Circular No.2 Date:10.01.2011

Dear Comrades,

We have reproduced the AIBOC circulars No165, dated: 24.12.2010 for your reference.

With greetings,

Comradely Yours,

(G.SEKAR)

General Secretary

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ALL INDIA BANK OFFICERS’ CONFEDERATION

(Registered under the Trade Unions Act 1926, Registration No: 3427/Delhi)

State Bank of Buildings, St. Mark’s Road, Bangalore – 560 001

CIRCULAR NO. 165 DATE: 24.12.10

All affiliates/members

JOINT NOTE WITH AIBOC AND OTHER OFFICERS’ ORGANIZATIONS DATED 27.04.2010 PENSIONARY BENEFITS TO EMPLOYEES WHO WERE IN SERVICE OF THE BANKS AS ON 27.04.2010 AND DIED THEREAFTER.

In the wake of the historic settlement on Pension Issue dated 27.04.2010 a query was raised with the IBA as to the modalities for payment of pension to the officers who were in service of the Banks on 27.04.2010 and died thereafter, including whether the family of officers are eligible for commutation of Pension in the case of officers who are eligible to exercise the option. We are happy to inform that the IBA has clarified that the families of the officers are eligible to exercise the option, i.e. officers who died on or after 27.04.2010 are entitled for full pension from 27.11.2009 or from the date of retirement, whichever is later till the date of death and family pension thereafter.

2. Such officers’ families will be eligible for commutation of pension subject to complying with the terms of settlement.

3. A copy of the Circular issued by the IBA is annexed for your information.

With season’s greetings

(G.D.NADAF)

GENERAL SECRETARY

Encl: as above

Text of IBA Circular:

HR & INDUSTRIAL RELATIONS

No. CIR/HR & IR/G2/665/90/2010-11/2076 December 21, 2010

Designated officers of banks which are parties to the

9th Bipartite Settlement /Joint Note dated 27.4.2010

Dear Sirs,

Pensionary benefits to employees who were in service of the banks as on 27.04.2010 and died thereafter

Reference is invited to the Clause 2(i) of Pension Settlement dated 27.4.2010 and Clause 2(a) of Joint Note dated 27.4.2010 by which employees who were in service of the banks prior to 29.9.1995 / 26.3.1996 and continue in service as on 27.4.2010 are eligible for another option for joining the existing Pension Scheme upon their agreeing to transfer the PF balance to Pension Fund and additionally contribute an amount equal to 2.8 times of the ‘pay’ of November, 2007 in the case of serving employees and refund of entire amount of the bank’s contribution to provident fund and interest accrued thereon received by them at the time of retirement together with additional contribution of 56% of the provident fund and interest thereon mentioned above in the case of retired employees.

We have been receiving queries from banks as to whether the family of employees are eligible for commutation of pension in the case of employees who are eligible to exercise the option in terms of Settlement / Joint Note dated 27.04.2010 but died on or after 27.4.2010.

we advise that the family of the employee eligible to exercise the option who died on or after 27.4.2010 shall be entitled for full pension from 27.11.2009 or from the date of retirement which ever is later till the date of death and family pension thereafter. They will also be eligible for commutation of pension; provided they comply with the terms of the settlement / Joint Note as mentioned in Para 1 above.

Banks may please be guided as above.

Yours faithfully,

Sd.. K. UNNIKRISHNAN

DEPUTY CHIEF EXECUTIVE