Ex Gratia for Pensioners AIBEA circular

 

Pension Updation in Banks. Letter to IBA

Letter by AIBPARC to the chairman IBA regarding Pension Updation in Banks is reproduced below

Quote :
AIBPARC/IBA/PENSION UPDATION/EMAIL/2021                November 12, 2021.
Shri A.K. Goel,
Chairman, IBA,
& MD & CEO, UCO Bank.
Respected Sir,
Sub : Pension Updation in Banks.
We mention hereunder the chronological developments of the above issue for your kind information and ready reference:
 There had been a time when the issue of pension updation, when raised in Parliament, was addressed by a standard reply that it was a funded scheme and determined by bilateral negotiations between IBA and Unions/Associations. Hence, it was contended that government had little scope for intervention in this regard.
 The issue was first focussed into surface by AIBPARC when the organisation highlighted that Regulation 35.1 clearly mentioned the modality of updation of pension in its appendix 1 and it was not an unheard-of subject in the Banking Industry. An opposition came from certain quarters that the Regulation 35.1 mentioned about a particular batch only (01.01.1986 to 31.12.87) and it was not applicable to other retirees. It is AIBPARC which cited again that the Regulation 35.1 was amended in the year 2003 and it was made open-ended to make pension updation applicable for all and it was to take place in a concurrent manner with each salary revision for serving employees/officers in the Industry.
 Next came the issue of affordability of funds. This is often argued that pension updation would create a serious pressure on the balance sheet of banks. It is partially e myth. The total corpus of all the banks including that of SBI is far above Rs.3 Lac crore and the net out-go for updation of pension even as per RBI formula can be safely managed by the pension corpus which was created out of the surrender of the management contribution to PF by the employees during their service life. Any shortfall, after government- approved Actuary’s annual estimation, has to be made good by banks every year to the debit of PL account and it is a statutory obligation of banks as per Pension Regulations.
 The situation underwent a sea change with the following developments :
Hon’ble Union Finance Minister had expressed her concern about the well being of the retirees in an interview at a leading newspaper being followed by her address in the 73rd AGM of IBA. She expressed her concern for the retired employees and their families. She kept her commitment by arranging for a quick clearance of the improvement of family pension that was recommended by IBA. We profusely thanked Union FM, officials of MOF and UFBU for addressing an issue which remained unattended for a long time.
 The issue of pension updation was raised in Parliament again. This time the reply of MOS, Finance, was a departure from what was said in earlier occasions. It was told that government would consider with favour any proposal on pension updation if the same is recommended by IBA.
 Consequent upon this, IBA formed a five-man committee headed by Shri CH. Mallikarjuna Rao, MD & CEO, PNB to look into the subject of Pension updation. The said committee, it can be reasonably expected, was formed by IBA at the instance of GOI. The first meeting of the committee with UFBU took place on 22.07.21. It has been learnt from different communications that it was a one-sided affair where the members of the committee heard the views of the constituents of UFBU. It was expected that the committee would meet soon and the views of the members would be made known but things did not happen in the direction. Meanwhile, we have been hearing from different responsible sources that the members of the committee are making serious application of mind on the issue of updation and they are acting with a positive frame of mind to do something tangible for the retirees of the industry.
 The committee on government assurances, Rajya Sabha, under the chairmanship of Shri A. Navaneethakrishnan, MP, visited Bhubaneswar and Kolkata and met the officials of IBA, Functionaries of DFS and MD & CEO of selected banks and discussed the issues related to updation of pension. Our organisation has submitted a detailed memorandum in the hands of the Chairman of the Committee. We expect that the report submitted by the committee has already reached the decision making authorities.
 We have repeatedly harped on a careful reading of Regulation 56 of BEPR which states that in case of any doubt in regard to implementation of Pension Scheme in Banks, reference should be made to the corresponding provisions of Central Govt. Pension Scheme. It may please be noted that in the Agreements with the employees and officers organisations, it was clearly stated that the Pension Scheme in Banks was modelled on RBI pattern and Pension updation has been allowed in RBI.
 100% DA neutralisation has been denied to pre-November, 2002 retirees and as a result of it a substantial chunk of older citizens are suffering from double jeopardy due to non-revision of pension and lower DA compensation.
 Hon’ble SC has held that pension is a deferred wage and not a bounty and wage revision and pension revision are inseparable.
 We have been remaining in dark for quite a considerable period of time. We have sent our representation to the Chairman of the five-man committee and copies have been endorsed to all other honourable members of the committee. We have also made it clear that the leaders of our organisation would be available at a reasonable notice to present ourselves before IBA or any other authority to explain in person what is the legality of our demand and what is the base of our contention that the outgo of fund required for updating the pension as per RBI formula is within a manageable extent. We have not received any communication so far.
Sir, the Retirees, being senior and super-senior citizens of the country, do not have sufficient time in hand to wait endlessly. They definitely require a consideration on a faster pace. We sincerely hope that you would kindly ensure that the five-man committee quickens the process of decision making and the issue of updation is carried forward to a logical conclusion without any loss of time. We also wish that the organisations of retirees, being one of the principal stake holders, must be given an opportunity to present their views for consideration. When the Union Govt. and various state governments offer consultative status to the organisations of retirees, we fail to understand what actually prohibits IBA to offer consultative status to the organisations of retirees. In a detailed memorandum, we have explained our views before IBA that as per instruction of MOF, GOI, IBA a few years of back asked every bank to form a committee at corporate level to hear the grievances of the retirees and the process is continuing with different member banks. When IBA passes instruction to form committees to discuss grievances of retirees at bank level, it really turns to be an anomaly and dichotomy when IBA at its own level denies consultative status.
We make a fervent appeal before your goodself to consider with favour the views expressed by us in the foregoing paragraphs and call us for discussion.
With kind regards,
(K.V. Acharya )                                                           ( Suprita Sarkar )
President, AIBPARC & Jt. Convenor, CBPRO      General Secretary, AIBPARC

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Bipartite Meeting with IBA on Pension - joint circular by employees' unions

Joint circular by employees' unions is reproduced below

 No. 2021/Joint Cir/02          22nd July, 2021
To All Units & Members
Dear Comrades,
Bipartite Meeting with IBA on Pension
Our unions and members are aware that after signing the 11th Bipartite Settlement on 11th November, 2020, we have been pursuing some of the issues that could not be finalised with the IBA in the Settlement. Accordingly, a round of discussions took place with IBA on 10-12-2020 and minutes were also signed on these residual issues.
Out of these issues, updation of pension was one of the important issues raised by us in that meeting and IBA agreed to discuss the issue further. Due to the second wave of pandemic, meetings could not be held so far. In the meantime, IBA, set up a Committee headed by Shri CH S S Mallikarjuna Rao, MD&CEO, PNB to deal with the issue of Pension.
On following up the matter with the IBA, today, IBA convened a Bipartite meeting between the Committee and our Unions (AIBEA-NCBE-NOBW-INBEF). The meeting was held under video conferencing.
IBA’s Committee was represented by Shri CH S S Mallikarjuna Rao, (MD&CEO, PNB) Chairman of the Committee, Shri. M V Rao (MD&CEO, Central Bank of India), Vice Chairman and Mr. Om Prakash Mishra (DMD, SBI), Shri S L Jain (ED, BOB), Shri D. Mukherjee (ED, Canara Bank), and Shri Gopal Murli Bhagat, Dy Chief Executive, IBA.
We were represented by Com. Rajen Nagar and Com. C.H. Venkatachalam from AIBEA, Com S.C Balaji and Com. S K Bandlish from NCBE, Com. Upendrakumar from NOBW and Com. O.P Sharma from INBEF.
While thanking the IBA for commencing the discussions on the important issue of review of pension scheme, we urged upon the IBA to hold discussions on all other residual issues also so that the same can be resolved amicably at the earliest.
Regarding pension related issues, we raised the following points:
a) Provision to be incorporated for ensuring revision in pension during every wage revision settlement.
b) Pending this finalisation, updation of pension for all pensioners who retired from 1-1-1986 to 31-10-2017.
c) While updating pension as above, pre-November,2002 pensioners to be kept in mind keeping their earlier tapering DA formula.
d) Improvements in pension scheme like additional pension above the age of 80, 90 and 100, full pension to be given for 20 years service and above instead of present 33 years, calculating basic pension based on average of last 10 months or last month basic pay whichever is beneficial to the pensioner, etc. on the lines of RBI/Government scheme
e) Bringing pension of all retirees at the uniform price index of 6352 points.
f) Revision in Ex Gratia pension of pre-1986 pensioners.
g) Pension for resigned employees
h) Clarification on false complaints of diversion of pension fund of Banks.
We further informed that all these issues can be further discussed in detail by convening a physical meeting for negotiations at the earliest when understandings can be reached on all these matters looking to cost aspect, etc.
Improvement in Family Pension at 30% without ceiling / Enhancement of management’s contribution from 10 to 14% under NPS for post-2010 employees:
We pointed out that the Improvement in Family Pension at 30% without ceiling and enhancement of management’s contribution from 10 to 14% under NPS for post-2010 employees have been agreed upon and are part of the Bipartite Settlement but the matters are still pending for approval with the Government. We urged upon the IBA to follow up the matter with the Government to expedite the approval without further delay.
Comrades, all our members will recall that on the same day last year i.e. on 22-7-2020, there was a crucial negotiation between IBA and Unions when the MoU was finalised and signed which paved the way for the successful 11th Bipartite Settlement with adequate wage revision and many improvements in the service conditions which are being hailed by the employees. We hope that the commencement of the discussions today on pension issues will also similarly lead to further fruitful discussions and successful culmination at the earliest.
Further developments will be informed in due course.
With greetings,
Yours comradely,
C H Venkatachalam S K Bandlish         Upendrakumar     O P Sharma
Gen. Secretary         Gen. Secretary       Gen. Secretary     Gen. Secretary
AIBEA                     NCBE                    NOBW                INBEF

