VRS OPTEES IN BANKS DENIED PENSION BY IBA DISOWNING BANK MANAGEMENTS BOARD DECISION - ALLCGNEWS

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07 September 2010

VRS OPTEES IN BANKS DENIED PENSION BY IBA DISOWNING BANK MANAGEMENTS BOARD DECISION

aiboa logoALL INDIA BANK OFFICERS' ASSOCIATION



ALL INDIA BANK OFFICERS' ASSOCIATION
Circular Letter No. 15/V/2010
August 25, 2010


To:
ALL UNITS / STATE COMMITTEES


Comrades,



VRS OPTEES IN BANKS DENIED PENSION BY IBA
DISOWNING BANK MANAGEMENTS BOARD DECISION

                                                                                                                               
Once the implementation of one more option was cleared by vacation of stay order of Madras High Court, IBA has circulated the pension scheme to all banks.

However acting on a reference by one Bank, IBA has advised Banks to withdraw circular issued [by United Bank of India] in respect of pension under VRS.

These instructions as well as omission of optees under VRS scheme in Banks as per OSR denying pension to such optees is at variance with UFBU discussions on the matter.

As such we have drawn the attention of IBA to the non-inclusion of VRS optees for option in Banks as not tenable and urged upon them to include those optees also for eligibility.  IBA has informed us that they would discuss the matter in their Managing Committee.

We are proceeding to take steps to file court case in case our efforts fail to secure option to VRS optees in Banks.   Canara Bank management has already decided not to permit pension option to such officers retired on VRS.  In view of the fact Canara Bank VRS optees are readily available and have already taken steps in this regard we have entrusted the work to All India Canara Bank Retirees’ Federation and Canara Bank Officers’ Union who are co-ordinating the matter under the guidance of our legal counsel. 

We call upon our Units / State Committees to inform all VRS optees and advise them to remit Rs.5000/-= favouring Canara Bank Officers’ Union drawn on Chennai towards expenses for litigation in High Court and Supreme Court.  After filing court cases and meeting expenses, the balance shall be remitted back to the VRS optees who remit the amount.

The drafts may be taken favouring Canara Bank Officers’ Union [Regd.] as they have engaged legal counsel M/s C.R.Chandrasekaran and Senior Counsel Shri A.L.Somayajee to argue our case in High Court and Supreme Court.

As a prelude to undertake legal action, we call upon all our VRS retirees to submit their option letters in the prescribed format given by the respective Banks by Regd.Post / Speed Post with acknowledgement due and keep copy of the same in your files.  Upon rejection of option by the Bank other course of action will follow.

We call upon all VRS optees to join collectively to fight unjust denial of option to them defeating the sanctity of individual Bank management and their Boards which have extended the same.

We furnish herewith copy of our letter No.IBA:BKS:78:2010 dated 16.08.2010      addressed to IBA.

We also enclose the profile format to be filled up and return to us with demand draft for necessary action.

With Greetings

/R.J.SRIDHARAN/
GENERAL SECRETARY

OUR LETTER NO. IBA:BKS:78:2010 DATED 16.08.2010 ADDRESSED TO
THE CHAIRMAN, INDIAN BANKS’ ASSOCIATION, MUMBAI
  
Dear Sir,
VRS UNDER OFFICERS’ SERVICE REGULATIONS

We are dismayed to note from your communication No.CIR/HR&IR/G2/665/90/2010-11/999 dated 10.08.2010 addressed to member banks excluding coverage of one more option for pension in respect of Officer Employees who were PF optees and who had left on Voluntary Retirement as per the Scheme formulated by the respective Board of Directors of the Banks in terms of Officers’ Service Regulations and in view of their separate scheme of Voluntary Retirement in the Bank.
Prior to introduction of Pension Scheme in 1995, we understand that apart from Canara Bank, other banks like Syndicate Bank, Central Bank of India, Bank of India Bank of Baroda etc., in all about 13 banks, provided for Voluntary Retirement Scheme for Officer Employees who were PF Optees in accordance with the provisions contained in the Service Regulations. In some banks, the only exit route for non-pension optees before superannuation is Resignation. 
In this regard, for instance, we invite your kind reference to Provision 19 (1) of Canara Bank (Officers’) Service Regulations 1979: “The Bank may at, at its discretion, on a review by the Special committee/Special Committees, as provided hereinafter, in Sub Regulation (2) retire, if it is in the interest of the Bank/in Public interest to retire an officer employee at any time after completion of 55 years of age, or at any time, after completion of 30 years of service as officer employee, whichever is earlier". Further proviso to the Regulation reads as under:
"provided also that nothing in this Regulation shall be ‘deemed to preclude’
an officer employee from retiring ‘earlier’ pursuant to the option exercised by him in accordance with the rules of the Bank"
This salutary principle as contained in the proviso to the main regulation conferring power on the bank to compulsorily retire an officer employee in public interest, also conferring a corresponding right on the employee to retire voluntarily from bank’s service has been ignored by the IBA, while clarifying on eligibility for one more pension option to this category of employees who voluntarily retired in terms of the Bank’s Scheme. You will please appreciate that this principle of corresponding right  to retire has been upheld by the Supreme Court. 
Hence nothing in the Officers’ Service Regulations precludes an officer employee from "Retiring Voluntarily before superannuation", "pursuant to the option exercised by him", "in accordance with the rules of the Bank" framed with the approval of the Board of Directors. As such, it is the duty of respective Banks to ensure that such PF retirees also are made eligible to exercise one more option for Pension. 
The above anomaly needs to be removed and we request you to advise the member banks suitably in this matter paving the way for smooth implementation of Joint Note on Pension signed on 27.04.2010 so as to render justice to this segment of officer employees who exited from Bank’s service with the permission of the Banks in terms of a Scheme formulated by their respective Board of Directors, complying with the stipulated terms and conditions in the Scheme.
We may particularly add here that Officers who have opted for VRS under Officers’ Service Regulations till 27-04-2010, the date of Joint Note have been extended the benefit of pension while retiring from the service of the Bank and as such any denial of pension option to such voluntarily retired officers will be discriminatory and untenable in terms of law.
We look forward to your positive response expeditiously in this matter and thanking you,
Yours sincerely,
/sd./ R.J.SRIDHARAN 
GENERAL SECRETARY

