PENSION BENEFITS

CIRCULAR NO. 26/64/2010/14 12-5-2010

TO ALL UNITS & MEMBERS

Dear Comrades,

Retired Employees & Pension Option

The unique feature of our Pension settlement is that not only the 2,66,000 existing employees will get an option to join the Pension Scheme, but even those who have retired/died after 1995/1996 will be given this option. More than 50,000 retirees/families will be benefited by this option.

Who are covered :

All those who were in the service of the Bank on the date of Pension Regulations in 1995/96 and

a) have retired thereafter before 27.4.10
b) or retired thereafter but died before 27.4.10
c) or died while in service before 27.4.10
d) or ceased to be in service under the Special VRS Scheme after 15 years of service.

How much they will pay to the Bank ;

All such retirees/families who give their option to join the Pension Scheme have to refund the Bank’s contribution to PF received by them along with additional 56% thereon.

How this formula :

v Total fund required for the option : Rs. 4774 crores
v PF paid to the retirees to be refunded : Rs. 1659 crores
v Balanced deficit in fund : Rs. 3115 crores
v To be contributed by Bank (70%) : Rs. 2181 crores
v To be contributed by retirees (30%) : Rs. 934 crores
v Formula : 934 Divided by 16.59 : 56 %

Procedure :

Þ IBA / Banks will make an offer to the PF opted Retirees.
Þ Within 60 days after the offer, option letter should be given to the Bank.
Þ Within 30 days thereafter, Bank will inform the retiree about the amount payable by them.
Þ While doing so, Commutation receivable will be netted and only the balance amount is payable.
Þ Commutation : will be based on present age on date of commutation.

Arrears of Pension :

Ø For those who have retired prior to 27.11.2009, arrears of pension will be paid from 27.11.2009.
Ø For those who retired after 27.11.2009 (but prior to 27.4.2010), arrears of pension will be paid from date of retirement.


Note : This arrears will be on full basic pension + DA without commutation.

Employees Retired after 1-11-2007 ( PF Optees )


Arrears of wage revision from 1.11.2007 till date of retirement will be paid.
Gratuity will be reworked & difference will be paid.
Their Pension/Commutation will be fixed based on 9th BPs.


We give below some live examples which explain the benefit of the option.

Example – 1

S. No.

(Rs.)
1
PF received from Bank 1,25,416.00
2
PF + 56% thereon 1,95,650.00
3
Commutation receivable 1,86,984.00
4
Amount payable to Bank (2-3) 8,666.00
5
Monthly Basic Pension + DA (before commutation ) for May, 2010) 8,046.00
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 64,368.00
7
Net Outgo (2 – 3 - 6) ----NIL….
8
Monthly Basic Pension after commutation 2,354.00
9
Basic Pension + DA after commutation (May, 2010) 6,870.00

Example – 2

1
PF received from Bank 6,26,181
2
PF + 56% thereon 9,76,842
3
Commutation receivable 3,02,382
4
Amount payable to Bank (2-3) 6,74,460
5
Monthly Basic Pension + DA (before commutation) for May, 2010 16,251
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 1,30,008
7
Net Outgo ( 2 -3 -6 ) 5,44,452
8
Monthly Basic Pension after commutation 6,420
9
Basic Pension + DA after commutation (May, 2010) 13,041
10
Monthly Interest @9% on Rs. 544,452 (Col. 7) 4,083
Example – 3

1
PF received from Bank 1,99,856
2
PF + 56% thereon 3,11,775
3
Commutation receivable 1,09,837
4
Amount payable to Bank (2-3) 2,01,938
5
Monthly Basic Pension + DA (before commutation) for May, 2010 5,903
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 47,224
7
Net Outgo ( 2 -3 -6 ) 1,54,714
8
Monthly Basic Pension after commutation 2,332
9
Basic Pension + DA after commutation (May, 2010) 4,737
10
Monthly Interest @ 9% on Rs. 154,714 (Col. 7) 1,160


Example – 4

1
PF received from Bank 359,869
2
PF + 56% thereon 561,396
3
Commutation receivable 266,814
4
Amount payable to Bank (2-3) 294,582
5
Monthly Basic Pension + DA (before commutation) for May, 2010 14,709
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 117,672
7
Net Outgo ( 2 -3 -6 ) 176,910
8
Monthly Basic Pension after commutation 4860
9
Basic Pension + DA after commutation (May, 2010) 12,279
10
Monthly Interest @9% on Rs. 176,910 (Col. 7) 1,326


Example – 5

1
PF received from Bank 577,750
2
PF + 56% thereon 901,300
3
Commutation receivable 391,700
4
Amount payable to Bank (2-3) 509,600
5
Monthly Basic Pension + DA (before commutation) for May, 2010 18,700
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 149,600
7
Net Outgo ( 2 -3 -6 ) 360,000
8
Monthly Basic Pension after commutation 7,400
9
Basic Pension + DA after commutation (May, 2010) 15,000
10
Monthly Interest @9% on Rs. 360,000 (Col. 7) 2,700

Example – 6

1
PF received from Bank 819,019
2
PF + 56% thereon 12,77,670
3
Commutation receivable 441,725
4
Amount payable to Bank (2-3) 835,945
5
Monthly Basic Pension + DA (before commutation) for May, 2010 20,369
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 162,952
7
Net Outgo ( 2 -3 -6 ) 672,993
8
Monthly Basic Pension after commutation 8,047
9
Basic Pension + DA after commutation (May, 2010) 16,346
10
Monthly Interest @9% on Rs. 672,993 (Col. 7) 5,047

Example – 7

1
PF received from Bank 190,000
2
PF + 56% thereon 296,400
3
Commutation receivable 229,542
4
Amount payable to Bank (2-3) 68,858
5
Monthly Basic Pension + DA (before commutation) for May, 2010 11,140
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 89,120
7
Net Outgo ( 2 -3 -6 ) …NIL…
8
Monthly Basic Pension after commutation 3,351
9
Basic Pension + DA after commutation (May, 2010) 9,465

All our Unions should take steps to contact the retirees ( PF Optees) and advise them of these benefits so that they can OPT for the pension scheme for which they have been longing for.

