay from their own pockets, Mr Venkatachalam added.


Source : Different articles in publication including "moneylife".


View circular no. 64 from AIBOC regarding 2nd option of Pension : "Bare Truth".

UNION DEMANDS EXTENSION OF 9TH BIPARTITE SETTLEMENT TO REGIONAL RURAL BANKS.

CIRCULAR NO.61           11.05.2010                                             
TO ALL AFFILIATES/MEMBERS:
EXTENSION OF 9TH BIPARTITE SETTLEMENT TO RRB’S

          In the matter of salary and allowances, RRBs are at par with the Public Sector Banks.  Justice Obul Reddy awarded extension of pay and allowances of Public Sector Banks to the employees of RRBs.  Even there after, there was reluctance on the part of the Sponsor Banks in extending the parity in pay and allowances to RRBs.  Our affiliate, AIRRBOF was forced to knock the doors of the courts for implementation of the NIT award in RRBs.

2.       We ensured that, the 8th Bipartite Settlement was extended to the Officers’ of RRBs.  Much against our opposition, NABARD had disbursed the arrears in respect of 8th Bipartite, in two installments.  We have to-day sent a letter to the Hon’ble Finance Minister, Govt. of India requesting him to arrange for necessary instructions to NABARD for extension of 9th Bipartite to RRBs.

3.       A copy of our communication is enclosed for the information of our members.  We shall advise the developments in due course.


With greetings,

                                                                                     

                                                                                       (G.D.NADAF)
                             GENERAL SECRETARY


No.1410/148/10                                                      11.05.2010

To,
Sri. Pranab Kumar Mukherjee
Hon’ble Finance Minister,
Government of India,
South Block, Parliament House,
New Delhi.

Respected Sir,

9th BIPARTITE WAGE SETTLEMENT IN THE BANKING INDUSTRY
EXTENSION OF BENEFITS TO RRB OFFICERS’


          At the outset we express our gratitude and thanks from the core of our heart on behalf of 2.5 lac officers, under the banner of AIBOC, for the settlement of 9th Bipartite Salary revision at 17.5% of the wage bill. 

2.       We are also indebted to your goodself in providing one more option to the provident fund optees (CPF) in Banks to switchover to the Pension Scheme.

3.       In accordance with the National Industrial Tribunal Award, Regional Rural Banks employees are eligible for parity in pay and allowance applicable in Banking Industry under “equal pay for equal work” concept.  At the instance of the Govt. of India, National Bank for Agriculture and Rural Development (NABARD) has extended 8th Bipartite Settlement to the Regional Rural Banks for the period from 01.11.2002 to 31.10.2007.

4.       We shall be glad, if you will please arrange to issue necessary communication to NABARD to extend the 9th Bipartite Settlement on salary and allowances to RRB employees and officers’ w.e.f 01.11.2007.

5.       We shall also be glad if, much awaited improvements in Provident Fund and Pension Rules of RRBs are taken up for discussion with our affiliate AIRRBOF, to provide them an assured social security. It is needles to mention that, RRBs are doing yeomen service to the common man and are also generating profits.  Therefore, they deserve to be encouraged.

6.       We shall be glad to receive your positive response in the matter.

Thanking you and with regards,
                                                                                   Yours faithfully,
                                                                                             Sd/-
                                                                                     (G.D.NADAF)
GENERAL SECRETARY

Source : AIBOC

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