Thursday, August 26, 2010

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.


  1. Denying Pension Option to the persons who retired after longer service with no extra monetary benefit and extending the benefit only to persons retired with extra monetary benefit after lesser service:

    It is startling to note that IBA has interpreted a clause in recently signed Bank Wage Revision / Second Pension Option against a category of PF Optees, for whose sake the agreement was signed. There could be no justification in denying pension option to PF Optees, whether retired under normal VRS of Officer's Service Regulations or retired under Special VRS. It will be cruel if the option is not extended to those PF optees who served for 30 years and retired with normal retiral benefits while the same is extended to PF optees (who took retirement under Special VRS after serving for 15 years only and also got extra monetary benefit). While giving clarification on such clauses, the very purpose of the clause and the likely legal outcome in the event of the dispute if taken to courts should be examined to avoid wastage of valuable time & energy of courts also. IBA should have shown magnanimity by rectifying the error or an anomaly crept in drafting of the clause, which otherwise would defeat the very purpose of it. Further, such denial would not stand any legal scrutiny. We request all concerned to help reduce avoidable litigation in light of the already over crowded courts and the bad taste it will create among working class as a whole.

  2. IBA is aware of the Court verdicts on the eligibility of normal VRS optees. But shortsighted view of IBA is that those decisions of the Court is applicable to only those who retired between 1986 - 1993, and not to the normal VRS optees of subsequent dates. IBA is not considering the courts' decisons as point of law interpretation but as a decision to a complaint.
    Probably there is also another angle to the issue. Award staff are not eligible to take normal VRS and if they decide to leave, the only option is resignation. Some vested interest probably want to extend the benefit to these section and that can be achieved by filing a suit in the court, and obtaining a judgment bringing in homgenous group (all are employees of the Bank) & no discrimination concept [article 14 of constitution]. Well it would be long time these matters get resolved.

  3. Now that the damage has been done, whether due to the shortsightedness of AIBOC (writing to IBA in June 2010 to include 'resignees') or the lapse of unions to get VRS retirees specifically included, (clarification of 09/12/2009 notwithstanding), the only sane course left is for the signatories to call for a meeting with IBA to get the necessary corrigendum issued without any further delay as parties to the agreement, who should have been talked to in case of doubt. Particularly, the word 'superannuation' was surreptitiously inserted by IBA and that VRS retirees are on par with superannuated retirees should be established.

  4. It is very disheartening to note that those who retired on superannuation during Nov.2009 to 27.04.2010 have to shell out 1.56% of PF received and heavenly god gift to those retired under SVRS
    and pay meagre amount and get pension over and above the five years`wages. This is total injustice to the retired on superannuation between
    Nov.2009 to 27.04.2010. Once the SVRS has been taken they have severed relations with the Bank and their cases should not be considered at all.
    They would be paying a paltry sum of Rs.1 to 3 lacs and getting pension at around Rs.10000 or so. This is totally imbalanced position which has taken a heavy toll on the current retired employees.

  5. I fully agree to what is said by anonymous - this
    pension option has been opened only to benfit the
    SVRS optees by the Union Leaders at the cost of the employees retired during period and upto the date of settlement. There have been instances of
    amounts of commutation and arrears are more than the percentage of 1.56 of PF received. This is
    totally shameful on the part of IBA and union leaders. SVRS optees have severed their relations by getting five years salary in advance. This is lottery for them at the cost of the current employees and retired employees.

    This is a scam which can be compared to `Adarsh` housing scam. we have nothing but curses for those involved and the worst thing is
    that the spouse of the Decesaed employees are
    denied commutation.

    This has been designed in such way to benefit only the old employees and SVRS.

    This is total injustice when I have to shell out
    about Rs.7 lacs to get pension of Rs.14000/- while the SVRS optee to shell nil or about Rs.1 lac to the same amount of pension or more depending upon the category. It means the calculations are bogus. There is no rule of equality for sharing the pension burden.

    God Save The Aggrieved Employee and hope the
    Courts would certainly not set right the things
    but punish the concerned for their ill-conceived
    plan to harass the aggrieved employees.