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


  1. I am extremely thankful to UFBU and constituent unions / associations for taking up the case of resigned employees / officers.

    I had to resign due to personal and family reasons, after completing more than 27 years (actually just 24 days short of 28 years!). If I had opted for pension in 1995 with proper guidance and awareness or if a second option had been offered before my circumstances forcing me to leave the bank, I would have obviously taken VRS and not resorted to resigning. That would have also given me additional benefits by way of higher leave encashment, additional retirement benefits equal to 6 months salary etc.

    I hope that UFBU will secure the pension benefit to resigned employees / officers at the earliest, providing the much needed relief to them and their families.


    1. UFBU is doing a very kind job for the retirees.

    2. I am also facing the same problem as Mr. Ramasubramanian V. I had to resign after 27 years of unblemished service at the age of 52 years on medical grounds. I gave 3 months notice to Bank of India and was relieved gracefully. But, had I knew at that time that I will not be given 2nd pension option, I would have thought otherwise. Now UFBU with consultations (IBA) can do good for the resignees.

  2. Persuasion is the best policy for resigned employees.When those bank employees who were still in the service had to struggle for 15 years with strikes almost every year,then imagine the plight of those who are not in service and who can not go on strike.There may be an option of filing cases in courts. But the costs awarded by courts even when you win is meager and not realistic. If another option is extended without expenses, it would be really very helpful to resigned employees

  3. Thanks to UFBU Leadership for the approach.

    Hope it will draw the attention of IBA to take a realistic decision to extend the benifit to resignees. Considering the situation where in court battle the High Court have already defined 'resign' is a another form of 'retirement' only.
    This is the time to appreciate each other. Irrespective of the approach and difference in their mode of action.


  4. I took VRS from PNB in Dec. 2000. I did not receive any communication from Bank regarding the pension option given to VRS optees two years back. By the time I came to know about the option, the date of application was over. I represented to the Bank but received no reply.

    Am I not eligible EVEN NOW?

  5. I had served in IOB for 25 years and left the bank in Sep 2009 due to personal reasons. I was not given proper guidance at the time of leaving and I was forced to mention resignation and was told that pension will be eligible once it comes. Now IBA has cleared the option to VRS employees and the resignees who have served the requisite number of services have been deprived. All the court cases are in favour of the resignees, hopefully we (the resignees) will also get the pension option. Thanks for all the help getting from various quarters.

  6. As per recent iBA directions banks are extending pension to retired on VRS under OSR But they have not extended pension to resignees (expecially officer of PVT sector Bank and for award staff who have taken retirement by resignation
    The appeal filed by Vijaya Bank in Supreme court of India
    in respect of Vijaya Bank V/s C Narasimhappa &other against
    KHC Decision SLP(CIVIL) 35402 ton 35423 has been disposed on07-12-2012 as per the information available in the Internet
    The order is not displyed in the website of Supreme Court
    I Hope that the IBa is bound to extend pension to resignees
    Please clarify