AIBPARC holds virtual GC meeting on 8th July, 2021, Takes stock of contemporary issues and decides programme of action

AIBPARC circular on the above subject is reproduced below

Circular No. 31/21                                                                                       09.07.2021.
(For circulation among members of the governing council of AIBPARC,
State Secretaries, Special Invitees and Advisors.)
Dear Comrades,
Sub : AIBPARC holds virtual GC meeting on 8th July, 2021,
Takes stock of contemporary issues and decides programme of action
We have much pleasure to inform all concerned that the meeting of the Governing Council of the organisation took place on 8th July, 2021 virtually. We report hereunder the principal highlights of the meeting :
❖ The attendance was cent percent.
❖ Com. C. Gangadhar Yadav, our Working President, acted as the host. We are thankful to Com. Yadav and his team for the technical support.
❖ Com. K.V. Acharya, President, presided over the meeting which continued for 5 hours at a stretch without any break.
❖ 25 speakers including Advisors and Senior Office-bearers took part in deliberations. The exchange of ideas at a crucial time enriched the organisation and helped to arrive at the following decisions :
• The house expressed anguish and annoyance at the raw deal given to the elder citizens of the Banking industry by the Government in regard to not giving the clearance so far to the improved Family Pension although it was agreed upon long back in MOU and Bipartite Settlement/Joint Note and IBA’s recommendation to the effect was sent. Repeated clarifications sought for by the Government have reportedly been answered by IBA. The organisation has been very reasonably expecting the clearance on any day but till the date of holding the meeting, it has not come. The house notes the level of frustration in the minds of members and decides to convey the same to the authorities concerned.
• The house endorses the stand taken by the leadership in respect of lodging its claim as a principal stake holder before the IBA that it should be called for discussion on updation of pension which is currently being studied by an internal committee comprising of several CEO and MDs formed by IBA. The house records its anxiety in the matter of astronomical cost which was often projected by the actuaries appointed by IBA in the matter of updation of pension and family pension. This is demanded that the assumption  should be  realistic and the calculation sheets already presented before the Govt., IBA and UFBU by AIBAPRC be given due cognizance. AIBPARC, given the opportunity, will be making its presentation before IBA.
• The house appointed a two-man committee comprising of Com. P. S. Patki, Working President and Com. K. Chandrasekharan, Dy. General Secretary and State Secretary, Tamil Nadu to finalize the suggestions of AIBPARC on Group Medical Insurance Scheme for the year November, 2021 to October, 2022. The General Secretaries of all our affiliates are earnestly requested to mail their suggestions/ recommendations to the members of the committee at the following E-mail ID : patkiprakash@gmail.com and presidentchandru @gmail. com. within next 3 days and the committee will take 7 days to finalize. The urgency is felt as IBA has formed a sub-committee to study the subject and negotiations will be starting shortly. The house also felt that the last-moment hurry as experienced in previous years should not be repeated this time.
• The house decided to re-lodge its claim before IBA demanding official negotiation status. This is paradoxical to note that IBA by its official communication asks all banks to create grievance-redressal machinery but denies the same at its own level. IBA should again be approached to give cognizance to different issues escalated by the organisation at different points of time which include inter-alia the delay in sanction of stagnation increments (to eligible pensioners retiring between 01.11.12 and 30.04.15) by all banks, diversified interpretation made by banks for paying commutation arrears and interest thereon arising out of refixation of basic pay to rectify DA anomaly for a specified group of retirees, special allowance to be treated as part of basic pay, the address of different communications to CEO and MDs of public sector banks instead of writing to all the parties participating in Bipartite Settlement/Joint Note and different other issues taken up by the organisation.
• The house decided to re-lodge its demands before the Government that separate interest bracket is to be created for the elder citizens of the country to protect the interest income which is being drastically reduced by repeated curtailment of rates and extension of the best possible HR practices followed by the merging banks and the anchor bank to the retirees as per promises made by the government at the time of merger of banks.
• The house expressed serious concern at the much-floated news that government is going to take steps to privatize several nationalised banks. It is considered as a measure to push the wheels backward and it will not be beneficial to the country and the nation. The organisation will take part in all action programmes which will be declared by UFBU and AIBPARC will also formulate its own programmes in conducive situation when free movement will be permissible.
• The house notes with concern that some persons/organisations are floating different messages in whatsapp on various issues and such news are in most cases without any base. It is creating unnecessary tension and turmoil in the minds of retirees. It is nothing but cherishing a notional satisfaction. The organisation calls upon its members to rely upon a communication of AIBPARC only.
• The house accords its consent to the following co-options which had been long pending. The EC member from our affiliate in Central Bank of India, Com. D.H. Lahane will be upgraded to the post of Dy. General Secretary for the remaining period of the term and Com. M.L.Verma from the same affiliate will be inducted in the Governing
Council as an EC member.
• The house takes the following action programmes :
The members of the Governing Council will first send a memorandum to Union Finance Minister in a common format. If no action is taken by the government, then the membership will be called upon to submit a memorandum individually to Union Finance Minister conveying his/her dissatisfaction for non-resolve of long pending issues. The programme will be initiated in the month of July, 2021. The action points with specific dates of implementation and the circulation of common draft will be fine-tuned in consultation with senior office bearers and the same will be made known before 19th July, 2021 – a date which is very near to the hearts of all the Bankmen in the country.
• Comrades, you will appreciate that different issues are discussed and decisions are arrived at in such meetings. It is not possible to mention all the points in the circular. The viewpoints/concerns expressed by members are duly noted for follow up at different levels. To sum up, the meeting has been very purposeful. All the members are fervently hoping for restoration of normalcy in free movement at different parts of the country. As it is very difficult to go for demonstrative actions at the present moment, the digital front is going to be exploited to the maximum possible extent. If no result forth-comes, the organisation decided to go for demonstrative actions in permissible and conducive situation when the corona scare will not be there.
With best wishes and regards,
Comradely yours,
(SUPRITA SARKAR )
GENERAL SECRETARY 

 

 

Letter to Hon'ble Minister of State for Finance by AIBPARC

 Letter to Hon'ble Minister of State for Finance by AIBPARC is reproduced below

Quote

 Dated 15.11.2020
Shri Anurag Singh Thakur
Hon'ble Minister of State for Finance
North Block
NEW DELHI

Respected Shri Anurag Singh Thakur Ji
UPDATION OF PENSION FOR BANK PENSIONERS

We recall our meeting with your good self on 25.07.2020 in connection with our humble
contribution of Rs.2.12 crores to PM-CARES FUND. We also requested you to help
resolve our long pending demands. The warmth and a positive tone on your part
reflected empathy and compassion. This in fact proved to be a turning point in the
response of IBA to our issues.
A very favourable interview by the Hon'ble Finance Minister to The Hindu Business
Line followed by the caring concern shown by your Goodself and the Hon'ble Finance
Minister while addressing the 73rd AGM of IBA on 10th November 2020 has been
taken by our Organisation which is a Confederation of Retirees' Associations
representing the largest number of the Bank Pensioners and Retirees as delivery of
justice through your Goodself and Hon'ble Madam. Apprehending the hassles in actual
realisation of our legitimate dreams, we once again request you to consider the
following humble submissions for expeditious settlement.
FAMILY PENSION:
We wish to express our sincere gratitude to your Goodself for advising the IBA/DFS
and other Officials to resolve our long pending issues which were reiterated in the
address to the 73rd Annual General Meeting of IBA 0n 10.11.2020 by your Goodself
and the Hon’ble Finance Minister. It was heartening to note that the improvements in
the family pension scheme @ 30% of pay drawn by the employee without any ceiling
has been agreed by IBA and the same has been incorporated in the XI Bipartite
Settlement and Joint Note signed between IBA and the Trade Unions as under:
Subject to approval by the Government, it is agreed that the family pension shall
be payable at the uniform rate of 30% of the pay of the deceased employee and
that there shall be no ceiling on family pension. It is agreed that these
provisions, when approved by the Government, shall apply to SBI also.
It is also pertinent to submit that IBA’s recommendation to DFS for improvement
in Family Pension has been under consideration of DFS for about one and half
years and yet again the agreement dated 11.11.2020 makes it subject to approval
by the Government. It is quite intriguing. We therefore request you to get the
family pension improvements implemented along with salary revision including
payment of arrears to the beneficiaries of the improvements in Family pension.

