PAY COMMISSION: UBI issued circular - second option for pension.

Thursday, August 19, 2010

UBI issued circular - second option for pension.

Consequent to the bipartite between IBA and employees' union on 27th April 2010 and subsequent legal battle in varios court of laws, IBA has issued circular to member banks to implement the second option for pension for the serving and retired employees of banks subject to different criteria. There were every doubts and confusion about the exact criteria for entitlement of second option for pension and the specific conditions, time frame etc.

A couple of Banks have issued circular in this regard. United Bank of India has issued a circular in this regard on 16th of this month. We are publishing the entire circular for the benefit of the viewers. It may be assumed that different banks will ask for option in this format with same criteria and conditions.

View UBI Circular for Pension Offer

Submitted by Mr. P. Mohan

30 comments :

IYER CHANDHRA said...: UCO Bank has also issued its circular calling for options, giving 60 days notice period. However, one intriguing issue is that only SPECIAL VRS optees (VRS2000) are covered under the scheme and those who retired on normal VRS scheme are singled out pathetically. I am sure, there must be tens of hundreds of such people waiting to opt. Union leaders, please answer their prayers!; August 20, 2010 at 5:22 PM
Unknown said...: Mr.Iyer even AIBOA circular too have stated that only SVRS people are eligible for 2nd pension option apart from retirees. These leaders have never understood what they were going to sign and after that too not understand anything.; August 20, 2010 at 7:10 PM
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 paycommissionupdate.com 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...
M.C.Agrawal
mca1957@rediffmail.com; August 21, 2010 at 6:04 AM
Unknown said...: Canara Bank has informed that VRS people are not eligible for penison option. why this disparity between banks?; August 21, 2010 at 9:35 AM
S.Patnaik said...: I'm from U.B.I. I understand that the VRS opees have been excluded subsequently.; August 21, 2010 at 5:07 PM
S.Patnaik said...: I'm form UBI; understand that VRS optees have been excluded subsequently.; August 21, 2010 at 5:09 PM
mahesh agrawal said...: CAN ANY BODY INFORM THAT VRS OPTEE HAVE BEEN EXPRESSLY REFUSED TO EXERCISE SECOND OPTION FOR PENSION....IF SVRS ARE OFFERED OPTION, VRS PEOPLE ARE SURE TO GET..IF NOT BY IBA/BANK,THEN THRU COURT....LET EVERY VRS OPTEE OPT PENSION AND BE READY TO MOVE IN COURT OF LAW FOR RESTORATION OF THEIR FUNDAMENTAL RIGHT OF EQUALITY...OTHERWISE ALSO THE BANKS HAVE FAILED TO GIVE ANOTHER OPTION AFTER WITHDRAWL OF BREAK IN SERVICE CLAUSE IN THE YEAR 1999...
M.C.AGRAWAL; August 21, 2010 at 11:31 PM
Runtrailblog said...: The circular issued by IBA and by some the public sector banks, indicates 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.; August 22, 2010 at 5:23 AM
Unknown said...: This comment has been removed by the author.; August 22, 2010 at 11:07 AM
Unknown said...: Sri. Ramachandra says that Canara Bank has excluded VRS optees from second option. If he or anybody having the Circular or Notification issued by Canara Bank, please publish in the site. United Bank of India Circular clearly includes VRS optees

March 2010 VRS optee -Canara Bank; August 22, 2010 at 11:09 AM
mahesh agrawal said...: can any body clear what u mean by retirement under sec- 2(y) : 'retirement' means cessation from Bank's service -
(a) on attaining the age of superannuation specified in Service Regulations or Settlements;
(b) on voluntary retirement i
n accordance with provisions contained in regulation 29 of these regulations;
(c) on premature retirement by the Bank before attaining the age of superannuation specified in Service Regulations or Settlement".
Further...as per bombay high court decided case...Madhav K. Kirtikar vs Bank Of India on 7 January, 1997 ...opinied the Bank cannot make a distinction amongst employees who retire under the voluntary retirement scheme and employees who retire otherwise because the term "retirement" which occurs in the regulations enclose voluntary retirement. ...The respondent Bank is directed to comply the order of this Court within six weeks from today.
Please also inform such decided cases if any in favour of voluntary retirees at my e mail as below:
mca1957@rediffmail.com
M.C.Agrawal; August 22, 2010 at 11:50 AM
SHANKAR said...: In our bank(Vijaya Bank)I have seen that there is no scope for VRS to PF optees so far. Those who have opted pension in 1995 are eligible to take VRS after completing 20 years of service or 55 years of age and they are eligible to get leave encashment of accumulated leave upto 240 days,pension and can keep housing loan of Rs 2 lakhs for 7 years after VRS.
Whereas in the case of PF o[ptees they are required to submit their resignation and not VRS and they are eligible to encash 50% of their accumulated leave subject to a maximum of 120 days, not eligible to get pension and should close all their liabilities before getting relieved.
In pension regulation act 1995 entire past service of officers gets forefeited after resigning and they are not eligible to get pension.
However, AIBOC in their no 91/2010 dated 09.06.2010 requested IBA to consider another option of pension to officers who have taken VRS other than SVRS and also to those who have resigned.

