Saturday, December 5, 2015

Record Note dated 25.05.2015 on the issues of Bank retirees - Letter by Gen Secretary AIBOC to IBA

Recently AIBOC has given  call for one day strike on 11th Dec. 2015, for various demands which include settlement of points  covered in the record note on issues of  bank retirees signed on the day of signing joint note dated 25.05.2015.
Relevant paras of AIBOC circular are reproduced below.
The strike call given by our Confederation has set the issues rolling ! Our Notice of strike and many reminders ultimately compelled the IBA to respond. We have received a communication ref no.HR & IR/ 2015-16/ XBPS/J/1722 dt. 01.12.2015. Though the response is on the lines of the stand taken by IBA throughout the discussions on Xth Bipartite Settlement and given in the Record Note signed on 25.05.15 alongwith the Joint Note for salary settlement, yet IBA has acknowledged that these are the issues which are pending and needs resolution through mutual discussions. We have promptly replied to their communication in a logical way supported by the laid down provisions and practices vide our letter ref no. IBA/128 dated 02.12.2015.

We further have to advise that Dy. CLC (C) has invited us for conciliation talks on 8th December, 2015 at 12.00 pm at Mumbai vide Ref. no. 8(7)/2015-S.I dt. 02.12.2015.

click here to view letter by IBA, dtd 01.12.2015

Letter to IBA by Gen Secretary AIBOC is reproduced below

Ref/IBA/128                                             Dated: 02/12/2015

Shri K. Unnikrishnan,

Deputy Chief Executive,
HR & Industrial Relations,
Indian Banks Association,

Dear Sir,
                Sub : Record Note dated 25.05.2015 on the issues of Bank retirees.

We thankfully acknowledge your letter HR&IR/2015-16/XBPS/1722 dated 01.12.2015 written in response to our earlier letter dated 13th November, 2015 on the captioned subject.  We like to convey our views on each aspect mentioned by you and it would be clear that there is a lot of difference in perceptions which is got to be clarified at an early date. 

2.       In point no. 2 of your letter, you have agreed to the fact that certain demands pertaining to superannuation benefits/issues of retirees were discussed in details by both the sides.  If this is the admitted position, you would surely appreciate that we had no intention to make aimless discussions. Both the sides definitely felt the urgency of making an application of mind over the demands of the retirees and come to a reasonable conclusion.

3.       In para no. 3 of your letter, you have made it a point that wage revision talks take place on the mandate of member banks which covers only wages and service conditions of serving employees. Our view is that the words “service conditions” covers superannuation benefits which includes matters relating to pension.  In the serving employees/ officers there are many people who are pensioners under Banking Pension Regulations.  Retirement benefit can never be a frozen concept for them and past retirees as well.  No document can ever be static for all times to come.  It needs revision and relooks to suit the changing time.

4.       It is also an oft-quoted contention of IBA that pension is paid to the Government employees out of budgetary allocation and bank pension is a funded one.  You will surely appreciate that budgetary funds are accumulated from different sources of which revenue is an important inlet and we, the citizens of the country contribute in different ways to the accumulation of the fund. As for ourselves, the question of inadequacy of fund is ruled out. Clause no. 11 provides that on 31st day of March every year, Bank shall have to cause an investigation by an Actuary into the financial condition of the fund and make additional contribution to the fund as may be required to secure payment to the benefits under the Regulations. An idea has been created that updation of pension is an imported concept and it does not have any place in the Regulation. It may please be noted that there is a clear cut provision of such updation in Clause No. 35(1) of Pension Regulation.  At the time of adoption of Pension Regulations, a particular section of retirees were fouled by their junior counterparts because of signing of the next BPS. In order to protect their interest, the modus operandi of updation has been specifically spelt out in appendix 1.

