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    Saturday, 2 January 2016

    PAYMENT OF SUPERANNUATION BENEFITS (PENSION) TO EMPLOYEES INFLICTED WITH PUNISHMENT OF REMOVED FROM SERVICE/ COMPULSORILY RETIRED /DISCHARGED FROM SERVICE

    Payment of superannuation benefits (Pension) to employees inflicted with punishment of Removed from Service/ Compulsorily Retired /Discharged from service


    ALL INDIA BANK EMPLOYEES' ASSOCIATION
    Central Office: “PRABHAT NIVAS” Regn. No.2037
    Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
    Phone: 2535 1522, Fax: 4500 2191, 2535 8853 Web: www.aibea.in
    e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com

    CIRCULAR LETTER No.27/167/2015/62

    31-12-2015
    TO ALL OFFICE BEARERS, STATE FEDERATIONS,
    ALL INDIA BANKWISE ORGANISATIONS


    Dear Comrades,

    Reg: Payment of superannuation benefits (Pension) to employees inflicted with punishment of Removed from Service/ Compulsorily Retired /Discharged from service.

    Units are ware that AIBEA signed an exclusive Settlement on 10-4-2002 containing the provisions on Disciplinary Action and Procedure thereof. Under this Settlement, for proved Gross Misconduct, the following punishments have been prescribed under Clause 6.
    • 6 (b) be removed from service with superannuation benefits i.e. Pension and / or Provident Fund and Gratuity as would be due otherwise under the Rules or Regulations prevailing at the relevant time and without disqualification from future employment; or
    • 6 (c) be compulsorily retired with superannuation benefits i.e. Pension and / or Provident Fund and Gratuity as would be due otherwise under the Rules or Regulations prevailing at the relevant time and without disqualification from future employment; or
    • 6 (d) be discharged from service with superannuation benefits i.e. Pension and / or Provident Fund and Gratuity as would be due otherwise under the Rules or
    However, under the plea that Pension Regulations does not contain the above similar provisions, employees who were inflicted with the above punishments were being denied pension. Later, IBA clarified that such employees may be granted compassionate allowance but not pension. We have been pursuing this issue consistently as Pension Regulations cannot overstep the provisions of Bipartite Settlement. However, IBA and Government were negative on this issue. We followed up the matter during the recent 10th bipartite negotiations also. 

    In the meantime, there have been court cases and litigations on this issue in Tribunals, High Court and finally in the Supreme Court which held that pension is payable to such employees. But the IBA/managements went for a Review but Supreme Court confirmed their clear stand that pension is payable to such employees who are given the punishment of ‘removal from service’ under Clause 6(b).

    Accordingly, vide IBA Circular No. 1004 dated 30-6-2005, IBA clarified to the Banks that Banks may implement the judgement and consider grant of pension to such employees. However, the cases of awardstaff employees who had been given punishment of ‘compulsory retirement’ and ‘Discharge from service’ were not being granted pension. We followed up the matter repeatedly and demanded that all employees covered by Clause 6 (b) (c) and (d) are eligible for superannuation benefits as per Bipartite Settlement dated 10-4-2002.

    IBA Circular: We are now happy to inform our units that IBA has issued their Circular No. 1852 dated 23-12-2015 informing the Banks that employees imoposed with punishment of “removal”, “compulsory retirement” and “Discharge” as per Clause 6 (b) (c) and (d) of Settlement dated 10.4.2002 are to be considered with superannuation benefits, i.e. Pension and/or PF and Gratuity.

    All our units are requested to take note of these guidelines of IBA and take up the case of employees who are denied of superannuation benefits.

    With greetings,

    Yours Comradely

    Sd/-
    C.H. VENKATACHALAM
    GENERAL SECRETARY
    ---->---->----->---->----<----<----<-----<----
    Indian Bank’s Association

    HR & INDUSTRIAL RLATIONS

    No. HR&IR/CIR/2015-16/MI/1852
    December 23, 2015

    Chief Executives of Member banks which are parties to Bipartite Settlement dated 10.4.2002.

    Dear Sir,

    Special Leave Petition No. 17054/2009 before the Hon’ble Supreme Court – Bank of Baroda vs. S.K. Kool – Supreme Court decision dated 11.12.13 against the Bank – Review Petition (C) No. 2344/2014 & (2) SLP No. 11443/2014 Bank of Baroda vs. G. Sukla before the Supreme Court.

    We refer to our Circular No. CIR/HR&IR/KU/MI/1004 dated 30.6.2015 regarding treatment of cases in which an employee who is imposed with punishment of “removed with superannuation benefits” under Clause 6(b) of the Bipartite Settlement dated 10.4.2002/27.5.2002 on “Disciplinary Action & Procedure therefor for Workmen” in view of the above captioned Hon’ble Supreme Court Judgement. Member banks were advised to consider implementation of the said judgement in such cases.

    We have been receiving queries from member banks seeking clarifications as to whether the award staff employees who are imposed with punishment of “compulsorily retired” (6c) and “discharged from service” (6d) are also covered under the above judgement.

    We have examined the matter and are of the view that employees imoposed with punishment of “removal”, “compulsory retirement” and “Discharge” as per Clause 6 (b) (c) and (d) of Settlement dated 10.4.2002 are to be considered with superannuation benefits, i.e. Pension and/or PF and Gratuity as would be due otherwise under the Rules or Regulations.

    Yours faithfully,

    Sd/-
    K. Unnikrishnan
    Deputy Chief Executive

    Source:- http://aibea.in/upload/circular/L%20-%20062.pdf

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