We place it on record our deep sense of Gratitude for the inspiring speech and
direction to IBA and DFS by you and Hon’ble Finance Minister. It was our long
pending Request and emotionally close to our heart as it has a direct impact on the
life and well-being of the spouses of the deceased employees and the beneficiaries
are mostly the Widows who are living in penury.
We take this opportunity to once again thank you for being kind and generous.
UPDATION OF PENSION:
Hon'ble Sir, you will appreciate that our demand for the updation of pension which has
been impacting the life of every pensioner including the family pensioners has not
been settled yet. Even at the cost of repetition, we wish to mention that despite several
rulings by the Apex Court that the Salary Revision and Pension Revision are
inseparable; Pension is not a bounty; Pension is a deferred wage etc, our Pension has
not been revised despite Six Salary Revision Settlements after 1987. It has created
such an anomalous and unfair situation that a Top Executive Grade General Manager
who retired after 1.11.1987, draws lesser pension than a senior clerk who retires
currently. We had expected this also to be set right in the Salary Revision Settlement
which was signed by the concerned parties on 11.11.2020 immediately after your
advice to the IBA and DFS. It has left more than 4,00,000 pensioners disappointed. In
this connection we wish to once again submit the following for your kind and
sympathetic consideration:
Our request for updation of pension is not a demand to grant a fresh benefit as it is
already provided in the Pension Settlement of 1993 and incorporated in Bank Pension
Regulations 1995 vide Regulation 35(1) as under:
Basic Pension and Additional Pension, wherever applicable, shall be updated
as per the formulae given in Appendix - I (Government Gazette Notification No.9
dated 1.3.2003)
It is inexplicable and beyond human comprehension as to why the benefit of a
legal and pre-existing provision is being denied in a completely brazen and
arbitrary manner. What has hurt the senior and super senior citizens of the
banking industry more is that despite your unambiguous message, the
procrastination continues on some pretext or the other.
We on our part as a responsible organisation have been writing to Hon'ble FM,
your Goodself, DFS and IBA for several years duly furnishing the detailed
working reiterating that the annual increase in the pension for all the banks
including SBI comes to Rs. 5,322 crores, which does not involve any additional
provision at this juncture as illustrated below:

a) The amount of regular pension and family pension paid during the year 2018-
19 was Rs.17,415.16 crores
b) The interest income and regular annual contribution to the Pension fund
was Rs. 32,023.00 crores
c) Undisbursed/unutilised surplus in the Pension Fund for the year 2018-19
was Rs.14,607.84 crores
d) Additional liability towards pension updation using RBI updation factors
comes to Rs.5,322.87 crores
(The cost of updation has been calculated for all the 4,41,000 pensioners who
have retired upto 31.10.2017 and are eligible for updation of their pension as per
the salary revision settled on 11.11.2020).
From the above details it is clear that even after grant of updation of pension
there will remain an annual surplus of Rs. 9,284.97 crores thereby obviating the
need for any additional immediate provision and thus protecting the balance
sheets of the banks. If any bank has not followed the provisioning norms as per
Pension Regulations or misutilised the Fund, that alone would be required to
provide if their annual actuarial estimate in terms of Regulation 11 so warranted.
It is humbly submitted that the Public Sector Banks are the State within the meaning
of Article 12 of the Constitution and Bank Pension Regulations are made in exercise
of the powers conferred by clause (f) of sub-section (2) of Section 19 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 by the Boards of the
Banks in consultation with RBI and with the previous sanction of the Central
Government. Hence it is the statutory obligation on the part of the banks to
implement these regulations including Regulation 35(1) which provides for the
updation of the pension. While the guidelines from the Banking Regulators to
provide for NPAs are followed without blinking, it is beyond common
comprehension as to why statutory provisions are not being implemented
perpetually with impunity.
Hon'ble Sir, your address and reiteration by Hon'ble FM to the 73rd AGM of IBA
have truly raised the hopes and aspirations of the rank and file of our
membership who contributed to the nation building during their active service
and continue to chip in even after retirement whenever the occasions demanded
like PMJDY campaign, Demonetization etc. You are there and our last hope to
help realize our legitimate due.
We humbly request you to settle this long pending issue urgently so that this
hitherto neglected section of the pensioners could get the benefit of revision of
pension alongwith the revision of salary for the serving employees. Meanwhile,
we request for grant of interim relief based on the RBI Pension Updation
Formulae.

100% DA NEUTRALISATION TO PRE- NOVEMBER 2002 RETIREES:
We also request you be kind enough to resolve the issue of 100% DA
neutralisation to Pre-November 2002 retirees who continue to be discriminated
unfortunate lot. It may be appreciated that price rise affects all retirees in equal
measure and discriminating against senior retirees who retired before
1.11.2002, is not only not legal but also against the principles of equity and
fairness while being violative of Article 14 of the Constitution.
DISCRIMINATORY MEDICAL SCHEME:
The pensioners and retirees have been discriminated in the matter of Medical
Insurance Scheme which was introduced in the year 2015 in accordance with
the guidelines issued by DFS to IBA vide letter dated 24.02.2012 to evolve
medical insurance scheme for both the serving employees and retired
employees. While implementing the same IBA advised the banks to bear the
Medical Insurance Premium for serving employees and left the retirees to fend
for themselves if the wished to join the scheme. The introductory premium
which was Rs.7,500 in the first year was successively increased to more than
Rs.90,000/ for Health care domiciliary treatment for the year 2019-20 thus
making it unaffordable out of meagre pension drawn. It has driven many out of
the scheme on the grounds of unaffordability. It will not be out of place to
mention here that the Board Level Retirees - ED/MD/CEO/CMD are provided free
medical facility as they were enjoying during their service. The serving
employees are also provided free medical facility. It therefore becomes very
brazen to discriminate against retirees alone against the spirit of Government
Communication dated 24.02.2012.
In view of the forgoing submissions, we humbly request you to advise DFS &
IBA to settle these issues also forthwith without further loss of time and provide
much awaited relief to those warriors who are in the twilight of their life.
We shall always remain grateful to you for rendering justice to us at this stage
of our life.
With Best Regards,
Yours Sincerely,
K V Acharya      S Sarkar
Presiden         t    General Secretary
AIBPARC &        AIBPARC
Joint Convener -CBPRO

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CBPRO letter addressed to Finance Minister on Updation of Pension

Copy of CBPRO letter addressed to Finance Minister on Updation of Pension etc is  reproduced below


Dated: 31.10.2020

Ms Nirmala Sitharaman
Hon'ble Finance Minister Government of India
North Block, New Delhi

Respected Madam.

Updation of Pension and Other Issues

We are immensely delighted to go through Your highly Inspiring Interview in Business Line dated 29th October 2020 wherein You gave genuine Accolades and Encomiums to the Services rendered by the Banking Community both Past and Present throughout and specially during the present Covid 19 Pandemic. It has also evoked Great Hopes in the minds and hearts of Bank Pensioners and Retirees who have been knocking the doors of the DFS and IBA for the last several years.

We, as the largest Coordination of various National level Bank Pensioners & Retirees Organisations (CBPRO) consisting of Federation of SBI Pensioners Associations, AIBPARC, RBONC, AIRBEA AND FORBE with a membership of over Four Lakhs, profusely Thank Your Good Self for responding so wholesomely with concern and care to the Long Pending

Grievances of the Senior and Super Senior Citizens of the Banking Industry.