Yours Comradely,
C.H. VENKATACHALAM
GENERAL SECRETARY

9th Bipartite Settlement signed today

Congratulations and Greetings
9th Bipartite Settlement signed today
AIBEA achieves Pension again and Pension for all

The much-awaited Settlements on wage revision and pension option have been signed today with the IBA, achieving another landmark in our trade union movement. The 9th successive Bipartite Settlement has been signed and the wages and service conditions of bank employees have been improved. The Pension option Settlement has also been signed today which enables all the remaining employees to be covered by the D.A. linked Defined Benefit Pension Scheme, which is the best social security measure in the post-retiral life of employees.
We are happy that under the banner of UFBU, all the 9 unions have simultaneously signed the Agreements covering both employees and officers, manifesting the true spirit of the UFBU.
The Settlement covers 46 Banks (26 Public Sector Banks, 12 Private Sector Banks and 8 Foreign Banks) and would benefit 4,77,000 workmen employees and 2,75,000 officers. The Settlement would cost the Banks an additional increase in wages by Rs.5,200 crores per year (Rs.4,816 crores for Public Sector Banks and around Rs.400 crores for private and Foreign Banks). The Settlement will be effective from November 2007 to October 2012.
Under the Settlement all the remaining 2,60,000 employees and officers who are now covered by CPF would be given a chance to join the Pension Scheme - a long time demand of the Unions. More than 50,000 retirees will also get the option to join the pension scheme.
The Settlement is preceded by 30 months of protracted negotiations between the IBA and the unions, and was backed by various agitational programmes and strike actions, which were enthusiastically implemented by the members. There were many anxious moments during this period coupled with loads of misinformations, orchestrated columnies and virulent propaganda against all our efforts to settle. Added to this were the attempts to undermine the organistion, decry the leadership and derail the negotiations. But overcoming this and these, we have concluded the Settlement successfully.
Hats off to your unity, patience and co-operation. You have done proud to AIBEA.
Greetings to all of you.

9th BIPARTITE SETTLEMENT SIGNED JUST NOW

9th BIPARTITE SETTLEMENT SIGNED JUST NOW.PENSION COST ONLY FROM PF OPTEES @2.8 TIMES OF REVISED PAY OF NOV 2007.NO OUTSOURCING CLAUSE.

EXISTING PENSION OPTEES MAY BE EXEMPTED FROM SHARE!

9Th BIPARTITE SETTLEMENT IS GOING TO BE SIGNED NOW…..
FRESH OPTEES OF PENSION NEED TO PAY ONLY 2.8 TIMES NOVEMBER 2007 NEW BASIC PAY &ALLOWANCES.EXISTING PENSION OPTEES MAY BE EXEMPTED FROM SHARE.

pension option

UFBU CIRCULAR LETTER NO. 2010/5 22-4-2010

TO GENERAL SECRETARIES OF
ALL CONSTITUENT UNIONS :

Dear Comrades,

As discussed on 13th April, 2010, efforts were taken to meet the Finance Minister on the issue of effective date of pension option w.e.f. 1-4-2008 as against IBA proposal of effective date from date of settlement.

Yesterday evening, representatives of UFBU met the Finance Minister in his office in North Block. The following were present from UFBU.

1. C H Venkatachalam, AIBEA
2. S A Kadri, BEFI
3. Harvinder Singh, AIBOC
4. Alok Khare, AIBOA
5. Pradip Biswas, BEFI
6. O P Sharma, INBEF
7. Prem Makkar, INBOC
8. Ashwani Rana, NOBW
9. Sunil Deshpande, NOBO

It was represented to the Finance Minister that since the Actuarial Report was based on the details of 31-3-2008, the pension option settlement should be effective from 1-4-2008, i.e. those who were on service on 1-4-2008 should be treated as existing employees for the sake of the settlement and pension payments on account of the option should be made from 1-4-2008. FM did not agree with our viewpoints. However, he stated that the effective date can be taken as 27-11-2009, i.e. the date on which we had signed the MOU.

IBA-UFBU MEETING on 27-4-2010:

IBA has informed that another round of meeting with the UFBU will be held on 27-4-2010 with a view to signing the final settlement. UFBU will meet at Mumbai on 26th April to take final view of the issues involved including pension cost sharing, issue like outsourcing, etc to pave the way for signing the settlement.

With greetings,
Yours Comradely,

C.H. VENKATACHALAM
CONVENER

9th Bipartite will sign on 27th April -2010

IBA MEETING WITH UFBU ON 27th APRIL TO FINALISE AND SIGN SETLEMENT.UFBU WILL MEET AT 11 am ON 26th TO TAKE FINAL VIEW ON ISSUES.

UFBU WILL MEET FM TODAY

TODAY (21-04-2010)AT 6.30 pm UFBU WILL MEET FINANCE MINISTER ON EFFECTIVE DATE FOR PENSION OPTION.!

State Bank of India (SBI) officers have resigned from the membership of the officers’ association.

There have been wide spread reports regarding the dissatsifaction among various sections of the officers on account of the poor increase in this wage settlement. Officers have been fuming as association instead of increasing the pay scales as offered by IBA actually forced IBA to start the pay of Scale I officers at a lower level then what was offered by IBA. Similarly, the last stage of Scale VII offered by IBA was also pruned under the pressure of Union leaders. They did all this in the name of benefiting the Scale I, II and III officers by introducing stagnation increments. The final outcome which has come out has been far from satisfactory even for Scale I, II and III officers. Moreover, the payment for 2nd option for pension has also brought heart burnings as even pension optees have to contribute towards this.

