Thursday, August 26, 2010

VRS OPTEES IN BANKS DENIED PENSION BY IBA

"Once the implementation of one more option was cleared by vacation of stay order of Madras High Court, IBA has circulated the pension scheme to all banks.
 However acting on a reference by one Bank, IBA has advised Banks to withdraw circular issued [by United Bank of India] in respect of pension under VRS.
 These instructions as well as omission of optees under VRS scheme in Banks as per OSR denying pension to such optees is at variance with UFBU discussions on the matter......."

23 comments :

r rajendran woraiyur trichy said...

A sad information that even in Pension Settlement made on 27.04.2010, it is infered/implied that the second option of pension is availble to those retirees on superannuation and VRS under special scheme.
Nowhere the retirees on account of normal VRS is refered.
More over, extending second option will not bind by any clause of
Employees Pension Regulation 1995 as it is subject to amendment
by IBA for this purpose.

One more thing, few banks are having the name VRS (normal) in lieu of RESIGNATION for those who leave earlier on any reason
admissible by the bank management and so it happens to be no
difference between those who went on normal VRS or Resignation.
UFBU should have taken care all before signing the settlement !
God have to save all of us.

RAMANATHAN S said...

Despite all legal hurdles,another litigation on the way,why this pension issue dragged this much,since 2.88 times recovery.In order to safeguard the immediate retirees all theses dramas.Friends having remaining services of 10 and more years it is better to stay away from option.

mahesh agrawal said...

AT LEAST AIBOA HAS COME UP TO TAKE THE MATTER WITH I.B.A.....WHY OTHER CONSTITUENTS OF UFBU ARE KEEPING SILENT ON THE ISSUE/INJUSTICE BEING DONE WITH VRS OPTEES....THESE VRS OPTEES HAVE MARCHED AND PARTICIPATED IN STRIKES AT THE CALL OF UNIONS...THEY DESERVE PREFERENCE OVER SVRS OPTEES...FURTHER OFFICERS SERVICE REGULATION 19(2) CLEARLY STATES THAT THE OFFICER CAN PROCEED ON VRS AFTER 30 YEARS OF SERVICE OR 55 YEARS OF AGE WHICHEVER IS EARLIER AND ALSO CLEARLY STATES THAT VRS OPTEES WILL BE GIVEN ALL BENEFITS AS ARE ENTITLED TO PERSSON GOING ON SUPERANNUATION...THEN WHY THIS DISCRIMINATION....IBA AND BANKS ARE UNNECESSARILY INVITING THOUSAND OF LITIGATIONS INSPITE OF THE KNOWN FACT THAT THEY WILL GET DEFEAT IN COURT OF LAW ON THE BASIS OF DECIDED CASES AND VERDICTS OF HIGH COURTS AND SUPREME COURTS...ALL SUCH ERRING OFFICIALS SHOULD BE LIABLE TO BE PUNISHED AS THEY COULD HAVE SOUGHT LEGAL OPINION ON THE ISSUE BEFORE ANY PROCLAMATION OF STATEMENT...
M.C.AGRAWAL

Vasu said...

Punjab National Bank was probably the first to issue circular on second option for pension followed by few more banks. Many Banks are yet to issue the circular.Thus amount of commutation might vary from bank to bank depending upon the date of offer/date of option etc for those equally placed. This appears to be unfair as those whose next date of birth might fall in sep/oct are likely to be affected It is not clear why all the Banks have not issued the circular on the same day (subject to approval of respective boards).

Vasudevan

Runtrailblog said...

Earlier the complaint was the PF Optees are the main culprits/obstacle (Madras court case) by denying the pension option to the retirees.Everyone simply forgot why all these turmoil.It is only because of our union leaders, their incapability.AIBOA is one of the main culprit behind all these.

Four months after his betrayal of PF optees, RJ Sreedharan now wants to don the role of saviour of the VRS optees!! Everybody who had gone through the Great Betrayal called Pension Settlement had long ago realised that VRS optees and resignees have been carefully excluded from exercising any pension option. The only person who appears to have understood this fact belatedly appears to be RJS himself, who only last week patted himself as the chief architect of this betrayal for which he sought a donation of Rs. 1000/- each from all the existing pension opteesans .Now he is requesting to pay Rs.5000/- towards filing case!!

Parameswaran said...

Dear Mr Rajendran

I hope you have not gone through the entire joint note. Joint note says retired people are eligible. Definition of retirement is available in the Pension regulation. Joint note is only an extension of Pension regulations. Please read the joint note along with pension regulation then you arrive at the eligibility. IBA is playing in the lives of VRS employees. It is a total injustice and discrimination unleashed by IBA. See the AIBOA site.

