Monday, June 10, 2019

Supreme Court Judgment in the matter of 1616-1684 Index Treatment to commutation arrears


Circular issued by AIBRF on the above subject is reproduced below
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Ref. No 019/284                                                         07.06.2019


  The Office Bearers/ Central Committee Members/ State Body Chiefs
  A.I.B.R.F.

Dear Sir,
     Re: Supreme Court Judgment in the matter of 1616-1684 Index
     Re: Treatment to commutation arrears

We request you to refer IBA circular no.  4786 dated 03.04.2018 advising member banks to extend benefits to all eligible pensioners as per the Supreme Court judgment dated 13.02.2018 in the matter of 1616-1684 Index.

2. On receipt of this advice from IBA most of the member banks have since paid arrears to the eligible pensioners along with interest @ 9 per cent per annum.

3. However during the implementation of the court order, many banks have not given proper treatment  for calculation of  difference of the commutation arrears, interest thereon for the delayed period and its  recovery.

4. On getting information from our affiliates we submitted representation to IBA vide our letter No. 2018/58 dated 16.06.2018 requesting them to advise the member banks to pay arrears on the commutation amount paid and payable as per the court order along with interest at 9 per cent for delayed period. Further some banks  on the representations  made by our affiliates  also referred the matter to IBA for guidance. Our affiliate State Bank of Mysore Pensioner Commune had filed Contempt petition in Supreme Court on this issue.

5. Now we understand that IBA after examining the issue, has  recently  advised those  banks who have made representations  to them to calculate difference of commutation payable and paid and pay the difference amount with interest with simultaneous recovery  of installments as and when  due as per provisions of pension regulations.

5. Based on the above advice of IBA, our affiliates are requested to represent to the bank management for payment of commutation difference with interest.

                       With Warm Greetings
                                                 
                                                                                    Yours Sincerely,
                                                                                (S.C.JAIN)
                                                                         GENERAL SECRETARY
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