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.

UFBRO letter to UFBU.

Source : AIBRF website

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

UFBU’s LETTER TO IBA

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,

Sd..

P.K.SARKAR

CONVENOR 

Click here to view AIBEA circular

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  

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

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

"PART IV

SUPERANNUATION BENEFITS:

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. 

PENSION:

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:-

BASIC PENSION:

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.

COMMUTATION:

The present rate of Commutation has to be revised to 40% with the existing conversion factor. The full pension be restored after 10 years.

DEARNESS ALLOWANCE:

The DA formula and neutralization should be at par with serving officers. 

 GENERAL:

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.

FAMILY 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 70^th year of notional age of the deceased.

 NEW PENSION SCHEME

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 29^th October 1993 and Gazetted in the year 1995.

GRATUITY:

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.

PROVIDENT FUND:

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 LEAVE:

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.

 MEDICAL BENEFIT SCHEME:

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.

WELFARE ACTIVITIES:

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:

LFC / HTC Facility should be extended to the retirees also at par with serving employees." 

Source : AIBOA website