Bank Employees retired between 1-11-2017 and 31-10-2020 Arrears of wage revision and revision in Gratuity/Pension
ALL INDIA BANK EMPLOYEES’ ASSOCIATION
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522 Fax: 2535 8853 Web: www.aibea.in
e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com
CIRCULAR NO. 28/263/2020/101
29-11-2020
TO
ALL UNITS AND MEMBERS:
Dear Comrades,
Employees retired between 1-11-2017 and 31-10-2020 Arrears of wage revision and revision in Gratuity/Pension
Queries have come to us from retired employees about applicability of the 11th Bipartite Settlement to them. Hence we wish to clarify the following :
1) The 11th Bipartite Settlement is applicable only to those who have retired from the Bank from and after 1-11-2017.
2) For these retired employees, the arrears on account of revised pay scale and allowances will be payable from 1-11-2017 till their date of retirement.
3) They are also entitled to receive the difference in PF, Gratuity, Pension, Commutation and Leave Encashment.
4) Option not to claim incremental commutation on revised basic pension:
Employees who have retired during this period and who have received Commutation of Pension will have an option either
a) to claim the increase / difference in commutation amount
(or)
b) Not to claim increase in commutation but can receive the revised in pension amount.
READ ALSO: 11 Bipartite Settlement for Bank Officers and Clerical Staff Salary
5) Calculation of Pension for those has employees retired between 1-11-2017 and 31-8-2018.
The pension payable to employees is based on the average of the emoluments drawn in the last ten months preceding the retirement of the employee in terms of Regulations 2 and 38 of the Pension Regulations. For the purpose of payment of pension, the Pay of the employees retiring on or after 1st November, 2017 will be taken on the basis of the Pay as is provided under this Settlement.
However, in the case of employees who have retired from the services of the Banks, on or after 1st November, 2017 but before 31st August, 2018, since the period of preceding ten months will constitute Pay both under 11th BP Settlement as well as pertaining to 10th Settlement, in such cases, the following procedure will be adopted for determining Pension payable to them.
READ ALSO: 11th Bipartite Settlement Salary Structure
(i) For the period often months falling on and from 1st November, 2017, the actual Pay drawn by the employee under 11th BP Settlement; and
(ii) For the period falling prior to 1st November, 2017, the actual Pay drawn by the employee under 10th BPS plus Dearness Allowance at the rate of 47.8 percent thereon will be notionally reckoned as Pay for the purpose.
6) Those who were in service on 1-11-2017 and are eligible for the 9th Stagnation Increment from or after 1-11-2017, as per para 3 of Clause of the Settlement, will get the arrears on account of this from 1-11- 2017/ date of getting the 9th stagnation increment.
7) For those whose stagnation increment gets re-worked and hence are entitled for additional stagnation increment (para 4 of Clause 5), they will not get arrears on account of such re-working because the benefit is notional upto November, 2020. However, from November, 2020, their pension will be revised taking into account the additional stagnation increment.
READ ALSO: 11th BPS Expected Salary Calculator for Bank Employees
Units may take note of this and guide the retired employees accordingly.
