A Strong Case for Updation of Pension & 100% DA Neutralisation - IBA Seems To Be Hiding Facts from Courts
Ads by Google
Comments by AllBankingSolutions.com :
We give below a letter sent by Mr S Ramachandran, former General Manager at Bank of Baroda. The letter is an eye opener as it gives certain facts which indicate that there is a strong case for not only 100 DA neutralisation, but also updation of pension with immediate effect. We are uploading the full letter as sent by him to Shri Hasmukh Adhi Ssecretary, Departmental of Financial Services. We hope UFBU and IBA will go through the same and take appropriate action for updation of pension. Our readers (including UFBU leaders_ too can go through the facts and if they find any discrepancy, they should point out the same so that the matter can be discussed in a transparent manner rather than keeping the same under wraps and creating mystery about the actual facts. Readers should also add more points which they are aware so that retired bankers case is strong and GoI can be taken head on by the retired bankers as they have been suffering for years. We feel all the retired bankers will share this article with all their retired colleagues so that more and more retired bankers knows the facts
S. Ramachandran No. A8, Kunal Icon, Building
Former General Manager, Bank of Baroda, Flat No. 104, Pimple Saudagar,
Former Chairman & CEO, The Sangli Bank Ltd. Aundh Camp, Pune – 411027,
(Now merged with ICICI Bank Ltd) Tel: 020 27201012.
Former Administrator, Madhavapura Mercantile E-mail id: email@example.com
Co-Op Bank Ltd ( Ahmedabad )
Former Director General, Maratha Chamber of
Commerce & Agriculture, Pune.
BY SPEED POST
Date : 6th Nov, 2014
1. Shri Hasmukh Adhia,
Secretary, Departmental of Financial Services,
Ministry of Finance, Jeevan Deep Building,
3rd Floor, 10, Parliament Street,
New Delhi -100001.
RE- ILLEGAL ARBITRARY DENIAL OF
(1) 100%DANEUTRALIZATION TO SENIOR CITIZENS WHO RETIRED FROM THE BANKS SERVICE PRIOR TO NOVEMBER2002
(2) DENIAL O0F FAMILY PENSION AS PAID TO GOVT AND RBI EMPLOYEES
(3) DENIAL OF PENSION UPDATION FROM TIME TO TIME AS GIVEN TO GOVT AND RBI EMPLOYEES WHICH IS VIOLATIVE OF ARTICLE 14 AND 16 OF THE CONSTITUTION OF INDIA
In continuation of my letter dated 18th june,2014 addressed to Shri Gurdial singh Sandhu on the above subject which has been received by his office on 20-6-2014 and regret to inform you that I am yet to hear from his office in the above matter though more than four months have passed. You are aware that HON’BLE
Prime minister Shri Narendra Modiafter taking charge have instructed all the departments to dispose off the public grievances without any delay. Further I understand that his office has forwarded my above letter to Chairman and Managing Director , Bank of BARODA UNDER YOUR OFFICE LETTER DATED 8-7-2014 BEARING NO DIARY NO/DATE 28112 , with a request to take appropriate action at the earliest under intimation to your office. However I regret to inform you that I have not received any communication from the CMD OF BANK BARODA WHICH CLEARLY SPEAKS OF THE INEFFICIENCY AND THE IMPORTANCE THEY ATTACH TO YOUR DIRECTIONS. IN THE LIGHT OF THE ABOVE YOU SHOULD TAKE STERN ACTION AGAINST BANK OF BARODA FOR TOTALLY IGNORING YOUR DIRECTIONS YOUR MINISTRY ALSO TAKE STERN ACTION AGAINST THE MANAGEMENT COMMITTEE OF IBA FOR THEIR FRADULENT AND ILLEGAL AND ARBITRARY DECISION TO DENY THE LEGIMATE DEMAND OF THE RETIREES UNDER THE PENSION SETTLEMENT OF 1993. In view of the above I now send you the undernoted additional facts/information to enable you to take immediate action.
