Pensionary benefits to employees who were in service of the banks as on 27.04.2010 and died thereafter

IBA has clarified that the family of the employee eligible to exercise the option who died on or after 27.4.2010 shall be entitled for full pension from 27.11.2009 or from the date of retirement which ever is later till the date of death and family pension thereafter.  They will also be eligible for commutation of pension; provided they comply with the terms of the settlement / Joint Note. AIBOC has issued circular in this regard. Click on the link below to view the circular.

AIBOC Circular

Pension Calculations for employees retired between Nov. 2007 and July 2008

Indian Banks Association has issued guidelines for the calculation of basic pension of employees who retired between Nov 2007 and July 2008.  Pension Basic  is calculated on last 10 months average basic. Last 10 months basic of these employees falls in two bipartite settlements i.e. for some months - 8th BPS and for some another months - 9th BPS.  In such cases, for  arriving at average basic pension , certain percentage of D.A. is added to the basic pension of 8th BPS. IBA has issued detailed guidelines in this regard. For viewing the IBA guideline click on the link below.

IBA circular on pension calculation dtd 13/10/2010 

UFBU to take up pensioners' issues like updation of pension, 100% neutralisation of DA etc

UBFU has decided to take up pensioners' issues , in the meeting held at Mumbai on 07/10/2010. UFBU has issued  a circular in this regard. Relevant paras of the circular are reproduced below.

Pension Scheme: As discussed in the earlier meetings, it was decided to pursue issues like improvements in pension scheme on the lines of Government scheme as amended under the 6th Pay Commission, periodical updation of pension, 100% DA neutralization on pension to all pensioners, improvement in Family pension, Ex Gratia paid to Pre-1986 retirees/their widows, etc. besides taking up the issues of pension benefit to those sections of retirees who are not presently covered by the scheme/settlement.

Interaction with Retirees organizations: Representatives of United Forum of Retirees organisations met UFBU during the meeting and submitted their views and suggestions on the various issues concerning the retired employees. They sought the support of the UFBU in pursuing these issues and UFBU assured them of the same.

Click here to view UFBU circular.

Source : AIBOA website

Harassed whistleblower forced to give up fight, buy peace with bank

Here is a story of a retired general manager of a nationalized bank   who was  victimized  after he blew the whistle on his senior, then chairperson and managing director.   

    He moved the Delhi high court for relief when the CVC closed his complaint and the bank hit back. Later he invoked the RTI Act to show the massive amount the bank was spending on lawyers to frustrate him.                                                  

    Unexpectedly he has now given in. A month ago, he signed an agreement with the bank . He has given  an undertaking to the bank  that he will withdraw all cases and contempt petitions filed against  CMD The retired GM has also promised that he will not take the issue to the print and electronic media in future.

Click on the link below to read the  news item

Harassed whistleblower forced to give up fight, buy peace with bank - The Times of India

Retired bank employees are eligble for engagement as Business Correspodents by banks

RBI has issued a circular regarding Financial Inclusion by Extension of Banking Services – Use of Business Correspondents (BCs) ( Circular No.RBI/2010-11/217 DBOD.No.BL.BC.43 /22.01.009/2010-11 dtd September 28, 2010 ) In this circular RBI has issued detailed guidelines for engaging Business Correspondents by banks. According to para 2 (i), to the annexure of this circular, retired bank employees are also eligible for engagement as Business Correspondents by a bank.

Click here to view RBI Circular

Panel formed to revise salaries of Public Sector Banks

The finance ministry has set up a committee to suggest a formula for revision in compensation of employees of public sector bank after the central bank has raised concern that low salaries could lead to attrition.

The committee will be headed by Joint Secretary Financial Services Alok Nigam and will have Bhaskar Sen, CMD United Bank of India and MV Nair CMD Union bank of India as members amongst others.

“If public sector banks are required to compete with private sector banks on a level playing field, there is a good case for compensating them too on a competitive base,” the governor of D Subbarao had said earlier this month.

The new committee will also examine the recommendations made in the Khandelwal report on Human Resource Issues in Public Sector Banks, submitted to the government in June this year.

As of now, public sector banks follow an industrywide wage settlement brokered every five-year by the , the industry body of India’s banks. “This new committee will look into the specific structure issues and how they can be made applicable across all state-owned banks,” said a senior finance ministry official.

