Monday, December 24, 2012

Madras High Court Judgement on 100% percent neutralisation of D.A.

AIBRF has issued a detailed circular on Madras High Court Judgement on 100% neutrlisation of D.A. elaborating following points.

1. Importance of the judgement

2. Observations/principles laid down by the bench while delivering the judgement in the case .
3. Action plan for early implementation of court order.

Click on the following links for viewing the circular and Madras HC judgement.
AIBRF Circular

Saturday, December 15, 2012

bankpensioner 100% DA....Victory to the pre-1/11/2002 retired Pensioners

 Madras High Court has   delivered the judgement in favour of the petitioners in the WP50000/2006 filed by the Treasurer of AICBRF (All India Canara Bank Retirees' Federation), Shri A B KasturiRangan (Ret'd Sr.Mgr, Canara Bank) and others.
 It is a GREAT Victory for the pre-1/11/2002 retired pensioners as this is the FIRST such one in Banking sector.
Communication from AICRBRF is reproduced below 
Our Ref:46:2012                                                                                                                        December 14, 2012
To: All Affiliates, Office Bearers and Central Committee Members
Dear Sir,
Madras High Court Judgement on 100% D.A.Neutralisation
You may remember that a batch of Writ Petitions were filed by the aggrieved pensioners of Canara Bank, Bank of Baroda and Indian Overseas Bank in Madras High Court during 2006 on the subject matter. 
In our Bank, Sri A.B.Kasturirangan & 20 Others from Chennai filed the Writ Petition No.50000/2006 for payment of dearness relief to Pre-01.11.2002 retirees at 100% D.A. Neutralisation on the entire basic pension with effect from 01.02.2005 as paid in respect of those who retired on or after 01.11.2002. The petitions were heard by the Hon’ble High Court of Madras over a period of couple of months and arguments were concluded on 30-10-2012 with the Court reserving its orders.                                                                                                          

We congratulate the petitioners for their patience & quest for justice.

We are glad to inform you that the Hon’ble Court has since been pleased to pronounce its order today allowing the petitions and directing the respondent banks to implement the order within three months of receipt thereof.  Please wait for further details till we receive copy of the judgement from the Madras High Court. 
With Greetings,
Yours sincerely,                                                                                                         
General Secretary

Wednesday, November 21, 2012

UFBRO expresses disappointment to UFBU for not consulting retirees' organisation on Charter of Demands submitted to IBA

United Forum of Bank Retirees' Organisation (UFBRO)  represents more than one lakh retirees from 45 banks. Recently UFBU has submitted Charter of Demands  to IBA, in which demands/issues  of retirees were also incorporated.  
But the retirees' organisations were not consulted and taken into confidence before submission of Charter of Demand by UFBU to IBA . UFBRO has written a letter to UFBU expressing disappointment for not taking into confidence retirees' organisations. Click on the link below to view the letter.

Source : AIBRF website

Thursday, November 15, 2012

extending the pension option to officers/employees who had resigned from bank's service - UFBU letter to IBA

Recently Government has clarified that those officers who had taken VRS under bank-level OSR provisions may be extended pension option and accordingly IBA has issued instructions to the member banks. In the last UFBU meeting, it was decided to take up the cases of employees and officers who had resigned from the Banks during  period. The  text   of UFBU's   letter addressed to the IBA in this regard is reproduced below


Reg.: Extending the benefit of joining the Pension Scheme as per Settlement / Joint Note dt. 27.04.2010 to employees / officers who had resigned from bank service

In terms of the Settlement / Joint Note dated 27.04.2010 between IBA and the Workmen Unions / Officers Associations, one more option was given to the following employees / officers to join the pension scheme.

a) Those who continued in service on date of settlement.

b) Family of those who had died during the period.

c) Those who had retired from service during the period.

d) Those who had relinquished their job under the special VRS in 2001.

All these eligible employees / officers were extended the option and most of them have already given their option and are now covered by the Pension Scheme.

There was a set of officers in some of the banks who do not fall under the above categories but nonetheless had retired from the service of the banks under their bank-level Voluntary Retirement Schemes. Since for all practical purposes, these cases are at par with regular retirements, the Government has already clarified that such officers who had retired under these Bank Specific Regulations be also covered by the settlement and hence to be extended the option. Vide our letter dated 18th September, 2012, we had requested the IBA to advise the banks to implement these Government clarifications. We once again request you to expedite the instructions.

Further, there are some employees and officers who had relinquished their jobs through resignations. Recently a few judgements have come stating that resignation is one type of retirement and hence be extended option to such employees who had resigned their jobs.

