Bank Pension : Govt. approved netting of commutation amount

Immediately after IBA issued their communication No. Cir/HRDIR/G2/665/90/2010-11/999 dated 10^th August, 2010, wherein it was suggested that, Banks may consider netting of commutation amount of the optees against the amount due from them for joining Pension Scheme. But the Government of India did not approve the above suggestion. We once again took  up the matter with the IBA and  Government of India to approve the suggestion of IBA as many of the retired officers did not have the resources to meet the commitments.

We are happy to inform  that the Government of India have accorded their approval for netting –off   of commutation amount vide their letter No.14/1/1/2007-IR dated 11.11.2010. addressed to IBA. A copy  of the letter is annexed for your information.

No. 14/1/1/2007-IR

Government of India Ministry of Finance Department of Financial Services

Jeevan Deep, III Floor, Parliament Street, New Delhi.

Dated the November 11, 2010

Shri. K.Ramakrishnan,

Chief Executive Officer,

Indian Banks' Association, Mumbai.

Subject:        Bi-partite Settlement with Workmen Unions and Joint Note with                                    Officers' Organisation for extending another option to join the                               Pension Scheme to those who did not opt for Pension earlier -                                Netting of commutation amount

Sir,

I am directed to refer to your letter No. HR&IR/MV /G2/GOV1539 dated 15th . October, 2010 on the subject mentioned above.

2. Approval of the Government is hereby accorded for netting of commutation amount, as proposed by Indian Banks' Association.

Yours faithfully,

                                                            Sd/-

                                                            (Rajinder Sood)

                                                                        Under Secretary to the Govt of India