2ND OPTION ON PENSION FAMILY PENSIONERS -: AIBOC's Circular

CIRCULAR NO: 81                                                                  2^nd JUNE, 2010

TO ALL AFFILIATES/MEMBERS:

2^ND OPTION ON PENSION

FAMILY PENSIONERS

          As per the settlement reached in respect of the 2^nd option on Pension, the legal heirs of employees who have already retired are eligible for Pension as Family Pensioners.  They are also required to return the Provident Fund balance along with 56% of the amount as their share towards the Pension Fund.  In view of the meager Pension that they would be getting and also the non-provision of the commutation facilities, they are placed in a most disadvantageous position.  Hence, we have sent a communication to IBA requesting them for providing certain relief to them.  A copy of our communication is enclosed.

2.       All our affiliates/members are requested to await further developments in this regard.

With greetings,

                                                                                          (G.D.NADAF)

GENERAL SECRETARY

No./1452/171/10                                                                       02.06.2010

To,

The Chairman,

The Indian Banks’ Association,

World Trade Centre Complex,

Centre 1, 6^th Floor, Cuffe Parade,

MUMBAI – 400 005.

Dear Sir,

2^ND OPTION ON PENSION

FAMILY PENSIONERS

          The current settlement on extension of 2^nd option on Pension to all those employees serving as well as retirees, prescribes certain conditions.  These conditions are applicable to the legal heirs of the deceased employees also, who will be eligible for the Family Pension as per the extant provisions of the Pension Regulations.  The Pension Regulations do not provide for commutation of Pension by the Family Pensioners and further the rate of Pension payable to them is far less than the regular Pension.  However, these employees are also required to make payment of PF balance received by them along with 56% of the balance thus placing a huge burden on them.  They would find it extremely difficult to raise this money and also subsequently service such loans from the lesser Pension they would be getting. We therefore suggest that the IBA can come out with a special provision to provide them appropriate relief.  Our views in this regard are:-

a)     They may be exempted from the payment of the additional amount over and above the Provident Fund they have received to provide certain relief to them;

b)     They may be notionally permitted to avail the commutation and the same may be treated as ex-gratia on humanitarian consideration and need not be recovered from the Family Pension as per the present provisions in the Pension Regulations;

c)      Any other suggestions that may emerge during the course of meeting on the subject to provide necessary relief.

2.       We therefore request you to kindly look into the matter and convene a meeting exclusively on the subject to resolve this vexatious issue.

3.       Please treat the matter as urgent.

Thanking you,

                                                                                             Yours faithfully,

                                                                                                (G.D.NADAF)

GENERAL SECRETARY