2nd Option of Pension for Compulsorily Retired Officers/Employees: Indian Bank's Association letter dated 16.03.2018

2nd Option of Pension for Compulsorily Retired Officers/Employees: Indian Bank's Association letter dated 16.03.2018 

Indian Banks’ Association 

HR & INDUSTRIAL RELATIONS 
No.HR&IR/CIR/G2/BRK/4684 
March 16, 2018 

Chief Executives of Member Banks which are parties to the Bipartite Settlement 

Dear Sir/Madam, 

2nd Option of Pension for Compulsorily Retired Officers/Employees 
2nd-option-of-pension-for-compulsorily-retired-officers-employees

The United Forum of Bank Unions (UFBU) representing workmen and officers in Banks were requesting to allow another option to those who were in the service of the Banks prior to 29th September, 1995 in case of Nationalized Banks / 26th March, 1996 in case of Associate Banks of State Bank of India and continued in service on or after that date and did not opt for pension when offered as per the scheme. 

2. After holding various rounds of discussions in the matter, consensus was arrived at between the parties and a Bipartite Settlement/Joint Note was signed on 27.4.2010 to extend another option of pension to those Workmen / Officers who:- 

(a) were in the service of the Bank prior to 29‘h September, 1995 in case of the Nationalised Banks/26th March, 1996 in case of Associate Banks of State Bank of India and continue in service of the Bank on the date of signing above mentioned Bipartite Settlement/Joint Note; 

(b) exercise an Option in writing within 60 days from the date of offer, to become a member of the Pension Fund and 

c) authorise the Trust of the Provident Fund of the Bank to transfer the entire contribution of the Bank along with interest accrued thereon to the credit of the Pension Fund. In addition, the individual employee/officer has to pay @ 2.8 times of the revised pay for the month of November 2007. 

(d) were in service of the Bank prior to 29th September 1995 in case of Nationalised Banks/26th March 1996 in case of Associate Banks of State Bank of India and retired after that date and prior to the date of above mentioned Bipartite Settlement/Joint Note i.e. 27.04.2010; 

(e) exercise an option in writing within 60 days from the date of offer to become a member of the pension fund and, 

(f) refund within 30 days after expiry of the said period of 60 days, the entire amount of the Bank’s contribution to the Provident Fund and interest accrued thereon received by the employee/officer on retirement together with the payment over and above the said amount at 56% of the amount. 

3. Families of above mentioned employees / officers were also made eligible for said option subject to refund of Bank’s contribution to the Provident Fund received by them as mentioned in point (i) above. 

4. 2nd option of Pension was, however, not made available to the employees/officers who were compulsorily retired by the Bank. As such, some of these aggrieved employees/officers approached different Hon’ble High Courts seeking relief in the matter. Various Hon’ble High Courts viz Andhra, Madras, Madhya Pradesh, Punjab & Haryana and Patna have ruled in favour of the employees/officers who were compulsorily retired. However Hon’ble Delhi High Court has taken a contrary view on the technical ground. 

5. The matter was placed before the Standing Committee on HR of IBA in its meeting held on 07.12.2017. After deliberations, the committee recommended to place the matter before the Managing Committee of IBA. Accordingly, the matter was put up to the Managing Committee of IBA in its meeting held on 29.12.2017. The committee advised to seek legal opinion on the judgements as to whether 2nd option of pension may be allowed to all ex-officers/ex-employees who were compulsorily retired from Bank’s service between 29.09.1995 to 27.04.2010 or only selectively to those who approached the Bank for the same. 

6. The legal opinion from Shri S.D. Kelkar, Senior Partner, Kelkar & Associates whose services have been engaged in IBA as retainer, was obtained in the matter. His opinion is as under 

“Having considered the decisions rendered by the Hon’ble High Courts of Andhra Pradesh, Madras, Madhya Pradesh, Punjab & Haryana, Patna which have ruled in favour of the employees/officers who were compulsorily retired by way of punishment on the ground that they are covered by the Joint Note as well as decision of the Hon’ble Delhi High Court which has taken a contrary view on the technical ground and the fact that SLPs preferred against the judgments of the High Courts which had ruled in favour of the employees were dismissed, though such dismissal cannot be considered as law laid down by, the SC, we are of the considered view that the banks are bound to give 2nd option to all the employees/ officers who were compulsorily retired and who fall within the ambit of the Joint Note to exercise 2nd option for the following reasons:- 
  • The Joint Note does not distinguish between voluntary retirement, superannuation, premature retirement, compulsory retirement. 
  • Even the employees/ officers who are compulsorily retired by way of punishment are eligible for pension under the pension regulations. 
  • Banks being “State” within the ambit of Article 12 of the Constitution of India should act in a fair and reasonable manner and should not restrict it only those who demand it. Such stand, if any, adopted by the banks may invite strictures from the Courts." 
7. The views of the Legal Retainer of IBA were placed before the Managing Committee of IBA in its meeting held on 25.01.2018. The committee after deliberation concurred with the legal opinion placed before it and advised to inform all PSBs accordingly. The exact modus operandi of the extension of 2nd option to compulsorily retired employees/officers was to be worked out in discussions with GMs (HR) of PSBs to decide on a uniform methodology which will stand scrutiny of court. 