Now we have received certain reports that due to above resentment with the wage settlement, 80 per cent of State Bank of India (SBI) officers in the senior management grade have resigned from the membership of the officers’ association.

The finer details of the industry wide wage revision for bank employees have already been worked out and the agreement will be made official next week.

“There has been an exodus from the officers’ association from the Mumbai Corporate centre alone”, said an employee involved in the issue.

Referring to the dissatisfaction among officers, TN Goel, president of the All-India State Bank of India Officers’ Federation, said the basic issue with the decision for just a 17.5 per cent hike, which was making it difficult to structure the pay scales. Hence, various groups feel they are getting a raw deal. Specific issues regarding SBI staff and officers will be taken up after the industry-level pact is signed.

However, SBI officials who have resigned from the association are of the view that the wage negotiations are more focused on issues other than a decent wage package. Officers allege that the first priority of the present settlement is giving a second pension option to those who did not opt for the scheme in 1993.

The second priority of the settlement had been providing “stagnation increments” to officers in scale I to III, they said. The position in the SBI cadre increases in an ascending order from scale I to scale V. Scale IV and V comprise senior management.

“The stagnation benefit creates an anomalous situation whereby a person in a lower scale, who was either not found fit for promotion or did not opt for promotion, draws the same basic salary as a person who is shouldering higher responsibilities after being promoted to a higher scale. Moreover, the wage settlement does not extend the same benefit to scale IV or V officers, where stagnation is more than 12 years and is followed by frequent transfers”, they said.

“The most objectionable part of the settlement is that the representatives of the SBI officers’ association, rather than struggling for higher wages for members, have settled for less. This is because IBA had proposed pay scales of Rs 15,000-54000 as increase in basic salary across the board whereas the association settled for Rs 14,500-52,000”, said the officers.

GD Nadaf, general secretary, All India Bank Officers’ Association, said that from around two-and-a-half years of arrears, employees opting for the second pension scheme might have to forgo seven to eight months of arrears as contribution to the pension fund in lieu of the provident fund.

Talks with IBA on 13th April, 2010

Talks with IBA on 13th April, 2010

We reproduce herein the text of UFBU Circular No. 3 of date on the details of the discussions held between UFBU and IBA today (13th April, 2010) at Mumbai.


Pension related issues: While the draft of the Pension Option Settlement has been discussed and finalised, important issues of sharing the deficit / gap were discussed today. Various proposals of sharing method were discussed by us in the UFBU meeting including differential formula for pension optees and PF optees and taken up with the IBA. However, having regard to certain legal and other implications, it has been finalised to have a uniform sharing formula. The details are given in the UFBU circular herein.


Improvements in pension scheme: UFBU has also decided to take up various issues relating to improvements in the Pension Scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc.


Final Settlement: Various informations are being floated amongst the employees that the 9th Bipartite Settlement would be signed on 15th, 17th, 25th, etc. As of now, IBA has proposed that the final settlement can be signed on 20th April, 2010 since according to them all the issues stand resolved and the draft is also getting finalised. However, from our side, there are very important issues like IBA’s proposals on outsourcing and increase in duties of Single Window Operators, Head Cashiers and Special Assistants without increase in Special Pay on which there are serious differences with the IBA. Without resolving these issues it would not be possible for AIBEA to sign the Settlement.


We will keep members informed of all developments. Units and members are requested not to be carried away or provoked by attempts from any quarter to create confusions and diversions.



Text of UFBU Circular No.3 dated 13th April, 2010.



Another round of bipartite talks was held between IBA and UFBU constituents at Mumbai today. IBA was represented by Mr. Ramakrishnan, Chief Executive, Mr. Unnikrishnan, Dy. Chief Executive and Mr. M. Venugopalan, Officer on Special Duty. From UFBU, representatives of all the 9 Unions were present.

In today’s meeting, issues relating to settlement on pension option were taken up. The draft Settlement was discussed in details and finalized.

Regarding retirees, the formula for contribution of Rs. 934 crores ( 30% gap ) of the deficit after refund of the PF amount (Bank’s contribution), it has been decided that the retirees will contribute as under:



Refund of PF amount (Bank’s contribution) actually received at the time of retirement (no interest is payable on this amount)= Rs. X


Plus: 56 % on this amount of Rs. X = Rs. Y


Less: Commutation amount Receivable from the Bank = Rs. Z


Net Amount refundable to the Bank Rs …… ( X + Y – Z )




Regarding existing employees / officers, out of the net gap of Rs. 6000 crores, Banks would contribute 70 % i.e. Rs. 4200 crores. For the balance of Rs. 1800 crores ( 30%) employees / officers would contribute as under: ( This will be a onetime contribution and would be recovered from the arrears.)



For existing employees/officers - 1.6 times of “ Pay ” payable for the month of November, 2007.

For employees who have joined the banks after 1st November, 2007 their contribution would be proportionately reduced.



Date of effect of pension option: IBA reiterated their stand that pension option would be effective from the date of the Settlement while we have explained our viewpoint that it should be w.e.f. 1-4-2008. Difference on this issue persists. UFBU decided to take steps to find a solution to this issue.

Improvements under Pension Scheme: We took up with IBA various improvements in the Pension scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc. After discussion it has been decided to submit a memorandum on these issues to the IBA and the Government and to be pursued further.