5.       As regards revisions in the rates of the family pension in line with Central Government and Reserve Bank of India, the concept of affordability of cost is out of context.  It is already on record that RBI with the prior concurrence of Government of India has already implemented the same. As our Pension Regulation is modeled on RBI-pattern, this benefit is got to be extended.  A question has been raised repeatedly as to what connections the Bank Regulation has with Central Civil Service Rules.  In reply, your pointed attention is drawn to Clause No. 56 wherein it has been clearly told that in case of doubt, regard may be had to the corresponding provisions of CCSR 1972 and Central Civil Service Rule 1981. As regards IBA’s contention that no provision of updation is there in Bank Pension Regulation, we have already told in the foregoing paragraph that it is there in the Regulations. Moreover, plain reading of the minutes signed on 26th March, 1994 between AIBOC and others on one side and IBA on the other QUOTE  “The regulation was to be done on similar lines as Reserve Bank of India Pension Regulations and Central Civil Services Pension Rules applicable to Central Government employees by making suitable modification in relation to its applicability to the Banking industry” UNQUOTE substantiate our view that Bank  pensioners are entitled to all such benefits which accrue to their counter parts in RBI and Government.

6.       As regards 100% DA neutralization to pre-01.11.2002 retirees, willingness to concede has been expressed but pendency of court cases have been cited as an obstacle to concede the issue. We like to make it categorically clear that any Indian citizen does have the right to approach any court of law if he feels that his grievances as a citizen of the country are not being lawfully redressed. We, however, feel that there is no prohibitive or injunctive order passed by any court in this regard which can stand in the way of arriving at a bilateral understanding.  If, however, IBA takes a positive decision in this regard, all court cases will virtually be redundant. 

7.       As regards upgrading the basic pensioners at the common and uniform index of 4440 points, IBA’s view is that the process of collection of data and information from banks are being made for examination of cost implications and sustainability by banks.  Our view is that in the modern age of advanced technology when transmission of figures can be done in minutes (lot of data collected and compiled during the discussions prove that) and calculation of cost can be arrived at in hours, the prolonged delay is causing an element of faithlessness in the minds of the elder citizens of the country who have given the yester years of their life for the service of the nation.

We are happy to note that IBA is concerned and also positive in approach to resolve the issues amicably with a spirit of bilateralism but absence of any response to our communications and prolonged follow up had led us to believe otherwise.

Thanking you,

      Yours faithfully,



Wednesday, November 18, 2015

Exclusion of claim on Domiciliary treatment of retirees under new Mediclaim scheme

General Secretary ,All India Bank Retirees Federation has, taken up the matter with Chairman ,IBA,on exclusion of claim on Domiciliary treatment by retirees, under new Medi Claim Insurance Scheme vide letter dated 16.11.2015.
Copy of the above letter is furnished here under for information
The Chairman Indian Bank Association ( IBA )

Dear Sir,
Re: IBA approved medical scheme for bank retirees
Re: Reimbursement of Domiciliary Expenses

 We are getting very disturbing and shocking information from TPA as well as from some individual banks who are responsible for implementation of the IBA approved medical scheme for the retirees under 10th wage settlement that facility of reimbursement of domiciliary expenses will not be available to the bank retirees and their spouses under group insurance policy.

2. On careful scrutiny of various clauses of the scheme which is a part of the bipartite settlement as applicable to the retirees, it is no where directly or indirectly mentioned in the scheme that facility of reimbursement of domiciliary expenses for eligible ailments will not be available to the retirees and their spouses. In fact the bank retirees were induced and encouraged to opt for this group medi claim policy based on this attractive feature.

3. Now when bank retirees in large number have already exercised option to buy this policy , their accounts have been debited for payment of premiums and policy has come in to force from 1.11.2015 , to advise them at this stage by TPA / bank managements that domiciliary facility will not be available to retirees is nothing but gross and blatant violation of the clause of the scheme , suppression of the vital clause of the policy and non discloser of vital information from the customer.

4. We request IBA to immediately clarify the position and prevail upon Insurance Company, Insurance Broking firm, TPA and bank managements to strictly follow terms and condition of the scheme as sanctioned under the settlement and withdraw their communications issued by them in this regard in recent past to avoid any litigation in this regard.