1. Existing Pension Scheme in PSU Banks.
In pursuant to a Settlement between Bank Employees’ Representatives and Bank Managements’ represented by Indian Banks’ Association ( shortly called as ‘IBA’), on 29.10.1993, Bank Employees Pension Regulations 1995, was framed in exercise of powers conferred under clause (f) of sub-section (2) of Section 19 of Banking Companies (Acquisition and Transfer of Undertaking)Act, 1970. The respective Boards of Directors of the PSU banks have adopted the framed Regulations in their Boards, after consultation with the Reserve Bank of India and with the previous sanction of the Central Government, and by notification in the official gazette of Government of India, on 29.09.1995, Bank Employees’ Regulations, 1995, came in to force of Law from the date of notification i.e., 29.09.1995. Originally, these Regulations were contemplated to apply to the employees who retired after 01.11.1993, but later on, it was extended to the employees, who retired from 01.01.1986 onwards. According to Clause 12 of the Pension Settlement dated 29.10.1993,
Provisions will be made by a Scheme, to be negotiated and settled between the parties of this Settlement, by 31.12.1993, for applicability, qualifying service, amounts of pension, payment of pension, commutation of pension, family pension, updating and other general conditions etc, on the lines as are in force in Reserve Bank of India.
Ads by Google
2. Updation of Pension
So, there was intention on the part of parties to the Settlement dated 29.10.1993 to update the pension, but when the actual Regulations were regulated in 1995, IBA has not included the vital aspect of UPDATION of Pension for the reasons known to themselves. That is to say that IBA has drafted partial Regulations based on the Settlement dated 29.10.1993 and not framed the full/total Regulations, based on the Settlement dated 29.10.1993. Though there is clear mention of Updating in the above clause referred, unfortunately it is not in force in Reserve Bank of India.
But the word ‘ Pension ‘ includes,
a. different types of pensions, including family pension,
b. commutation of pension,
c. restoration of commuted pension,
d. suspension of pension,
e. withholding of pension,
f. withdrawal of pension,
g. forfeiture of pension,
h. updation of pension,
i. dearness relief on pension,
j. and so on and on.
When the Pension Scheme was introduced, suspension of pension, withholding of pension, withdrawal of pension, forfeiture of pension, are included in the Regulations 1995, as part of “other general conditions etc “, of clause 12 of the Settlement referred above, but the updation of pension was not included as part of “other general Conditions etc”, of clause 12 of the Settlement referred above. This is against the Principles of Natural Justice. Hence the Pension Regulations 1995 is only a part of Settlement dated 29.10.1993 and there is need and demand for amendment of Pension Regulations 1995, for inclusion of Updation of Pension in the Pension Regulations, as Pension and Updation of Pension, are not different, Updation of Pension is part and parcel and integral part of Pension as a whole
03. Pension Funds Position in Pension Funds Trusts of PSU Banks.
The following table gives the factual and actual position of pension funds
( Amount in Crores of Rupees)
(These figures of Pension Funds are available in annual reports of respective bank’s website)
Now it is pertinent note and drive a factual and actual point here, that the total interest earned on pension funds in financial year 2013-14 amounting to Rs. 8557 crores, has serviced pension pay out in the said financial year amounting to Rs, 7235 crores in cases of PSU banks and but still there is incremental growth from Rs. 101883 crores to 113546 crores in the said financial year, i.e.,a net of Rs. 11,663.00 crores, in which contributions amounting to Rs. 6917 crores has been added to the corpus fund growth. In all the PSU banks, the interest earned on pension funds has serviced the annual pension payouts.