Your Good Self has taken initiatives by very positively advising the Secretary, Department of Financial Services, Chairman of SBI and Chairman of IBA to render justice to us mainly on the issues concerning the Bank Pensioners and Retirees. We once again submit the list of our major pending issues hereunder

1. Improvement in Family Pension as available to Government and RBI Pensioners

2. Updation of Pension as per RBI Formula

3. Uniform DA Compensation to All Retirees without Discrimination as available to Government & RBI Pensioners

4. Reckoning of Special Allowances attracting DA for Terminal Benefits.

Respected Madam, we had elaborately explained to Your Good Self, DFS and IBA in our several Letters and Memoranda, the legal angle and Honourable Supreme Court Judgements lending legitimacy to our Requests for Updation of Pension
The Pension Fund of all the Banks is robust. It is important to note that the Pension Updation cost and any other Pension related Improvements like Family Pension and Uniform DA Compensation to All Retirees will be paid out of the Pension Fund of the Banks.

Respected Madam, as You know that the very Old Retirees prior to November 2002 are subjected to Double Jeopardy as their Basic Pension is not only very low due to continuous Non Updation of Pension but they are also discriminated against by denying 100% DA Neutralization. It is appalling to see that this has resulted in, even a General Manager retired in 1990s draws pension as low as Rs.27000/per month including DA which is much less than the Pension drawn by a Clerical Staff Retiring today. So far as the Family Pensioners(Mostly Women Spouses of Deceased Pensioners) are concerned, it is even more pitiable as their Pension including DA is just about Rs 4000 to Rs. 15000/only as the Family Pension suffers from low percentage of 15% Basic Pay as against a uniform rate of 30% in Government and RBI that too with a specified ceiling on the amount of Family Pension.

It is unfortunate that Pension Updation was never done though several periodical Wage Revisions had taken place.

Respected Madam, at this juncture, it is a Great Relief and Solace to us Specially to quite a large number of Super Senior Citizens of Banking Industry that You have so rightly and caringly acknowledged and recognised the Contributions and Services of the Banking Community in Implementing the Policies, Programmes and Economic Packages of our Government which brought about Social, Agricultural, Industrial and Educational Revolutions in the Country. We as Bank Pensioners and Retirees feel Fortunate and Proud to have been a part of this Great Movement. This spirit of service also made many of us to voluntarily rush to help our Brethren in the Banks during the PM's Massive Jan Dhan Programme, Demonetization Exercise and Recovery Campaigns by the Banks The Bank Pensioners and Retirees Organisations also collected the Voluntary Contributions from their Members to PM CARES FUND to the tune of more than Rs. Four Crores and also contributed to PM'S RELIEF and CM's RELIEF FUNDS. We are Happy that we are privileged to have so contributed to help redress the distress of those affected by COVID 19.

We will be highly obliged and remain Grateful to you and Our Government for the Initiatives You have taken to end the Injustices to which we are pushed to and render Justice, restore the Dignity and Enliven the remaining part of our Life with Peace and Pride.

We request You to kindly accept our sincere Thanks and Respectful Regards

With Best Regards,

Yours Sincerely,

(A. Ramesh Babu) (K.V. Acharya) 

Joint Conveners,

Pension Updation @6352 points

 AIBPARC  has written letters to Chairman, IBA and Convenor UBFU  egarding Pension Updation @6352 points.

Click here to view AIBPARC circular .

 

 

CBPRO letter to CEO of IBA, on need for updation of pension

Text of CBPRO letter to CEO of IBA, on need for updation of pension is reproduced below for information

 Dated: 24.08.2020

Shri Sunil Mehta
Chief Executive
Indian Banks’ Association
Mumbai

Respected Sir

Updation of Pension/Revision

We as a Coordination Body (CBPRO) of Five Major Organisation of Pensioners consisting of  Federation of SBI Pensioners Associations, AIBPARC, RBONC, AIRBEA and FORBE have  been pursuing the matter relating to the Updation of Pension for Bank Pensioners.

 We are  happy to learn that the matter is on the negotiating table with UFBU.

 In this connection, we  wish to submit the following for the kind and sympathetic consideration of all the parties to the Negotiation:

1) Salary Revision and Pension Revision are inseparable as pension is a deferred wage and not a Bounty as held by the Hon'ble Supreme Court of India.
  
2) But there had been no updation in the case of Bank Pensioners despite several Salary Revisions. Pension being a Deferred Wage its Updation/Revision is a natural corollary to wage revision.

 
3) The Pension Scheme in the Banks is akin to that of Government Pension Scheme and Regulations provide that in case of any doubt, a reference be made to Central Civil Pension and Commutation Rules 1972.

4) The Pension Updation is religiously undertaken for the Central Government Pensioners simultaneously with Central Pay Commissions. It is intriguing as to why the Bank Pensioners are subjected to discrimination.

5) Bank Pensioners were happy and hopeful of their Pension Updation last year when the benefit of Updation was extended to all the Pensioners of RBI w.e.f.1.4.2019. But we were again ignored.

6) It is again heartening to learn that NABARD vide its Cir. No. 733/2020 dated 20 August
2020 has decided to affect the Revision of Pension pending approval of Government of India. NABARD Has decided to grant Interim Relief @ 60% of the total amount of the notional pension based on the multiplication factors which are broadly on the lines allowed for RBI Pensioners and DA Relief thereon to those pensioners who have retired upto 31.10.2012.

The revised pension is to be paid using the following factors:
Pensioners retired between Factors
--------------------------------------------------------
Pre-November 1992           12.34
1.11.1992-31.10.1997.         5.85
1.11.1997-31.10.2002          3.63
1.11.2002-31.10.2007          2.44
1.11.2007-31.10.2012          1.76


Since our Salary Revision due from 1.11.2017 is already settled vide MoU Dated 22.7.2020, our Pension Revision for those who retired between 1.11.2012 and 31.10.2017 is also due  and the Updation Factor for them, based on the above factors would be 1.62.

Covid 19 has taken a heavy toll of the people of this Country and also elsewhere across the world. Bank staff are at great risk in their place of work due to their nature of work. Many serving Staff are also becoming victims to the Pandemic. There is growing anxiety among
the Bank Retirees who are in the most vulnerable age group apart from various other age-related serious ailments. In the light of this also, we hope IBA will look into the Grievances and expectations of The Senior Citizens of Banking Industry from a highly Humanitarian perspective.

We, therefore request you to help resolve this long pending issue of Updation of Pension before signing the Final Settlement (11th BPS) and render justice to Bank Pensioners who have made enormous contributions to the Growth of Banking in India during their active service. Even after their Retirement, they voluntarily extended assistance to Bank Staff during the unprecedented work pressure on Bank Staff due to JanDhan Account Mobilisation Campaign, Demonetization Exercise and the other developmental activities of the Banks which they had served.

With Regards,

Yours faithfully

(Ramesh Babu) (K.V. Acharya)
 Joint Conveners, CBPRO

Letter by BANK EMPLOYEES FEDERATION OF INDIA to IBA Chief Executive regarding Improvement of Family Pension and Updation/Revision of Pension

 Cirular by BEFI is reproduced below

BANK EMPLOYEES FEDERATION OF INDIA
Circular  No.45/2020

  Dear  Comrade,

 25th  July  2020

 Improvement  of  Family  Pension  and  Updation/Revision  of  Pension

We  have  written  a  letter  to  the  IBA  Chief  Executive  today  on  the  captioned subject. 

 Text  of  the  letter  is  appended  below  which  is  self  explanatory. With  greetings,
Yours  comradely, .
  (Debasish  Basu  Chaudhury) General  Secretary



 -   TEXT  OF  THE  LETTER  TO  THE  CHIEF  EXECUTIVE  OF  IBA   QUOTE

A  Minute  has  been  signed  on  22nd  July  2020  between  IBA  representing Management  of  banks  which  are  parties  to  the  11th  Bipartite  Settlement  and Workmen  Unions  and  Officers'  Associations  on  wage  revision.    We  like  to  draw your  attention  on  the  following  issues.

Improvement  of  family  pension

We  came  across  a  Tweet  posted  on  behalf  of  Chief  Executive,  IBA  on  22.07.2020 (assuming  that  the  referred  Twitter  handle  is  not  a  fake  one)  where  it  was written  inter  alia,  “Today  IBA  &  UFBU  have  signed  an  MoU  for  15% increase  in  pay  slip  component  of  Bank  Employees,  in  Principal agreement  to  remove  cap  &  offer  30%  of  Basic  Pay  as  family Pension,….”.  (Emphasis  made  by  us)
 We  may  recall  that  on  22nd  July  2020,  the  Chairman  of  Indian  Banks'  Association appeared  in  the  discussion  and  stated  that  IBA  agreed  in  principle  to  enhance the  Family  Pension  to  30%  without  ceiling.   

