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  Sudhakar Rao

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Background by ABS :

 We have read many articles about how UFBU has been selling the interest of the retired and serving bankers in last 4 BPS.   However, these issues have been discussed in parts and bankers find out it difficult to comprehend the exact issues.   However, now one of our readers Mr.Sudhakar Rao has consolidated the same in a beautiful manner.  This  will serve as an eye opener to the bankers as to how they have been cheated under every  BPS  since 1997.   This has not ended.  Once again the ground is being prepared to ditch the retirees again under 10th BPS.   Therefore, there is a need to be cautious and BANKERS  should not wait till actual treachery happens.  

 We would like to put on record that some administrators of Groups affiliated to unions are not NOT approving articles of  so that their members do not get factual truth.   However, in this age of internet it is almost impossible to suppressThey have every right to block our articles as they are the Administrators, but TRUTH WILL PREVAIL.    You can contribute in spreading the truth by SHARING  THE  LINKS TO THESE ARTICLES WITH YOUR  BANKER / EX-BANKER FRIENDS.   DO NOT FEEL SHY OF SHARING – SHARE THESE WITH AS MANY FRIENDS AS POSSIBLE – IRRESPECTIVE OF THEIR UNION AFFILIATIONS.  Try to put up link of these articles on every group you know. 

 We give below the article by Mr Rao.  This article is a serious article and must be read in full to understand past and future implications :

 Article by Mr Sudhakar Rao:

 “The settlement will be signed within 90- days from 24.02.2015 i.e. before 03.06.2015. In the past UFBU leadership has committed treachery with the Existing Employees. Retiring Employees & Retired Employees, So there is need to be extremely cautious. History of Act of Treachery in the past, Committed by UFBU are enumerated below:

 TREACHERY  No. 1  in 7th BPS


In 7th BPS for the period 01.11.1997 to 31.10.2002,


(a)  the DA upto 1664 points was merged with the Basic Pay

(b)   But for the purpose of payment of pension, merger upto 1616 point was considered,


which resulted in lower basic for the purpose of pension calculation. The pension of the employees retired from 01.11.1997 till the date of settlement (11.03.1999) was reduced from 50% to 41% due to above illegal settlement.

 The 50% pension was restored by intervention of the Supreme court and UFBU forced the employees to take shelter of the Court.


TREACHERY  No. 2  in 7th BPS

 All the employees who retired during 01.11.1997 till the date of settlement (some time in year 2000) were paid the revised pension from the date of settlement.

 They were denied the arrears of revised pension. They were forced to give undertaking that revised pension will be paid if they agree not to claim the arrears of pension and revised commutation.


TREACHERY No. 3  in 8th BPS

 The VIIIth  BPS for the period 01.11.2002 to 31.10.2007 was signed in 02.06. 2005. The employees retired during 01.11. 2002  til the date of signing of settlement ( i.e. upto July 2005)    were denied the arrears of pension and commutation as happened in 7th BPS.

 TREACHERY No. 4  in 7th 8th & 9th BPS

 UFBU agreed to share the incremental cost  of  pension since 7th BPS and violated the pension regulations. this caused huge  loss of wages to employees


  • The incremental cost of pension was 16.5% p.m. as per 7 th BPS and shared equally @8.25% by employees and their wages were reduced by 16.5%.;


  • The  incremental cost of pension was 18.5% p.m. as per -8th- BPS and shared equally @9.25% by employees.;


  • The  incremental cost of pension which was 26% as per -9th- BPS and shared equally @13%p.m. by employees ;



 is it not the responsibility of the Unions to ensure that the  incremental cost of pension, so agreed, has been deposited in the pension fund?




Do you know that the Bank management stopped depositing  10% of basic pay each month in the pension fund as per pension regulation?. They are manipulating the Actuarial valuation report and accordingly depositing there share (lower amount) on quarterly/ half yearly/ yearly basis. Is it not the responsibility of the Unions to ensue that the  incremental cost of pension, so agreed, has been deposited in the pension fund?. 


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 The wages of the PF optees were reduced to the extent of  incremental cost of pension in successive wage settlement since 01.11.1997. How there wage can be reduced when they are not the beneficiary of the pension fund trust? Can you be forced to contribute toward pension of Prime Minister of India?.

 Proof of not deposited even 10% in pension fund


(a)  SBI CMD transferred Rs 7927.41 crs from General reserve to Pension Fund  as on 31.03.2011. Central Statutory Auditors clearly certified that this amount arisen because inadequate funds were transferred in the previous years. Hence previous year balance sheet was falsified to this extent.

 (b)  Bank of Baroda Chairman not deposited 10% statutory contribution every month as on 31.03.2010. See their annual report from the website. In fact he withdrew Rs 57 cr from pension fund to boost the profit to 3058 crore in March 2010. The bank has deposited  Rs 472 crore during 2008-09 and 365 crore during 2007-08 but during 2009-10 employer contribution to pension fund is NIL . How the employer contribution can be Nil during 2009-10.?


    (c)  The list of PSB not deposited the statutory share in pension fund is very long which includes PSB, United Bank, UCO Bank, Central Bank Union Bank. Central Bank sponsored Common wealth game (Rs 50cr) by employees pension fund  and showed their inability to deposit their 10% statutory due in pension fund.

 (d)  It is diversion / loot of employees retirement funds to boost the profits and claim incentive of Rs 8 lacs from the Bank on the basis of falsified balance sheet. The amount involved is more than one lac crores which has been laundered  since 01.11.1997.


TREACHERY   No 7   Scam on bank employees pension fund in the name of Amortization of the  pension cost.