8. To work out the methodology in this regard, a meeting of the GMs (HR) was convened on 28.02.2018 at IBA. After detailed discussions, a consensus has been arrived at to extend the option of pension to compulsorily retired employees/officers on same terms & conditions as are mentioned in Bipartite Settlement/Joint Note dated 27.04.2010. As per the agreed terms conditions of said Bipartite Settlement/Joint Note, Pension/Family Pension shall be payable with effect from 27th November, 2009, provided that employees/officers who are compulsorily retired after that date shall get pension from the respective dates of such retirement. Court cases, if any, in the matter may be withdrawn forthwith. 

9. Please do the needful accordingly. 

Yours faithfully, 
Sd/- 
B Raj Kumar 
Deputy Chief Executive 

Source: www.iba.org.in 
[http://www.iba.org.in/documents/2nd-Option-Pension-4684.pdf]

COMMENTS

Defence$type=complex$count=4$ico=1

7th CPC$type=list$m=0$cate=0$sn=0$rm=0$c=5

Name

'Aaykar Setu' mobile app,1,5th cpc,6,6th cpc,8,7th CPC,408,7th CPC Arrears,4,7th CPC Arrers,8,7th CPC Hindi News,13,7th CPC News,73,7th Pay Commission,219,Aadhaar,23,acpin,1,ad-hoc bonus,4,ad-hoc staff,1,additional hra,1,admit card,1,advance salary,1,AGEY,1,aicpin,10,aigdsu news,6,AIIMS,2,ailtc railways,7,aipr,3,Air Force,13,Air India,5,air india ltc 80 fare,4,Air Travel,7,Aircel,1,airf,18,Airlines,1,Airtel,4,alcohol policy,1,all india,5,Allowances,125,Amazon Ofers,1,Andhra Pradesh,1,Andhra Pradesh govt employee,1,anomaly committee,1,aoc,1,apar,1,app download,1,Apple iPhone,3,Assam,4,Assistant Jobs,1,Bank,31,bank da,3,bank holidays,1,Bank Policies,19,banknotes,1,Bihar,9,Bihar 7th CPC,3,bihar govt employee,1,Bollywood,4,bonous,1,bonus,6,breakdown allowance,2,Breaking News,139,BRICS,1,Bsnl,12,BSNLMRS Hospitals,1,budget,4,Business,84,ca exam pattern,1,Cabinet News,41,cadre restructuring,3,cadre review,13,CAG Report,3,CAPO News,4,Career,56,career progression,1,casual labour,3,casual leave,3,cat Judgement,4,cat order,3,CBDT,12,CBEC,4,CBSE,7,ccs master circular,1,ccs pension rules,2,ccs rules,4,ccsrp rule,1,cda rules,2,cgda,26,cgegis table,6,CGHS,89,cghs agartala,1,cghs ahmedabad,1,cghs allahabad,1,cghs bengaluru,2,cghs bhopal,1,cghs bhubaneswar,1,cghs chandigarh,1,Cghs Chennai,1,cghs dehradun,1,cghs delhi,3,cghs guwahati,1,cghs hyderabad,1,cghs indore,1,cghs jabalpur,1,cghs jaipur,1,cghs kanpur,2,cghs karnataka,1,cghs kerala,1,cghs kolkata,1,cghs lucknow,1,cghs meerut,2,cghs mumbai,1,cghs nagpur,1,cghs patna,2,cghs pune,1,cghs ranchi,2,cghs shillong,1,cghs trivandrum,2,cghs uttrakhand,1,chandigarh,1,chhattisgarh,1,child care leave,2,children education allowance,7,China,1,cisf,1,come & play scheme,1,compassionate ground appointment,5,Compensation Policy,3,composite allowance,1,condiment allowance,3,Condiment expenditure,2,confedration,1,consatant attendance allowance,1,contract labour,7,Conveyance Allowance,3,cpao order,21,cpf,1,cpgrams,3,cpiiw,4,cpse,70,cpse employees,8,cpse guidelines,29,cpse pay revision,2,cpse pension,5,CPSEs Pay,20,Cricket,4,cris,3,CRPF,1,CS(MA) Rules,5,csd,2,csd price list,1,Current Affairs,308,cvc circular,2,d el ed,1,daily officiating allowance,3,dearness