This mandate is against the suggestions in the Khandelwal report that had suggested each bank negotiate its salary separately taking into account profitability and productivity.

The employees union of regional rural banks (RRBs) had already rejected the suggestion. Pay and allowances of regional rural bank employees are at par with the employees of the sponsor banks

The Khandelwal committee had also recommended the extension of the idea of according maharatna and navratna practiced in the case of other public sector employees to state-run banks as well. Such a status would give banks more freedom in deciding compensation. “There should be some separate allowance provided for rural stint, as financial inclusion is the top priority for both the government and the banks,” said the chairman of a state-run bank. The government may also set up a time frame for this committee given that over one lakh employees would retire from public sector banks over the next five years. 

Source - The Economic Times

Shri A.D. Nagpal, the man who uncovered "lost" EPF funds

Shri A.D.Nagpal was instrumental for increasing EPF interest to 9.5% for more than 50 million workers. The 77 years old Chandigarh man who is a trade union leader ,a practising socialist and  a close associate of Late Shri Jayprakash Narayan, ferreted out the detail that provided the EPF trust with a fiscal cushion. He unearthed the treasure of a disposable surplus of Rs.1731.57 crores and not Rs. 158 crore, as the trust  officials believed earlier.

Click here to read news from Business Standard

Second Pension option - Calculations

We are receiving requests from many individuals for calculating their pension, commutation and gap amount payable to the bank. It is impossible to calculate pension for every individual request. The pension calculators are made readily available on this site. Using these calculators an individual pension optee can easily calculate his pension, commutation and D.A.  For ready reference procedure for 2nd option calculation is given Below.
1. Calculate your pension basic using pension calculator.
    Inputs required - Last 10 months average basic, and 
    allowances  qualifying for PF, Qualifying service. 
    Click here for Pension Calculator
2. Calculate commutation amount and commutation value 
    using commutation calculator. Inputs required - Pension 
    Basic (calculated using above refered pension calculator),
    Age on the next birthday as on 01/09/2010 (the date for 
    reckoning  the age may differ according to individual bank
    The date referred in the bank circular may be taken for   
    this purpose.)
    Click here for Commutation Calculator
3. Calculate D.A on Basic Pension using D.A. calculator. 
    Inputs required - Pension Basic calculated using pension 
    calculator . D.A. depends upon date of retirement . Please 
    select proper option in D.A. calculator according to your
    date of retirement. (D.A is calculated on original basic 
    pension and not on the reduced basic pension after 
    commutation.)
    Click here for D.A. calculator
4. Calculate your monthly net pension by adding Basic,D.A  
    and reducing commuted amount from it.
    Net monthly  pension = Basic + D.A. - commuted amount.

5. Calculate the amount to be refunded to the bank
     1. Bank's Contribution to PF (along with intrerest
         paid by bank)
     2. Gap Amount - Multiply the above figure by 0.56
         (i.e 56% of bank's contri to PF with interest)
        
          By adding above figures one will get the amount 
          to be refunded to the bank.

6.  Calculate the amount to be received from the bank
       1. Commutation value calculated using commutation
           calculator (Step No. 2 above)
        2. Arrears of pension receivable - Pension is payable
            w.e.f from 27/11/2009 upto the date i.e arrears for 
           11 months and 4 days will be paid by the bank if
            the date of option is 31/10/2010. The arrears pension
            will be Full Basic pension + D.A and NOT reduced 
            basic after commutation.
            By adding above figures amount to be received from 
            the  bank can be calculated.

7.  Net payable to the bank can be arrived at by deducting
     the amount receivable from bank ( step 6 above) from 
     amount payable by bank (step 7 above). Some banks are
     allowing to set off commutation value and / or pension 
     arrears against  the amount payable to the bank and in 
     that case only net amount is  to be paid to the bank. 
     Some banks are not  allowing to set off this amount.

Pension option Circular by Dena Bank

Dena Bank has issued Pension Option Circular - Extending another option to join the Pension Scheme to those who did not opt earlier - Settlement / Joint Note dated 27.04.2010 signed with Workmen Unions / Officers Organisations
Dena Bank has allowed adjustment of commutation amount and pension arrears upto  Nov. 2010, against payment of 1.56 times banks contribution of PF to the bank by an employee wishing to opt for pension under second pension option. In case of some banks such adjustment is not allowed , though in  IBA circular it is clearly mentioned that banks may consider setting off the commutation amount payable to an employee , against the gap amount of 1.56 times of bank's contribution to PF payable to the bank at the time of availing the option.