04. Justification of Pension Updation and 100% neutralisation of D A
When such is the factual and actual pension funds position stood as thus above, Bank of Baroda has admitted that it requires Rs 8 crores per month to allow updation of pension in case of officers, i.e Rs. 96 crores annually and on the same lines it is expected to cost another Rs. 100 crores to award staff annually, aggregating Rs. 196 crores, ( say Rs. 200 Crores annually in one PSU bank ) at current rates. However, it is disheartening some individual banks and Indian Banks’ Association have misrepresented the facts to the various Honourable High Courts and Supreme Court in the country, by submitting
a. that the Pension Scheme is a Self Financing Scheme,
b. that the Financial Implication of Pension Fund would be adverse
c. that there is no provision to provide updation of pension and 100%
neutralisation of Dearness Allowance
d. and so on,
That is, not submitting to the honourable courts about the factual and actual position of pension funds, by the banks and IBA and on the other hand, individual retirees and retirees’ associations’ petitioners have not brought to the notice to the honourable courts about the sound pension funds position of the banks, therefore, there are unfavourable orders from the honourable courts
Now it is clear to the individual banks, IBA and UFBU to take stock of factual and actual sound position of pension funds of PSU banks and work out the cost of pension updation and 100% neutralisation of D A. So In this regard, it is requested to Secretary DFS, to give suitable instructions to the negotiating committee of IBA, as the demand for updation of pension and 100% neutralisation of DA is viable and affordable. So also the Apex Court has upheld the theory of One Rank One Pension recently in respect of Retired Judges’ Pension case.
From the above you will observe that IBA HAS MISERABLY FAILED TO ADOPT” ALL THE OTHER GENERAL CONDITIONS”ETC OF CLAUSE NO 12 OF THE PENSION SETTLEMENT DATED 29-10-1993 AND ALWAYS FRADULENTLY MISLEAD YOU AND THE COURTS BY GIVING THE FALSE INFORMATION ABOUT THE PENSION FUND POSITION OF ALL THE BANKS AND THEREBY MENTIONING THAT BANKS FINANCIAL POSITION CANNOT AFFORD THE ABOVE STATED DEMANDS AS STATED IN SUBJECT .
YOU ARE THEREFORE REQUESTED TO SETTLE THE MATTER WITHOUT ANY FURTHER DELAY.
FURTHER IN VIEW OF THE ABOVE HARDSHIP AND PROBLEMS CREATED BY THE IBA I FEEL THERE IS A NEED TO HAVE THE PRESENCE OF RETIREES REPRESENTATIVES IN PENSION FUND TRUST AS PER REGULATION NO 8 AND SUB REGULATION NOS 1 AND 2 OF PENSION REGULATIONS 1995,TO SAFE GUARD THE INTEREST IN THE MANAGEMENT OF PENSION FUND AND ALSO STAFF WELFARE FUNDS OF THE PSU BANKS. THIS WOULD BE ON THE LINES OF ARTICLE 43 A OF THE CONSTITUTION IN WHICH WORKERS PARTICIPATION IN THE MANAGEMENT OF THE BOARD OF PSUS
Lastly I may inform you that the decision OF ILLEGAL, ARBITRARY DENIAL in the above three matters has been taken by IBA without your and RBI consent WHICH IS A MUST. RBI HAS CONFIRMED TO ME VIDE THEIR LETTER NO CO/RIA/1618/04.03.001/2014-15 DATED 24TH JULY,2014 stating that they have not issued instructions in respect of all the 3 matters referred to above to BANK OF BARODA AND ANY OTHER PUBLIC SECTOR BANKS
FURTHER ALL THE PENSION ISSUIES SHOULD BE DISCUSSED WITH THE PENSIONERS AND THEIR ASSOCIATIONS INSTEAD OF UFBU AS THEY ARE NOT ABLE TO UNDERSTAND AND APPRECIATE THE
HARDSHIPS FACED BY THE RETIREES.
( S Ramachandran )
PENSIONER,SENIOR CITIZEN AGE 76 YEARS
AND FORMER GENERAL MANAGER, BANK OF BARODA