Option for joining existing pension scheme was not extended earlier to bank Officers who took voluntary retirement.
Now this IBA circular provides that officers who had availed VRS on
after 29.06.1995 ( in the case of associate bank of state bank of
india on or after 26.03.1996) can now give option to join the pension
scheme
Indian Banks’ Association
No.CIR/HR&IR/2012-13/G2/6213
November 9, 2012
Chief Executives of Member Banks which are parties to the Joint Note dated 27.4.2010 on Pension Option
Dear Sirs,
Joint Note dated 27.4.2010 with Officers’ Organisations for extending
another option to join the Pension Scheme to those who did not opt for
pension earlier
We would like to draw your attention to
our Circularno.CIR/HR&IR/G2/665/90/2010-11/999 dated 10.8.2010
forwarding copies of the Settlement / Joint Note on extending another
option for pension to the non-optees who were in the service of the bank
prior to 29th September 1995 in case of Nationalised Banks and 26th
March 1996 in case of Associate Banks of State Bank of India and
continued to be in service on or after the said date and did not opt for
pension earlier.
2. In terms of aforesaid Joint Note, another option for joining the
existing Pension Scheme was extended under the following clauses to
those officers who-
Clause-2(a): Were in the service of the bank prior to 29th September
1995 in case of Nationalized Banks / 26th March 1996 in case of
Associate Banks of State Bank of India and continue in the service of
the bank on the date of this Joint Note;
Clause-3(a): Were in service of the bank prior to 29th September 1995 in
case of Nationalized 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 this Joint Note;
Clause-4: The family of those officers who were in the service of the
bank prior to 29th September 1995 in case of Nationalized Banks / 26th
March 1996 in case of Associate Banks of State Bank of India retired
after that date and had died will beeligible for family pension.
Clause-5: The family of those officers who were in the service of the
bank prior to 29th September 1995 in case of Nationalized Banks / 26th
March 1996 in case of Associate Banks of State Bank of India, but have
died while in service of the bank after that date will be eligible for
family pension.
Clause-7: Officers who ceased to be in service on or after 29th
September 1995 in case of Nationalized Banks / 26th March 1996 in case
of Associate Banks of State Bank of India on account of voluntary
retirement under special scheme after rendering service for a minimum
period of 15 years, shall be eligible to exercise an option to join the Pension Scheme subject to the terms and conditions mentioned for retiring officers opting for joining the Scheme.
3. The Joint Note dated 27.4.2010 for extending another option for
pension to the non-optees indicates the categories of
employees eligible for another option. In accordance with the provisions
contained in the Joint Note dated 27.4.2010. Banks had extended the
benefit of exercising another option to join the Pension Scheme to
the eligible category of employees within the prescribed time schedule.
However, the Joint Note did not specifically include a provision for
offering another option to join the pension scheme to those officers who
took voluntary retirement. Consequently, a number of representations
were made by such category of officers to banks / IBA / Government and
many of them moved to court of law. Besides, representations have also
been made by UFBU to resolve the issue.
4. The above matter has been engaging the attention of Government as
well asIBA for quite some time. Accordingly, the Managing Committee
of IBA at its meeting held on 30.10.2012 had decided that those officers
who took Voluntary Retirement within the meaning and provision of
Regulation 19(1) of Bank Officers’ Service Regulations, 1979 may be
extended the benefit of exercising another option to join the existing
Pension Scheme strictly in accordance with the terms and conditions laid
down in the Joint Note dated 27.4.2010.
5. We are, therefore, to advise that the banks may, as decided by the
Managing Committee of IBA extend the benefit of exercising another
option to join the Pension Scheme to those officers who had taken
Voluntary Retirement from the Bank’s service on or after 29.6.1995 in
case of Nationalised Banks / 26.3.1996 in case of Associate Banks
of State Bank of India in terms of rules framed by each Bank’s Board
pursuant to the proviso to Regulation 19(1) of Bank Officers’ Service
Regulations, 1979. Besides, the family of those officers who were in the
service of the bank prior to 29.9.1995 in case of Nationalised
Banks/26.3,1996 in case of Associate Banks of State Bank of India,
retired after that date and had died thereafter will be eligible for
another option to join the existing Pension Scheme for family pension.
These categories of officers / family members are to be sanctioned
the benefits in terms of Regulation-29 of Bank Employees’ Pension
Regulations, 1995.
6. In extending the aforesaid benefits, all terms and
conditions contained in Joint Note dated 27.4.2010 as enclosed with our
letter no. CIR/HR&IRG2/665/90/2010-11/999 dated 10.8.2010 should
be strictly adhered to.
7. No other category of officers outside the purview of Regulation 19(1)
of Bank Officers’ Service Regulations, 1979 would
be eligible to exercise another option to join the existing Pension
Scheme.
Yours faithfully‚
sd/-
K.UNNIKRISHANAN
DY.CHIEF EXECUTIVE
