CIR. LETTER No. 30/18/2026/44 20-10-2026
To
All Office Bearers of AIBEA, State Federations and
All India Bankwise Federations/Organisations
Dear Comrades,
Improvement in Pension scheme
Today people are celebrating Vijay Dasami, Dusshera, etc. denoting the achievement of victory of the good over the evil. People, particularly working class and toiling masses, all over the world hail October because of the revolution in Russia that shook the entire world.
For all of us in AIBEA, the month of October is unforgettable. Our doyen leader Com. Prabhat Kar was born on 13th October, 1910. The 1st Bipartite Settlement was achieved and signed on 19th October, 1966. Again, the historic Pension Settlement was achieved against all odds and signed on 29th October, 1993.
Today, this Pension Settlement is giving societal dignity and economic protection to lacs of bank employees and officers. Even those who were opposing the pension scheme have realized its significance as the best possible social security measure. Thanks to the struggle of UFBU, in 2010 one more option was achieved and more than 3,50,000 employees, officers and retirees could further join the pension scheme.
While Com. Prabhat Kar and Com. H L Parvana are adored for their vision to demand and achieving bipartite settlement, Com. Tarakeswar Chakraborti, former General Secretary of AIBEA is hailed as the architect of the Pension Settlement.
But, as we all know, globally things changed. Our Government also changed its policy in 2004 from Defined Benefit Pension Scheme (DBS) to Defined Contribution Pension Scheme (DCS). In Banks also this scheme was implemented from 2010.
Today, switching over from NPS to OPS is a prime demand of AIBEA and UFBU. When Government is unable to contain inflation, rather their policies are fueling inflation, DA linked Pension Scheme is the best alternative and hence we are pursuing this demand as a very important issue.
Similarly, certain improvements have been achieved in the pension scheme like 100% DA for all pre-Nov. 2002 pensioners, uniform 30% without any ceiling as family pension, pension for resigned employees, minimum ex-gratia of Rs. 10,000 for pre-1986 retirees, adhoc ex-gratia for all pre-Oct.2022 pensioners, etc.
In addition to our demand for periodical updation of pension, uniform DA formula for all pensioners, extension of exgratia to all private bank pensioners, we have been demanding improvements in the pension scheme and Pension Regulations. IBA agreed to discuss these issues as Residual Issues.
In the recent Minutes signed by the IBA on 27-10-2026, they have agreed to commence the discussions on these residual issues.
There are certain benefits in the Central Government pension scheme which we have been asking the IBA to incorporate in our Bank pension scheme. In the Government scheme, there is increased percentage of pension after the age of 80, 85, 90, 95, etc. Pension is calculated at 50% of average of Pay of last 10 months or the last month whichever is higher. These are not available in our pension scheme.
There are few Regulations in our Bank Pension Regulations like Reg. 40.1 (b)(v) and 40(6) and few more provisions which require clarification, amplification and modification. Similarly specific provision has to be made in the Regulation 28 for sanction of pension on exit of employees due to Removal, Compulsory Retirement, Discharge, or voluntary abandonment, exempting Awardstaff retirees from Reg. 48.1 and 48.2 on holding departmental enquiry after retirement, review of Reg. 46.2 on non-release of gratuity, etc. All these issues will be taken up with the IBA during the discussions.
If there are any suggestions from our Unions for improvement/ amendment in the pension scheme/Regulations, our Unions are requested to inform us the same with proper details so that the same may be taken up with IBA by AIBEA/UFBU.
With greetings,
Yours Comradely,
C.H. VENKATACHALAM
GENERAL SECRETARY
Ignore critics:
Some of our unions and members have been drawing our attention to the various postings in the social media accusing and criticizing AIBEA and our leadership for not pursuing the demands of pensioners. We are aware of these messages and communications some of which are also derogatory and defamatory. In the glorious history of AIBEA, we have seen many criticism against AIBEA at various points of time for various reasons from various quarters. These criticisms have been out of ignorance, misconception, educated illiteracy, bias, vehemence, prejudice, political motivation, etc. But everyone knows that AIBEA is the author and achiever of pension benefit in the Banks. Everyone knows that lacs of bank employees and officers are enjoying the umbrella of pension because of the visionary efforts of AIBEA. History has shown that AIBEA is always on the right path. On the issues of pensioners also, time will prove that these critics are wrong.
C H VENKATACHALAMGENERAL SECRETARY AIBEA
98400 89920