IBA  Chairman  also  said  that  IBA  is pursuing  the  matter  in  right  earnest  with  the  Govt.  of  India  to  get  the  same approved.    We  suggested  incorporation  of  version  of  IBA  stating  in  principle
agreement  to  enhance  family  pension  to  30%  without  ceiling  subject  to  Govt approval  in  the  MOU.    But  that  was  not  done.             Now,  we  are  observing  some  reports  claimed  to  have  been  issued  on  the contents  of  the  discussion;  where  it  was  mentioned  that  increase  of  family pension  to  30%  has  been  agreed  on  22nd  July  2020.    Some  communications/ circulars  are  also  available  where  it  has  been  claimed  that,  Govt.  has  agreed  to increase  family  pension  from  15%  to  30%  without  ceiling. We  understand  that  the  status  narrated  by  the  IBA  Chairman  on  22nd  July  2020 is  factual  which  means  approval  of  Govt.  of  India  towards  proposed  increase  will be  obtained  in  due  course.    Further,  during  the  meeting  of  the  Negotiation Committee  held  on  29th  February  2020  the  IBA  informed  that  the recommendation  for  improvement  of  family  pension  had  been  sent  to  the  Govt. for  necessary  approval. Now,  the  language  of  the  above  mentioned  Tweet  tagging  ‘in  principle agreement’  with  the  MoU  signed  on  22nd  July  2020  and  the  reports  as  well  as  the communications/circulars  issued  that  the  Govt.  has  already  agreed  are  creating impression  amongst  the  bank  employees  and  retirees  that  all  formalities  for improvement  of  family  pension  has  been  completed. Had  such  been  the  situation,  we  feel  that,  it  certainly  would  have  found  a  place in  the  Minutes  signed  on  22nd  July  2020.

   Now,  the  Indian  Banks'  Association should  come  out  with  a  statement  narrating  prevailing  situation  regarding improvement  of  family  pension.   Moreover,  with  such  communications, expectations  have  developed  within  the  minds  of  the  hapless  family  pensioners, many  of  whom  are  living  in  financially  distressed  condition. 
  We  strongly  urge upon  you  to  take  all  necessary  initiatives  to  obtain  the  approval  from  the  Govt. of  India  at  the  earliest;  before  the  finalisation  of  11th  Bipartite  Settlement.

Updation/Revision  of  pension

 You  may  recall  that  during  the  negotiation,  continuing  for  more  than  3  years now,  the  IBA  negotiating  team  had  been  informing  the  Unions/Associations  that updation/revision  of  pension  require  huge  amount  of  fund. During  the  course  of  negotiation,  the  Unions/Associations,  time  and  again, requested  for  sharing  relevant  data  for  necessary  actuarial  calculation.
   It  was also  suggested  that  there  may  be  joint  actuarial  exercise  similar  to  that  done during  another  option  for  pension.    On  5th  Dec.  2019,  the  IBA  agreed  to  share
 data  with  the  actuary  recommended  by  UFBU. 

 But  no  data  was  shared  with  the UFBU  by  IBA  till  date,  as  assured. On  29th  Feb.  2020,  IBA  agreed  that  some  improvement  in  the  Pension  would  be worked  out  for  the  retirees  of  earlier  settlements  period  by  working  out  the  cost. 

 It  was  also stated  that  revision,  in  some  form,  would  be  implemented  in  phases. In  subsequent  period,  this  agenda  wasn’t  dealt  for  further  progress. 

 In  the  last round  of  negotiation  on  22nd  July  2020,  IBA  negotiating  team  formally  discussed only  on  the  load  factor  keeping  all  other  issues  aside. You’ll  certainly  appreciate  that  since  revision  of  pension  took  place  in  Reserve Bank  of  India,  the  pensioners  have  become  elated  expecting  extension  of  similar benefits  in  IBA  member  banks  also.

In  the  mean  time,  the  retirees  Associations,  besides  approaching  all  concerned for  revision  of  pension,  collected  bank-wise  data  from  different  sources  including through  Right  to  Information  (RTI)  Act  2005. 
  We  are  informed  that  one  such Retiree  Federation  collected  data  from  different  member  banks  (except  a  very few  who  did  not  respond  to  the  notice  served,  for  reasons  best  known  to  them) as  on  31.03.2017  and  31.03.2018  under  RTI  Act,  2005  and  forwarded  to  you last  year  for  having  actuarial  exercise  to  ascertain  the  cost  involvement  for revision  of  pension  as  per  formula  adopted  in  RBI.
It  is  fact  that,  despite  assurances  given  to  the  Unions/Associations  during  the course  of  negotiation,  the  IBA  did  not  share  any  data  for  actuarial  calculation.   We  are  already  having  experience  of  difference  between  hypothetical  data  and actuarial  data  during  the  exercise  on  another  option  for  pension  in  2009. We  believe  that  pension  is  a  social  security.    We  also feel  that  revision  of  pension should  not  be  considered  in  terms  of  financial  liability.    The  sanctity  of  bilateral negotiation  is  of  utmost  importance  to  us.

    With  this  understanding,  we  strongly demand  to  initiate  joint  actuarial  exercise  immediately  to  ascertain  cost involvement  for  updation/revision  of  pension  as  per  formula  of  RBI,  so  that discussion  on  this  subject  can  be  taken  forward  before  finalisation  of  11th Bipartite  Settlement. Awaiting  your  early  response  on  the  subject  matter.

UNQUOTE -

11th Bipartite Settlement Signing of MOU.

 AIBRF circular on the above subject is reproduced below
Quote
The office Bearers/ Central committee members/ State committee Chiefs.
A.I.B.R.F.
Dear Comrades
Re; 11th Bipartite Settlement .
Re: Signing of MOU.
We are happy to inform you IBA and UFBU has signed MOU on 11th Wage Settlement in Mumbai on 22.07.2020. According to this MOU, wage increase of 15 percent has been agreed. Copy of the MOU giving complete details is enclosed for your ready reference.
RETIREES ISSUES
(1) IMPROVEMENT IN FAMILY PENSION: We are very pleased to inform you that as per the information received, Government/ IBA have accorded approval for improvement in Family pension from present to 30 per cent of last pay drawn without any ceiling. It will provide significant increase in monthly pension of about 72000 family pensioners. This approval of 30 per cent increase without celling is better than family pension of RBI. As you know, 95 per cent of family pensioners are females who will be benefited. It is step towards woman empowerment too. Full details in this regard are awaited.
As you know, AIBRF has been raising demand of improvement in family pension for last several years and to achieve it launched several action programs from time to time, details of which are known to all of you. It is big success coming out of sustained and continuous organisational efforts. We congratulate and complement our membership and cadre for this achievement.
We convey our sincere thanks and gratitude to the Government, Indian Bank association and leadership of UFBU for accepting this demand of retirees and taking steps for final sanction.

(2) PENSION UPDATION: we understand that pension updation issue is also being addressed while working details of the settlement in next 90 days. We hope this issue will also move forward in this settlement.
(3) OTHER ISSUES: Other pending issues like improvement in ex-gratia payment to pre- 1986 retirees and their spouses , reduction in premium rates for group insurance policy are receiving attention of IBA/ UFBU and hope solution on them will come in near future.
On this occasion, We appeal to membership to show confidence in the organisation and organisational efforts .We are sure our journey to provide more and more respect and dignity to bank retirees will continue and our struggle to achieve other pending demands will continue.
With Revolutionary Greetings,
Yours Sincerely,
(S.C.JAIN)
GENERAL SECRETARY
Unquote

Letter written by AIBPARC to Hon’ble minister of State for Finance, Government of India

We are reproducing hereunder the letter written  by AIBPARC to Hon’ble minister of State for Finance, Government of India dated – 29/06/20 ,
 Quote

