AllBankingSolutions.com                              ......our answer to all your banking needs


 

Follow AllBankingSolutions

 @


    Follow allbanking on Twitter

Retired Bankers Remind UFBU Leaders About  Their Aspirations Which Can Be Met from Current Surplus Funds To Be Available This Year Itself

 

 

 

Ads by Google

 

BackGround by ABS :

We give below the letter sent by General Secretary of Forum of Retired Bank Employees to all the leaders of UFBU, reminding about the pending issues relating to retired bankers.   In the forthcoming meetings of 16th and 17th 2015, the issues relating to retired bankers are also likely to be discussed.    The letter gives additional details to what we have already placed on our website.  

The UFBU leaders now need to be prepared to take up these issues strongly as IBA is already on a very weak wicket on most of these issues and they are purely not agreeing because of their ego.   We have noticed that in last 5 years, on number of occasions the Courts have slapped IBA with judgements which expose the wrong stand taken by IBA on such issues.   Under Court orders and because of threat of Court action, some banks were forced to release pension to bankers who were denied as IBA has taken a contrary view.  

We are of the view that this is the time when IBA and UFBU can wriggle respectfully out of the mess already created for pensioners as if they fail to raise to the occasion, soon Courts will intervene and they (IBA and UFBU)  may have to lick their own spit in the years to come.  The following is the text sent to all UFBU leaders :-

 

TEXT of Letter Sent by FRBE to all units of UFBU :

"No. FORUM/Pen Left-overs/2015-16/                            13.03.2015

 To,

The General Secretary,

All Constituents of UFBU,

Camp: Mumbai

 

Dear Sir,

Ref: Pension to Left-Overís in Banking Industry.

On 27.04.2010 vide an agreement, second option for pension was extended to the following categories of employees who:-

1)   Were in service of Bank prior to 29th Sept 1995 / 26th March 1996 and continue in the service of the Bank as on the date of this settlement;

2)   Were in service of Bank prior to 29th Sept 1995 / 26th March 1996 and retired after that date and prior to the date of this settlement;

3)   Were in service of Bank prior to 29th Sept 1995 / 26th March 1996 and died in service OR retired after that date and died will be eligible for Family Pension;

4)   The Employees who ceased to be in service on or after 29th Sept 1995 / 26th March 1996 on Account of SVRS.

 

The option applications of other categories i.e.  Normal VRS under Regulation 19(1) of OSR 1979 / 1982, CRS (Compulsorily Retired Employees), Resignees, Dismissed employees were declined on the ground of not eligible as per the settlement.

On the contrary by enlarging the scope of the settlement, the PF optee General Managers were extended the benefit of second option though the word Deemed to have retired was not incorporated in OSR 1979 / 82 and also this category was explicitly not covered in the settlement.

Further in 2012, IBA advised vide its letter No. CIR/HR&IR/2012-13/G2/6213 dated 9.11.2012 by enlarging the scope of the agreement; IBA unilaterally allowed pension option to those officer employees retired under Regulation 19(1) of OSR 1979/1982, benefitting 5500 employees.  This has led to anomaly of depriving pension to award staff where bank failed to formulate VRS scheme and also for officers in 6 public sector banks where the scheme under Regulation 19(1) was not framed despite directives of the Government of India. (Kindly refer IBAís letter No. HR&IR/KU/G2/6406 dated 06.08.2012.)

 

Above facts led to denial of pension option to following categories.

1)   Resigned employees despite completing qualifying service.

2)   Voluntarily retired officers of private sector banks.

3)   Compulsorily Retired Employees (despite decision of Hon. Supreme Court)

4)   Exit optees of Associate Banks of State Bank of India.

5)   Those who could not exercise option earlier or refund PF amount received within stipulated period for the circumstances beyond their control.

6)   Those who exited from the services of the banks by resignation during the period from 27.04.2010 i.e. from the date of agreement to the date of issue of circular by individual banks in August 2010 or thereafter.

 

Reference is also invited to the actuarial valuation report of the commonly agreed actuaries who have assessed the pension liability of retired employees as on 31.03.2008 is as under.

Total number of retired employees                         63829

Of which not entitled for pension                             8179

No of retirees entitled for pension                          55650

Incomplete data of retirees                                      8519

No of retirees valued actuarially                             47131

Of which employee pensioners                               38252

Family pensioners                                                    8879

 

It is also understood that about 50% of family pensioners for which liability was assessed did not opt for pension as the scheme was not attractive for them.

 

Ads by Google

 

The position of the left out categories as on the date can be ascertained as under.

 

Number of not eligible employees as assessed by actuaries               8179

Number of employees benefited by the act of IBA circular                  5500

Dated 09.11.2012

Left out category                                                                                    2679

 

Of these 2679 employees, Vijaya Bank has paid pension to its 22 employees as per the decision of the Hon. Supreme Court.

 Andhra Bank and Bank of Baroda paid pension to 3 CRS employees. Bank of Maharashtra has paid pension to its 29 employees leaving hardly 2625 employees, who are striving hard for pension in their old age.

 The financial burden of second pension option to these 2625 employees will be hardly Rs. 100.00 crores (Rs. One hundred crores) per annum.

 The data collected as of 31.03.2014 from all the public sector banks reveals that pension funds of all the banks generate a surplus of over Rs. 2000.00 crores (Rs. Two thousand crores) per annum and the cost of Rs. 100.0 crores of releasing pension to left over category will not affect the pension funds adversely. Even the Government of India has recently introduced ATAL Pension Scheme as a social security measure.

 It is also learnt that IBA and UFBU are positive on the issue of providing additional Rs. 3000.00 crores (Rs. Three thousand crores) to pension benefit and the same can be apportioned as under:

 

Surplus of Pension Fund as on 31.03.2014                   Rs.     2000.00crores

Minimum surplus expected to be generated                   Rs.     2000.00 crores

In 2014-2015

1/5th amortization for year ending 31.03.15                 Rs.    1800.00 crores

Proposed additional contribution to pension                     Rs.    3000.00 crores

Total                                                                     Rs.    8800.00 crores

 The net surplus of Rs. 8800.00 crores will be available excluding the corpus of pension funds of Rs. 156782.00 crores as on 31.03.2014. This net surplus can take care of the pension to the left-over category, pension updation, 100% DA neutralization and improvement in family pension as envisaged in the Charter of Demand of UFBU.

 In view of the above facts, judicial decisions in favouor of left-over categories and availability of funds and negligible out go for releasing pension to left-over retired employees, the issue needs sympathetic consideration on priority.

 Thanking you,

 Yours faithfully,

 General Secretary.

 

 

You can give your feedback / comments about this Article.   Please give only relevant comments as irrelevant comments are waste of time for yourself and our other readers.

 

 

blog comments powered by Disqus