Click Here to Download the Circular

(It may take some time to download the file - file size approx. 2MB)

Another Pension option for Officers retired under VRS scheme of individual banks

AIBOC has addressed a letter to the Chairman, Indian Banks’ Association on the above  issue, urging upon him to accord an option to those officers who retired under Voluntary Retirement Scheme of individual Banks to join the Pension Scheme now settled as per the Joint Note  dated 27.04.2010. 
Click here to view AIBOC circular

Second Pension option to Normal VRS optees

IBA has clarified that second option of pension will not be available to normal VRS optees  i.e. VRS optees who have taken VRS under Bank's Service Regulation ( the option is available for  VRS optees under SVRS scheme) .  AIBOA is contemplating to take the matter in the court of law.
Click here  to view  AIBOA Circular.

Pesion Option - Medical examination for commutation

As per available information following banks have issued circulars for 2nd Pension option.
1.United Bank of India
2. Punjab National Bank
3. Indian Bank
4. Corporation Bank 
5. Oriental Bank of Commerce 
6. Bank of India

According to annexure  to the circular issued by Indian Bank , those retirees who want to commute the pension , are required to submit medical certificate after examination by a medical practitioner. For Bank of India also medical examination is compulsory in case of  commutation. In other banks' circulars there is no mention of medical examination.

IBA guiedelines on Pension Option

Immediately after lifting the stay by Madras High Court on certain pension provisions in 9th BPS , IBA has issued the guidelines to the banks for implementation of second option of pension. Click on the link below to view the IBA circular.
IBA guidelines for second option of pension 

Annexure to  IBA Circular - Pension Option Formats

Stay by Madras High Court vacated

Stay by Madras High Court on pension settlement is lifted on today i.e. 10/08/2010

Minimum Pension / Family Pension

As the payscales  are revised under 9th BPS , the family pension and minimum pension payable have been revised for the employees retired on or after 01/11/2007. AIBOC/ IBA has issued circular in this regard. Click on  the link given below to view detailed circular.
AIBOC Circular

UFBU meeting held on 26/07/2010 - improvements in Pension Scheme

The UFBU meeting observed that while securing another option to join the Pension Scheme is a significant achievement by the UFBU, further improvements are required to be made in the Pension Scheme having regard to the changes made in the same under the 6th Pay Commission Report.

The UFBU decided to take up with the IBA the following issues:

- Periodical updation of Pension alongwith wage revision
   for serving employees
- DA at 100% neutralization for all Pensioners
- Revising Pension at the common Price Index of 2836
   points
- Increase in Ex-gratia payable to Pre-1986 retirees /
  widows
- Improvement in Family Pension

Implementation of Pension Option Settlement

The meeting also took note of a few Court cases in Allahabad, Delhi and Chennai including an interim stay in High Court of Madras obtained by a Union with handful of members (which is not affiliated to any UFBU constituent) attempting to stall the implementation of the pension option for which employees and officers have been waiting for the past so many years.  It was decided that UFBU should ensure the removal of such legal hurdles.  It was also decided to take up the matter with the IBA and the Chief Labour Commissioner, Government of India to ensure immediate implementation of the Pension Option Settlement by extending the offer to existing PF optees as well as to the retirees. Click on the following link to view detailed circular.

 AIBOC/UFBU Circular

Increase in D.A. slabs from August 2010

Pensioners DA will increase by 27 slabs from Aug 2010.
D.A calculator is available for calculating revised D.A. and difference. For calculating D.A , enter basic ( original basic without reducing commutation amount) and click on the calculate button. Revised D.A , Present D.A. and difference will be displayed on the calculator. Select appropriate retirement date range according to the date of retirement.
 Click here for D.A. Calculator