With Regards,
Yours Sincerely


Source: AIBRF Website


Saturday, November 7, 2015

IBA Clarification on Mediclaim Scheme to retirees

IBA has clarified on points raised by some of the member banks, on Medi Claim Insurance Scheme vide their HR & INDUSTRIAL RELATIONS No. CIR/HR&IR/2015-16/XBPS/J/1593 dated,October 31, 2015,communicated to Chief Executives of Member Banks which are parties to the Bipartite Discussions,which read as follows:

Dear Sir/Madam, 
                                                 Implementation of Medical Insurance Scheme to Retirees as agreed Vide Bipartite Settlement/Joint Note dated 25.5.2015 
We refer to our Circular No.CIR/HR&IR/2015-16/XBPS/J/1413 dated 1.10.2015 advising member banks to obtain consent of retirees expeditiously and provide details to United India Insurance Company Ltd., (UIICL) and to make Group Medical Insurance Policy operational, preferably w.e.f. 1.11.2015. We are informed that as on date, 13 banks have sent details of retirees and have either paid the premium or are in the process of remitting the premium and joined the Scheme w.e.f. 1.11.2015. 
                                              We have been receiving queries from banks, as to whether surviving spouse of the deceased employee (widow/widower) are eligible to join the Scheme. We are to state that since insurance premium is to be paid by the retirees/surviving spouses of the deceased employees and UIICL has agreed to include spouse of the deceased employee, Banks may include the spouse of deceased retired employee under the Group Medical Insurance Scheme. Further, Bank will not incur any additional cost by doing so as Insurance Premium would be borne by the retiree/spouse. 
IBA received letters from few Banks to request the UIICL to start the Group Medical Insurance Policy for retirees from 1.12.15 (instead of 1.11.2015) and permit them to pay pro rata premium, as banks have not completed the process of collecting details/premiums from the retirees. On reference to Insurance Companies, we are advised as under: 
“In all our workshops we have been mentioning that there would be no pro rata premium for the retirees.This is so, because in case of the retirees the coverage and the premium is very competitive and is not available anywhere else. They also being covered under the policy without any medical examination and coverage for preexisting ailments is also available to them. They may join at a later date on pro rata and could delay hospitalisation which may have been needed in November to December or January. In this manner, though they may pay a reduced pro rata premium, the claims would be 100% and this would upset the actuarial balance of the policy.” 
                                             In view of the foregoing, for retirees, the Policy will commence uniformly w.e.f. 1.11.2015 and they have to pay full year premium. Banks which are yet to submit details of retired employees/remittance of premium, are requested to do so at the earliest, so as to cover the retirees from the date of payment of premium, lest they will be deprived of the benefit of coverage from 1.11.2015 till the date of payment of premium. 
Yours faithfully,
Source: Bankpensioner google group

Thursday, October 15, 2015

Supreme court judgement on LIC resignee case

We reproduce below article by Shri R.K. Pathak in light of recent judgement by Supreme Court in LIC Resignee case.
It is now known fact that Banks and IBA [ Voluntary Association of Management of Bank] are unjustifiedly denying the legitimate claim of the Bank Resignees despite clear cut judgments in following cases:-
1) D. Malleshwar Rao Vs Andhra Bank
2) S. K Kool Vs Bank of Baroda
3) Smt. Shashikala Devi Vs Central Bank of India
4) Vijaya Bank Vs M Narsimhappa

Banks and IBA are not only denying lawful claims of Resignee [ Left Over Category] but also through battery of lawyers taking advantage of its own wrong and seeking
judgments against  financially weak litigants by suppressing the facts & also filing special leave petitions and review in the High Courts.

Banks and IBA are relying on UCO Bank Vs Sanwarmal, Canara Bank Vs M R Prabhakar judgments and  with forceful argument from battery of lawyers made successful attempt to sideline the principle laid down in Sheel Kumar Jain Vs New India assurance Company.