allowances,49,dearness relief,18,Defence,236,Delhi,2,delhi govt employee,2,delhi high court,1,dental doctor,1,dept of post order,43,deputation,3,deputation allowance,4,desw,2,desw order,5,disability pension,5,dlc,2,Doctor Jobs,12,doe order,24,doppw order,8,DoPT Order,127,dot order,10,Download MedWatch App,1,Download MyMSME App,1,Download MyMSME App Celebrating Yoga,1,Download NEW ITR FORM,2,Download Swachh Bharat App,1,dpe om,34,dress allowance,5,dress code,1,EC,1,echs,24,ecil,1,EDUACTION,75,Education,7,educational qualification,1,Egineer Jobs,1,Election Commission,1,Employment,6,Entertainment,2,EPFO,25,ESIC,4,eview committee for nps,1,EVM,1,Ex-Servicemen,6,exam,2,exempt from tax,1,expected da,11,extra work allowance,1,Extraordinary Pension,1,Facebook,8,fact jobs,1,Family Pension,95,FAQ,2,Featured,79,festivals,1,FIFA,1,File ITR,23,Fin Min Orders,66,Finance,8,Fixed Medical Allowance,7,Flipkart,2,Football,3,FREQUENTLY ASKED QUESTIONS ON GST,1,Games,12,Ganes,2,gazette notification,13,gdce instructions,3,gds,1,gds arrears,9,gds da,11,gds employees news,19,gds pay,15,gds report,18,gfr,1,GOI News,570,Goods and Services Tax,50,Goods and Services Tex,1,Google,10,government of karnataka,1,Govt Jobs,11,govt of assam,2,govt of assam pensioner,1,govt of assam staff,1,govt of chhattisgarh,1,Govt Project,324,Govt Staff News,1133,Govt Yojna,257,gpf interest rate,1,GPF Rules,12,GPRA,4,gratuity,6,group A,1,Group D,1,Gst,61,GST Rates Finder app,1,Hardship Allowance,1,Haryana Govt Employees,2,Haryana Govt order,2,hba rules,9,Health,25,High Court Judgement,3,high court order,2,hill area allowance,1,holiday list,11,Hollywood,2,honorarium,1,hpca,1,hr allowances,1,hra,2,HRA Allowances,39,iba,6,iba dr,1,ibps,2,icsil,1,ida cpse,15,income tax,23,independence day,1,India,3,India Post,15,Indian Airforce,49,Indian Army,68,Indian Navy,63,indian railway,10,IOCL Jobs,1,IRCTC,8,irms,1,irtsa,2,Island Special Duty Allowance,1,ISRO,1,iti ltd,1,ITR,32,j&k govt employees,3,j&k govt pensioners,1,Japan,1,Jharkhand,3,Jio News,8,jkssb,1,jnv,7,Jobs,54,Jobs News,102,karnataka,1,kerala,4,Kerala Govt Employees,4,Kerala Govt Pensioners,2,Kolkata,1,KVS,40,kvs pension,2,labour Bureau,7,larsgess scheme,3,Latest,991,ldce,3,leave rules,1,lic pay,2,life certificate,1,life time arrear,1,Lok Sabha,142,LTC,38,ltc 80 air fare,6,Ltd Company Jobs,2,mAadhaar App,2,macp,32,Make in India,2,Market,1,Maruti Suzuki Dzire,1,maternity leave,6,medical card,1,Medical claims,4,Meghalaya Govt Employees,1,MERIT app,1,mes,1,MGNREGA,2,mha,1,mhfw order,14,mhrd order,1,Microsoft,1,Microsoft News,1,minimum wages,7,mod order,17,mohfw order,5,monetary allowance,3,MP,1,msp,2,mtnl,2,NABARD,1,Namami Gange,5,National,705,ncjcm,21,nda,2,ndmc,1,New Delhi,3,new TRCA matrix,5,nfir,62,NGT,1,night duty allowance,2,northern railway,1,Notification,1,npci,1,nps,35,nps updates,1,nursing allowance,2,nursing perssonsel,2,NVS,9,odisha,3,odisha govt employees,1,odisha govt pensioner,1,operation theater allowance,1,ordnance factory,1,orop,16,overtime allowance,6,PAN,6,pass rules,4,Passports,1,patna high court judgement,1,pay fixation,21,pay slip,1,pcda circular,41,pco allowance,2,pda lists,1,pdca circular,8,Pension,211,Pension Adalat,2,Pension Adalat Application