D.A. Rates for Pensioners (%)  27 slabs more
 Retired prior to 01-11-1992 - 831 Slabs over 600 points
     Upto 1250    1251-2000    2001-2130    Abv 2130
         556.77%    457.05%      274.23%      141.27%
After 01-11-1992 upto 31-03-1998 - 694 Slabs over 1148 points
     Upto 2400    2401-3850    3851-4100    Abv 4100
         242.90%      201.26%      117.98%      62.46%
After 01-04-1998 upto 31-10-2002 - 560 Slabs over 1684 points
     Upto 3550    3551-5650    5651-6010    Abv 6010
       134.40%      112.00%       67.20%       33.60%
Retired on or after  1-11-2002 - 409 Slabs over 2288 points
For the entire Basic Pension Amount    73.62%
Retired on or after  1-11-2007 - 272 Slabs over 2836 points
For the entire Basic Pension Amount    40.80%

Click here for IBA  D.A. Circular

2nd Pension option Implementation - Hurdles of litigation

AIBOC has issued circular regarding 2nd Pension option implementation - hurdles of litigation. The case in Madras High Court is getting listed but could not reach the stage of hearing so far. 

There are certain developments in between.The payment of arrears in Canara Bank took place after the temporary stay was granted by the Court; the petitioners have raised the issue of contempt of court and compelled the Management of Canara Bank to refund the amount recovered. Fearing the contempt proceedings Canara Bank has returned the amount of 2.8 times revised Nov.2007 pay, recovered from the award staff.  As the Confederation or any other Officers’ organization is not a party to this petition, they have not returned the amount recovered from the Officers concerned.According to AIBOC, IBA is now planning to go before the Bench of Hon’ble High Court of Madras, raising the issue of urgency in getting the agreement implemented and seeking quashing of the case. A  meeting of the United Forum of Bank Unions  is scheduled on 26^th of July 2010 at Mumbai to deliberate on all these developments and take appropriate decision in the matter. For viewing the AIBOC circular click on the link below.

AIBOC  Circular dtd. 24/07/2010

Pension option - Madras High Court injunction case - Update

The Pension Option case at Madras High Court is getting listed for hearing everyday , but gets rescheduled to next day, due to lengthy arguments in other cases listed before this case. The case is again listed for hearing on 23rd July, 2010.  But there is little possibility for the case to be heard on 23rd. It is likely that it will be heard in next week only.

Pension option - Madras High Court injunction case

The case filed in Madras High Court regarding pension option is postponed and scheduled for hearing on 9th July 2010.IBA, AIBEA, NCBE have filed their COUNTER  for lifting the stay.

Click here to view the counter argument filed by IBA

Source - AIBOA  Website 

IBA cannot issue offer letter for 2nd pension option until the stay by Madras Highcourt is vacated

Hon’ble High Court of Madras has granted a stay on the operation of the understandings of IBA with UFBU on 2nd Option on Pension.  Apart from IBA, workmen organisations are also made parties to the suit. According to AIBOC circular unless, the said stay is vacated, IBA cannot issue offer letter on pension. The case is adjourned  to 6th July,2010 for final hearing and order.  

AIBOC is in constant touch with the IBA and the Convenor of UFBU, to initiate appropriate steps to vacate the stay, at the earliest, to enable IBA to issue necessary instructions to member Banks on the Pension offer. 

Click on the following link to view circular. 

 AIBOC Circular

Pension option - Madras High Court injunction case

Pension option - Madras High Court injunction case came up for hearing today (29th).
Order amended on facts. Interim order continues.
Posted to 6th July to consider admission or not.

Source - AIBEA Website 

Interim stay of clause in ninth bipartite settlement

CHENNAI: The Madras High Court has granted interim stay of a clause in the ninth bipartite settlement for bank employees of April this year requiring contributory provident fund optees to become pension optees upon contributing 2.8 times of the revised pay payable for November 2007 onwards to the Pension Fund.

Justice K. Venkataraman passed the interim order on a petition by the Canara Bank Workers Union, Nungambakkam and R. Radhakrishnan of Nungambakkam, a member of the managing committee of the union.

The petitioners submitted that in the previous pension settlement dated October 29, 1993, and Pension Regulations 1995, there was a provision only for transfer of banks' contribution to the PF account along with accrued interest. There was no provision for payment or transfer of any other additional amount.

While in the seventh and eighth bipartite settlements all employees (both pension and PF optees) had contributed to fund the gap in the Pension Fund, in the present settlement dated April 27, the entire load had been placed only on those employees who wanted to opt for pension now, while the existing pension optees were left free. The contemplated recovery exclusively from the PF optees who wished to join the Pension Fund now amounted to discrimination and was violative of the Constitution.

Mr. Justice Venkataraman ordered notice regarding admission returnable in three weeks.

Source :  The Hindu,dtd Jun 27,2010

Anomalies in the IBA fresh pension aggreement - Letter by Former Supreme Court Judge to FM

Honorable Former  Supreme Court Judge,  Shri V.R. Krishna Iyer , has sent  a letter to Honorable Finance Minister  Shri Pranab Mukherjee , regarding the anomalies in the agreement by IBA on fresh pension option.  Copy of the letter is given below.

Click here to view the link on Wikipedia (Encyclopedia on internet)  about Honorable Justice V.R. Krishna Iyer 

Click here to view website about him

Click here to view the letter by Shri C. N..Venugopalan 

Pension agreement cleared by Govt

It is learnt that Finance Minister has cleared the pension agreement beween IBA and constituent units of UBFU. The Govt. advice to IBA is being communicated today. The Banks will take steps to implement the agreement like issue of Option Letters etc. on receipt of direction of IBA.

Source - AIBOA Website

Pension option - quitting bank service under Voluntary Retirement / Resignation etc.

Some of the CPF Optees are putting in their papers for voluntary retirement without being conscious of the implications of such acts on their part although they have completed the minimum qualifying service under the Pension Regulations. AIBOC has advised such officers  to await the implementation of the 2nd Option on Pension Scheme, the process of which involves many technicalities , before venturing to submit their papers presumably under the impression that they would be eligible to Pension benefit in the normal course.It is better to await until the formalities are completed rather to take the risk of getting into technical wrangles at a later date.

 

Click on the link  below to view  circular  

AIBOC Circular

IBA issued guidelines for implementation of 9th Bipartite Settlement

The IBA has  issued communication to the Member Banks to implement and pay the arrears of salary as per the settlement reached with unions. The IBA has also further instructed the banks to be in preparedness for the introduction of the 2nd Option on Pension since the formalities of getting approval from Government is in process. 

Higher retirement age, variable pay for public sector bank employees on cards

Employees of public sector banks (PSBs) could soon get incentives like their private sector counterparts to perform better and acquire new skill sets. A government committee has recommended 15-20% variable component in their salary package, along with the removal of the existing upper limit for their remuneration. It has also pitched for a hike in retirement age to 62 years from the current 60, sources in the committee told FE. The committee, set up by the finance ministry, is expected to submit its report next week.
Significantly, if the committee’s recommendations are accepted, each bank would be free to fix its salary structure based on its financial strength and also reward the highly-skilled with out-of-turn promotions.
The proposals are aimed at infusing a greater degree of professionalism in India’s banking industry, which is on the cusp of a makeover with the slow and steady globalisation of the financial sector.
India’s 27 PSBs have a combined manpower strength of 7 lakh. But the industry — which accounts for 70% of the banking business in the country — is experiencing a shortage of talent in high-end areas like risk management and treasury operations. Over 58% of middle-level managers in PSBs will retire in a couple of years.
The panel, headed by Bank of Baroda’s former chairman AK Khandelwal, has recommended that each public sector banks be allowed to settle salaries for its employees in line with their specific skill sets and the bank’s overall performance. 

Govt. Approval for implementation of 9th Bipartite Settlement

Govt. Approval for implementation of 9th Bipartite Settlement has been received and IBA is expected to issue detailed guidelines in this regard. As regards the various formalities in relation to the 2nd Option on Pension, as well as the Notification etc., further detailed instructions from the IBA are awaited. 

 

2nd Option on Pension for resigned employees

AIBOC has written a letter to IBA requesting resignee bank employees to be included in second option of pension.

We reproduce below the circular issued by AIBOC in this regard. 

REVISION OF GRATUITY CEILING DATE OF EFFECT IS 24TH MAY 2010

Gazette Notification has been issued by the Labour Ministry, Government of India for the purpose of notifying the date of effect of the revision in the Gratuity Ceiling payable under the Payment of Gratuity (Amendment) Act 2010. The date of effect has been made as 24th May 2010.Click on the link below to view circular issued by AIBOC on the subject.

AIBOC circular on date of effect of revised gratituty ceiling

Implementatation of 9th Bipartite Settlement - Process is on - Govt clearance in respect of officers is awaited

AIBOC has issued a circular stating that process of implementation of 9th Bipartite Settlement  is on.

