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