Let us hope that the matter will be considered by the Government/IBA.

Still exlsuding those who left the bank jobs for joining other institutioons for higher salary package is reasonable.; August 22, 2010 at 12:51 PM
mahesh agrawal said...: Mr Ramchandran,
Can u paste the copy of canara bank circular specifying that normal VRS to an employee accepted by them as per their service regulations is now denied of exercising pension option to him.
M.C.Agrawal; August 22, 2010 at 6:41 PM
Unknown said...: @Agarwalji

That is another Ramachandra, not me posted that Canara Bank has excluded VRS optees. I am Ramachandran, yet to get information or circular from Canara Bank, I am also searching the circular. If anybody from Canara Bank is there, please help us by pasting it here. Thank you; August 22, 2010 at 9:15 PM
ashok said...: UBI CIRCULAR DOES NOT HAVE THE COLUMN "WHETHER WANT TO COMMUTE THE PENSION OR NOT"-
_____________________________
1. Without this information no netting will be possible.
2. Without this payment of pension will be delayed.
3. without this Commution amount will be shrinked day day.
4. All the unions immediately take up the matter with IBA.
5. The date of application for commutation should be treated as of the date of this original application.
ASHOK GOEL
UBI; August 23, 2010 at 8:57 AM
ashok said...: This comment has been removed by the author.; August 23, 2010 at 9:26 AM
Unknown said...: I believe Canara Bank is yet to issue the circular. I was informed of this (no pension for VRS optees) when I contacted them (Pension cell) over phone.

IBA circular also specifically excludes VRS optees! Somebody in this blog mentioned that UBI has since withdrawn the offer to VRS optees. If that is true, it is in line with the IBA circular. Does anybody has copy of the agreement signed on April 27, 2010? What it states about VRS optees? Appreciate if somebody/union leaders review the agreement and let us know the correct status.; August 23, 2010 at 12:13 PM
Vasu said...: Refer Mr.Ashok 23.8.2010. IBA in its circular has clearly indicated vide point 12(of its communication to all Banks)that" Banks may consider setting of the commutation amount of the optees against the amount due
from him for joining the Pension Scheme". More over PNB has advised all its staff thru its circular that commutation amount would be arrived at at its HO as on 20/08/2010 (date of commencement of operation of option period) and informed.As such the apprehension of Mr.Ashok seems misplaced.Vasudevan; August 23, 2010 at 5:00 PM
Unknown said...: @Ramachandra

Sir, are you from Canara Bank ? Whether you got full leave encashment and full PF on VRS ?. The Joint note on pension used only the word " retire" . But in IBA Circular it is retirement on superannuation. How the unions or associations allowed this circular to issue ? As before law and pension agreement of 1995 retirement means superannuation or voluntary retirement after 20 years of service etc. But now how IBA can differentiate ?; August 23, 2010 at 7:56 PM
Unknown said...: Ramachandran,

I fully agree with you regarding the need for providing option to VR optees. I also do not understand the reason why IBA excluded the VR optees.

From the responses in various other blogs and google groups (http://groups.google.co.in/group/bankpensioner), most banks have already started issuing the circular. Canara Bank has already issued it on 21/8/2010. None of the banks have included VR optees in their pension offer. All these offers are based on the IBA circular.

I believe we cannot expect more from these banks unless we move IBA. Our union leaders should take up this with IBA immediately and ask them to issue clarification to include VR optees. Lest, I am afraid going to court is the only option available for us.; August 24, 2010 at 12:12 AM
Unknown said...: Indian Bank issued circular immediately after theie board meeting
which was given approval on 20-08-2010 and circular on 21st.See Bank of India which board meeting approved on 12-08-2010 but till date no circular is issued already it is too late because of legal hurdle and again bank is taking its own time to implement.
Another problem with the fitment of BP as i retired in scale III and my bp is fixed at Rs.33300/-and my junior who is in scale II his Bp is also Rs.33300/-
see the anomaly i have written to our zo,Ho but no response let us see.I request all banks to issue circulars at once for pension option.; August 24, 2010 at 8:54 AM
Shridhar said...: AIBEA has given tools for pension sheet as per my particulars i posted my date of birth as 27-10-1948 it shows as completed years for commutation as 62 years and factor as 9.15 but where as i am completing 62 years on 27-10-2010 and factor should have been 9.48.Pl any body knows pl clarify my point as i will be loosing commutation amt.Thanks; August 25, 2010 at 11:41 AM
Abhishek said...: I am sorry to ask a sort of sily question
but i m new to banking terms
my father expired in jun 2006 and he dint opt for pension in the past.
My mother is planning to opt for a pension and as i understand we need to give bank's contribution to PF completely and 56% of own's PF contribution .
Once thats done can anybody help me with calcualtions as to wht pension my mother may get under family pension option.