TALKS WITH IBA TODAY(14-04-2010

Dear comrades,
TALKS WITH IBA TODAY
We reproduce herein the text of UFBU Circular No. 3 of date on the details of the discussions held between UFBU and IBA today at Mumbai.
Pension related issues: While the draft of the Pension Option Settlement has been discussed and finalised, important issues of sharing the deficit / gap were discussed today. Various proposals of sharing method were discussed by us in the UFBU meeting including differential formula for pension optees and PF optees and taken up with the IBA. However, having regard to certain legal and other implications, it has been finalised to have a uniform sharing formula. The details are given in the UFBU circular herein.
Improvements in pension scheme: UFBU has also decided to take up various issues relating to improvements in the Pension Scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc.
FINAL SETTLEMENT: Various informations are being floated amongst the employees that the 9th Bipartite Settlement would be signed on 15th, 17th, 25th, etc. As of now, IBA has proposed that the final settlement can be signed on 20th April, 2010 since according to them all the issues stand resolved and the draft is also getting finalised. However, from our side, there are very important issues like IBA’s proposals on outsourcing and increase in duties of Single Window Operators, Head Cashiers and Special Assistants without increase in Special Pay on which there are serious differences with the IBA. Without resolving these issues it would not be possible for AIBEA to sign the Settlement.
We will keep members informed of all developments. Units and members are requested not to be carried away or provoked by attempts from any quarter to create confusions and diversions.
With greetings,
Yours comradely,
(C. H. VENKATACHALAM)
GENERAL SECRETARY

IN TODAY'S MEETING (13.04.2010)

IN TODAY'S MEETING (13.04.2010) WITH IBA BY UFBU, SHARING THE PENSION COST BY EMPLOYEES & RETIREES FINALISED.....FOR DATE OF EFFECT OF PENSION, IT HAS TO BE PERSUED WITH THE GOVT. BY THE UFBU.

Meeting between IBA and four Officers’ Organizations on 9th &10th april

We refer to our circular No.10 of 2010 dated 6th April, 2010 and wish to inform that, as scheduled, a meeting between IBA and INBOC together with the other three Officers’ Organizations was held in Mumbai on 9th and 10th April, 2010 to discuss and finalize Residual issues and Draft Settlement.



Issues related to increase in accumulation and encashment of Privilege Leave, Sick Leave upto 7 days without medical certificate and other types of leaves including special leave for lady officers to undergo hysterectomy, Defined Working hours, financial compensation for working late and on Sundays and holidays were discussed in the two days’ meeting. Discussions also covered the following issues:



1. Modalities governing Stagnation increments
2. Medical Aid and Hospitalization Expenses
3. Recovery of House/Furniture Rent
4. Fixed Personal Pay
5. Professional Qualification Pay
6. Deputation Allowance
7. Hill and Fuel Allowance
8. Halting Allowance
9. Special Area Allowance
10. Mode of Travel and Expenses on Travel
11. Leave Travel Concession
12. Definition of Family
13. Project Area Allowance
14. Mid Academic Transfer Allowance
15. Split Duty Allowance
16. Closing Allowance – coverage and increase
17. Inspecting Officers – increase in the additional diem allowance



We are happy that we are able to reach understandings on a number of issues with the negotiating team of IBA. We propose to take up the remaining issues with the Chairman of IBA seeking his direct intervention, immediately. Meanwhile we wish to inform that IBA will hold a meeting with UFBU on 13th April, 2010 to discuss and finalize Pension Scheme.



With greetings,

Yours sincerely,

(K.K.NAIR)

GENERAL SECRETARY

During the course of 2 days’ discussion

Another round of wage negotiations between IBA and workmen’s unions has been held yesterday and today, preceded by a meeting of the unions with Dr Khandelwal Committee, on Human Resource matters in Public

During the course of 2 days’ discussion on wage related matters the followings items were finalized :

HRA – Where quarters are provided recovery of rent will be 0.50% of first stage of scale of pay.

LFC - One more option to change block of years. For encashment, employee to be on leave for, at least, 1(one) day.

Travel by own car with permission of the bank.

Special Area Allowance - In line with Government of India Notification.

FPP - Area I Area II Area III Area IV

Clerk Rs.940/- Rs.930/- Rs.920/- Rs.915/-

Sub Staff Rs.470/- Rs.465/- Rs.460/- Rs.460/-

At places where accommodation is provided by the bank : Rs 860 for clerks and Rs 430 for sub. staff and increment component in all cases Rs.800/- for clerk and Rs.400/- for sub staff.

Halting Allowance - Area I & II Area III Area IV

lerk Rs 500/- per diem Rs 375/-per diem Rs. 300/- per diem

Sub. Staff Rs 375/- per diem Rs 250/- per diem Rs. 185/- per diem

PQP/Graduation Pay – Rs.250/- after 1 yr, Rs.490/- after 2 yrs., Rs.740/- after 3 yrs., Rs.990/- after 4 yrs.,

Rs.1230/- after 5 yrs, all per month.

Implementation - Items Date of effect

Scale of pay, Stagnation increment, DA, 1st November 2007

PQP,FPP,HRA,Transport,Medical Aid, Allowances under the Heads : Special Area , Hill & Fuel, Washing, Split Duty, Cycle, Project Area; PF & Gratuity .

Part Time Employees - Upto 3 hrs - Rs 1030/- 1st November 2007

Upto 6 hrs – Rs 144o/-

Elevation to 1/3rd Scale Wage 1st May 2010

Halting Allowance 1st May 2010

LFC, Hospitalisation, Leave or Hysterectomy,Road Date of settlement Milage, Family Defination.

Discussion was also held for improvement of Hospitalisation Scheme but is yet to be finalised. On outsourcing and Duty of

Special Pay carrying posts, proposal of IBA have been opposed and no conclusion could be reached.

Next round of talks will be held on 13th instant.