Shri. Anurag Singh Thakur

 Honorable Minister of State for Finance,

 Govt of India,

 New Delhi 

Respected Sir, 

                                      Pending Issues of Bank Pensioners & Retirees We wish to profusely thank you for giving us an opportunity to hand you over our humble contribution of Rs. 2.12 Crores by a bank draft in favour of PM-CARES FUND to demonstrate our resolve to strengthen the efforts of our Hon'ble Prime Minister Shri Narender Modi ji in nation's fight against Covid 19 - a global pandemic. Sir, it was heartening to note that your good self not only lent an ear to listen to our grievances but also evinced keen interest by seeking certain details and clarifications about the issues which need early resolution. We are confident that your intervention into the matter will prove to be a boon to the Senior and Super Senior Citizens of the Banking industry who have been the important vehicles for transforming the economy of the country and also the social upliftment of the poor sections of the society who were hitherto neglected. The success of PMJDY and Mudra Loans are only to mention a few. As explained to your goodself during our meeting on 24.06.2020 at your office, we have many pending issues to be resolved by the Government & Indian Banks’ Association some of which are under consideration at different stages. Out of all the pending issues, the following long pending issues deserve immediate and favourable consideration more so because our members are a vanishing tribe and many have already left the world without their legitimate dreams having been realized. It is with this compassion; we earnestly request your goodself to resolve at least the 

  following issues to provide succour to our members who are senior & super senior citizens in the their twilight years: 

1. Improvements in family pension at par with Government & RBI pensioners Even though the Banks’ Pension Scheme was drawn on the lines of Government & RBI Pension Schemes, the family pension in Banks is quite inferior as it provides for a tapering slab rate ranging from 30% to 15% where higher basic pay above a specified threshold attracts only 15% of last drawn basic pay that too with a ceiling/cap as against 30% uniform rate without any ceiling or cap in case of Government & RBI family pension. Consequent to our taking up the issue with IBA & DFS, IBA was kind enough to agree to our request and accordingly have sent their recommendations to DFS for revising the family pension in Banks to 30% at par with Government & RBI family pension about a year ago. Sir you will appreciate that most of the family pensioners are elderly widows and hence deserve utmost compassion and sympathy. We, therefore request you to get the same approved by the Government at the earliest. 

2. 100% DA Neutralisation to Pre November 2002-Retirees: The Officer retirees in the Banks were getting tapered DA on their Basis pension. This anomaly was rectified at the time of salary revision settlement in May 2005. However, while implementing 100% DA Neutralisation, the benefit was not given to those who had retired before November 2002. Sir, you will appreciate that price rise affects all pensioners in equal measures and hence an artificial classification on the basis of the date of retirement violates Article 14 of the constitution. The arbitrary denial of the benefit of 100% DA Neutralisation to the oldest of the pensioners is therefore unreasonable and unfair more so when the benefit of 100% DA Neutralisation has been extended to Government and RBI Pensioners. We therefore request your intervention in advising IBA & DFS to remove the anomaly and oblige. 

3. Pension Updation/Revision Pension scheme in the banks was introduced in 1995 with effect from 1.1.1986. Pension Regulation 35(1) provided that Basic pension and additional pension shall be updated in respect of those who retired between 1.1.1986 & 31.10.1987 as per the formula given in Appendix-I. Accordingly the updation was implemented. With a view to facilitating updation alongwith future salary revisions, Pension Regulation 35(1) was amended vide Gazette Notification No.9 Dated 1st March 2003 as follows: “Basic Pension & Additional Pension, wherever applicable, shall be updated as per the formula given in Appendix I” This amendment to Pension Regulations made the provision for updation an open ended one. However, it remains unimplemented. Sir, you will appreciate that even the Honourable Supreme Court has held that wage revision and pension revision are inseparable. The Govt of India has already implemented Pension updation/revision in Reserve Bank of India with effect from 1.4.2019 on the intervention of the Court by adopting the updation factors of 1.76, 2.44 & 3 3.63 for those who retired between the period 2007-2012, 2002-2007 & 1997-2002 respectively. 

Sir, you will appreciate that unlike RBI, our Pension Regulations, which are Subordinate Legislation, provide for an updation formula which obtains in the Central Government, but we are agreeable to accept the updation factors which have been granted to RBI Pensioners. It is also pertinent to submit that Pension Funds in Banks including State Bank are quite strong and have a balance close to Rs.3.00 lakhs crores as on 31.3.2020. For a ready reference the pension payments in all the banks including SBI for the year 2018-19 were Rs.17,415.16 crores as against the Interest income and annual contribution by the banks amounting to Rs.32,023.00 crores. It is thus clear that there is fairly healthy corpus to absorb the additional cost of pension updation using the same factors as allowed in case of RBI. In as much as our pension scheme is akin to Government Pension Scheme & RBI pension scheme and Banks Pension Regulation 56 provides that in case of doubt, a reference may be made to Central Civil Services Rules and Commutation of Pension Rules, we request you to consider the pending pension updation issue favourably and oblige. 

4. Medical Insurance Scheme for Bank Retirees The Department of Financial Services advised IBA & the Banks vide its letter dt. 24.2.2012 to evolve a medical insurance scheme - both for serving & retired employees. 

Accordingly, a new medical scheme was introduced at the behest of IBA in the year 2015-16. While introducing the New medical insurance scheme, the premium was borne by the banks for serving employees and the retired employees who deserved the benefit of medical insurance scheme the most, were given the option to join the scheme only on payment of premium by individual retirees. Since the communication from DFS did not stipulate the payment of premium by the beneficiaries, the implementation was a distortion which adversely affected the pensioners. We have been demanding for the premium to be borne by the banks in respect of retirees too. Alternatively, we should be covered under a scheme on the lines of CGHS for which one-time fixed contribution may be collected from the retirees at the time of retirement from the service. It is pertinent to mention here that the medical insurance premium for the retirees was Rs 7500/- with OPD facility at the time of introduction of the scheme in 2015-16 but it has now been successively enhanced to more than Rs 95000/- with OPD facilities during the year 2019-20. With the meagre fixed pension, the pensioners & family pensioners are finding it difficult to make both the ends meet and hence many have been driven out of the scheme on the grounds of unaffordability. The hefty premium charged to Banks’ pensioners and retirees is evidently unaffordable. A levy of 18% GST on the premium and also on hospitalization bills comes as a bolt from the blue. We request your urgent help in this regard as the due date for payment of renewal premium would be in the month of October 2020. 

5. Reckoning of Special Allowance for Superannuation benefits In the last salary revision (wef 1.11.2012), a special allowance as a specified percentage of basic pay and also attracting DA was introduced. However, it was not reckoned for superannuation benefits viz. pension & gratuity. Such exclusion is ultravires and ex-facie illegal. Honourable Supreme Court has held that there cannot be two pays- one for monthly salary & other for computation of pension. In another case, it was held by the Honourable Supreme Court that any allowance which is attracting DA and is of permanent nature, not assigned to performance of any specific duties and also paid during the period when the employee is on leave is to be treated as 

  a part of basic pay. The banks are reckoning this allowance for the purpose of encashment of leave also. The special allowance paid by the bank fulfils the criteria laid down by the Honourable Supreme Court. We therefore request that the said special allowance may please be reckoned for computation of pension & gratuity in respect of those pensioners who have retired after 1.11.2012. 

We once again take this opportunity to profusely thank you for the opportunity given. 

With Regards,

 Yours faithfully,
 K.V.Acharya                      S.Sarkar 

PRESIDENT AIBPARC    General Secretary

Unquote

Bipartite talks between UFBU and IBA on 29th Feb 2020

During  Bipartite talks between UFBU and IBA on 29th Feb 2020 following points pertaining to pensioners emerged.
Improvement in Family Pension –matter recommended to Government, will be expedited.
 On updation, IBA agreed that some improvement in the Pension would be worked out for the retirees of earlier settlements period by working out the cost.

CBPRO letter to Hon Prime Minister regarding pending issues of bank pensioners

Letter by CBPRO to Hon Prime Minister is reproduced below

Quote
Dated: 04.01.2020

Shri Narendra Modi ji,
Hon’ble Prime Minister,
Prime Minister’s Office,
South Block,
New Delhi 110001.

Respected Sir,
Pending issues of Bank Pensioners and Retirees

We invite your kind attention to our various letters and memoranda, the last of which being 26.11.2019. We have been agitating against insensitivity of the concerned authorities towards our legitimate demands. We had also conducted dharnas and demonstrations at various important centres including state capitals and Jantar Mantar, New Delhi. It is disheartening to note that in spite of our knocking the doors of the concerned authorities including the Secretary, DFS, Hon’ble Finance Minister and Indian Banks’ Association, we have not been able to get any favourable response so far. We are therefore of the considered view that on intervention from your good office is respectfully solicited to help the cause of more than 5(Five) lac retirees including that of State Bank of India. We once again request your good self to look into our following legitimate and genuine pending issues and help us get justice:

1.Uniform Family Pension at par with Government and RBI Scheme.

2.Updation / Revision of Pension to all Bank Pensioners as granted in case of RBI Pensioners.

3.100% DA Neutralisation to Pre-2002 Bank Retirees

4.Comprehensive Medical Health Care Scheme for Bank Retirees  on the lines of CGHS.

