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