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Retired Bankers Left in Lurch by UFBU :  Now  Retired Bankers Seems to Fight For Their Demands Independently  – CHV Issues a Veiled Threat to All Retired Bankers



Rajesh Goyal 

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The development of last week have been extremely disturbing for the retired bankers.   The exchange of letters between Retired bankers Association and UFBU clearly indicates that IBA and UFBU have joined hands to leave the retired bankers to fend for themselves.

It is all the more disturbing as only today (i.e. 17th May 2015), there is a news that One Rank One Pension for our armed forces has been almost finalized and it may be announced after PM Modi returns from his three nation visit.  Mr Modi is already on the last leg of that three nation visit.

This is a long article as it is a comprehensive article.   It should be shared with all the retired bankers and those who are not active should be briefed about the latest developments in this regard.   Let me first of all share with all our readers, specially the retired bankers, three letters (WE HAVE PUT THESE AS PART 1, PART 2 AND PART 3) exchanged between AIRBF and UFBU, as many of you must not have read the same in full and in that order :-




Letter dated 12th May 2015 Sent By All India Bank Retirees Federation ( AIBRF)  to UFBU, Regarding the Issues of Retiring / Retired Bankers


Ref: 2015/040 on 12.5.15.

Convenor, United Forum of Bank Unions


Dear Sir

Re; 10th Bipartite Settlement

We have come to know that unions are now in readiness to sign the 10th Bipartite Settlement on 22rd May 2015 to meet the deadline fixed in the MOU signed in this regard earlier.
We further learn that UFBU is signing the settlement without addressing any of the major demands of past retirees like uniform DA to all, pension updation, improvement in family pension etc.

2. If it is true,
we are shocked and hugely disappointed and in fact even if we put in the mildest word we feel BETRAYED. In this regard we would like to draw your kind attention that it was conscious and well deliberated decision of UFBU and all its constituents to include demands of past retirees in their charter of demands submitted to IBA for the current settlement and thereafter unions decided to handle them exclusively and directly with IBA and the government and not considered necessary to involve apex level retiree organisations directly or indirectly in the process of negotiation with IBA. Further , Senior union leaders of UFBU on various occasions and platform given repeated assurances to thousands of past retirees that retiree demands will be taken on priority, treated at par with the demands of employees and the settlement will not be signed this time till past retiree demands are sanctioned by IBA. This is undisputable record. As you are aware, Lakhs of past retirees took the assurance seriously and started nurturing the hope that this time issues of past retirees will be resolved with the support of UFBU. We have no hesitation in accepting that at AIBRF we further contributed in cementing and strengthening hopes of lakhs of retirees believing strongly on these assurances.

3.But today we find that as soon as the understanding was arrived on employees demands, UFBU and its constituents have conveniently dumped past retirees’ demands without any solution. The news filtering and coming to us indicate that the issues of past retirees were not examined in detail, discussed with seriousness in last two and half years and now
we are being informed that no sufficient time is available for carry out cost study on retiree issues because deadline for signing the settlement is approaching very fast. They will at best be taken up in future.

4. We also feel highly hurt to find that UFBU has not even considered it necessary to inform us about signing of settlement without meeting past retiree demands. Further at no stage UFBU leadership had considered necessary to share about the periodical developments, data/ information and their strategy to achieve demands of past retirees with us and maintained total non -transparency. At best some information filtered to us on one sided enquiries from our side. We can also blame ourselves for showing too much dependence on the support of UFBU and its constituents which is proving to be costly for us. We had approached to you several times in past two and half years with the request to hold periodical meetings between UFBU and retiree representatives for better coordination and to understand the limitation of UFBU if any in achieving demands of past retiree saving us from last minute shock.