5.Rekoning of Special Allowance introduced w.e.f 1.11.2012 for the purpose of Computation of Pension.

a)Updation of Pension has to be done for the following reasons to ensure Best Practices and Best Legal Compliance.

The Hon’ble Supreme Court has categorically held in its judgements that periodical Wage Revision invariably entails Periodic Pension Updation simultaneously.

b)Pension being a Deferred Wage Revision / Updation of Pension is a natural corollary to Wage Revision.

c)Updation of Pension to RBI Retirees was given initially and later on withdrawn wrongly leading to Litigation in Hon’ble Mumbai High Court and ultimately Government cleared Updation recently even in the absence of suitable Regulation in their Pension Regulations mainly for the above mentioned reasons.

d)More importantly in the Bank Employees Pension Regulation a categorical provision is made Regulation 35(1)
Quote:
BASIC PENSION AND ADDITIONAL PENSION, WHEREVER APPLICABLE, SHALL BE UPDATED AS PER THE FORMULAE GIVEN IN APPENDIX-1(GOVERNMENT GAZETTE NOTIFICATION NO.9 DATED 1st March, 2003).

Unquote

e)It is also absolutely necessary to give Pension uniformly at 50% of the Last Drawn Basic Pay to SBI Pensioners to avoid discrimination in payment of Pension.
.
From the above it is absolutely clear that all Bank Pensioners including SBI Pensioners are entitled for Pension Updation as given to RBI Pensioners recently.

We consider it pertinent to bring it to your kind notice that the emotive issue of improvement in Family Pension entails a negative additional cost and the cost of Pension Updation may not need any immediate additional provision as the annual contribution to Pension Fund and annual yield there on are robust and adequate to absorb the annual cost of Pension Updation by using the basis of Updation Factors applied in case of Reserve Bank of India recently. We shall be glad to explain the computation of cost of Improvements in Family Pension and also the Updation of Pension to DFS and IBA if given a chance and considered necessary in the interest of all concerned.

What has been hurting the Senior and Super Senior Citizens of the Banking Industry is that despite there being a pre-existing provision in Banks Pension Regulation, its implementation to update our pension has been arbitrarily denied. It is worth mentioning here that Banks Pension Regulation formulated under the Provisions of the Statute by the Government of India in consultation with RBI and published in the Official Gazette of Union of India. The Pension Regulations are thus a Subordinate Legislation having Statutory force. Moreover, the Hon’ble Supreme Court has also held that Periodical salary revision and corresponding Pension revision (Updation) are inseparable.

We shall be grateful to you for an early intervention to resolve our long pending grievances.

With Sincere Regards,

Yours Faithfully,
‌(A.Ramesh Babu)          (K.V. Acharya)
          Joint Conveners, CBPRO

Unquote 

Article regarding ANSWER TO MANY QUESTIONS of bank pensioners

 We reproduce below an article on pension scheme in banks.

All Pension Activists
are requested to
widely circulate this article
among working and
retiree employees.
..........................
ANSWER TO MANY QUESTIONS !
Must Read, Preserve & Circulate
With Regard to Pension updating, funding, continuity of pension Payment, safety of fund matters number of questions are being raised. We have examined all these questions in the light of Pension Agreement, 1993 and Pension Regulations, 1995 under which Pension is being paid.
Whether our concerns in these matters are genuine and relevant, we examine them in this write up.
However, 1616/1684 issue was settled through SCI judgement in a private writ and so is the case of Special Allowance since declared illegal by Court. In these matters Unions stand nowhere in scene. Despite Court Order, Special Allowance is still under discussion for reasons best known to parties. It may be with idea to show show it as Unions achievement in 11th settlement.
We don't discuss here the terms of 2nd pension option, violating Regulations, 1995, depriving due pensionary benefits to large number of people, though the Banks have had recovered huge cost from new pension optees.
All Pension Activists are requested to widely circulate this article among working and retirees employees.
SETTLEMENT DATED 29.10.1993 OVER PENSION IN BANKS -
UNDER SECTION 2(P) AND SECTION 18(1) OF THE INDUSTRIAL DISPUTES ACT OF
1947 READ WITH RULE 58 OF THE INDUSTRIAL DISPUTES (CENTRAL) RULES, 1957.
Cl. 12 of Settlement reads as under:
"12. Provisions WILL BE MADE by a scheme, to BE NEGOTIATED
AND SETTLED between the parties to this settlement by 31st
December, 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 RBI."
Read above clause carefully. One sentence paragraph, according to which a Scheme was to be negotiated & settled between the parties by 31.12.1993 with regard to applicability, qualifying service, amounts of pension, payment of pension, commutation, family pension and (MOST IMPORTANT) UPDATING & other general conditions, etc., but on the LINES as are in force in RBI. Well, let us agree that these aspects were negotiated and settled between the parties, based on which Pension Regulations, 1995 was drafted. These modalities were to be worked out on the lines as were in force in RBI. So, 'No UPDATING' clause in our Regulations, 1995, is very well in line with RBI, where too no updating clause was in existence. RBI Unions raised Pension Revision Demand, despite no revision clause, and achieved through thick and thin of struggles in RBI, Courts and ultimately with Govt of India and won it. We think, it's enough to explain as to how 'revision Clause' didn't find place in Pension Regulations, 1995 and for revision it's not very relevant obstacle at all.
Further, Pension Revision is embodied in Pension Regulations, 1995 itself in terms of which Pension for periods 1.1.1986 and 31.10.1987 was revised vide Clause 35 of Regulations. So, element of 'revision' did exist from day one of Pension. Norms for revision were also laid down in appenfix-1 of Clause 35 of Regulations, 1995.
One more point, we must keep in mind, where law is not specific or silent, inferences are drawn from the usage & practices. In Pension Regulations, 1995, there might not be specific mention of 'Revision', but at the same time, there is no such mention as of 'no revision' or 'one time' fix clause as well. So, in this regard inferences are to be drawn from 'Pension Rules' prevalent elsewhere in Indian context and settle the issue accordingly.
Now, RBI revision is fittest one to draw inference because our Pension Scheme is replica of RBI Pension Scheme. In these backdrop, it is immaterial whether there is revision clause or not. Bear in mind, there was a time when Pension was not in Banking service conditions, but something new was thought of, conceptualized, fought and achieved. Improvement in service conditions is a perpetual and going on processes and for trade Unions it holds no merit to shirk from solemn responsibility to achieve something which is legitimate, genuine & in the interest of working fraternity, on baseless pretexts.
Now, look to other aspect of Funding. Cl.7 deals with composition of the Fund which reads as under:
The Fund shall consist of the following, namely-
(a) the contribution by the bank at the rate of ten percent, per month of the pay of the employees;
(b) the accumulated contributions of the bank to the Provident Fund and interest accrued thereon unto the date of such transfer in respect of the employees;
(c) the amount consisting of contributions of the Bank along with interest refunded by the employees who had retired before the notified date but who opt for pension in accordance with the provisions contained in these regulations;
(d) the investment in annuities insecurities purchased out of the money's of the Fund and interest thereafter;
(e) amount of any capital gains arisibg from the capital assets of the Fund;
(f) the additional annual contribution made by the bank in accordance with the provisions contained in Regulation 11 of these regulations;
(g) any income from investments of the amounts credited to the Fund;
(h) the amount consisting of contribution of the bank along with interest refunded by the family of the deceased employee.
Read above terms carefully, the source of Funding, as envisaged in Regulations. Is there any mention of employees financial obligation towards Pension Funds, other than Banks' PF portion? Then why, whenever wages were revised in past, Unions agreed with IBA for sharing 50% of increased pension cost from financial load sanctioned for employees and officers? There is no such clause that entitles IBA to recover it. It's landmark question of impropriety. As happened, in all last settlements 50% increased pension load was recovered from sanctioned load, from employees side that hammered pay rise even of those who are under NPS.
Now, let us invite your attention to Cl.11 of Regulations. It reads ss under:
11.Acturial Investigation of the Fund- The Bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund every financial year, on the 31st day of March, and make such additional annual contribution to the Fund as may be required to secure payment of the benefits under these regulations.
Read this clause, which very clearly says for actuarial investigation of Pension Fund every year and calls upon Banks to make 'additional contribution to the Fund as may be required to secure payment of benefits under regulations'. Is there any financial obligation of employees? Law doesn't call for what Unions offered to IBA on golden plates. This time again it will be done.
It was a quid-pro-quo deal and as required under rules, pensioners have had to forego their right to Banks' Provident Fund contributions. There is no any other obligation at all on Pensioners with regard to Pension Funding. Onus squarely lies on management to maintain the adequacy of Funds so as to ensure last outgo of Pension.
Let us examine another aspect where people doubt about continuity of Pension payment. Cl.5, Constitution of the Fund, envisage to establish an irrevocable Trust. Fund's object is laid down for 'sole ourpose' to pay Pension in accordance with Pension Regulations, 1995. Now see legal status of Irrevocable Trusts, which have been formed in every Bank. Law defines Irrevocable Trust as under:
"Irrevocable Trust Law and Legal Definition. Irrevocable trust is a trust that cannot be modified or terminated without the permission of the beneficiary. ... Once the grantor has transferred assets into the trust, s/he has no rights of ownership to the assets and the trust."
Even if Banks don't exist, Pension Trust shall pay Pension. It can't be dissolved or taken over by Banks.
Pensioners doubt that Banks can acquire Pension Fund, which legally can't be done. Pension Fund can be specifically used as stated in Cl.13 of Regulations, 1995 for following purposes:
- The payment of benefits by the trust shall be administered fir grant of pensionary benefits to the employees of the Bank or the family pension to the deceased employees of the Bank.
It's satisfying provision that ensures, fund can only be used for payment of specified benefits only.
One more aspect to be noted. Cl.12 of Regulations, 1995 even prohibits Trusts to park their Find in their respective Banks. Look into the followings:
Cl.12. Investment of the Fund- All moneys contributed to the Fund or received or accruing after that date by way of interest or otherwise to the Fund, may be Deposited in a Post Office Savings Bank Account in India or in a current account with any scheduled Bank or utilized in accordance with the Provisions of the Indian Trust Act, 1882 (2 of 1882)
Pension Regulations, 1995 have very wider perception with regard to disputes arising out in implementation at any point of time. Cl.56 of Regulations, 1995 reads as under:
Cl.56 Residuary provisions- In case of doubt, in the matter of application of these regulations, regard may be had to the corresponding provisions of Central Civil Services Rules, 1972 or Central Civil Services (Commutation of Pension) Rules, 1981 applicable for Central Government employees with such exceptions and modifications as the Bank, with the prevision sanction of the Central Government, may from time to time, determine.
Now, interprete above clauses. Bank Pension Scheme is tagged to Central Govt Pension Rules therefore there can be a cause of dispute, whenever CCSR 1972 or CCS ( Commutation of Pension) Rules, 1981 under go change (s). On several occasions in past these rules have had undergone changes, but Unions never raised any dispute in relation to our Pension.
Pension Regulations, 1995 is the basic subordinate legislation, which can be modified positively, but not negatively. It was negatively modified in 1616/1684 matter, challenged & struck down. It was negatively modified in Special Allowance matter, challenged & struck down. 100% DA case people lost at the instance of AIBRF, but fact is that in compensation matter there can't be discriminating rules in one establishment. This entitles retirees same DA, as applicable to working staff.
If you examine Second Pension Option terms in relation to Pension Regulations, 1995, many negative modifications have been made, invalid in the eye of law, if challenged. If someone disagree to it, better he should approach a competent law officer with all documents.
Unions have never examined these issues on law point of view and treated themselves as ultimate law. Second Pension Optees can get great relief and financial benefits if they challenge the second options terms in contravention of Pension Regulations, 1995. We leave it to them. However, we are ready to guide, but not act.
(J. N. Shukla)
National Convenor,
Forum of Bank Pensioner Activists,
PRAYAGRAJ
25.11.2019
9559748834
jagat.n.shukla@gmail.com
(Permitted to be Reproduced & forwarded)

