Supreme Court's judgment regarding 1616-1684 DA merger - Circular issued by AIBRF regarding Commutation of Pension thereon

IMPORTANT

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From: UBIRETIREES RAJKOT <rajkot@ubiretirees.in>

Sent: Sunday, May 6, 2018, 10:15:48 PM GMT+5:30

Subject: Supreme Court's judgment regarding 1616-1684 DA merger - Circular issued by AIBRF regarding Commutation of Pension thereon

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Date: 6th May,'18

To

All the regular recipients of our Association's e-mails,

Friends,

Supreme Court's judgment regarding 1616-1684 DA merger -

Circular issued by AIBRF regarding Commutation of Pension thereon

Please see the 4 attachments to this e-mail

Yours sincerely,

B.G.Raithatha,

General Secretary,UBREA

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From: "S C Jain" <sharbat_123@rediffmail.com>
To: "Prasad C N" <cn_prasad59@yahoo.com>

Sent: Sunday, 6 May, 2018 09:14:45
Subject: Fw: IBA Circular regarding Commutation

Dear Prasadji
We enclose our letter on the subject which is self explanatory
Regards

S.C.JAIN
GS AIBRF

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From: Prasad C N <cn_prasad59@yahoo.com>
Sent: Fri, 04 May 2018 10:59:29
To: AIBRF SC JAIN <sharbat_123@rediffmail.com>, "S. M. Deshpande" <smdeshpande12@gmail.com>

Subject: Re: IBA Circular regarding Commutation
 

Dear Sir,

 

 It is nearly a month since I had communicated to you regarding Commutation (please refer trail mail).  I painful to note your silence in the matter.  So far, I have not received any Communication in this regard, even though the issue raised is on a sound legal basis and brings in a lot of benefit to retirees.  I would leave it to your wisdom.  Whether it is right or inappropriate ? I do hope you would break your silence.

 

Now, I understand that several Banks have decided not to pay 'Commutation'.  It is painful and disheartening to note your silence.  On behalf of Coordination of eAssociate Banks Retirees' Organisations, we indeed, requested our Bank Management to pay commutation.  However, we have already succeeded in obtaining circular which clearly provides for reduction of pension for a period of 15 years from the date of PAYMENT.

 

It is our duty to inform you that we have made required preparations for filing of Contempt Petitions, in case any of the Banks fail to pay Commutation (which was sanctioned at the time of retirement, but difference amount is being paid now on account of payment of correct amount of Basic Pension in view of Judgment of Supreme Court).  

 

Relevant portion of Karnataka High Court is reproduced hereunder :

 

bank shall pay the differential amount of pension and commutation value of pension to the petitioners on that basis,within a period of eight weeks, if not earlier and in the event of failure to make the payment as above, the banks shall be liable to pay interest at the rate of 10% on the said amounts till the date of payment

 

I feel it would not be prudent if our AIBRF do not intervene and ensure payment of vested benefit.  All of us have opted to Commute at the time of retirement, as we believe Commutation is beneficial in all respects.  It is all the more beneficial, as we would get with interest for 17 years.  Some may even get interest for 20 years.

 

For your immediate reference, I am attaching relevant documents, including Govt. of India rules.  Please take up the matter early.  

 

 

Thanks, a Million. 

 

With regards, 

Prasad C N

 

 

On Sunday, 8 April, 2018, 10:52:52 PM IST, Prasad C N <cn_prasad59@yahoo.com> wrote:

 

 

Dear Sir,

 

We recall memories regarding AIBRF's letter to IBA regarding reduction of Commutation from the month of payment, instead of from the date of retirement.  Shri Varma, OS, AIBRF brought to our notice, a letter addressed to Shri K Sreenivasan by IBA on the very same issue,vide letter dated

28.7.2001.  

 

Please take up the matter with regard to clarity regarding Commutation factor also.  Since, the Bank has sanctioned Commutation of 1/3rd of Basic Pension at the time of retirement and Banks are paying later, Commutation factor as on the date of retirement has to be taken into account.  A copy of the note sent to you earlier is also attached, for your kind information and reference, which throw light on the system followed by the Banks in respect of Central/State Govt. Pensioners.

 

Thanks, a Million. 

 

With regards, 

Prasad C N