Since according to the judgement and legal interpretation, resignation and retirements are treated alike, we urge upon the IBA to consider and extend another option to join the Pension Scheme to these employees and officers who had ceased to be in service on account of resignation.

Thanking you,

Yours faithfully,




Click here to view AIBEA circular

Saturday, November 10, 2012

Good News for VRS optee officers - IBA issued circular regarding 2nd option of pension to VRS optee officers who took VRS under OSR

IBA has issued circular directing member banks to extend second option of pension to officers who took VRS under Bank Officers' Service Regulations  (OSR).  Family members of such officers , who are deceased but who were in service at that time, are also eligible for family pension.  Officers who took VRS under Bank OSR  were denied second option of pension at the time when second option of pension was extended to other categories of officers and award staff.

Click here to view IBA circular 
IBA has issued corrigendum to above circular on 12/11/2012.
Click hee to view corregendum to IBA circular  

Sunday, November 4, 2012

Five workmen unions AIBEA, NCBE, BEFI, INBEF and NOBW submit charter of demands to IBA

Five workmen unions AIBEA, NCBE, BEFI, INBEF and NOBW have submitted charter  of demands to IBA , which included following demands on SUPERANNUATION BENEFITS

Pension related issues:
· NPS to be withdrawn and all new employees from 1-4-2010 covered by NPS to be covered by old scheme under Pension Regulation 1995.
· Permanent Part-time employees on Consolidated Wages prior to 1.5.2010 and made 1/3rd wage from 1-5-2010 should be covered by Pension Regulations.
· Refund of contribution to pension fund to the employees who joined between 1.11.1993 but before Pension Regulation came in force in 1995/1996.
· Periodical Pension updation along with wage revision of service employees
· Basic pension of all existing pensioners to be updated at the same index level like Basic Pay of service employees viz July-Sept.2012 average.
· DA on pension to be on monthly basis .
· Same DA at 100% compensation for all pensioners and removal of slab system.
· Extending 2nd option facility to employees who resigned between 1995 and 27.4.2010.
· Qualifying service for full pension should be 20 years like in Govt/RBI;
· Average of 10 months or last drawn ‘Pay’, ‘whichever is higher’ should be considered for calculation of basic pension.
· Service rendered in Defence, if not counted for Defence pension should be added in bank service for payment of pension
· Actual service of Part time employees should be counted for pension and not on pro rata basis.

Family Pension –
· To be improved at par with RBI/ Government pension scheme
· Full pension as family pension for seven years or upto the age of 67 years instead of 65 years,
· Payment of Family Pension to unmarried/widowed daughters for life and if spouse and daughters are not available then to parents.
· Incorporation of provision in Pension Regulation in synergy with Clause 6 (b) 6 (c) and 6 (d) of settlement dated 10.4.2002.

· Extension of Para-368(17) of Sastry Award to Pension Optees.

Source : AIBEA Website

Wednesday, October 31, 2012

UFBU submitted charter of demands which includes demands for retirees

UFBU has submitted Common Charter of Demands for Bank Workmen  and Bank officers separately to IBA on 30th Oct 2012.

Pensioners/Retirees Demands/ Issues incorporated in Officers Charter of Demands are given below for information