As i understand the basic will be 1/3 of his last basic salary. will tehre be any allowances/components in addition?

Will she get full pension till my father would hve turned 65
Hope somebody helps if he/she could; August 25, 2010 at 1:55 PM
SHANKAR said...: Referring Ramachandran-August 23, 2010 7:56 PM
It is good that atleast now some are keen fight for pension to those who resigned and PF optees. In 1995 also these category of employees were excluded from the peview of Pension option and those who resigned from 1986 were not given pension. So if such cases are to be taken up with IBA, it should be with effect from 1986 onwards so that atleast family members of resigned employees will get some relief, if the resigned employees are not alive.; August 25, 2010 at 5:14 PM
IYER CHANDHRA said...: Dear shri Abishekji, Your mother can opt for Pension. she is eligible to get full pension for a period equal to the left over service of your father, subject to a maximum of seven years. Since your father demised in June 2006, basic pension will be arrived at on the basis of pre revised pay scale i.e. on the last ten months average pay. Full pension is calculated at 50% of average pay. Pay includes basic pay, spl allow. PQA and basic portion of FPA. For arriving at the exact benefits that your mother will be entitled to, we need the following inputs:-
1. Your father's date of birth, date of joining the bank, date of demise. 2. Designation of your father at the time of demise. 3.Date of normal increment, his last drawn salary components. 4. The exact amount of bank's contribution to PF RECEIVED by your mother. If u feel shy of sharing these details in the blog, you may e-mail them to me at iyerchandhra@gmail.com. I will be glad to help you out. Kindly note that a family pensioner is not entitled to commutation benefit. It is only discounting of future pensions to the extent of 1/3rd and repayable in 15 years time by the (employee) pensioner. Your mother will be called 'family pensiner'; August 26, 2010 at 10:21 AM
Runtrailblog said...: RJ Sreedharan plans to file a case against IBA as per circular letter no. 15/V/2010 dt 25.08.2010 of AIBOA

Four months after his betrayal of PF optees, RJS 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 optees.

Here is an extract from the above mentioned circular letter:

We call upon our Units / State Committees to inform all VRS optees and advise them to remit Rs.5000/-= favouring Canara Bank Officers’ Union drawn on Chennai towards expenses for litigation in High Court and Supreme Court. After filing court cases and meeting expenses, the balance shall be remitted back to the VRS optees who remit the amount.

The drafts may be taken favouring Canara Bank Officers’ Union [Regd.] as they have engaged legal counsel M/s C.R.Chandrasekaran and Senior Counsel Shri A.L.Somayajee to argue our case in High Court and Supreme Court.; August 26, 2010 at 9:33 PM
Runtrailblog said...: Look at the way RJS has cleverly wriggled out of the proposed strike of Sept.07.
AIBOA in regard to the above developments decided to extend solidarity support to Central Trade Unions struggles and to participate in all programmes except the strike on 7.9.2010 which we are unable to participate because of inability of UFBU to persuade all unions to join the strike leaving it to respective unions.(AIBOA Circular No.21/V/2010 dated August 24, 2010)
On 26.04.2010, when the UFBU constitutents unanimously agreed to sign for 1.6 recovery from all, he could successfully engineer overnight, the entire load to fall on the PF optees. Now he says, because there is no unanimity in UFBU, he does not want to participate in the strike ( as if he had always dutifully abided by the unanimous views of UFBU). That is the level of his devotion to the cause of IBA!
Really pity those educated officers who still rely on his leadership; August 26, 2010 at 9:37 PM
ashok said...: BANK INDUTRY WISE SETTLEMENT
OVER PENSION
Though it was incumbant that the implementation should done simultaneously in all banks but all banks are issuing guidelines seperately on seperate dates. IBA should fix the same dates for all the banks.
ASHOK GOEL; September 3, 2010 at 9:16 PM
ashok said...: Pension settlement in banks.

A letter was sent to Shri Arun Jaitley Leader of opposition Rajya Sabha over anomalies in the settlement. Reply is awaited.
ASHOK GOEL; September 3, 2010 at 9:19 PM
ashok said...: SEARCH FOR C N VENUGOPALAN>
A ONE MAN ARMY LIKE PERSONALITY
---------------
WE should search him where he is now. He can help the Bankers in relation to pension to bank employees.
Pl. contact and note the corrospondence on this blog.
Ashok goel; September 3, 2010 at 9:24 PM

Thursday, August 19, 2010

UBI issued circular - second option for pension.

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