Further developments shall be advised to you in due course

MEETING WITH IBA ON 7TH AND 8TH APRIL, 2010

CIRCULAR LETTER NO. 26/52/2010/13 9-4-2010


TO ALL OFFICE-BEARERS/STATE FEDERATIONS &
ALL INDIA BANKWISE ORGANISATIONS :


Dear Comrades,

MEETING WITH IBA ON 7TH AND 8TH APRIL, 2010

Further to the meeting held with the IBA on 3-4-2010 when the chart on distribution of the total cost of wage revision to various heads was finalized and signed, another round of meeting took place with the IBA on 7th and 8th April, 2010. AIBEA, NCBE, BEFI and NOBW took part in the meeting. ( INBEF did not sign the Distribution Chart on 3-4-2010 and did not attend the meeting with IBA on 7/8-4-2010).

In these 2 days meeting, the drafting of the Settlement was undertaken. Most part of the drafting exercise has been completed including revised schedule on PQP, FPP, hospitalization reimbursement scheme, Special Area Allowance, etc.

However, IBA insisted on their proposals on outsourcing to be incorporated in the Settlement to which we did not agree. We have stated that, at the best, some of items which do not affect the normal job/work of the employees can be considered for outsourcing and there cannot be any free hand to outsourcing of permanent and perennial jobs.

While finalizing the duties of Special Pay posts like Single Window Operators, Head Cashiers and Special Assistants, we have informed that additional duties can be considered subject to additional increase in Special Pay and hence their proposals could not be agreed to by us.

These two issues – both are vital issues – need to be sorted out before we can fully complete the drafting of the Settlement.

In the meantime, it has been decided that on 13-4-2010, another round of meeting will be held between IBA and UFBU to finalise the formula for contribution of Rs. 1800 crores to the Pension Fund as already agreed to in the MOU dated 27-11-2009.

After we sort out these important issues as stated above, date would be fixed up for formal signing of the Settlement on wage revision and pension option.

Further developments would be informed to units and members in due course.

With greetings,
Yours comradely,

C.H. VENKATACHALAM
GENERAL SECRETARY

FEED BACK ON 9TH BIPARTITE UNDERSTANDINGS

AIBOC has issued a circular Regarding Bipartite Talks which is reproduced hereunder for information
CIRCULAR NO.45 08.04.2010


FEED BACK ON 9TH BIPARTITE UNDERSTANDINGS

We are receiving a number of SMS and e-mails from our members on the understandings reached with the IBA on 3rd April 2010, as regards distribution of wage load of 17.5% among various components of salary and allowances. In this connection we would like to clarify that,

a) UFBU has agreed to accept 17.5% wage increase w.e.f 01.11.2007, as per MoU signed on 27th November, 2009. The issue cannot be reopened now.
b) The 6th Pay Commission recommendations for wage revision of Central Government employers are effective from 01.01.2006, for a term of 10 years. In case of Bank employees it is for a period of 5 years from 01.11.2007. The distribution of wage load for Central Government employees is not uniform. A meager increase of about 15-20% for lower level officials and higher increase at Secretary Level, with different pay bands is followed for them. Where as in our case we have tried to maintain equidistribution of load factor.
c) In case of Central Government employees, they will first arrive at the proposed revised scales and allowances and there is no restriction as regards cost of wage bill. The entire cost will be debited to the National Ex-chequer of the Government of India.
d) In the case of Bank employees, Government of India first fixes the limit for percentage increase and distribution of the increased load among various components of salary and allowances, is the responsibility of IBA and Unions/Associations.
e) Therefore, it is a herculean task to balance the demands of IBA and the Unions in drawing the revised scales of officers upto scale VII.

f) During the current bipartite the demand of the IBA was to distribute higher load to Officers of SMGS IV and above, whereas we demanded equitable distribution of the load to all scales/grades, as higher load to senior grade officers and above will affect the scales of junior officers.


g) However, keeping in view the higher risk and responsibility of senior executives, we suggested to the IBA to get extra cost over and above 17.5% sanctioned from the Government of India to meet their demand. The IBA did not accept our suggestion and was bent upon loading higher increase in scales of senior executives. We are successful in minimising such higher load.

2. Our members will agree that, the issues being sensitive and the cost involved for higher loading at a senior level officer being barely few crores, breaking the negotiations on this point would have divided our membership. The frustration level at grass root level membership for early settlement is known to everyone. Therefore, Negotiating Committee after due deliberations, has agreed to come to an understanding with IBA on distribution of wage load of 17.5% in salary and allowances. There may be a few aberrations/anomalies as regards revised scales etc., which we will take up with the IBA during our further discussions. There is no hurry in coming to premature conclusions and resorting to vilification campaign to belittle the efforts of the Confederation which may divide the membership. Basic principle of Trade Union is “one for all, and all for one”. We hope our enlightened members will appreciate the genuine constraints faced by the leadership at negotiating table.

3. Comrades, we welcome your constructive feedback, but do not appreciate immature reactions, which affect the unity of the great organisation, AIBOC.

With greetings,
(G.D.NADAF)
GENERAL SECRETARY

IBA-UFBU meeting

TALK WITH IBA YESTERDAY(7-4-2010) AND TODAY.DRAFTING ALMOST OVER.DIFFERENCE PERSISTS ON OUTSOURCING AND SPECIAL PAY DUTIES.IBA UFBU TALKS WILL TAKE PLACE AT 11 AM ON 13TH APRIL 2010 ON FORMULA FOR PENSION CONTRIBUTION TO 1800 CR,Etc.

FINAL UNDERSTANDINGS!