5. We would like to draw your attention on the fact that each and every past retiree was loyal and disciplined soldier of one constituent or another of UFBU one time or another
. It cannot be denied that these past retirees of present have contributed in building concept of UFBU, bipartite mechanism and union set up in the banking industry. Therefore, in all fairness past retirees and their aspiration deserve better treatment than the present feudal lord approach. We request you to see the models adopted by Unions in government sector and RBI showing more magnanimity and accommodative approach towards past retirees. Because of this today pension of past retirees in these sectors are periodically updated and improved. You must have seen that in RBI unions and retiree organisations fight for demands of past retirees shoulder to shoulder. There is need to replicate this model in the banking industry for better culture and bondage. You will agree that retirement is a process and not the punishment. Today’ employee is tomorrow’s retiree and today’s retiree is tomorrow’s past retiree. Therefore there is need to take care of interest of one another as per the situation under which one is placed to create cordiality and fraternity rather than creating conflicting situation by branding past retirees as litigants and obstacle in smooth settlement for employees.

6. We have no hesitation to place on record that because of approach of UFBU and its constituents towards demands of past retirees with ‘accepting 100 percent responsibility for past retirees and with zero percent accountability towards stakeholders model” , we have been placed in very awkward and tight position. Time left is very limited to us and further we have limited resources. We are left hardly with 10 days within which we have to act decisively. Though we know we are soft target and ultimately we may have to accept the defeat on the major issues with virtually no fault of ours. But we would like to caution UFBU leaders that outburst and anger of lakhs of retirees will be furious and unimaginable which possibly neither we nor you are able to comprehend at this stage. Today retirees are organised. They have solid platform. They have powerful voice and sufficient time to agitate. It will definitely burst. Because we closely know their mind set and emotion and if they outburst they are hindered percent correct.

8. We are also at complete loss to understand that mighty organisation like UFBU could not persuade IBA in last 3 years to give one audience to the retiree organisations. Is it because of adamant attitude of IBA or something more than this which necked eyes cannot read. Some times we wonder when we can meet senior bureaucrats ,members of parliaments, even ministers at short notice but UFBU is unable to convenience IBA in the matter.


7. Here it would not be out of place to mention that AIBRF has been working for last a few years to develop culture of organisational efforts to resolve retiree issues and discourage litigation. But if we fail to achieve any of major demands through our persistent organisational efforts of last 5 years, the belief of retirees in litigation will increase many fold and the banking industry whether you believe or not will be flooded with court cases

8. In view of this situation we make humble appeal to you and to leaders of each constituent of UFBU through you that please understand gravity and seriousness of situation and accept our following requests

(1) 100 percent dearness allowance to pre-2002 retirees is settled issues as per your communications and understanding reached between IBA and UFBU. You must prevail upon IBA that it should be implemented immediately
(2) If any further study ,discussion needed on other issues like improvement in family pension, pension updation. Uniform medical facility should be completed immediately before signing the settlement.
(3) If it is not possible within available time, signing of settlement should be deferred by a few days till the issues of retirees are fully examined and concrete offer comes from IBA. Settlement is delayed by record period of two and half years this time, further delay of one month or so is not going to harm employees interest adversely. The date of benefit is already crystallised. Therefore they are not going to suffer any financial loss because of some more delay. We expect that unions can show this much gestures towards their past colloquies and set a very healthy trend for future.
(4) AIBRF should be taken in to confidence by UFBU and IBA on demands of retirees.

(5) We would like to have one meeting with UFBU representatives before signing of the settlement We expect immediate response in the matter. Lakhs of retirees are keenly waiting for it. Your response will create history.

With Kind Regards
Yours Sincerely
( S.C.JAIN )



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Reply of CHV  In Response on Letter Dated 12th May  2015  of AIBRF


Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522, 6543 1566 Fax: 4500 2191, 2535 8853
e mail ~ &

General Secretary
All India Bank Retirees Federation
D-1/1, Sector-C, Scheme-71,
Near Kasara Bazar School, 
Indore – 452 009

Dear Sir,

We are in receipt of your letter dt. 12-5-2015 addressed to the Convener of UFBU with copy to us.

