Thursday, August 12, 2010

Implementation of Pension Option Settlement : AIBEA Version

"Due to the persistent efforts of UFBU and its struggles, a significant breakthrough was achieved when the Government and the IBA relented and agreed to discuss the UFBU’s demand for another option to join the pension scheme. But they were not willing to extend the same pension scheme as was achieved in 1993. They were willing to offer an alternative pension scheme. But due to the efforts of UFBU, the same pension scheme could be achieved. To achieve this, UFBU had to agree for the New Pension Scheme from 1-4-2010 and also agree to contribute 30% of the deficit in the additional fund. It is because of this practical and tactical approach of UFBU that this historic Settlement could be signed on 27-4-2010.

This Settlement has been widely acclaimed as a unique achievement because this will enable more than 3 lacs employees, officers and retirees to get the benefit of the pension scheme. While everyone was eagerly looking forward to the implementation of the pension option settlement by the IBA and Banks, an exparte interim stay order as under was obtained on 23-6-2010 in the High Court of Madras in a writ petition filed by Canara Bank Workers Union.

“ Mr K N Ramesh, learned counsel for the petitioner submitted that Andhra Pradesh High Court as well as the Allahabad High Court granted interim stay similar to the one which has sought for by the petitioner. Hence there shall be an order of interim stay.”

Since there was no interim stay order in Andhra Pradesh or Allahabad High Court, the order was modified by the Judge but the interim stay was however continued. Hence the issue was taken up in Writ Appeal before the Bench. Yesterday, (10.08.2010) the Appeal was heard by the Chief Justice and we are happy to inform our units and members that the interim stay has been vacated. In the orders passed by the Bench, it is stated that

“ Counsel for the writ petitioners fairly submitted that no interim order as sought for in the writ petition has been granted by either the Allahabad High Court or the Andhra Pradesh High Court. In that view of the matter, the impugned order passed by the learned single Judge granting interim stay is hereby set aside ”.

While AIBEA and NCBE were represented by Mr. Jayesh Dolia of Aiyer & Dolia, the IBA’s Counsel were M/s V Suthakar and K S Viswanathan.


Consequent to this, the Government has given its clearance to IBA to go ahead and IBA has issued their Circular dated 10th August, 2010 to all the Banks for implementing the pension option settlement.

It is pertinent to note that Canara Bank Workers Union who had filed the Writ Petition is not affiliated to any of our UFBU constituent units and hence is not a party to the Settlement also. In the entire country, this Union has a membership of 244 employees only. It is also known that this union is a well-known anti-AIBEA outfit right from its inception and they are known for their anti-employee positions. No wonder, this time too they have tried to work against the employees and even the retired employees and to prevent the pension benefit to the PF Optees who have been eagerly waiting for the same for so many years.

It is also evident that the stay order has been obtained based on wrong premises that there are stay orders in Allahabad and Andhra Pradesh High Courts.

With this vacation of stay order and IBA’s instructions to the Banks to proceed with the implementation of the Settlement and extend the pension option to the PF Optee employees/retirees, all the Banks will be issuing their respective Circulars seeking the option.

All our units should ensure that the PF Optees submit the option letter and join the pension scheme as pension is the best social security measure. Pension option has been achieved with great struggles and difficulties and this opportunity should not be missed. Similarly, our units should also try to reach all the eligible retirees so that they may submit the option letter well in time. This is an important organizational task and all our units should ensure the same.




Source : AIBEA


ashok said...

All are doing efforts for getting pension without penalty. UFBU also foughjt for the same and rhat is why only 30 perrcent is going from our pockets .pl. imazine what would habe the position if employees would have to fund a gap of 100 percent. Till death it will not be possible to get the pension as a surplus.
We shall not critisise any one may be some less acceptable agreement is their this time but see how much time it has taken. We cannot critisise CanaraBank Union nor UFBU. Every one is marching ahead as per their best choice.
It is urged to UFBU to ask some additional information in draft option forms. IT should also bear the date of retirement, branch from retired,date of appointment, details of last salary drawn ( if known), from which branch pension payment want etc.To enable early implementation.

pallavi said...

My father expired on 28.12.2009 served the bank for 27 years.I want to know that my mother will get enhanced /full pension or not?If yes then for how much period?