Today (03-04-2010) morning, as informed earlier, we had another round of talks between our five workmen unions and IBA. In today’s meeting, after detailed discussions, final understandings have been reached on the various service conditions and the chart on distribution of the total increase of Rs. 2577 crores to various heads has been finalised. It has now been decided that the next meeting will take place on 7th April, 2010 when the draft settlement will be taken up for finalisation. It has been further decided that after finalising the draft settlement, the signing of the same should be completed by middle of April, 2010.
Comrades, it is a major step today that we are nearing the final settlement. We urge upon our members to remain patient at this crucial hour as we are aware that many misinformed and misguided individuals are trying to create confusions and disaffection. Remain united, remain alert to keep such attempts at a distance.
Congratulations to all of you,
FINAL UNDERSTANDINGS!
1. Scales of Pay:
Clerical Staff: 6200 – 400 x 3 – 7400 – 500 x3 – 8900 – 600 x 4 – 11300 – 700 x 7 – 16200 – 1300 x 1 – 17500 – 800 x 1 – 18300.
Substaff: 5500 – 200 x 4 – 6300 – 250 x 5 – 7550 – 300 x 4 – 8750 – 350 x 3 – 9800 – 400 x 3 – 11000.
2. Stagnation Increment:
Clerical: 7 stagnation increments (800 x 6 once in 3 years & 800 (7th) after 2 years)
Substaff: 7 stagnation increments (400 x 7 once in 2 years)
Extended Pay Scales: (With Stagnation increment)
Clerical: 6200 – 18000 – 23900.
Substaff: 5500 – 11000 – 13800.
3. DA: 0.15% per slab over 2836 points.
4. HRA:
a) Places over 45 lacs : 10%
b) 12 to 45 lacs : 9%
c) 5 to 12 lacs : 7.5%
d) Below 5 lacs : 7%
5. Transport Allowance: (For Clerks and Substaff)
Upto 15th Stage: Rs. 225 per month
16th Stage and above: Rs. 275 per month
6. Special Pay:
For November, 2007 to April, 2010: Existing Special Pay will be revised and arrears paid.
From May, 2010:
•
Present No Special Pay holders : Rs. 1000/-
•

Present Special Pay holders : Rs. 1500/-
•


Head Cashier II : Rs. 1780/-
•


Special Assistant : Rs. 2180/-
(Note: Out of this, Rs. 1000/- will be added to Basic Pay and balance will continue as Special Pay.)
7. Fixed Personal Pay & PQP
Will be revised based on new basic pay.
8. Hill and Fuel Allowance:
a) Places – 3000 meters and above : 8% maximum Rs. 1295/-
b) 1500 – 3000 meters : 4% maximum Rs. 510/-
c) Over 1000 meters + Mercara : 3% maximum 410
9. Medical Aid: Rs. 2000/- per year
10. Hospitalisation Scheme: Being improved with revised schedule, etc.
11. Part Time Employees: (Lump sum)
(November, 2007 to April, 2010)
Upto 3 hours per week : Rs. 1030/-
3 to 6 hours per week : Rs. 1440/-
From May, 2010 : All will be brought to 1/3rd Scale wages.
12. Halting Allowance: Being increased
13. Washing Allowance: Rs. 100/- per month
14. Cycle Allowance: Rs. 75/- per month
15. Split Duty Allowance: Rs. 125/- per month
16. Project Area Compensatory Allowance:
Group A Centres /Group B Centres
Clerks : Rs. 205/- per month/Rs. 180/- per month
Substaff : Rs. 180/- per month/Rs. 150/- per month
17. Special Area Allowance: Being revised.
18. Reimbursement in Road Travel:
Actual road mileage cost or Rs. 3 per Km whichever is less.
19. Pension:
Another option will be given to all existing employees and those who have retired / died after pension regulation 1995 / 1996.
20. Gratuity:
Will be payable on revised Basic Pay from 1.11.2007
21. Provident Fund: 10% of pay from 1.11.2007
22. Definition of dependence under family: Upto monthly income of Rs. 3500/-
23. Compensation for losses due to breakage or damage to goods on transfer:
With Receipt/ Without Receipt
Clerks: Rs. 1120/- / Rs. 745/-
Substaff: Rs. 745/- / Rs. 560/-
24. Special Leave for Women:
Within the maternity leave entitlement, women employees can avail 45 days special leave for undergoing hysterectomy operation
25. Effective Date: 1st November, 2007"
Improvement in LFC:

Entitlement:

for Clerks - AC 2 Tier
for subordinate staff - AC 3 Tier

Distance:

For subordinate staff
Once in 2 years - 2500 km
Once in 4 years - 5000 km

For clerks
Once in 2 years - 2000 km
Once in 4 years - 4000 km



Following is the details of negotiation as per AIBOA version....
"Higher start of Basic Pay demanded but due to cost constraints, IBA not considered. Basic Pay Rs.14500/- - Rs.52000/-

2. Medical Aid –Rs.5100 / upto Scale III – above Scale III – Rs.6320/-

3. Stagnation Increment for Scale I, II and III – 2 increments

4. Next round of discussion on Residual Issues – 9th & 10th April 2010.

5. On common issues UFBU meeting with IBA on 12.04.2010 for finalizing Pension draft.

6. Settlement will be signed on 15.04.2010"

Some more details about Officers' Package

• Basic Pay Rs.14500/- - Rs.52000/-.
• Medical Aid –Rs.5100 / upto Scale III; Above Scale III – Rs.6320/-
• Stagnation Increment for Scale I, II and III – 2 increments.
• Next round of discussion on Residual Issues – 9th & 10th April 2010.
• On common issues UFBU meeting with IBA on 12.04.2010 for finalizing Pension draft
• Settlement will be signed on 15.04.2010
•
Scales:
JMGS-I - Rs.14, 500/- TO Rs.31, 500/- (including two additional stagnation increments)
MMGS-II - Rs.19, 400/- TO Rs.34, 200/- (including two additional stagnation increments)
MMGS-III - Rs.25, 700/- TO Rs.35, 100/- (including two additional stagnation increments)
SMGS-IV - Rs.30, 600/- TO Rs.36, 200/-
SMGS-V - Rs.36, 200/- TO Rs.40, 400/-
TEG-VI - Rs.42,000/- TO Rs.46,800/-
TEG-VII - Rs.46,800/- TO Rs.52,000/-