On behalf of AIBEA and even UFBU, we would like to say that the contents of the letter are unwarrantedly provocative and not based on full facts. The demands relating to Retirees were included in the charter of demands not at the behest of anyone but out of our own conviction that these issues have to be taken up for resolution.

The following 4 important demands have been taken up by us with the IBA and Government.

• Medical Scheme for the retirees
• Improvement in family pension
• 100% DA for pre-Nov. 2002 retirees
• Periodical updation of pension

Due to the consistent efforts of UFBU, for the first time in the industry-level bipartite service condition, IBA has agreed and the proposed medical scheme would provide for continuation of the benefits even after the retirement of an employee or officer. This is a major achievement of the UFBU.  Further, it has been agreed that the same scheme would be made applicable to all the past retirees also. This is by no means an ordinary achievement.

Regarding improvement in Family pension, we have repeatedly informed everyone that IBA and the Government are very sympathetic to this issue and the cost implications have to be worked out before a final decision is taken. UFBU has informed IBA that the improvements in Family pension should apply not only for the existing employees but for the retirees as well. In view of AS15-R, the cost implications of funding the additional fund required cannot not lost sight of. The demand has not been negatived but under serious consideration. From AIBEA we have even offered to negotiate the cost to find an amicable solution.

Regarding 100% DA for past cases, the IBA and the Government were willing to consider the same. But of late we find that they feel that the matter is subjudice for discussions as some court cases are pending before Supreme Court for which we are not responsible. Yesterday only you informed us that the court cases can be withdrawn to pave the way for a solution to this issue.

On the issue of updation of pension, IBA has very serious reservations in view of the cost implications which is very high according to them. So we have asked for the details of number of pensioners, present pension, etc. so that we can work out the cost and fund required for the same and then pursue the matter further. It is a very important issue but also a difficult one to tackle. Even in RBI this issue has not been resolved despite cost not being a problem.

All these developments have been periodically informed to you but still you have chosen to be oblivious to all the efforts and constraints of the unions.

If your letter is to request for further efforts, it would be viewed accordingly. If otherwise, we will take it on our strides.

All of us know that when various issues and demands are placed before the management, all of them do not get settled fully and in one go. You are not unaware of the same. But then to accuse that UFBU has betrayed, it is too much of a comment.

Please by assured that AIBEA and UFBU are doing what is best possible in the matter.

With greetings,
Yours comradely,








Letter Ref No 2015/041,Dated 15.05.2015 is furnished here under for information of all:

Shri M.V.Murli
Convenor, United Forum of Bank Unions

Dear Sir

Re; 10th Bipartite Settlement


With due respect to UFBU, its constituents and the leadership, on behalf of lakhs of bank retirees we place the following submission for your consideration and appropriate action.


(1) We understand that bank unions are going to sign the settlement on 22nd May 2015 or in near future thereafter. As per the communications issued, UFBU has been able to secure increase of 15 percent on payslip components amounting to about Rs. 4500 crores per annum for the employees effective from 1.11.2012 in the ongoing settlement. Further, efforts are going on for improvement in other allowances and facilities resulting into additional benefits to the employees with effect from 1.11.2012. Therefore it is expected that employees will get monetary benefit of Rs. 12000 crores approximately in on go by of arrear and annual benefit of Rs 4500 crores and more with increasing trend in coming years.