The employer has an obligation to ensure that the employees having served the institution almost life time are provided adequate superannuation benefits so that they are able to live a life of dignity, honour and above all a comfortable life for having given their blood and sweat to the institution.
The superannuation expenditure cannot be considered as a cost and be made subject matter of negotiations.  The compensation paid in the form of superannuation have been described by the highest court of the country as deferred wages paid to all those who served the institution with devotion and conviction for ensuring the prosperity, not only for the institution but the nation as well.
At present, the Banking Industry has provided for the benefit of Gratuity, the Provident Fund or Pension, Leave Encashment at the time of retirement, Medical facilities, and several other welfare facilities.
We strongly feel that there has to be an exclusive and a comprehensive dialogue between the Officers Organisations and IBA as to the improvements that are required to be made in the present superannuation benefits. 
The Banking Industry has introduced the Pension Scheme with effect from 1.1.1986 after protracted discussions and negotiations between the Officers’ Organizations/unions and the Indian Banks’ Association in the year 1993.  The Pension Scheme has remained as such since the beginning of the scheme in the Banking industry.
The Government servants have seen two pay commissions during this period and if we consider the date of implementation as 1.1.1986 there have been 3 Pay Commission reports providing very comprehensive improvements in the superannuation benefits to the civil servants in the Government.
The Pay Commissions have taken a very pragmatic view in the last 3 Pay Commission Reports and have made very substantial changes in the scheme. There is a need to take the same view as regards the Pensioners in the banking industry as well.
The periodical review of Pension scheme is the responsibility of the Managements of the Banks.  It cannot be tagged to bipartite settlements which has adversely affected the pensioners and ultimately the pension scheme remain as an archaic one in the Banking Industry.  As and when there are improvements in the central Govt. Pension scheme, the IBA should invite the negotiating unions and implement the same
Pension consists of the following parts:-
  1. Basic Pension
  2. Commutation
  3. Dearness Allowance
The Basic Pension is calculated on the basis of the last drawn 10 months’ average pay by the retirees or the last pay drawn whichever is beneficial to the retiree.  The formula has remained the same.
The Government servants have been provided the benefit of updating of pension at periodical intervals to provide sufficient cushion against inflation and cost of living.
Dearness Allowance be converted as Basic Pension as and when the cost of living index increases by about 50%. The Pensioner will therefore have the benefit of enhanced Dearness Allowance and it provides a small cushion against the inflation.
The other method adopted by the Government is to bring all the pensioners on a uniform scale by merging the Dearness Allowance at the time of revision as recommended by the Pay Commission.  The facility of upgradation of pension above the age of 80 years be made available to Bank Officers as prevalent in Government. We therefore suggest as follows:-
Improve the present Basic Pension in respect of all the earlier retirees on the basis of the merger of Dearness Allowance at a level to be decided by mutual understanding between the IBA and the Officers’ organizations and unions.
The present rate of Commutation has to be revised to 40% with the existing conversion factor. The full pension be restored after 10 years.
The DA formula and neutralization should be at par with serving officers. 
The voluntary retirement provided in the Officers Service Rules should be incorporated in the Pension rules and they should also be made eligible for Pension without any discrimination.
Pension scheme should be extended to all those who have been denied earlier on the basis of the misinterpretation of the understandings reached with IBA in particular those who retired under voluntary retirement scheme as per the service regulations / resigned after completing 20 years.  
The officers who joined the bank between 01.11.1993 and 26.01.1996 have to be covered under the pension regulations.
Provision of additional service as per the Pension Regulations to the extent of 5 years should be extended to each and every retirees in the banking industry.
Those having relaxation of age at the time of recruitment on account of disability etc., also to be extended additional period of 5 years to his / her service qualifying for pension.
Also, for Ex-servicemen their past services rendered in the Armed Force should be added to his / her service for qualifying for pension.
The Family Pension should be on par with the Government and be at 30% of last drawn pay by the officer across the board to every one. The regular family pension will be payable for 10 years or till the 70th year of notional age of the deceased.
The employees and officers who joined the banking industry on or after 01.04.2010 should be governed by the original pension settlement signed on 29th October 1993 and Gazetted in the year 1995.
The Gratuity should be paid at the rate of one month salary and allowances without any ceiling.  The gratuity should be completely exempt from payment of income tax.
The Provident Fund should be at the rate of 12% of the total salary and allowances. The Provident Fund should be payable to all employees. 
Encashment of entire leave at credit should also be permitted on resignation, removal and compulsory retirement. 
The existing ceiling on encashment of leave should be enhanced to 360 days at the time of resignation / superannuation.  The entire amount should be exempted from income tax as in the case of the Central Government Employees.
A comprehensive Medical Scheme for pensioners/ retirees should be framed and introduced in all the banks as available now in the case of executive directors and CMDs of the Banks.
A separate allocation of funds for improvements to welfare of the pensioners should be made every year.  The facilities like Holiday Home, clinics, Transit House etc., should be made eligible for pensioners also. 
LFC / HTC Facility should be extended to the retirees also at par with serving employees." 

Source : AIBOA website

Sunday, October 21, 2012


United Front of Bank Employees (UFBU) has written a letter to IBA for fixing a date for submission of Charter of Demands. As 9th Bipartite Settlement is expiring on 31st October 2012, UFBU expects resumption of negotiations for 10th Bipartite Settlement and hopes for fair deal to bank employees in coming days. The charter of demands is already prepared by UFBU after discussions amongst workmen unions and officers organisations.
Click here to view UFBU circular

Monday, October 1, 2012

Pension to resigned employees - Impact of RBEWA communincation

Following communique is received from Shri R.K. Pathak, President, RBEWA (Resigned Bank Employees Welfare Association). 
The issue of pension option to left over retirees was actively taken by RBEWA with DFS & IBA Mumbai.

The issue was taken up vide our letter dated 27/07/2012 addressed to DFS with copy yo IBA. ( click here to view PDF file :- Pension option to Resignees

On 25/07/2012, DFS advised IBA to remove the word " Superannuation " from its circular dated 10/08/2010 and advise member banks accordingly.