Yours comradely,
sd/-
C.H. VENKATACHALAM
GENERAL SECRETARY
Example: EMPLOYEE/SPL. ASST/GRADUATE/CAIIB/METRO CENTRE/ RETIRED IN JANUARY 2020 – PENSION FROM FEB 2020
| Pension from Feb. 2020 | Under 10th BPS | Revised | Revised |
| Basic Pay | 42,020 | Basic Pay | 65,830 |
| Spl. Asst Spl Pay | 1,930 | Spl. Asst Spl Pay | 2,920 |
| PQP | 2,010 | PQP | 3,045 |
| FPP Increment portion | 1,310 | FPP Increment portion | 1,990 |
| Total Pay | 47,270 | Total Pay | 73,785 |
| Basic Pension – 50% – | 23,635 | Basic Pension – 50% | 36,892 |
| 1/3 | 7,878 | 1/ 3 | 12,297 |
| Commutation | 9,27,398 | Commutation | 14,47,603 |
| Balance 2/ 3 pension | 15,757 | 2/ 3 pension | 24,595 |
| DA on 23635 @ 75.90% | 17,938 | DA on 36892 @ 19.67% | 7,257 |
| Pension + DA | 33,695 | Pension + DA | 31,852 |
| Difference in Commutation 14,47,603 – 9,27,398 | 5,20,205 | ||
| Pension without change in commutation 36,892 – 7,878 already commuted | 29,014 | ||
| DA on 36,892 | 7,257 | ||
| Revised pension + DA – Feb. 2018 | 36,271 | ||
| OPTION A | OPTION B | ||
| Existing pension | 33,695 | Existing pension | 33,695 |
| Revised monthly Pension | 31,852 | Revised monthly Pension | 36,271 |
| Reduction in pension | 1,843 | Increase in monthly pension | 2,576 |
| Increase in Commutation | 5,20,205 | No change in Commutation | mm |
He/she can opt for either Option A or Option B
Example: A clerk in 6th Stagnation Increment (Rs.39, 400) retired in January, 2018.
(out of past 10 months, 3 months under 11th BPS period and 7 months under 10th BPS period)
His pension entitlement will be revised as under: ( Last 10 month Pay )
| Month | Under 10th BPS | Revised calculation | |
| 1. Jan. 2018 | 39,400 | 59860 | 59,860 |
| 2. Dec. 2017 | 39,400 | 59860 | 59,860 |
| 3. Nov. 2017 | 39,400 | 59860 | 59,860 |
| 4. Oct. 2017 | 39,400 | 39400 + DA @ 47.8% | 58,232. 20 |
| 5. Sept. 2017 | 39,400 | 39400 + DA @ 47.8% | 58,232. 20 |
| 6. Aug. 2017 | 39,400 | 39400 + DA @ 47.8% | 58,232. 20 |
| 7. July 2017 | 39,400 | 39400 + DA @ 47.8% | 58,232. 20 |
| 8. June 2017 | 39,400 | 39400 + DA @ 47.8% | 58,232. 20 |
| 9. May 2017 | 39,400 | 39400 + DA @ 47.8% | 58,232. 20 |
| 10. April 2017 | 39,400 | 39400 + DA @ 47.8% | 58,232. 20 |
| Total Pay of last 10 months | 3,94,000 | Total of last 10 months | 5,87,205. 40 |
| Average Pay | 39,400 | Average Pay | 58,720.54 |
| Basic Pension – 50% | 19,700 | Basic Pension – 50% | 29,360 |
| l/3rd | 6,567 | 1/ 3rd | 9,787 |
| Commutation | 7,73,067 | Commutation | 11,52,126 |
| Balance 2/ 3 pension | 13,133 | 2/ 3 pension | 19,573 |
| DA on 19,700 @ 52.70 % | 10,382 | DA on 29,360 @3.43% | 1,007 |
| Pension + DA existing | 23,515 | Pension + DA revised | 20,580 |
| Increase in Commutation (A) | 3,79,059 | ||
| Pension without claiming dif. in commutation 29,360 – 6567 | 22,793 | ||
| DA on 29,360 | 1,007 | ||
| Revised pension + DA – Feb. 2018 (B) | 23,800 | ||
| OPTION A | OPTION B | ||
| Existing pension | 23,515 | Existing pension | 23,515 |
| Revised monthly Pension | 20,580 | Revised monthly pension | 23,800 |
| Reduction in pension | 2,935 | Increase in monthly pension | 285 |
| Increase in Commutation | 3,79,059 | No change in Commutation |
He can opt for either Option A or Option B
Note: This does not include reworking of stagnation increment and revision of pension from Nov. 2020
Source: AIBEA