(2) Against the above backdrop, we have come to know that IBA/ Government is not ready to approve any of the demands like uniform dearness allowance, pension updation and improvement in family pension before signing the settlement. Further we have come to know that IBA is only ready to extend group mediclaim policies to the past retirees in this settlement. Here also, we have come to know that funding of the insurance premium for retiree is going to be left to the individual banks who will decide as to how much to be charged to the retirees and how much to come from staff welfare funds. for the past retirees in this Therefore if the position taken by IBA on retiree demands is accepted by UFBU for signing the settlement, there will be ZERO ALLOCATION settlement.   With this background, we would like to know whether position of ZERO ALLOCATION is acceptable to the UFBU leadership. If not, what is the strategy of unions to put enough pressure on IBA/ Government through organisational calls like agitational programme. Lighting strike call etc as done in case of employees to improve the offer from 5 percent to 15 percent spending two and half years, we may kindly be informed for which we will be grateful to you. We would also like you to share the information/ documents exchanged on retirees issues between IBA and UFBU and which has convinced UFBU leadership not to press above retiree demands before signing the settlement. We feel that it is absolutely necessary for confidence building in view of charter of demands of unions on retiree issues for this settlement and subsequent assurances given from time to time as well as for long term relationship between retirees and unions in the banking industry which is going to witness movement of more than 2 employees towards retiree camp in next 2/3 years. We feel this issue needs serious introspection al all levels.

(3) we request you to secure allocation of specific funds say Rs. 1000 crores per annum to be exclusively used for improving pension scheme for past retirees and same should be incorporated in the settlement to be signed if it is not possible to work out details for past retirees immediately.

(4) One of the main reasons being given for not considering any improvement for past retirees is shortage of funds and banks’ weak financial position to bear additional cost. While it is open fact that entire financial burden of the benefits to employees will be on profit and loss of banks directly, any benefit considered to past retirees will be out of pension funds and not from profit and loss of banks directly. If you see financial position of pension funds you will find it is healthy and improving year after year. We below give combined balance sheet data of pension funds of public sector banks as on 31.03.2014 on the basis of information collected by us.

Aggregate Pension Fund Corpus as on 31.03.13 
(excluding SBI Group ) 91336.78 crores

Add annual contribution in lieu of PF
From banks during the year 6412.02 crores

Add annual interest income on Investment 7619.47 crores

Less Out go by way of monthly payment to
Pensioners, Family pensioners and
Commutation 6574.91 crores

Net Pension Funds as on 31.03.2014 101919.56 crores

From the above the following may be observed for the year 2013-2014

(a) Corpus has increased from 91336 crores to 101919 crores registering annual growth of more than 12 percent after meeting all pension liability during the year

(b) Interest income of Rs. 7619.47 crores is greater than pension liability Rs. 6574.91 crores during the year leaving surplus of more than Rs 1100 crores plus in the year from interest income alone.

(c) Interest yield on pension fund investment during the year is coming out is 8.34 percent approximately which is less than tax free interest yield of 8.9 percent of PPF accounts. Improvement of 50 basis point in yield on Rs 1 lakh crores plus fund can easily generate additional income of Rs. 500 crores.

(d ) Corpus is basically provisions for pension liability and their ownership belongs to banks. Pensioners have right on committed monthly payments. In view of this Banks are likely to be comfortable and will be left with sizable surplus at the end of the scheme after 30- 40 years or so.

(e) Number of active pensioners will start reducing after toping in 2017 in view of settlement of 2009.

(f) The above increasing trend is not only in 2013-14 but the positive trend has been noticed year after year since its inception without any exception.

(g) Basic Pension of future retirees will increase 62 percent approx. and consequent increase in commutation amount after this settlement. We feel that banks will make additional contribution to the fund to meet this liability and therefore further increase in pension fund corpus.

Our analysis is based on the data available to us. However if you have some different/ more data and analysis we request you to share them with us to understand and appreciate them. We hope you will find logic in our submission and arrange the joint meeting urgently.