Letter to Hon PM and Hon FM regarding role of IBA

Copy of a letter dt 8.11.19,sent to Hon.PM and FM by Forum of bank pensioner activists on IBA is reproduced below :
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Sri Narendra Modi ji,
Hon'ble Prime Minister,
Govt.of India,
New Delhi

Sister Nirmala Sitharaman,
Hon'ble Finance Minister,
Govt.of India
New Delhi

Respected Sir/ Sister,

           भारतीय बैंक संघ की भूमिका से
            बैंकिंग उद्योग में गहराता संकट !

             इसे प्रतिबंधित किया जाये तथा
               इसकी जगह कोई प्राधिकरण
            बना समस्याओं का निराकरण हो!!

In our letter dated 2nd Nov.,2019, we have had dealt at length on subject cited above. We do not know, as to what's the view that govt holds about Indian Banks' Association. According to IBA, as they have admittedly stated in their circular letter dated 30.9.2019, they have no legal/ constitutional status or authority to act on behalf of govt or Banks. For your ready reference, we quote below point 4 of IBA circular under reference:

"4. Hence, this circular to clarify IBA's status as follows:

● IBA is merely a voluntary association of banks and other financial services players.

● IBA is neither Government/ govt department nor a regulator and not even self-regulator/ self regulatory organization.

● IBA has no authority over Banks & other financial services players.

● IBA does not issue directive to Banks & financial services players, and

● IBA at a times, as directed by its members, merely facilitate matters of common purpose for its members and even then does not make any decision..."

2. Looking to facts & records, we find, govt has been assigning many tasks to IBA. PSBs have also been assigning entire HR related issues to IBA to discuss, negotiate and inter into agreement under ID Act/ MOU or advise. If they have no legal identity or status, how could they have been doing it all these years on behalf of govt or PSBs? They do not acclaim themselves as even Consultants. We do not know them registered under any Act of the land. They just say, they are 'voluntary association' of Banks and other financial services players.

IBA was established in 1946, when Banks were in private hands. It was their Club to take care of their business interests. According to IBA stand, it's same even today. How could it be? How such entity can deal with govt/ PSBs affairs without any legal status, authority and accountability?

Here, the government is required to take a call on IBA in the changed scenarios, which warrant a speaking and decisive Authority to act on behalf of government & PSBs. Apparent view is, IBA is more powerful than DFS, without any power, authority, accountability etc. IBA can ignore and set a side DFS directives/advices. It behaves like super-cop of Banking.

3. IBA collect fabulous amounts in crores as fees, subscriptions and donations from it's members every year. PSBs are major contributors and their executives preside over IBA, spend lavishly for cross purposes. Pertinent question is: whether PSBs can divert such huge amounts to a 'voluntary association' and facilitate it to finance cross purpose?

4. IBA apparently works on behalf of govt/ PSBs, obviouly it's acts and behaviours have far teaching impacts & consequences in govt name. PSBs employees are under govt. Any behaviour with them tantamount to govt behavior. IBA offered 2% wage increase that spread anger against govt at first insurance. Now, it is 12%. What does it speak of, if not, the wreckless, irresponsible and provocative act of IBA? It provoked banking fraternity against govt. IBA has been behaving as street vendor, not an institution, dealing in Govt of India affairs.

5. Govt made very good feel image among bankers by giving instruction in Jan.2016 to start next wage settlement , some 22 months in advance, so as to clinch settlement before 1.11.2017. But, IBA destroyed govt good will and gesture, by maintaining stoic silence, sitting for long & did not wake up despite several reminders from DFS. It's shocking, how PS Banks/ IBA could dare to undermine govt directives!.

6. Looking to host of unbecoming acts and behaviour of IBA and mounting resentment, frustration, anger and anguish of entire banking fraternity, for govt immediate need is to take stock of IBA roles & functions, legal status and identity and find out solution to provide an Authority in place to deal with Banking issues with sense of responsibility and accountability. IBA had failed and it must be abondoned and it's assets taken over by govt, since created out of funding of Banks. It should not remain a mery making point for top Bank Executives. Banking need a competent Authority, which may take pragmatic decisions to resolve HR issues to restore the shaken confidence of banking fraternity in govt as ideal employer.

We, therefore, reiterate our request to stop IBA from dealing in any matter of bank employees/officers. Also, please ask Banks to stop funding and withdraw their executives from IBA. IBA may please be abandoned and in place an independent & autonomous Authority please be appointed comprising eminent bankers, economists, financial & business experts to guide & superwise policy matters and HR issues of Banking. It's due to enept handling of HR issues by IBA that countless court cases are pending in various courts and banks are wasting crores in this regard.

We hope, you consider it sympathetically and take a decision in the interest of Banking Industry. Creation of an Authority is only way to bring normalcy, stability and better productivity in Banking. It will revitalize, energize & motivate banking workforce.

Awaiting your kind consideration & decision.

Respectful Regards,

(J. N. Shukla)
National Convenor,
FORUM OF BANK PENSIONER ACTIVISTS
Prayagraj, Bharat

8.11.2019
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