Wednesday, October 7, 2015

Medical Insurance for retirees - 3 months grace period to retirees under exceptional circumstances

According to medical scheme for retirees last date for giving consent to this scheme was 25th Oct. 2015, as the scheme will be operational from 1st Nov. 2015. Now IBA has advised banks to allow three months grace period for joining the scheme, to such retirees who could not give consent by stipulated date. The request of the retirees may be considered in exceptional circumstances , to the satisfaction of concerned bank.
Click here to view IBA circular

Wednesday, September 30, 2015


Minutes of the meeting confederation of retirees' organisation  held on 22-09-2015 at New Delhi,   are reproduced below.
The second meeting of our above Confederation was held on 22-09-2015 at New Delhi.
The following Federations of Bank Pensioners and retirees attended this meeting.

1, Federation of State Bank of India Pensioners' Associations

2 .All India Bank Retirees Federation

3. All India Bank Pensioners' & Retirees' Confederation.

4.   Retired Bank Officers National Confederation and

5,   All India ~Retired Bank Employees' Association
The details of the representatives from the above organizations participated at the
above meeting are furnished in the enclosures.

2.     Shri R.N.Banerjee, President, Federation of 5.8.1 Pensioners Associations extended
a warm welcome to the participants. He said that all our issues are well known and
discussed adequately. Meetings with some ministers were also not helpful. The
Government does not respond to our communications and its officials are not even
giving their appointments for our meeting them. We therefore should take a decision
today on our further action to be taken for resolving our important issues.

3.     Shri P.P.S.Murthy, General Secretary, Federation of SBI Pensioners' Associations
briefed the members on the developments since our last meeting. Our last meeting has
evoked great expectations of Bank pensioners and retirees throughout the country. We
cannot therefore delay any longer to finalize our action program for resolving our
pension issues. We should strive together whole heartedly to meet the aspirations of the
Bank pensioners and retirees. We can finalize our action plan taking a lead from the
disclosures made in the Record Note on the proposals under consideration of the 1.8 A.
for resolving our pension issues. The Bipartite Settlements concluded so far have
neglected those retired before the conclusions of the wage settlements Had the same
proportionate employees' costs incurred in 2006 had been incurred by the Banks in the
subsequent years the lot of both employees and pensioners would not have been
brought down to a very inferior position to that of the Government employees and
pensioners. We should mobilize the whole hearted support of the organizations of the
serving bank employees as well to our efforts for resolving our pension issues. We are
well aware of the negative approach of the Government towards bank employees and
pensioners/retirees. Even the efforts of the top managements of the Banks in removing
certain apparent~ discriminations caused to their pensioners could not succeed.
Challenges before us are many. We should therefore proceed further without delay in
finalizing our action plan and in launching its implementation.

3. Shri D.P.Gupta of AIBRF brought to the notice of the members that his Federation
joining this Confederation would depend on the decision of the General Body of his
Federation at its meeting to be held on 26-11-2015. His Federation would not therefore
be a party to the decisions taken at this meeting. Shri RN.Banerjee conveyed to them
that AIBRF is welcome to join this Confederation at any time.

4.Shri S.R Sengupta, General Secretary , A!BPARC conveyed to the participants that
the entire community of Bank pensioners and retirees throughout out the Country are
eagerly awaiting our decision. OROP has got a new dimension but it is not new
issue.IBA has categorically listed our issues. Our issues can for our immediate action. He proposed Shri P.P.S.Murthy, General Secretary of Federation of SB! PAs to be the convener of our Confederation. He suggested the following action program.

i. Massive demonstration at all metro centres excepting at New Delhi during the
first week of October.
ii.     Press conference to be held wherever possible.
iii.    i. Appeal to the P.M signed by as many pensioners as possible before l5th
October to be sent by speed post.
iv.     A massive rally at New Delhi in January 2016,
v. Delegation to !BA by the leaders of our Confederation accompanied by senior
5.    Shri D.P,Gupta , at this stage conveyed that his Federation would not be a party to the decisions taken at this meeting. A request was made to him by Shri P.P.S.Murthy asking him to participate in our discussions stating that the decisions taken at this meeting would be communicated to his Federation for its consideration and implementation, as our unity during this crucial phase of our movement is the need of the hour .Shri D.P.Gupta, however left this meeting along with his colleague

6.    Shri R.KAcharya President of A!RBEA conveyed that all of us should be united and
work for the welfare of the retirees.He concurred with the proposal for nominating Shri
P.P~S.Murthy as the convener of our Confederation.