With Warm Regards

Yours Sincerely

( S.C.JAIN )

C.C. to All Constituents of UFBU



The above exchange of letters has brought certain facts to light and raised many questions about the future negotiations for retired officers / workmen.  Let me summarise some of these for the benefit of our readers :



Questions That Needs to be Answered Now

Officers Unions and Workmen unions included the demands of the retired bankers in their respective Charter of Demands  (These can be still downloaded from our website :


(a)    Charter of Demands by Workmen Unions - AIBEA, NCBE, BEFI, INBEF, NOBW  ;     

(b)   Charter of Demand by  OFFICERS'  UNIONS - AIBOC, AIBOA, INBOC, NOBO 


In both the Charter of Demands Full Chapters have been included which reflected the aspirations of the retired officers as well as workmen.   Each and every retired banker was sure that as it was in last BPS, the issues relating to retired bankers too will form part of the final BPS.  They waited patiently inspite of their advancing age and a large number of them being infirm on account of old age.   They contributed to the respective associations till the date of retirement. 



(a) If it was intention of the IBA and UFBU to delink the issues of retired bankers, why they did not declare it so in November 2012  itself.   Then at least in last 30 months, retired bankers would have moved different authorities for resolving their issues.


(b) Who among UFBU decided that the issues of retirees will not form part of the final BPS.



(c)  Whether this delink of the negotiations for serving and retired bankers is now on permanent basis or it is only for convenience sake this time?


(d) Should retiring bankers (upto 2017) now stop immediately their subscription as UFBU in future is not likely to take their issues post-retirement.

In  the circulars issued by UFBU from time to time, they have made retired bankers to believe that they are seriously taking up the issues of retired bankers.   I would like to quote here from AIBOC Circular No. 2015/20 dt/ 18.04.2015 (i.e. merely a month back)


“We also expressed our strong views about taking up of the issues of retirees like 100% DA neutralization for retirees prior to 01.11.2001, updation of pension, revision in family pension and extension of another option of pension to resignees and compulsorily retired who have been excluded from the option of pension despite the clear understanding in the last settlement. We also emphasized that group hospitalization insurance policy for retirees should also be demanded from IBA.


With regard to the retirees' issues, it has been decided to take up with IBA:

a) Updation of pension as per regulation 35(1) of the Pension Regulations 1995 since updation of pension is in-built in pension regulation and IBA should give necessary instruction to all the banks to implement the same, 
b) Extending DA neutralization for those pensioners who retired before 01.11.2002 and to improve family pension at par with the government pensioners.


(i)   Till mid April 2015, the leader of AIBOC, Mr Harvinder Singh had been assuring their retired cadre that they are in consultation with IBA on issues of retired bankers;


(ii) Why retired bankers were kept in dark if IBA was NOT ready to discuss the issues of retired bankers?   Is it not betrayal of the faith put in by senior citizens in the organization to which they were members till retirement?


(iii) What has been the major change in past one month, which led to the decision of dumping the retired bankers?   Is it part of vendetta or non payment of subscription by them at this stage?   Mr Singh needs to come clean on this issue


Interestingly, in his reply to AIBRF, Mr CHV has made the following comments :


The demands relating to Retirees were included in the charter of demands not at the behest of anyone but out of our own conviction that these issues have to be taken up for resolution.



The questions now arises why there is a sudden change in conviction of his so called tall leader?  Have some under the table talks happened which led to the change in his such a strong conviction that he included these demands on his own?   By merely saying these words does not absolve him of the 30 months period during which many of the retired bankers must have died and their family waiting for some good news will now get a shock that some of them may even die.

In another para CHV while talking about medical scheme has replied that :

Further, it has been agreed that the same scheme would be made applicable to all the past retirees also. This is by no means an ordinary achievement.



CHV wants to take the credit for the medical scheme but is not ready to take discredit for leaving the retired bankers on their critical issues which have been dumped suddenly.  He wants that UFBU should be entitled to discuss the issues of retired bankers as well as he is trying to meekly slip on issues of family pension, 100% DA neutralization and updation of pension issues.  