  • RBI circular No DBOD.No.BP.BC:80/21.04.018/2010-11 dated 09.02.2011 permitted amortization of enhanced expenditure of pension liability on account of new pension option under 9th BPS and amendment of Payment of Gratuity Act 1972 to banks, at the request of IBA vide guidelines on Prudential Regulatory Treatment.
  • Accordingly -19- PSB  amortized Rs 19611.57 crore as on  March 2011. This amount of Rs 19611.57 will be deposited in -5- yearly installments  ending 2015 in the pension fund trust.
  • When existing employees have deposited their 2.8 times of basic pay and retired employees have refunded 100% of provident fund and addition 56% cost in one installment, why the banks have not deposited  this 19611.57 cr in one installment.
  • Is it not a loss to the pension fund?. The 9% average return on amortised pension cost of Rs 19611.57 will add to pension kitty by 1765.04 cr per year.
  • When our Annual wage rise was  Rs. 4816 (Rs. 2239 crores for officers and Rs. 2,577 crores for award staff) w.e.f. 1-11-2007 agreed  as per 9th BPS (CIRCULAR NO. 85 dated  29 / 11 / 2009 of AIBOC). Loss of interest of Rs 1765.04 cr  to pension fund is equal to 40% of wage rise offered in 9th BPS. Will you allow such crime/loot on your pension fund to continue?.
  • Can RBI allow amortization of pension cost to boost the banks profit and falsify the balance sheet?.
  • Can RBI allow Banks to amortize interest payable on FDR of customers and deny them the quarterly/ annual interest in the name of amortization and allow banks to boost their profit.?
  • Can RBI allow amortization of depreciation to boost the profits?.  Is it not a fraud on the pension fund? Is it not a fraud on the balance sheet of banks?



TREACHERY  No 8 in 9th BPS Loot of your pension fund

 ·         Denial of 2nd pension option to retirees/volutry retirees/ resignee is not treachery. Wrong interpretation of  2nd pension option by IBA.

 ·         Do you know that when a GM becomes ED, his no longer a bank employees but a GOI nominee on the Board. He is not governed by Bank employees Pension Regulation. In fact he has to resign but his resignation is treated as retirement and his retirement dues are paid. He is entitled to gratuity/ pension leave encashment  PF and other retirement benefits.

 ·         GM becoming ED is entitled for pension on his resignation but normal employees resigning after -20- years is denied the pension.

 ·         So ED gets salary fixed by GOI plus monthly pension.

 ·         Do you know that now ED/ CMD are getting -2- pensions. One pension from parent Bank from where he was GM and 2nd pension of Chairman/ Executive Director from the Bank he retired as CMD/ ED. Your pension fund is paying pension  of ED/CMD  and he has never contributed incremental cost or 10% to the fund.?

 WHY THE PENSIION FUND DETAILS ARE NOT IN PUBLIC DOMAIN. Why Pension Fund Subscriber who have paid Rs 16-20 lacs in their whole life, are not provided the Annual Report of the Pension Fund Trust.


Probable Treachery in 10th BPS

As per settlement signed with IBA, UFBU has agreed that DA upto 4440 index point i.e.60.15% will be merged and Basic plus 60.15% plus 2% amouting Rs 597 cr will be used to construct the scale, meaning thereby 102% of Basic plus 60.15% will be new basic. Where the remaining 13% will be utilized . whether it will be grade pay or else?. Whether it will be counted for pension purpose of not? . these are the pit holes and UFBU may cheat you again. Therefore please be watchful.

All the above are facts not the hyperbole but based on past experience during last -3- BPS.

 We feel that we are required to give a serious thought and be alert.


Sudhakar Rao


India against Corruption



Comments by ABS :

This is the second explosive article at  in a row relating to Pension matters – the first one was by Mr S Ramachandran.   In the present article, Mr Rao has made the things simple to understand as to how we bankers have been cheated time and again in the name of payment to retirees.   We at are now trying to consolidate the various issues relating to retirees so that they can understand the anomalies better and in future if they wish to take up the issue with IBA, Bank Management, Ministry of Finance, GoI or ultimately go to Court are able to get the maximum background material.  We are giving authentic links to the material proving as to how in the past retirees have been cheated alongwith the serving bankers, WHEREAS   RETIRED  CMDs AND EDs ARE NOT AFFECTED !

 In the meantime, Retired Bankers needs to organize themselves into pressure groups and if necessary organize some protests to bring their issues in the public domain.  

In case any discrepancy is noticed in these facts, union leaders, IBA or other officials can freely write in comments columns,  the authentic links / data so that these can be included here and TRUTH prevails as our aim is to spread TRUTH. 


 Annexures Giving Links to Background Material to Prove as to How UFBU Has Cheated in the Past


1.     SBI CMD Interview where in he admitted that they have not deposited the due amount in pension fund to inflate the profit. [You can read the details at the link given below : ]


2.    BOB Annual report of 2010 showing NIL contribution in pension fund during March 2010. (Folio 114) – [ ]

 3.    Circular no.85 dated 29.11.2009 of AIBOC communicating the recovery of cost of pension from employees by reducing their wages by 23% of incremental cost of pension.


4.    CIRCULAR NO.64  dated   12.05.2010 of AIBOC confirming the above naked truth


5.     SBI Union circular no.1 dated 27.01.2011 on pension cost balancing and its payment to SBI employees as Special Balancing Allowance of 6.5%

 6.     AIRBF letter of August 2013 to Union for  taking  issues  relating  to management of pension funds

7.     Payment of pension to ED /CMD  April 2012 -MOF Notification


8.     Pensionery  benefit to whole time Directors of PSBs Jan 2013-MOF Notification




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