DEARNESS ALLOWANCE :- For every 4 points rise/fall in index, Dearness Allowance at 0.15% per slab.
CITY COMPENSATARY ALLOWANCE : We have freezed the existing CCA and utilized the amount towards
improvement in Basic Pay. Accordingly, CCA rates will be as under;

Places in Area I - 4% of Basic Pay, Max. Rs.540/- p.m.
Places with population of more than 5 lacs - 3% of Basic Pay,
Max. Rs.375/- p.m.

HOUSE RENT ALLOWANCE
We have retained the existing rate of HRA as under:
Major A class cities - 8.5%
Other places in Area I - 7.5%
Other places - 6.5%

MEDICAL AID –
For officers other than SBI, the medical aid has been enhanced as;
Scale I to III – Rs. 5100/- p.a.
Scale IV & above - Rs. 6320/- p.a.

STAGNATION INCREMENTS:

It is a fact that majority of senior officers in Scale I to III are stagnated as promotions are linked to vacancies. Hence, we have ensured to add two additional stagnation increments in these scales.

Date of Effect : 1st November 2007.

FOR OFFICERS

9TH BIPARTITE TO CONCLUDEFORMAL SIGNING ON 2ND WEEK OF APRIL
The important ingredients of the working out are as follows:-
SCALESJMGS-I - Rs.14, 500/- TO Rs.31, 500/-@
MMGS-II - Rs.19, 400/- TO Rs.34, 200/-@
MMGS-III - Rs.25, 700/- TO Rs.35, 100/-@
@including two additional stagnation incrementsSMGS-IV - Rs.30, 600/- TO Rs.36, 200/-SMGS-V - Rs.36, 200/- TO Rs.40, 400/-
TEG-VI - Rs.42,000/- TO Rs.46,800/-
TEG-VII - Rs.46,800/- TO Rs.52,000/-
DEARNESS ALLOWANCEFor every 4 points rise/fall in index, Dearness Allowance at 0.15% per slab.CITY COMPENSATARY ALLOWANCEWe have freezed the existing CCA and utilized the amount towards improvement in Basic Pay. Accordingly, CCA rates will be as under; Places in Area I - 4% of Basic Pay, Max. Rs.540/- p.m. Places with population of more than 5 lacs - 3% of Basic Pay, Max. Rs.375/- p.m.
HOUSE RENT ALLOWANCE
We have retained the existing rate of HRA as under:Major A class cities - 8.5%Other places in Area I - 7.5%Other places - 6.5%
MEDICAL AID – For officers other than SBI, the medical aid has been enhanced as; Scale I to III – Rs. 5100/- p.a.Scale IV & above - Rs. 6320/- p.a.
STAGNATION INCREMENTS:It is a fact that majority of senior officers in Scale I to III are stagnated as promotions are linked to vacancies. Hence, we have ensured to add two additional stagnation increments in these scales.Date of Effect : 1st November 2007.The other details will be shared later. We expect that final settlement on salary revision; pension for CPF optees and residual issues will be arrived at during second week of April, 2010.5. Comrades, in the given circumstances; when we secured pension for CPF optees, this is one of the best settlements on salary revision for officers. We are successful in ensuring fair increase in basic pay for all scales/grades and two additional stagnation increment to Scale I to Scale III, which is the unique achievement in the 9th bipartite. The concept of stagnation increment for officers was first time introduced during 1987 and there was no improvement thereafter except adding one more stagnation increment to MMGS III during the period.6. Members are requested not to be guided by any type of rumors and adverse comments. We compliment our members for their tolerance, faith and maturity displayed in standing like a rock behind the Confederation.7. In the meanwhile, the leadership of the Confederation will be meticulously planning to herald the commencement of the Silver Jubilee Celebrations to coincide with the inking of the 9th Bipartite Agreement. The details will be circularised in due course.With revolutionary greetings,(G.D.NADAF)GENERAL SECRETAY.

Final understandings with iba on ഏപ്രില്‍ 3 2010

CIRCULAR NO. 26/57/2010/7 April 3, 2010

TO ALL UNITS & MEMBERS :

Dear comrades,
Ø Talks with IBA today.
Ø Positive Development.
Ø Distribution Chart Finalised.
Ø Settlement to be signed shortly.
Today morning, as informed earlier, we had another round of talks between our five workmen unions and IBA. In today’s meeting, after detailed discussions, final understandings have been reached on the various service conditions and the chart on distribution of the total increase of Rs. 2577 crores to various heads has been finalised. It has now been decided that the next meeting will take place on 7th April, 2010 when the draft settlement will be taken up for finalisation. It has been further decided that after finalising the draft settlement, the signing of the same should be completed by middle of April, 2010.

Comrades, it is a major step today that we are nearing the final settlement. We urge upon our members to remain patient at this crucial hour as we are aware that many misinformed and misguided individuals are trying to create confusions and disaffection. Remain united, remain alert to keep such attempts at a distance.

Congratulations to all of you,

With greetings,
Yours comradely,
(C. H. VENKATACHALAM)
GENERAL SECRETARY

Final understandings!