The Indian Banks’ Association has since issued detailed communication to all the banks in respect of the Award Staff who signed 9^th Bipartite Settlement under the provisions of the Industrial Disputes Act which does not require further approval of the Government.  The Communication in regard to the payment of arrears as well as the recovery towards the contribution to Pension Fund on account of the 2^nd Option from those who will be required to exercise the option has since been sent to the Banks with instructions to hold the contribution in a separate account pending receipt of the detailed instructions from the Government including the amendment to the Service Regulations in respect of Officers of the banks. The process in respect of the Officers will also be expedited. Click on the link below to read full circular

AIBOC Circular

HC directs LIC to revise pension

Jaipur, May 20 (PTI) Rajasthan High Court today directed the Life Insurance Corporation (LIC) of India to implement a decision by its board to revise the pension and DA payable to its retired employees in accordance with successive revisons of the payscales of its in-service staff since 1986. A single judge bench of Justice Munishwar Nath Bhandari of the high court asked the LIC to take immediate steps for implementation of a 2001 resolution of its board by which it had decided to revise the pension and DA of its retired employees corresponding to the revisions of the payscales of its in-service staff hat took place in 1986, 1993, 1997 and 2002.

The court''s order came on the petition of Krishan Murari Lal Asthan, the General Secretary of the Retired Employees Federation Association of LIC. Arguing before the court, counsel for the petitioner contended that LIC had indulged in discrimination in revision of payscales as the pay slab of the in-service candidates were revised in year 1986, 1993, 1997 and 2002 but the basic pay on the basis of which pension is computed were never revised. Upholding the contention Justice Bhandari observed, "If the facts of this case are looked into, then it becomes clear that amongst the pensioners there exists dicrimination more specifically when the pension has been made admissible to the employees who retired on or after January 1, 1986.

" Holding that implementation of the board''s resolution would take away dicriminatory treatment among the pensioners apart from keeping the LIC away from administrative inconvenience, Justice Bhandari in his order said, "I am of the view that the corporation may give effect to its resolution." PTI Cor.

Source - Yahoo finance News

Pension Second option - views

The  messages  given below are  posted on our bankpensioner group site. Regarding other discussions/ opinions on the issue of 2nd option of pension employees please visit bankpensioner group site.

  
From -    S.SRI RAMA MURTHY

PF OPTEES DO NOT COMMIT MISTAKE SECOND TIME , your KIND ATTENTION PLEASE

DEAR ALL,
           It pains a lot to hear from some quarters, not to opt for pension(second option for pension). Earlier also in these columns I made a note of caution , IF YOU DO NOT OPT FOR PENSION THIS TIME, NO FORCE WILL SAVE YOU ON THIS EARTH.  example I quoted certain Railway employees long back by not opting for pension, and instead opted for PF, that SO CALLED PF BIG AMOUNT EVAPORATED IN NO TIME DUE TO MANY REASONS AND THEY FOUND THEMSELVES ON STREETS. because RAILWAY PENSION is our role model, it is different matter unions, iba, and central govt are depriving us of our eligible rights.
 

Letters to the Principal Secretary, Prime Minister Office by Shri C N Venugopalan Ex Bank Manager

 We give below the letters written by Shri C N Venugopalan to the Principal Secretary , Office of Prime Minister , Government of India. The letters contain various issues on 2nd option of pension and "Evaluation of fantastic uncomparable  contribution to the banking system".
  No.
20100511
11th May, 2010

The Principal Secretary,
Office of the Prime Minister,
Government of India,
New Delhi – 110 001
                        Kind Personal Attention: Shri. T K A Nair,
Respected Sir,
I am very much inspired by the speech of our Hon'ble  Prime Minister on
8th May, 2010 addressing the Golden jubilee National Conference on Law
& Governance of the Bar Association of India wherein he called upon
Indian legal fraternity to become an integral part of the system of
administration of justice in the country.  The worthy Prime Minister

Implementatation of 9th Bipartite Settlement - Process is on

AIBOC has issued a circular regarding implementation of 9th Bipartite Settlement, which states that the process of implementation is on, IBA issues guidelines to the banks and  govt. clearance in respect  of officers is awaited. Click on the link below to view full circular.
AIBOC Circular regarding implementation of 9th BPS

Pension Calculators for Basic pension, Commutation and D.A

The following online pension calculators are made available  on this website

1. Basic Pension Calculator

2. Commutation Calculator

3. D.A . calculator

These calculators are available on "Pension Calculators" page link on the site. Information regarding these calculators are given on the page itself. These calculators are useful for new pension optees for calculating there basic pension, D.A.

