We reproduce below the circular issued by All India Canara Bank Retirees' Federation on the above subject.
June 29, 2011
To: All Affiliated Units/Office Bearers/Central Committee Members
DIVISION BENCH OF MADRAS HIGH COURT DELIVERS JUDGEMENT IN FAVOUR OF RETIREES IN RESPECT OF DEVIATION IN BASIC PENSION
Regulation 35 (2) of Pension Regulations states that ….” The amount of Basic Pension shall be calculated at 50% of the average emoluments”
In the VII Bipartite Settlement, a new definition of “Pay for the purpose of Pension” was introduced, in contravention of Regulation 35 of Pension Regulations stating that “Pay for the purpose of pension shall be aggregate of pay drawn by the member in terms of Joint Note/VI Bipartite Settlement dated 14-02-2005 and the Dearness Allowance thereon calculated upto Index Number 1616 points in the All India Average Consumer Price Index Numbers of Industrial Workers (Base 1960 = 100) This definition was applied to all the persons who have retired after 01-04-1998. This resulted in reducing the Basic Pension payable to the pensioners from 50% of basic pay to about 41% of Basic Pay.
This anomaly was rectified in the VIII Bipartite settlement/Joint Note which restored the definition of Pay and re-fixed Basic pension of retirees to 50% of the actual average emoluments drawn by the retirees covering all Post 01-04-98 retirees, but only with prospective effect from 01.05.2005.
As this is only a correction of an earlier distortion, retrospective effect has to be given from the date of retirement of the pensioner concerned and the difference in commutation of pension also has to be paid. Urging these points, Bank of Baroda Retirees in Chennai filed Writ Petition in 2002. Against adverse judgement in this regard, they preferred writ appeal before the Division Bench of Madras High Court which delivered the judgement on 28.06.2011 in favour of retirees, ordering the BOB management to pay the arrears of pensionary benefits from the date of retirement. Full details of judgement are awaited.
Our Writ Petition on the subject matter is still pending before the Madras High Court and we are actively pursuing the case through our Advocate at Chennai.
We heartily congratulate the Bank of Baroda retirees for their patience and sustained efforts in pursuing the case.
With Warm Greetings,
(S V Sinivasan)
Source -Shri Mohan.V.R. Chennai