Is commutation of pension is allowed or not?plz plz plz tell is urgently required to me.I’ll be very thankful to u.

rajveer said...

bilkul milegi yaar kyo nahi milegi faimly pension hoti hai bank jao aur baat karo ekdam milegi

bankvrs said...

to pallavi
ur mother eligible
-for enhanced family pension upto 7 yrs from the dt of death of ur father -arrears also payable.
however pension is payable subject to refund of BANK CONTRIBUTION OF PF + 56% of this amount (as per the agreement signed by unions). BUT she is not eligible for commutation money.

Ramachandra said...

On reviewing the IBA circular, it is clear that VRS opteens other than Special VRS, are not eligible for pension option. This is entirely different from what has been communicated earlier. Could any body clarify on this? Why this last minute change to exclude all those who took VRS?

Ramachandra said...

On reviewing the IBA circular, it is clear that VRS opteens other than Special VRS, are not eligible for pension option. This is entirely different from what has been communicated earlier. Could any body clarify on this? Why this last minute change to exclude all those who took VRS?

PM said...

As per Pension Regulations 1995eligibility for Pension on Voluntary retirement is as follows:
Those who have completed 20 years qualifying service seeking voluntary retirement with not less than three months notice in writing to the appointing authority.Where as the appointment authority does not refuse to grant permission, for retirement before the expiry of notice period in said notice,, the retirement will become effective from the date of expiry of the said period.
Settlement dt 27.4.10 and subsequent circular of IBA refers
on SVRS.

vijaya said...

I took VRS during the scheme in 2000feb from indian bank. I hope that i am eligible for pension now

chandan said...

@Ramachandra August 18, 2010 9:57 AM:

As on present, OSR retires are not allowed join in pension as because this type is a bank level subject not an industrial level subject.

r rajendran woraiyur trichy said...

Dear friends,

Atlast a circular related to the contents (eligibility, date of operation, repayment etc.)
in respect of second option for pension has come out first and fastly from Punjab National Bank,
a No.1 Bank in effecting the Special VRS scheme in Dec. 2000 and issuing of Pension option circular No.8/2010 dt.16.08.2010 and we are grateful to them in acting fastly like IBA.

Salient Features of the circular:

1.Eligibility is refered only for existing, retirees and VRS (Special) retirees employees.
(No reference is made in respect of retirees of VR on their own and resignees specifically).

2.Date of operation of the scheme is from 28.08.2010 to 26.10.2010 for giving willingness to opt for pension. (ie.60 days from the effective date of the circular.)

3.Date of returning of 156% of Bank Contribution of PF and interest is from 27.10.2010
to 25.11.2010 (ie.30 days from 27.10.2010)

4.Pension option willingness letter can be submitted to any nearest branch of the concerned
bank wherein he was an employee.

5.Whereas the Pension proposal is to be submitted to the branch where he got his retirement.

6.Commutation based on 28.08.2010 will be arrived at HO after receipt of the Pension proposal and will be intimated to the concerned branch for appropriation towards recovery of 156% after 27.10.2010 and balance amount is to be adjusted by the retiree before 25.11.2010.

7.Everything will be finalished before 25.11.2010 and regular pension will be disbursed from 25.11.2010.

' Wishing you all a happy retired life'

r rajendran

Runtrailblog said...

The recent circular No. 20/V/2010 of AIBOA dated Aug.12, 2010 comes out with a lot of interesting revelations. We reproducing below a few passages.

"AIBOA was very categorical that while last two Bipartite when incremental cost sharing was nominal as against total wage increase, this time it will be phenomenal as 330000 join pension scheme and as such huge extra burden falls on all people including pension optees who get no extra benefit. These apart Pension optees had accepted pension 15 years ago against PF adjustment and as such can not now be taxed more without any benefit to them."

Nobody knows what exactly is the quantum of this nominal incremental pension-cost sharing. According to one rough estimate, it should be more than 5100 crores during all these settlements. This extra burden has been silently borne by all the existing PF optees without any benefit for them.

By the way, RJS should also explain if he has ever gone through any of the 56 clauses of the Bank Employees Pension Regulations and boldly tell the bank employees of the country, as to which of these clauses permit recovery of incremental cost of pension from the employees.

"However UFBU and other unions were going on sharing news on equal sharing to all members even though no such decision was arrived at UFBU level and the AIBOA had categorically told that it will not accept equal contribution and is ready for a differential contribution from Pension optees."

