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       (Registered under the Trade Unions Act 1926, Registration No: 3427/Delhi)
            State Bank of Buildings, St. Mark’s Road, Bangalore – 560 001

CIRCULAR NO:167                                                  30TH DECEMBER, 2010

                        2ND OPTION ON PENSION

       The 2nd Option on Pension is not made available to the retirees in
Assoicate Banks, who retired under “Exit Option” during 2006 – 2007. The
facility is denied, although the “exit” scheme was approved by Govt. of India
and which was similar to the special VRS – 2001 extended in the Banking

2.     We have today sent a communication to IBA, urging upon them to
reconsider the matter and extend the 2nd Option on Pension to the retirees
under the said “Exit” scheme, if otherwise they are eligible for the same. Text
of the communication is appended. We will keep you posted of the
developments in the matter.

With seasons greetings,

                                                              GENERAL SECRETARY
No./1452/484/10                                                    29.12.2010
The Chairman,
The Indian Banks‟ Association,
World Trade Centre Complex,
Centre 1, 6th Floor, Cuffe Parade,
MUMBAI – 400 005.
Dear Sir,
                           2ND OPTION ON PENSION
       One of the terms and conditions of MoU dated 27.04.2010 on 2nd Option
on Pension is to offer the Pension Scheme to the existing CPF Optees in
Nationalised Banks and Associate Banks, and also those retired after 1995/96.
It also covers, CPF Optees under voluntary retirement special scheme of Govt.
of India.
2.     In case of Associate Banks, during 2006, State Bank Management, came
out with another Special Scheme “Exit Option” with exgratia amount linked to
the remaining service of officers with a maximum 36 months salary. This
Scheme is in addition to existing voluntary retirement provision under
Associate Banks Officers Services Regulations. The Scheme was offered to
officers between the age group of 45 and 58 years. The Pension Optees, with 20
years of pensioable service were eligible for pension. The „exit‟ scheme was
approved by the Govt. of India.
3.    We understand that, for want of clarification from the IBA, 2 nd Option on
Pension to CPF Optees in Associate Banks, retired under the Special
Retirement Scheme “Exit Option” are not extended the offer. The “Exit Option
in Associate Banks is similar to that of Special Voluntary Retirement Scheme of
4.     The retirees under the said, “Exit Option” who had put in 20 years of
pensionable service will be eligible to opt for Pension, under the 2nd Option on
Pension.     Hence, we request you to please arrange to issue necessary
clarifications to the Associate Banks to extend 2nd Option on Pension to CPF
Optees retired under “Exit” Scheme.

With greetings,
                                                           Yours sincerely,

                                                       GENERAL SECRETARY

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