7,Shri KSukumaran, President of RBNOC conveyed that we do not however have any
power or influence.The convener ship of our Confederation should not be an issue for forging our unity. Anyone having the support of all will be the convener. He stressed on the need for our collective effort for resolving our issues. We should declare our action plan as early as possible.

8.     The participants confirmed the minutes of the last meeting of our Confederation held
on 28-07-2015.The participants unanimously agreed to nominate Shri P.P.S Murthy,
General Secretary of the Federation of SB! Pas as the Convener of our Confederation.
The draft of our memorandum will be revised on the basis of the lead given by the
disclosures made in the Record Note for resolving our pension issues with a focus on
the insignificant increase in the pension on lOth. Bipartite pay scales. We should send
our appeal to IBA and managements of all Banks seeking a meeting with them for
discussions reiterating our contribution to the Banking Industry. There is no need in our
appeal to make a reference to NPAs, A draft of this memorandum will be sent to the
members of our Confederation for their approval.
9.    On the basis of suggestions made by the participants, the following action program
has been finalized.
I.    Immediate formation of State Level/ Region Level Committees at important contras of
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi and in
other centres. One Representative from each organization as a member of these
committees may be advised to the Confederation.

II  Draft of our appeal to PM to be sent to its members for their approval

III.    In October
i.     Our appeal to P.M to be sent by 7th October. Appeal to P.M to be mailed by speed
post by pensioners and retirees. A Signature campaign may be organized from ?th
October to 3lst October for this purpose.
ii.    . Appeals to be sent to the Finance Minister, Secretary Financial Services seeking their
iii.    . On an agreed date in October, submission of our memorandum to IBA by leading a
delegation of the leaders of our Confederation seeking an opportunity for discussions
with us.
iv.    . Appeals to the managements of all Banks.

iv Appeal to UFBU, AIBOC and other members of UFBU.

In November
v. .Organize meetings of Pensioners/ Retirees at major metro centres and press
conferences, wherever possible
vi.     Demonstration before the selected office of a PSU Bank at metro centres.

In December

vii.    i. Massive Demonstration in New Delhi on Friday the Ilth December.

A request will be made to AIBRF to participate in our above action program. The
participants agreed to hold our next meeting at Kolkata during the first week of
November. The meeting ended with a vote of thanks by Shri P.P.S.Murthy
P.P.Sankaranaryana Murthy


Confederation of Bank Pensioners and Retirees Organizations




Thursday, September 24, 2015


Shri  S. Ramchandran former General Manager of Bank of Baroda has  written a letter to the Chairman, Insurance Regulatory & Development Authority (IRDA) regarding group medical insurance scheme for bank working and retired employees. The letter points out to many irregularities of the scheme and number of violations of IRDA guidelines. Legality of IBA has also been questioned in the letter.

Friday, September 11, 2015

IBA Group Medi-Claim Policy for Retirees - Dificulties/ Problems at implementation level

We reproduce below the letter by General Secretary, AIBRF to IBA.
The Chairman
Indian Bank Association
Dear Sir
Re: IBA Group Medi-Claim Policy for Retirees