Now it has been made clear by RJS that UFBU was spreading false news on equal sharing and bank employees have been befooled by the UFBU. Did RJS lack the guts at that point of time to tell the bankmen the truth that UFBU is cheating them? Did he ever sign any of the UFBU minutes under protest?


Runtrailblog said...

"Unfortunately UFBU did not fight for equal sharing also and agreed for sharing by PF optees only. Even though taken aback some unions which had decided on 26th not to sign the settlement caved in and signed the settlement.

The truth being in the fact that UFBU after giving a Joint letter to IBA for equal sharing decided not to fight and chose to accept IBA’s proposal and the unions that opposed the same also ultimately signed the agreement giving up their demand for equal sharing.

Thank you RJS for revealing openly now that UFBU is unequal to the task of giving a fight to the IBA. But we all know it all along that retired and tired non-working-leaders cannot bring cheer to the employees.

"The fact of the matter is that all compromises were made and we were prepared to draw the line as wanted by IBA accepting new conditions and load in order to gain one more option fro 330000 people and having regard to the fact that even after paying 2.8 times basic pay by PF optees pension is better to everyone."

Come on RJS. No point in simply saying that all compromises were made. Tell the country openly what these compromises and quid-pro-quo arrangements are. Does it include the benefit of non-working status for the leaders and their henchmen to draw their salary fully?. Does it include any pecuniary financial benefits for the signatories? Does it also include all choicest promotions and plush postings for other minions?

"We call upon all pension optees irrespective of any differences, to donate Rs.1000/= to AIBOA in recognition of it’s principled stand that in the name of majority / consensus illegal decision of recovery of nearly 900 crores from Pension optees was not allowed to be implemented by the Banks by AIBOA fighting against IBA’s earlier attempt to ensure easy recovery in an illegal manner."

This is the best joke the bank employees had ever come across. Not being content with dividing the bank employees into PF and Pension optees and betraying the former, now RJS is looking forward to enrich himself by another 40 crores of rupees for his noble act of treachery. What a shame!!!

Those members who are interested in going through the original version of the above quoted circular may find it at : . Download it for your future reference, before that page quietly disappears from their site

rajveer said...

yet how much we have to wait for bank circular pls sir can any body tell me

PM said...

United Bank of India has issued circular on Pension vide their ref No:SP/OPTION/2/OM-0293/10 - 11 on 16.08.2010.
As per their circular :
Eligibility is as follows:
" This “another option for pension” will be available to those hitherto non optee retired
i) Retired from Bank’s service on superannuation or on Voluntary Retirement on
or after 29th September, 1995
ii) Retired from Bank’s service on account of VRS under special scheme on or
after 29th September, 1995 after rendering a minimum of 15 years
iii) Died while in service of the Bank on or after 29th September, 1995 "

rajveer said...

thank your Mr PM to reply me i am retired from union bank so any update on union bank of india .somebody tell me the board meeeting is going on in next 2 or three days is this true

akhilesh said...

I retired from Allahabad Bank ON 30TH jan.2010 as Manager scale Two. Please intimate me as and when Bank issues a
circular about 2nd pension option. My
Mail address is below

Anish said...

We came to know from Bank of India that the formats widely published by IBA, the so called Annexture-I for existing staff and Annexture-II for retired staff - are not acceptable to Bank. The individual Bank's HO itself will frame the formats, and send to branches. Please wait till next week starting from 23 August.

Anish said...

Dear friends, preferably the VRS optees who retired during Dec, 2000 :- (1) Please remember that the monthly Pension will be decided on the figures of last 10 monthly Basic Pay and FQA-PQA etc. (2) But remember that during March 2000, one day's salary and during November 2000, two day's Salary were pro-rata deducted due to Strikes in all Banks. (3) So that pro rata Basic, PQA are deducted then and so that Contribution of PF also were less to that effect. (4) Please find out details rules from the Pension Laws that this will be not effective while fixing our monthly pension now. Those who have detail knowledge in this matter, please come out with details.

mahesh agrawal said...

The circular issued by united bank of india clearly states about VRS people to be included under retirees....The agreement 27.11.2009 lying at website also clearly states about VRS people to be entitled...there should not be any doubt for anxiety....please inform whether any bank who permitted to reire under VRS has refused for second option to any employee...

Runtrailblog said...
This comment has been removed by the author.
Runtrailblog said...

You can use the following links to take a decision on the Pension Option

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