Going ahead CHV claims as follows:


Regarding 100% DA for past cases, the IBA and the Government were willing to consider the same. But of late we find that they feel that the matter is subjudice for discussions as some court cases are pending before Supreme Court for which we are not responsible

This is a bizarre argument as no Court will have any objections if the agreement outside the Court is made and based on that court cases are withdrawn as the aggrieved parties are satisfied.


Moreover, others have also quoted instances of the past where Unions have entered into agreements even when the cases were subjudiced.


This argument is nothing but befool people who do not knowledge of law.


CHV is forgetting that recent circular giving benefit to CRS employees for leave encashment has come only and only because many High Courts have given verdict in favour of CRS employees.   Inspite of supporting the rightful cause of bankers, CHV is admitting that they are not responsible and do not support the system of getting benefits through Court judgements.


Now let us read the argument of CHV on the issue of updation of pension :


On the issue of updation of pension, IBA has very serious reservations in view of the cost implications which is very high according to them. So we have asked for the details of number of pensioners, present pension, etc. so that we can work out the cost and fund required for the same and then pursue the matter further

It is again a funny argument. 


Has IBA suddenly realized that it has cost implications and 900 days were not sufficient to get the details of number of pensioners, present pension etc to work out the cost and funds required.


Are all the leaders of 9 top most unions of banking industry, in this age of IT can not ask their back room team to get the data of number of pensioners and present pension in last 900 days.   All this data is available with every bank on computer as now a days almost every bank pays the pension through computerized generated pensions.


Thus, if there are good intensions, then this data can be collected maximum in a week time and analysed.  This is not a rocket science.  Take the help of any good IT banker and he will do it for UFBU in less than a week.



The worst part of the whole letter of CHV comes at the end, where he issues a veiled threat to all retired bankers :

If your letter is to request for further efforts, it would be viewed accordingly. If otherwise, we will take it on our strides.


This is nothing short of an open threat but put in a veiled manner.   Do retired bankers now assume that CHV and other UFBU leaders will work against the interests of the retired bankers and they have to go to Courts to settle the issues.


CHV needs to clarify that now onwards UFBU will not take up any issues of retired bankers.  Even in the past they have never come up with retired bankers in fighting Court cases.


Such type of threat is not only regrettable but SHAMEFUL for all the leaders of UFBU.  They need to issue a public apology for such a threat.





Some Suggestions:

Now it has become more or less clear that UFBU are hell bent upon signing the 10th BPS without addressing the issues of retired bankers.   Thus, there is a need to ponder upon the issues and retired bankers have to resort to some direct action.   Some of the suggestions which have come to my mind immediately are given below.   Other suggestions can be given by the readers in the comments columns.

(a) There is a need to form a group of retired Law Officers from banking industry.  For this purpose they can send their Names, Bank Name from where retired; Date of Retirement, Scale in which Retired, Contact Details, Presently staying in which city.   These details may be sent to  We can forward the same to all retired organizations or display the same on our website so that it can be used by all those who wish to interact with them.


A group of retired law officers who have experience of working at Courts and are willing to offer their services free of cost may be created and suggestions asked for future legal action.   If necessary a meeting of the select retired law officers may also be called to have free and frank discussions.   With the passage of time, this body may be made permanent so that all issues relating to retired bankers can be taken up at appropriate levels (including Courts if necessary).



(b) AIRBF should consult some lawyers and file a case.   They should ponder upon whether it is advisable to keep the 10th BPS in abeyance till IBA gives firm commitment as to how these issues will be discussed and finalized.  Or through Court orders IBA and UFBU should be asked to reply to the following questions:-


(i)           Whether the issue of negotiations for retired bankers has been delinked from negotiations of serving employees permanently.  If so, what  will be criteria for negotiating with an association of retired bankers?

(ii)         They should give a time schedule (maximum 2 months) within which they will negotiate for retired bankers and the date of effect of all such agreements will be 01.11.2012.   All the arrears to be paid to retired bankers will carry interest @ 15% from the date the 10th BPS becomes effective for serving employees.




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