Copy to:

 1.Dr.Ramakrishna, C.E.O., IBA, Mumbai.
2.Sri K.Unnikrishnan, Deputy Chief Executive, IBA, Mumbai.
3.Sri M.Venugopalan, Personnel Advisor, IBA, Mumbai.
4.Sri A.K.Nahar, General Manager, Personnel Wing, Canara Bank, H.O., Bangalore.


PROFILE  OF  WRIT PETITIONER (VR – OSR)


01
Name & Staff Number:

 
02
Designation at the time of retirement:

 
03
Last Branch Worked:

 
04
Date of Birth or Age:

 
05
Father’s Name

 
06
Date of Joining Bank’s Service:

 
07
Date of Retirement:

 
08
Number of Years of Actual Service:

 
 
09
 
 
 
Latest Address for communication:
 
 
 
10
 
 
Permanent Address:
 
 
 
11
 
Cell No:
 
Landline No:
 
12
 
E-Mail Id:
 
 
13
VR Application date:

 
14
Ref No. of Letter conveying acceptance of VR under OSR

 
15
Relieving Order Ref No.

 
16
 
 
Remarks, if any,
 
 
 

I hereby consent to be a party to the proposed legal action which will be pursued by AIBOA for common cause relating to getting pension option for Officers retired voluntarily under Voluntary Retirement Scheme as per Officers’ Service Regulations, 1979 and further request them to get the writ petition filed in the Madras High Court for achieving this common cause.
 


DATE:                                                                                                                        SIGNATURE OF RETIRED OFFICER

Circular No.21/V/2010
August 24, 2010

  
To:
ALL UNITS / STATE COMMITTEES


Comrades,

 CENTRAL TRADE UNIONS STRIKE ON 07.09.2010
AIBOA TO EXTEND SOLIDARITY SUPPORT TO THE STRUGGLE
 
The July 15, 2010 convention of Central Trade Unions held at New Delhi decided to launch a national agitation against unabated price rise, disinvestment of PSUs, dismantling of labour laws,  and for recruitment and greater thrust for funding Unorganized Sector Relief and decided to culminate the agitation in a one day national strike on 7.9.2010.
 
The issue of Bank unions supporting the programmes and participating in the strike was discussed in the UFBU meeting on 26.07.2010.  While AIBEA and INBOC informed that they are a party to the convention and decision of strike, from AIBOA it was pointed out that UFBU should have a common approach to the strike so that all unions will be enabled to participate in the programme.  To our specific request to AIBOC to consider joining the strike as the Number one organization of officers in terms of numbers, AIBOA as a second largest union finds it difficult to participate in such strike when AIBOC takes a different position, then [AIBOC] informed that their Executive Committee will discuss the matter, the UFBU instead of persuading all the unions, including AIBOC to join the strike on 07.09.2010 merely decided that respective unions would decide.
 
Subsequently INBOC has also informed us that they will not participate in the strike.
 
In this background AIBOA Office Bearers meeting took place at Delhi on 22.08.2010 and discussed the entire situation.  In the wake of the given situation when AIBOA has a membership of only about 45000 including PSBs and Private Banks the industry has always witnessed the strange attitude of AIBOC committing anti privatization slogans and staying away from strike and UFBU also adopts a stoic silence over such negative tactics by constituent units during such strikes AIBOA felt that with the present UFBU structure and many sided compromises to suit some units, our members should not be exposed to poaching by other organizations who opt out when it came to strike on National issues.  Our number at present is a fact of life and improving it depends on our right tactics including meeting the deceitful policies pursued by any organization.
 
Hence AIBOA with a view to still explore the possibility of a total strike approached the Office Bearers of Nationalized Bank Officers Forum who are also principal leaders of AIBOC Com.Sircar and Com.Khera as Com.Shetty was not available for a possible united action since they were expressing that they were for joining the strike.  However they wanted a day’s time for consultations and today morning ie; 24.08.2010 Com.Sircar informed us that there is no unanimity in his forum even though many units wanted to go on strike, some are not for it.
 
Comrades!  AIBOA in regard to the above developments decided to extend solidarity support to Central Trade Unions struggles and to participate in all programmes except the strike on 7.9.2010 which we are unable to participate because of inability of UFBU to persuade all unions to join the strike  leaving it to respective unions.
 

Comrades!  Participate in all preparatory programmes of the CTOs at every place /Town/District HQ /State Capital and make it a success.  On 7th September 2010 when workmen may be on strike in Banks extend all solidarity and support and desist from doing clerical work.


Support the National Strike on 07.09.2010 and make it a success.

With greetings
  
/R.J.SRIDHARAN/
GENERAL SECRETARY


Source - All India bank officers association

ALL INDIA BANK OFFICERS' ASSOCIATION


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