SHANKAR said...

Now since IBA has informed that the matter will be discussed with the Managing committee, it will be better to wait for the outcome of the meeting and then decide further steps to be taken. Denying another option to those who took VRS after serving more than 30 years in the bank is nothing but injustice.

vbachar said...

IBA SHOULD KNOW THAT VRS OPTEES ARE VERY FEW IN NOS.
UFBU,AIBOA,AIBOC,AIBEA,NCBE,NOBW AND BEFI SHOULD TAKEUP THE ISSUE
WITH IBA/GOVT TO GET PENSION OPTION TO VRS OPTEES ALSO

Parameswaran said...

Pension to VRS optees is already a finalised one. Unions need not take up with IBA now. IBA issued circular deviating the agreed terms in the joint note. Unions have to pressurise the IBA to act according to the agreed terms.

SHANKAR said...

Referring to Sri Parameshwaran-August 28, 2010 2:35 PM
I doubt. As per AIBEA circular No 26/62/2010/12 dated 10.05.2010 matter is clarified as under:-

1. Eligibility for pension option – Who can opt now ? :
Those who were in service of the Bank on date of Pension Regulations in 1995/1996
a)and continue in service as on
27.4.2010.
b)OR retired thereafter before
27.4.2010.
c)OR retired thereafter and died
before 27.4.2010 (Family can opt
now).
d)OR died while in service but
before 27.4.2010. (Family can
opt now).
e)OR ceased to be in service
thereafter under the Special VRS
scheme after rendering 15 years
service.

SHANKAR said...

Can anybody inform as to why there is no news item in allbankingsolutions.com from the date of vacation of stay at Madras High Court except one news?
It has literally become inactive.

Parameswaran said...

Dear Shankar,

Meaning for retired is available in pension regulations. As per that VRS employees are eligible to get pension.

r rajendran woraiyur trichy said...

ALLBANKIGSOLUTIONS.COM says:

Whether Resignee and Voluntary Retirees Are Eligible for 2nd Pension option :

Although from the date of signing the joint note, it was accepted that resignees will not be eligible for 2nd pension option, yet there was hope that voluntary retirees will be eligible for the 2nd pension option. However, the circular issued by IBA and by some the public sector banks, indictes that even voluntary retirees under normal scheme will not be eligible for 2nd pension option. Only officer / workmen employees, who opted for the voluntary retirement under special voluntary scheme after rendering of 15 years service will be elligible to exercise the pension option. This is a major set back to all such employees.

Thereafter there is no information about the improvement/atleast movement in the said website.

Knowingly signed by the nine constituents of the socalled UFBU seems to have now been unknowingly implemented by IBA at the cost of so many retirees.

No slip should occur between cups and lips forwhich unite together for justice either from IBA Vs UFBU or Honourable Justice!

SHANKAR said...

Referring to Sri Parameshwaran
August 28, 2010 6:35 PM
It is true that in pension regulation VRS optees are eligible to get pension. But PF optees are not covered under pension regulation and only those who have already opted for pension can take VRS and get pension but not PF optees whose past service gets forfeited. This is clearly spelt out in pension regulation 1995 and as such PF optees who went on VRS are in trouble now.

Ramachandran said...

Referring to SHANKAR August 29, 2010 8.23 AM.
Now everybody who were in the service of the bank prior to 29th September 1995 , are given 2nd pension option.
In joint note it is stated that all retired on or after 29.9.1995 and before 27.4.2010 is one category.
2nd category is employees as on 27.4.10.
3rd category is persons eligible for family pension.
4th is SVRS people who have rendered 15ys or more service.

Here a category for SVRS people is created for the reason that normally VRS people is eligible for pension who rendered 20 yrs or more service. For SVRS people they have given a concession of 5 years. That's all.

There was no necessity to spell out the explanation for the word retire, as the established law and court decisions already declared that retirement includes VRS also.

Now the question is why the word "retire" is explained by IBA and some other banks to "retirement on superannuation". Whether this is sustainable under law , since it is against the fundamental right of equality extended by the Constitution.

chandan said...

@Ramachandran August 29, 2010 5:22 PM:

It is very sorry state of affair that normal VRS optees in bank are not allowed to join in pension fund. This normal VRS terminology in nationalised/associate banks for PF optees differs from one to another. In Canara bank when it is on 20 years of service, the same is on 30 years of service in many other banks. So it becomes a bank level subject instead of industrial level because of these differences. More over PF optee award staff members are not covered with any kind of normal VRS so far my knowledge is concerned.So here is also the subject differs from one cadre i.e officer to other cadre i.e award staff. Definitely all these invite legal recourse in court of law.

Recently in a related communication General Secretaries of both officers union i.e AIBOC and AIBOA clarified that normal VRS optees are eligible to join in pension fund. However AIBEA differs on these views, that's why AIBEA help line has not been opened for this category of VRS employees. It's also to note that joint discussion/note speaks in favour of VRS and even a bank i.e United Bank of India issued the circular with the same spirit, though latter on it was modified. Are the union heads and HRD deptt of a bank like UBI fools? Question doesn't end here.If these union people (AIBOC/AIBOA) guide us in this way, naturally question comes on the credibility of the unions to define service condition of employees in bank.

Thanks.

mahesh agrawal said...

Mr.shankar,
You should be aware that the officers who are not governed by pension regulations are being governed by officers service regulation which do not discrininate retirees on superannuation and vrs retirees as per scheme of bank...Furher even the pension option is given to such person he should be entitled for pension as per pension regulations also....SVRS with less than 20 yrs of service are otherwise not eligible for pension as per pension regulations and thats why their category has been specifically mentioned for pension option in the agreement pending provision for amendment in pension regulations is also sought.So normal VRS should also be given option as per Article -13 of the constitution...The supreme courts and high courts have already given such judgements...Any way Let the IBA management committee along with UBFU leaders will take care of such retirees.

SHANKAR said...

Referring to Sri Mahesh agarwal
August 29, 2010 8:01 PM

No doubt VRS-PF optees should be given another chance. But what is happening is disturbing. See Canara bank Circular released on 21/08/2010 whioch clearly says that other than Special VRS optees all other VRS/Resigned employees are NOT eligible to opt for pension now.

CANARA BANK CIRCULAR

01.
Employees who ceased to be in service on or after 29th September 1995 on account of Special Voluntary Retirement Scheme (SVRS) after rendering service for a
minimum period of 15 years shall be eligible to exercise an option to join the Pension Scheme subject to the terms and conditions mentioned for retiring employees opting for joining the Scheme.

(5)

Employees who ceased to be in the services of the Bank on or after 29.09.1995 till 27.4.2010 by any other mode of Voluntary Retirement other than under the SVRS
shall not be eligible to opt for pension.

Similarly employees who have been imposed with punishment of Compulsory retirement / dismissal/ discharge etc as per the provisions of Canara Bank Officer
Employees’ (D&A) Regulations, 1976 / Canara Bank Service Code are not eligible to opt.

Similarly employees who have gone on VRS under VRS Scheme existing in
the Bank are also not eligible to opt.

So unless IBA decides in favor of employees who took VRS other than SVRS it is disturbing to such persons.

SHANKAR said...

Referring to Sri Ramachandran August 29, 2010 5:22 PM

Refer Canara Bank circular, which has categorically denied another option to all other category of employees except SVRS.

My doubt is that this matter must have been discussed and noted in the minutes between UFBU and IBA which we are not aware.

What I mean to say is if UFBU can persuade IBA to allow this category of employees to opt for pension again matter ends there. Filing cases in courts is time consuming and already retired persons may find it difficult to wait for a long time.

In our bank,cases related to VRS 2000 was decided in favour of Bank Management by Supreme Court in July 2010 and within a week all the employees including General Managers were sent home by the management by giving service benefits as applicable in the year 2001. Can retirees afford to such humiliation? In Madras High Court Stay order also, except postponing implementation of pension scheme, nothing happened.This should not happen to VRS optees.

RAMANATHAN S said...

anybody clarify my posting on 27.8.10

S.Patnaik said...
This comment has been removed by the author.
S.Patnaik said...
This comment has been removed by the author.
SHANKAR said...

Referring to Ramanathan-August 27, 2010 6:10 AM

In 1995 there was a restrictive clause that participating in strikes would result in forfeiture of pension and those who use to participate in almost every strike were reluctant to join pension. subsequently when this forfeiture clause was removed,fight for another option for pension got momentum and now after 15 years of continuous struggle met with success with some penalty.
Now there is no such clause and every individual can join pension scheme without any fear or apprehension. He or she can either join pension scheme or remain in PF. Still one fact is true that this option will never come again in view of the NPS w.e.f. 01/04/2010. Hence it is left to individual employee to take his or her own decision. Listening to others and deciding is dangerous and disastrous.Unions have already cautioned about not joining pension scheme now and informed every employee to join pension now or never.

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