The commutation calculator gives commutation amount and commutation value (i.e. the lump sum amount  receivable on account of commutation.

2nd Option on Pension Bare Truth - AIBOC Circular

Click on the link below to view circular issued by AIBOC regarding 2nd option of pension - "Bare Truth"
AIBOC circular No 64 dtd 12/05/2010

Pension Option - eligibility and other details (9th BPS - 2nd Option)

1. Eligibility for pension option – Who can opt now ? :
Those who were in service of the Bank on date of Pension Regulations in 1995/1996
       a)  and continue in service as on 27.4.2010.
       b)  OR retired thereafter before 27.4.2010.
       c)  OR retired thereafter and died before 27.4.2010 
             (Family can opt now).
       d)  OR died while in service but before 27.4.2010. 
             (Family can opt now).
       e)  OR  ceased  to be  in  service  thereafter under 
             the Special VRS  scheme after rendering  
             15  years   service.

 2.  Who is a retired employee and who is an existing employee ?
a)  Those who have retired prior to 27-4-2010 are retired employees.
b)  Those who are in service as on 27-4-2010 are existing employees.

3.  What to refund :
a)  Employees in service as on 27.4.2010 and opt for pension now will pay from their arrears an amount equal to 2.8 times of „Pay‟ payable for the month of November, 2007. 
b)  Employees who have  retired  / died before  27.4.2010  and  if  option  is given now by them/their family, they will repay the Bank’s contribution to  PF  received  by  them  +  56%  on  this  amount  Less  commutation amount. 

4.   From when pension will be paid: 
a)  For  those  who  retired/died  before  27.11.2009,  arrears  of  Pension/Family Pension will be paid from 27.11.2009.

b)  For those who retired/died after 27.11.2009, arrears will be paid from date of retirement/death.

D.A. rates for pensioners - No Change

There are many queries regarding D.A. rates for pensioners. Regarding these queries , it is clarified as under.
D.A. rates for pensioners change in the months of February and August on six monthly basis and NOT on quarterly basis as in the case of existing employees. Hence there is no change in D.A. for pensioners from the month of May 2010 , though the D.A. is increased for existing employees with effect from May 2010. 
Present D.A. rates for pension effective from February 2010 are given below for ready reference.
Retired after 01-11-1992 upto 31-03-1998 - 667 Slabs over 1148 points
     Upto 2400           2401-3850          3851-4100         Above 4100
     233.45%               193.43%            113.39%              60.03%

Retired after 01-04-1998 upto 31-10-2002 - 533 Slabs over 1684 points
     Upto 3550           3551-5650          5651-6010          Above 6010
     127.92%                106.60%              63.96%                31.98%

Retired after  1-11-2002 upto 31-10-2007  - 382 Slabs over 2288 points
      For the entire Basic Pension Amount    68.76%
 
Retired on or after  1-11-2007  - 245 Slabs over 2836 points (i.e. retired after 9th BPS)
     For the entire Basic Pension Amount    36.75%

Pension Scheme certain developments why? and how? - AIBOA version

We reproduce below circular issued by AIBOA .

Circular No.14/V/2010

April 30, 2010

                              PENSION SCHEME

CERTAIN DEVELOPMENTS    WHY?   AND   HOW?

 

For the AIBOA who along with INBOC gave a letter to IBA / Govt., on 02.06.2005 on the heels of the last settlement getting one more option to PF optees with the same quality of pension was the only priority and with this we kept along all compromises in the matter of costing on pension-incremental cost as also the determination of deficit amount on account of Actuarial intervention which AIBOA never wanted.  But one of the constituents secured it at Calcutta with great zeal which ultimately resulted in our share as 1800 crores recovery for one more option.

RBI move on updated pension benefit quashed

The Bombay High Court on Monday struck down the circular issued by the Reserve Bank of India (RBI) withdrawing pension updation benefits for its employees. The judgment was passed while hearing a petition filed by a retired RBI employee in the Bombay HC.
Responding to the petition, the RBI had filed that the circular was issued following a government order to withdraw the pension updation for its employees. The HC was of the view that the government cannot override a decision taken by the RBI’s central board just by writing a letter.
 

