AIBOC asks IBA to extend Pension Option to officers Under voluntary Retirement/Exit Option

Circular No. 24                                                   Date: 10.03.2011

ALL AFFILIATES / MEMBERS

PENSION OPTION TO OFFICERS WHO “RETIRED UNDER VOLUNTARY RETIREMENT SCHEME OF THE BANK” AS ENSHRINED IN THE OFFICERS’ SERVICE  REGULATIONS AND THOSE WHO “RETIRED UNDER EXIT OPTION SCHEME” INTRODUCED IN SUBSIDIARY BANKS ETC.

The Officers working in the Banking Industry and who

(i)           Retired under Voluntary Retirement Scheme of individual banks, as enshrined in the Officers’ Service Regulations.

(ii)          Exit Option Scheme introduced by Subsidiary Banks of State Bank of India.

(iii)        Resigned from the service of the Bank for various reasons including health reasons in the absence of the provisions in OSR for Voluntary Retirement but after completing pensionable service of more than 20 years.

(iv)         Were retired  by the Bank prematurely by imposing punishment of compulsory retirement, discharge, termination etc.

(v)           Retired under Voluntary Retirement Scheme of the Bank after 27.04.2010 on which date the Joint Note was signed by IBA and AIBOC along with other Officers’ Organisations etc.

have been denied pension option. We have been pursuing the matter with IBA through our communications and also formal discussions during our meetings with the officials of IBA. As IBA has not responded positively, we have addressed a letter by invoking the provisions  of clause No. 14 of the Joint Note on Pension dated 27^th April 2010,  urging upon IBA to render justice to the above category of officers by extending the 2^nd  option for pension for which they are legally entitled.

2. The Text of the letter is annexed and is self –explicit.

3. We will keep you informed of the further developments.

With greetings

                                                                             

(G.D.NADAF)

  GENERAL SECRETARY  

No.1452/156/11                                                                   Date:09.03.2011

The Chairman

Indian Banks’ Association

World Trade Centre

Centre -1, 6^th Floor, Cuffe Parade

Mumbai- 400 005

Dear Sir,

JOINT NOTE WITH OFFICERS’ ORGANIZATIONS ON 27.04.2010 FOR EXTENDING ANOTHER OPTION TO JOIN THE PENSION SCHEME TO THESE WHO DID NOT OPT FOR PENSION EARLIER. PENSION  TO OFFICERS WHO “RETIRED UNDER VOLUNTARY RETIREMENT SCHEME OF THE BANK” AS ENSHRINED IN THE OFFICERS’ SERVICE REGULATIONS AND THOSE WHO “RETIRED UNDER EXIT OPTION SCHEME” INTRODUCED IN SUBSIDIARY BANKS, ETC.

 We draw your kind attention to our letter Nos;

(i)           1452/302/10 Dated 28.08.2010

(ii)          1452/482/10 Dated 29.12.2010

 wherein we have made a strong case for extending the Pension Option to the officers who;

(a)  Retired under “Voluntary Retirement Scheme” of the Banks as enshrined in the Officers’ Service Regulations.

(b)  Retired under “Exit Option” Scheme i.e Special Voluntary Retirement Scheme of Associate Banks.

(c)  Were retired by the Bank on account of orders of the Bank to retire the Officers prematurely including those who are compulsorily retired, discharged, terminated  from service as a penalty on or after 29.09.1995 but before 27.04.2010.

(d)  Resigned from the service of the Bank for various reasons, including health reasons in absence of provisions (in OSR for retirement)  but after completing pensionable service of more than 20 years.

2. As per the Joint Note dated 27.04.2010 signed between IBA on behalf of the Managements of Banks and AIBOC along with other Officers’ Organisations, another Option for joining the existing Pension Scheme shall be extended to those officers.

 “Who were in the service of the Bank, prior to 29^th September, 1995 in case of Nationalised Banks, 26^th March, 1996 in case of Associate Banks of State Bank of India and continue in service of the Bank on the date of Joint Note dated 27.04.2010, subject to;

(i)           Exercising an option within 60 days from the date of offer.

(ii)          Authorise the Trustees of PF of the Bank to transfer the entire contribution with interest to the Pension Fund.

(iii)        Contribute from the Salary arrears on account of wage revision at 2.8 times of the revised “pay” as at 01^st November, 2007.”

4. The above provision  makes it abundantly clear that, pension option cannot be denied to anyone who fulfils the above conditions irrespective of the nature of cessation  of service subsequent to the above date.

5. It is unfortunate that, some of the Bank Managements have interpreted the provisions wrongly and unjustifiably denied the Pension Option to the officers who sought voluntary retirement from the service of the Bank or who were imposed penalty of compulsory  retirement, discharge,  termination etc, after signing the Joint Note on 27.04.2010. This is another act of arbitrariness which is bad in law and against principles of natural justice.

6. But, we regret to note that, our letters as well as our discussions during our formal meetings with the officials of IBA, have not evoked any positive response. We wish to reiterate that, by precluding the above category of officers from availing the Pension Option, IBA has acted in a totally arbitrary, unilateral manner and we have no hesitation in terming the action in this regard as blatant injustice done to these categories of officers. We once again request you to review your decision and initiate immediate steps to afford an opportunity to the above category of officers to opt for pension at the earliest without giving room for further delay.

7. We have the confidence that appropriate steps will be taken to set right this error and render justice to the above category of officers who are legally eligible for pension option as enunciated in the Joint Note dated 27.04.2010, failing which we will be compelled to resort to suitable steps including legal remedies, to redress the grievance of a small section of officers who in fitness of things are eligible for pension option. In this connection, we are invoking the provisions of clause No.14 of the Joint Note signed by the IBA and AIBOC and other Officers’ Organisations on 27.04.2010.

8. We would like to suggest that, a meeting can be held to discuss the issue in a threadbare manner. We feel that justice should not be sacrificed at the altar of technicalities.

Please expedite.

Thanking you,

Yours faithfully

                                                                                     

                                                                                (G.D.NADAF)

 GENERAL SECRETARY