1. Scales of Pay:

Clerical Staff: 6200 – 400 x 3 – 7400 – 500 x3 – 8900 – 600 x 4 – 11300 – 700 x 7 – 16200 – 1300 x 1 – 17500 – 800 x 1 – 18300.

Substaff: 5500 – 200 x 4 – 6300 – 250 x 5 – 7550 – 300 x 4 – 8750 – 350 x 3 – 9800 – 400 x 3 – 11000.


2. Stagnation Increment:

Clerical: 7 stagnation increments (800 x 6 once in 3 years & 800 (7th) after 2 years)

Substaff: 7 stagnation increments (400 x 7 once in 2 years)

Extended Pay Scales: (With Stagnation increment)

Clerical: 6200 – 18000 – 23900.

Substaff: 5500 – 11000 – 13800.

3. DA: 0.15% per slab over 2836 points.

4. HRA:

a) Places over 45 lacs : 10%
b) 12 to 45 lacs : 9%
c) 5 to 12 lacs : 7.5%
d) Below 5 lacs : 7%

5. Transport Allowance: (For Clerks and Substaff)

Upto 15th Stage: Rs. 225 per month
16th Stage and above: Rs. 275 per month

6. Special Pay:

For November, 2007 to April, 2010: Existing Special Pay will be revised and arrears paid.

From May, 2010:

Present No Special Pay holders : Rs. 1000/-
Present Special Pay holders : Rs. 1500/-
Head Cashier II : Rs. 1780/-
Special Assistant : Rs. 2180/-

(Note: Out of this, Rs. 1000/- will be added to Basic Pay and balance will continue as Special Pay.)

7. Fixed Personal Pay & PQP

Will be revised based on new basic pay.

8. Hill and Fuel Allowance:

a) Places – 3000 meters and above : 8% maximum Rs. 1295/-
b) 1500 – 3000 meters : 4% maximum Rs. 510/-
c) Over 1000 meters + Mercara : 3% maximum 410

9. Medical Aid: Rs. 2000/- per year

10. Hospitalisation Scheme: Being improved with revised schedule, etc.

11. Part Time Employees: (Lump sum)

(November, 2007 to April, 2010)
Upto 3 hours per week : Rs. 1030/-
3 to 6 hours per week : Rs. 1440/-

From May, 2010 : All will be brought to 1/3rd Scale wages.

12. Halting Allowance: Being increased

13. Washing Allowance: Rs. 100/- per month

14. Cycle Allowance: Rs. 75/- per month

15. Split Duty Allowance: Rs. 125/- per month

16. Project Area Compensatory Allowance:

Group A Centres Group B Centres

Clerks : Rs. 205/- per month Rs. 180/- per month
Substaff : Rs. 180/- per month Rs. 150/- per month

17. Special Area Allowance: Being revised.

18. Reimbursement in Road Travel:

Actual road mileage cost or Rs. 3 per Km whichever is less.

19. Pension:

Another option will be given to all existing employees and those who have retired / died after pension regulation 1995 / 1996.

20. Gratuity:

Will be payable on revised Basic Pay from 1.11.2007

21. Provident Fund: 10% of pay from 1.11.2007

22. Definition of dependence under family: Upto monthly income of Rs. 3500/-

23. Compensation for losses due to breakage or damage to goods on transfer:

With Receipt Without Receipt
Clerks: Rs. 1120/- Rs. 745/-
Substaff: Rs. 745/- Rs. 560/-

24. Special Leave for Women:

Within the maternity leave entitlement, women employees can avail 45 days special leave for undergoing hysterectomy operation

25. Effective Date: 1st November, 2007

IBA-UFBU meeting held today (31-03-2010)

UFBU Meeting: A meeting of the UFBU was held today (31-03-2010) morning in Mumbai under the presidentship of Com. L. Balasubramanian (President, NCBE). After detailed discussions, it was decided that all efforts should be taken to sort out the common issues with the IBA and finalise the settlement on wage revision and pension option without any further delay.

Meeting with IBA: Another round of Bipartite Talks were held between IBA and UFBU today (31-03-2010) afternoon. IBA was represented by Mr. Ramakrishnan, Chief Executive and other Executives. Representatives of all our nine Unions were present in his meeting. In today’s discussions we took up the common issues like effective date of pension option, equalizing the cost between PF and Pension components, re-working the cost of pension for the employees/officers now in PF and migrating to pension scheme after option , taking into account the possibility of some employees continuing in PF scheme, retirements taken place from 1-11-2007, etc.

On the issue of equalizing the cost of PF and Pension, IBA did not agree to our earlier proposal and hence it has been agreed that the same would be worked out by balancing the corresponding costs of these two components.

On the effective date of pension option, IBA maintained that while the option would be made available to both existing employees and retired employees, it would be effective from the date of Settlement and not from 1-4-2008 as demanded by us. UFBU would pursue this issue further.

On the issue of re-working the cost of pension as proposed by us, IBA did not agree with our proposals to assume the number of employees who would remain in PF, etc. and rather proposed to go with the actual number after implementation of the pension option instead of going by any assumptions. After discussions amongst the constituents, it was decided not to press this issue further and the IBA was accordingly informed of the same.

Next Meeting: It has been decided that the next round of meeting with IBA will take place on 3rd April, 2010 – with the workmen unions in the forenoon and with officers associations in the afternoon. In this meeting on 3rd April, efforts would be taken to finalise the distribution of the total amount ( Rs. 2577 crores per year for workmen and Rs. 2239 crores per year for officers ) to various heads like Basic Pay, DA, Stagnation Increments, HRA and other allowances, Medical Aid, PF, Gratuity, Pension, etc. based on the discussions held so far with the IBA. All other connected matters would also be sorted out.

After finalsing this distribution chart on 3-4-2010, the date would be fixed up for signing the Settlement on Wage Revision and Pension Option.