Form,3,Pension faq,21,Pension revision,8,Pensioner,166,Pensioner associations,3,Pensioner Portal,12,pfrda,3,pgportal,3,pl bonous,12,PM Modi,26,PMAY,5,PMUY,1,PMVVY,1,Policies,387,Politics,36,post graduate allowance,1,post office,3,prcp in railway,4,President,2,Project Allowance,2,Promotions,22,Promotions policy,26,provisional pension,2,puducherry,1,Railway,372,railway servants pass rules,1,rajasthan govt employees,2,rajasthan govt pensioners,1,rajbhasha,1,Rajya Sabha,38,Rashtriya Swasthya Bima Yojana,1,ration money allowance,2,RBI,11,Real Madrid,1,Recruitment,6,recruitment rules,9,relhs,1,remote area allowance,1,remuneration,1,RERA Act,1,reservation criteria,11,rest rules,1,Result,5,retirement age,2,retirement benefits,1,review committee for nps,6,revised pay,25,revised pay matrix table,5,revised pension,3,revised vda,8,rilways,1,risk and hardship allowance,8,RS (RP) Rules,2,running staff,2,RUSA,1,s,1,SAARTHI App,1,SBI,11,SBI Rules,6,scholarship,1,Science,17,scova meeting,1,SEVA App,1,Seventh Central Pay Commission,149,SKILL INDIA Mission,1,small saving scheme,2,special allowance,3,Special LC Gate allowance,1,Sports,16,ssc jos,1,status of PPOs,2,storekeeping staff,1,strike,3,study allowance,1,study leave,1,Sukanya Samriddhi Account,2,Supreme Court,22,Supreme Court Judgement,17,Survey,1,syllabus,1,syndicate bank,1,Tarang Sanchar,1,Tax,22,tds deduction,3,teacher jobs,2,Tech,34,Telangana,1,telangana govt employees,1,Telcome,2,Telcome News,8,timely disposal of applications,1,TN Govt Employees,4,TN Govt Pensioners,3,tnusrb recruitment,1,Trade,1,trade unions,1,TRAI,1,training allowance,2,Transfer policy,25,transport allowance,4,Travelling Allowance,22,Trending Now,131,tripura govt employees,1,tripura govt pensioner,1,Trump,1,uan,1,Uber,1,ugc,1,uidai,1,UJALA Scheme,1,UP CM Yogi Adityanath,2,UP Govt Employees,1,upgradation of pay,2,uppsc,1,UPSC Jobs,2,USA,2,Uttar Pradesh,3,vrs,2,Weather,2,West Bengal,1,Whatsapp,2,Windows 10 OS,1,World,62,World Press Freedom Day,1,You Tube,2,
ltr
item
Param News: Central Government Employee News|Latest DOPT OM: 2nd Option of Pension for Compulsorily Retired Officers/Employees: Indian Bank's Association letter dated 16.03.2018
2nd Option of Pension for Compulsorily Retired Officers/Employees: Indian Bank's Association letter dated 16.03.2018
Banks are bound to give 2nd option to all the employees/ officers who were compulsorily retired and who fall within the ambit of the Joint Note to exercise 2nd option for the following reasons:-
https://3.bp.blogspot.com/-nJK_ORy27so/WrsE_6xJ1FI/AAAAAAAAGIk/UoSX1OHwaoc7KrXhFD0fXiJfbUa22KINACLcBGAs/s1600/2nd-option-of-pension-for-compulsorily-retired-officers-employees.png
https://3.bp.blogspot.com/-nJK_ORy27so/WrsE_6xJ1FI/AAAAAAAAGIk/UoSX1OHwaoc7KrXhFD0fXiJfbUa22KINACLcBGAs/s72-c/2nd-option-of-pension-for-compulsorily-retired-officers-employees.png
Param News: Central Government Employee News|Latest DOPT OM
http://www.paramnews.com/2018/03/2nd-option-of-pension-for-compulsorily.html
http://www.paramnews.com/
http://www.paramnews.com/
http://www.paramnews.com/2018/03/2nd-option-of-pension-for-compulsorily.html
true
2671314941044517342
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy