Manipulative IBA Does It Again  - 2nd Pension Option to be Extended to VRS BUT not  to Resignee Bankers

by

Rajesh Goyal   

Last week we have uploaded an article under the heading "Dark Diwali  Likely  for  Leftover of 2nd Pension Option - Mr Mittal Again Approached ;  IBA too reminded Again" to create pressure on IBA to take decision before Diwali.    Now, it appears that the constant fight by number of bankers who had left the bank under VRS or as Resignee but were denied 2nd Pension Option merely on account of the inflated ego of IBA, have brought some fruits.   We at AllBankingSolutions.com too had been taking up this issue since mid 2010 itself as we were sure that IBA does not have a valid legal ground and it was being manipulated with the connivance of union leaders  who had signed the last BPS and Joint Note.    None of them took the issue to Court or aggressively with IBA / MoF.  They extended mere lip service.

It is reported that IBA has now reluctantly agreed to issue a circular for offering 2nd Pension Option to left over bankers, but only those who were VRS optees,   The reports indicate that circular by IBA is on the way and bankers may see this good news in black and white   any time - most likely before Diwali.   The reports also indicate that  2nd pension option is not being extended to resignees.   

 I am writing this article on the basis of the inputs received as above.

However, it is a matter of concern that IBA has once again been able to manipulate the guidelines issued by MoF and Court judgements and convince its Chairman, that resignees are still not eligible for 2nd Pension option.

It is a matter of shame for IBA to continue its manipulative attitude.   They have not learnt their lessons and still believe to fight the cases in Courts.   With the change of guards at IBA, at least I was expecting that new Chairman will have a look the whole issue on holistic way and not on technical grounds.   I have read both the judgments of High Court and Supreme Court.  With my legal background, I am more than convinced that it was totally wrong on the part of the IBA to deny 2nd Pension option not only to VRS optees but also to resignees.   Such technicalities are raised when there is fight between two commercial organisations for earning higher profit, and not when the matters relate to Social security issues and the giver is Government organisation in  a country called Welfare state.  

It appears even the new IBA Chairman has not applied his mind on this issue or the arguments advanced by High Court for granting 2nd Pension option even to resignees, have not been placed in toto before him.  I am sure anybody with the right kind of logical abilities, after reading High Court judgment, will never agree to deny the right of 2nd Pension option to even resignees.

To know exactly what is the final view of  IBA, we have to wait for the final circular which is likely to be available soon.  I will write more about this and the strategy that needs to be adopted by resignees only after have received the circular by IBA.

It is only half won battle.  We have to continue our fight.