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FM Sahib, Has IBA Become Above Law and Above GoI ?
- Denial of 2nd Pension Option
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The issue relating to denial of 2nd Pension Option is being discussed at this website and other social networks for long time. Matter has been taken up with IBA, Finance Ministry, and even Prime Minister by bankers, their unions. The issue has been even taken to Courts. However, IBA has not moved a single inch from the illegal stand it has taken from the day one by denying pension to certain categories of the bankers, by wrongly inserting the word "Superannuation" in the Joint Note. Inspite of clear cut Court verdicts, IBA and its egostic top brass has made it an ego issue and are not ready to listen to anybody. It appears that they are giving a wrong and distorted feedback to Finance Minister office and Prime Minister office. Therefore, it is necessary that the matter should be taken up directly with Finance Minister and Prime Minister so that they can not say they were ignorant.
In recent days we have receiving copies of number of letters sent to FM or PM, some of which we have published, whereas some others may not have found space here owing to some other priority issues. Today we are giving below a strong letter sent by Mr Gulshan Khurana, who had a chance to work in Finance Ministry during his service. We are sure that if such letters are placed to Finance Minister, there would certainly be some action. We request our readers, specially who have been affected by such decision, to write individual letters to FM and PM. In case no response is received, AllBankingSolutions.com is planning to compile a list of all such affected bankers and then give a date for Protest Rally in Delhi by bankers who live in Delhi and nearby areas. We plan to come up with appropriate details at a later stage, and request for some people who can lead such a movement.
MOST IMMEDIATE Dated: May 05, 2012
Sh. Pranab Mukherjee
Hon’ble Finance Minister
DENIAL OF 2nd OPTION TO JOIN PENSION SCHEME TO BANK OFFICERS
Respected Sir, When I wrote my last letter on 1st November,2011, I was quite hopeful that with your intervention the issue in question would get resolved immediately but unfortunately things haven’t moved an inch despite a communication from PMO advising the Secretary, Department of Financial Services (DFS), Ministry of Finance to take appropriate action in this regard. A copy each of previous correspondence is enclosed for ready reference.However, for a quick recap, I am again penning down the facts of the case for your personal attention and an express decision to resolve the matter without any further delay:
- In April, 2010 DFS, Ministry of Finance took a decision to extend one more option to join Pension Scheme to all Bank Employees both existing as well as retired who did not opt for pension when initially Bank Employees’ Pension Regulations 1995 dated 29.09.95/26.03.96 were implemented. This decision was based on the MOU dated 27.11.09 (Ex.1) signed by IBA representing the managements of Banks and UFBU consisting of 5 Workmen Unions and 4 Officers’ Associations. Further, in a meeting between IBA & UFBU held on 09.12.09 arising out of MOU, it was mutually clarified and understood that “Retirees” would mean and include employees/officers who have retired on normal superannuation, those who have retired under VRS/Special VRS and families of the PF optees who had died during the period all of whom would be eligible for the pension option (Ex. 2). Finally, a Joint Note on agreed conclusions reached between IBA and 4 Officers’ Associations was signed on 27.04.10 by the two parties (Ex.3). - As per the Joint Note dated 27.04.10 inter-alia, it was clear that the 2nd option was to be extended to all those officers who were in the service of the Bank prior to 29.09.1995 in case of Nationalized Banks/26.03.1996 in case of Associate Banks of SBI and retired after that date and prior to the date of this Joint Note. - That while conveying the above decision of the Government, IBA vide its circular letter dated 10.08.2010(Ex.4) addressed to Member Banks twisted the very essence of the Finance Ministry’s decision as far as retired officers were concerned. IBA, without the mandate of the Government, advised Banks to allow 2nd option to officers who retired on superannuation or to those who opted VRS under one-time special VR Scheme announced by the Government in the year 2000 only. Thus, IBA deliberately denied 2nd option to join pension to those officers who retired under normal VR Schemes of the individual Banks as already provided in Officers’ Service Regulations .The Govt. vide its letter dated 14th March,2012, in reply to a query under RTI Act ,has confirmed that there was no communication from Govt to IBA to deny 2nd option to officers who voluntarily retired under OSR (Ex.5)
Ads by Google - That this act of IBA is arbitrary, unilateral, illegal and in gross violation of the OSR as well as the Bank Employees’ Pension Regulations 1995. It is pertinent to mention here that IBA has also not taken any cognizance that as per special VRS-2000 the minimum qualifying service was just 15 years to opt for VRS who have once again been given 2nd option now whereas under OSR officers with minimum service of 20 years are eligible for opting VRS and still they have been denied 2nd option for joining pension scheme. In fact officers who have opted VRS under OSR have rendered more than 25-30 years of service are being denied 2nd option by IBA without any justification. Why this discrimination between these two VRS optees? Who can justify IBA’s point of view? - It is quite unfortunate that despite the wrong doing by IBA, no official in the Department of Financial Services, Ministry of Finance has so far taken any initiative to resolve this issue and come to the rescue of the aggrieved officers who are the victims of a farce created by IBA. To address the genuine demand of the aggrieved officers AIBOC has sent many letters in this regard to IBA/Govt. but the matter still remains unresolved despite a lapse of about 2 yrs. Is it justice to the common man?
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In a recent Judgement dated 28th July, 2011 in the Civil Appeal No.
6013 of 2011, a similarly
placed case of Sh. Sheel Kumar Jain v/s The New India Assurance Co. Ltd. &
others, the Hon’ble Supreme Court of India has directed the respondent to
consider the claim of the appellant
for pension who resigned after 22 yrs. of service after giving three months
notice as
These landmark Judgements should have been an eye opener for IBA to review/revise its stand but unfortunately it hasn’t happened as yet. What more legal direction is required by IBA in the matter is not understood. Whether IBA is above Law of Land or Government of India - has become a debatable issue amongst Banking Fraternity. Further, in the instant case why Department of Financial Services is keeping rock silence and not slammed IBA so far is also questionable? Is it Governance ?
May I now, therefore request you to look into the matter at your personal level and direct all the stakeholders to act decisively in order to get the issue resolved at the earliest. Thanking you, Yours sincerely,
Encl: As above (G.K. Khurana)
Ex. OSD(CP) (1994-2004), Department of Financial
Services, Ministry of Finance, New Delhi and VRS
D-150, Vivek Vihar, Phase-I, Delhi-110095
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