In view of experience of working of IBA, RBEWA, cautioned IBA to interpret the agreement positively vide our communication dated 4/08/2012. ( Click here to view Unresolved Pension issues). The copy of the communication was mailed to IBA on 4/8/2012.

IBA didnot acknowledge  the communication but certainly took its cognizance and sent communication to DFS vide their letter dated 6/8/2012. Unfortunately we do not have the copy of the said communication at present but its contents can be ascertained from the communication of Mr. Harvindar Singh , General Secretary of ALL INDIA NATIONALISED BANK OFFICERS’ FEDERATION dated 19/09/2012 addressed to DFS. ( Click here to view the letter )

Mr. Harvindar Singh had precisely made submission to DFS highlighting how the issue can be resolved without modifying the agreement.

Saturday, September 29, 2012

Payment of Ex-gratia Adhoc pension to pre-1986 retirees /surviving spouse

A letter written by AIBEA Gen. Secretary to Finance Secretary, Govt. of India is reproduced below.

Mr. D.K. Mittal
Department of Financial Services,
Ministry of Finance,
Government of India,
New Delhi.
Dear Sir,
Reg: Payment of Ex-gratia Adhoc pension to pre-1986 retirees /surviving spouse
Ref: Government guideline dt. 26.11.1998 and 13.09.2006
We draw your kind attention to our letter No.32 dt. 16.3.2012 written to you in this regard.
Since Pension Scheme in the banks was implemented from 1.1.1986 after implementation of 4th Pay Commission Recommendations, the employees and officers who had retired prior to 1.1.1986 were not covered by any Pension Scheme.
However, in RBI an adhoc Ex-gratia Pension was extended to these employees who had retired prior to 1.1.1986. On our taking up the matter, the Government issued their guidelines No.F11/3/92-IR dt.26.11.1998 extending an Ex-gratia adhoc pension of Rs.300/- (plus DA).
Subsequently, the Government also extended a fixed lumpsum ex-gratia payment of Rs.1000/- per month (without DA) to the surviving spouse of pre-1986 retirees upon the death of such pre-1986 retirees. This guideline was issued on 13.9.2006. 

There have been frantic representations from these sections of retired employees and officers and also from the All India Bank Retirees Federation to enhance the Exgratia amount. You will kindly appreciate that looking to the inflation, price rise and cost of living at present , this Ex-gratia amount needs to be revised. You will further kindly appreciate that these group of retired employees are in the age-group of 85
years and above and their number is also very meager in the entire banks.
Hence, we have been repeatedly requesting the Government to sympathetically consider some enhancement in the Ex-gratia amount being paid to the pre-1986 retired employees/officers and the surviving spouses. We once again urge upon you to consider our representation favourably and enhance the Ex-gratia amount suitably.
Thanking you,

Yours faithfully,


Source : AIBRF Website

Thursday, September 20, 2012

Pension option to VRS optees and others

Department of Financial Services, Government of India has asked vide its letter dated 25.07.12 to IBA to withdraw the words “ on superannuation “ from its communication addressed to banks while advising government approval on one more pension option as per the settlement dated 27.04.2010 and extend pension option benefit to eligible retirees.
Even after lapse of about 2 months from the date of the government letter IBA has not sent revised communication to banks despite the fact that the government stand in the matter is very clear and unambiguous right from the beginning that while communicating approval on pension option it never asked IBA to add the words “ on superannuation.
 AIBRF has written a letter to UFBU , requesting  leaders of UFBU to ask IBA to advise banks to implement the government instruction without delay so the left over retirees whose age is advancing every day get benefit of the pension scheme.


Friday, September 14, 2012

Charter of Demands of pensioners

 AIBRF has prepared a charter of demands of pensioner which contains following demands
1  100 per cent D.A. neutralisation to Pre-2002 retirees.
2.  Pension updation on the pattern of 6th Pay Commission.
3.  Uniform Medical Scheme for retirees.
4. Two percent of bank profit should be allocated for Welfare of bank retirees.
5. One more option of pension should be given to all past retirees who are originally   eligible as per provisions of Pension Regulations 1995.
6.  Differentiation between retirees and resignees should be removed for the purpose of pension option.
7.  Establishment of proper grievance Redressal Mechanism for retirees in all banks at Corporate and Zonal Level.
8.  Index based dearness rates should be granted to retirees on quarterly basis along with serving employees instead of in six monthly basis.
9.  Improvement in Ex-gratia amount payable to Pre-1986 in view of steep rise in inflation. 

Source : AIBRF Website