Circulars issued by AIBOC ,AIBOA and AIBEA on 9h Bapartite settlement

Click on the following links for viewing and downloading the circulars issued by AIBOC ,AIBOA and AIBEA on 9th BPS

1. AIBOC circular on 9th Bipartite Settlement
2. Details of the Pension Scheme for workmen
3. Salient features of  9th Bipartite Settlement - AIBEA
4. Full Text of 9th Bipartite Settlement - for workmen
5. Joint note on Wage revision for Officers - AIBOA
6. Joint note on Pension for Officers - AIBOA

9th Bipartite Settlement signed with one more pension option for CPF optees

PRESS RELEASE by IBA

HIGHLIGHTS OF SETTLEMENTS DATED 27.4.2010 SIGNED WITH WORKMEN UNIONS & JOINT NOTE DATED 27.4.2010 SIGNED WITH OFFICERS’ ASSOCIATION ON WAGE/SALARY REVISION AND ONE MORE OPTION OF PENSION

Today IBA has signed industry wide wage agreement with 6 Workmen unions and 4 Officers’ Associations.  The salient features of the Settlement are as under :

Ø Total no. of employees covered under the Settlement – 5 lakhs workmen employees and 2.5 lakh officers working in 26 Public Sector Banks, 12 Old Private Sector Banks and 8 Foreign Banks.

Ø The wage revision is effective from 1.11.2007.

ØTotal wage increase of Rs.4816 crores representing 17.5% increase on the establishment expenses of Rs.27520 crores as on 31.3.2007.

Ø The pay scales of Officers are Rs.14500-Rs.52000.

Ø The pay scales for Clerical staff : Rs.6200-23900

Ø The pay scales for subordinate staff : Rs.5500-13800

ØTotal wage increase for officers and award staff is  Rs.4816 crores.

Ø DA is payable for every rise or fall of 4 points over 2836 points in the quarterly average of All India Average Working Class Consumer Price Index (General) Base 1960 = 100 at 0.15% of Pay.

Ø Rationalisation of Special Pay posts - All the existing special pay posts are rationalized and only three categories will remain – (i) Single Window Operator – A and Single Window Operator-B; (ii) Head Cashier and (iii) Special Assistant.

Ø All part-time employees (lump sum) will be brought to 1/3^rd scale wages w.e.f. 01.05.2010.

Ø Pension: Another option of pension will be given to all existing employees who did not opt earlier and also who have retired/died after pension regulations 1995/96; A defined contributory retirement benefit scheme as governed by the “contributory pension scheme introduced for employees of Central Government with effect from 1.1.2004”  will be introduced  for workmen/officers joining the services of banks on or after 1.4.2010.  There shall be no separate contributory provident fund in respect of these workmen/officers.

Source - IBA Website

Meeting of UFBU ledears with Finance Minister - AIBOC circular

We reproduce below circular issued by AIBOC regarding the meeting of  UFBU leaders with FM on 21/04/2010.

"Members are aware that the date of effect of Pension to CPF Optees was not resolved at IBA level, hence, UFBU requested for intervention of Hon’ble Minister of Finance, Govt. of India.  Accordingly, leaders of UFBU met Hon’ble Finance Minister on 21.04.2010 at New Delhi and forcefully presented the views of the UFBU on the effective date of Pension to CPF optees, from 1^st April 2008, as additional cost required for 2^nd Option on Pension was assessed by the common Actuaries based on the details made available as on 31.03.2008. 

2.       But the Hon’ble Finance Minister did not agree with the argument as IBA was of the view that, Pension has to be effective from the date of signing the final settlement on Pension. However, he suggested that, effective date may be from the date of signing the MoU i.e. 27^th November, 2009. 

3.       The UFBU will meet on 26^th April, 2010 at Mumbai, to take a final view of the issue connected with pension, new pension scheme, outsourcing etc.

4.       The IBA has called for a meeting with the UFBU on 27^th April, 2010, at Mumbai, with a view to sign the final settlement on Pension and Salary revision.  We shall advise the further developments later.

With warm greetings,

   (G.D.NADAF)         

 GENERAL SECRETARY  "

Source -  AIBOC Website