Units and members are aware that Pension Scheme was introduced in 1993 after a great struggle by AIBEA with effect from 1-1-1986. In RBI, for those retired prior to January, 1986, Government had permitted payment of Ex Gratia.
On taking up this matter, pre-1986 retirees and their surviving spouse Public Sector Banks were also granted Ex Gratia. At present, from 2013, the pre-1986 retirees are being paid ex-gratia amount of Rs. 350 + DA over 600 points and the surviving spouse are paid Rs. 175 + DA over 600 points. This month in February, 2023, the total ex-gratia payable is Rs. 5100 and Rs. 2550 respectively (including DA).
Since the amount is not adequate, from AIBEA we have been consistently taking up the matter with IBA for increasing and improving the ex-gratia amount for these pre-1986 retirees/surviving spouses. This was also a part of the residual issues of the Workmen Unions and an issue in the recent Strike call by UFBU.
In the meeting held with IBA on 31-1-2023, when this issue was taken up, IBA informed that a favourable decision has been taken in their recent Managing Committee and the same would be conveyed to the Banks shortly.
Accordingly, IBA has issued their Circular No. 11722 dated 7-2-2023. Copy of the IBA Circular is furnished herein.
IB Circular: HR & INDUSTRIAL RELATIONS
HR&IR/MBR/743/2022-23/11722 dated February 7, 2023
To
Chairman SBI MD& CEOs of PSBs
Dear Sir/Madam,
Ex-gratia payment to Pre-1986 Retirees
Govt. vide letter No. F-11/2/2012-IR dated 17-12-2013, revised the Ex-Gratia relief to Bank Employees retired before 1st January 1986 & their surviving spouse w.e.f. 17-12-2013.
- After 2013, there has been no improvement in the amount of Ex gratia relief for Pre-1986 retirees. There were requests from Unions / Associations, for revision of Ex-gratia payable to 1986 pre-retirees / spouse of 1986 pre-retiree.
- The matter was placed in the Managing Committee meeting of IBA held on 20.01.2023. The Committee after detailed deliberations advised to send an advisory to Banks, to consider additional ex-gratia payment over and above the amount being paid as per DFS guidelines so as to ensure that the surviving pre 1986 retired employee / surviving Spouse of pre 1986 retired employees get a minimum of Rs.10000/- per month as Ex-gratia.
- Accordingly, we are issuing this advisory. Banks may therefore take necessary action after seeking approval at appropriate level.
Yours faithfully,
Brajeshwar Sharma Senior Advisor (HR&IR)
Our All India Bankwise Federations/Unions are requested to follow up the matter at the Bank-level and ensure early implementation of the same.
With Greetings
Yours Comradely,
C.H. VENKATACHALAM GENERAL SECRETARY