We refer to the Group Medi-Claim Policy introduced in 10th Bipartite Settlement for the employees towards effective health management of workforce. Benefits of this policy have also been extended to retired employees with some exceptions.
2. We welcome the move of IBA and Unions to extend the
benefits of group policy to retirees. We hope this will provide
some relief to the retirees in health management at the
advancing age.
3. We find that banks have started issuing communications for implementation of the scheme at their level. We observe the following difficulties/ problems at the implementation level.
(a) Banks are allowing very limited time say 15/ 20 days to
the retirees for exercising the one time option for joining the scheme. As you know about 3lakhs retirees are involved who will be eligible to exercise the option. These individuals are located in different parts of the country and many are in very remote areas. It will be difficult to reach the individuals in many cases within such short time resulting into large number of complaints and grievances at later date. Further, We would like to point out that most of these retirees have
already purchased medi-claim polices by paying certain premiums and these policies are still valid for some months. In view of the fact that banks are allowing very limited time to exercise the option, during the current year the retirees will have to bear premium for two policies which becomes difficult for them. In view of this our request to you is that ask banks to allow reasonable time say 6 months to exercise the option.

(b) It is observed from the scheme as well as the communication being issued by banks that the amount of sum assured to be purchased is fixed one which is Rs. 3 lakhs for award staff retiree and Rs. 4 lakhs for officer staff retiree without any flexibility to the retiree to go for some lower amount for cost management and with the intention to continue existing policy simultaneously within allocated funds. You will agree that affordability and cost is very critical factor for retirees. In view of this we request you to ask the
banks to allow flexibility to take policy for lower amount if so desired by individuals within overall ceiling of Rs. 3 lakhs and Rs. 4 lakhs.

(c) It is seen that premium indicated in the bank communications is for first year of the policy. What will be the premium for next or subsequent renewals is not indicated. In case of steep increase in premium in subsequent years which cannot be ruled out in view of the trend noticed in health insurance policy area may disturb the financial planning of retirees as well put them to highly disadvantageous position by switching from existing policies to IBA policy. While any increase in premium in subsequent years will not affect employees adversely as premium for them will be borne by banks it will hurt retirees badly . In view of this we request to re-negotiate with the concerned insurance company and freeze premium for at least next 5 years to give some stability in managing the cost.

(d) We request you to refer government directives issued to banks in 2012 while revising limits for staff welfare that some portion of welfare funds meant for retirees should used for health insurance. In views of this we request you to give some uniform guidelines to subsidies premium cost instead of leaving entirely to the discretion of the bank concerned which will result in to huge heart burning among retirees.
With Regards
Yours Sincerely
( S.C.JAIN )

Source : AIBRF Website

Tuesday, September 8, 2015

Latest position of unity talks. - Government finally agrees to allow one pension for one rank in case of Defence Employees

The meeting of all the 5 Retiree-organisations took place at Delhi on 28th  July, 2015. It was decided that the next meeting of the coordinated forum (CBPRO) would take place within August, 2015. . Now it has been decided that the All Union meeting of Retirees will take place at New Delhi on 22nd September, 2015. 
One Rank One Pension: After a long lapse of time Government of India conceded the demands of the defense employees and agreed to pay one pension to one rank. Although there are some minor aberrations which are yet to be settled, the principal issues have been sorted out. It is the outcome of a long drawn struggle. The defense employees and their organisations deserve congratulations for this spectacular victory.  Government has done justice to the people who staked their lives for the defense of the country. It is the victory of a principled demand . Let us hope that it's benefits would be very reasonably extended to retirees of other sectors. 
 Source: AIBPARC circular

Saturday, September 5, 2015

Letter to Hon Finance Minister regardng status of IBA and letter to the insurer regarding Group Health Policy of Bank retirees

Shri S. Ramchandran ( age 77 years) , a retired General Manager of PSU bank, has written a letter to Hon Finance Minister expressing deep concern on the status of Indian Banks’ Association. The subject of the letter is as follows.
 "Unheard of an Authority without Accountability and Responsibility in a country wedded to Rule of Law – Indian Banks’ Association."

He has also written a letter to Chairman & Managing Director of United India Insurance Company regarding Group Health Insurance policy for bank employees. The letter seeks clarifications regarding the terms of policy and invites attention to IRDA guidelines.

Source: bankpensioner google group