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.