UFBU 's delegation to IBA

All the representatives of Constituent Unions/Associations of UFBU met the Chairman, Indian Bank’s Association on 16.11.2011 in a delegation. All the current issues and demands of Officers/Employees in the Banking Industry were explained in a threadbare manner and IBA was urged upon to resolve the same expeditiously. 

In this connection, UFBU submitted a letter to the Chairman, IBA covering all the issues taken up with them. Along with the issues of serving employees pensioners' issues were also taken up. Para 8 of the said letter which has covered pension  scheme issues is reproduced below.

  Pension Scheme :- Bank employees’ Pension Scheme was agreed upon and introduced in 1993 exactly on the lines and basis of the Central Government Pension Scheme.  Even the New Pension Scheme that has been introduced for the Government employees has been made applicable to banking industry.  But the various improvements that have been made in the Government scheme as per the 5^th & 6^th Pay Commission Report have not yet been extended to the banking sector. Hence, issues like periodical updation of Pension Scheme along with wage revision for serving employees, 100% DA compensation for all pensioners, improvement in Pension, Commutation, Family Pension, etc. are very genuine demands that need to be resolved expeditiously.  Even the Ex-Gratia Pension of Rs.300 per month being paid to the pre – 1986 retirees remained the same.

Source - AIBOC Circular (Click to view the circular)

LIC to revise pension in four weeks : Rajasthan HC

Rajasthan High Court today (i.e. 02/11/11)granted four weeks time to LIC to comply with its earlier order directing the company to implement a November 2001 board decision to revise pension and dearness allowance of its retired employees.
Hearing a contempt petition, the single bench of Justice Mahesh Chandra Sharma directed the LIC to revise the pension and DA payable to its retired employees corresponding to the successive revisions of pay scales that took place in 1986, 1993, 1997, 2002 and 2007.

Counsel for LIC Ajay Tyagi prayed before the court to grant four weeks time to comply the order. The court, however, directed A K Das Gupta, Managing Director LIC and D Vijaylaxmi, Executive Director (personal) to remain present before it on December 1 in case the order is not complied with. The order came on a contempt petition filed by petitioner Krishan Murari Lal Asthan. The board resolution was passed to meet the demand of parity in pension raised by the All India Retired Insurance Employee's Association. Retired employees of LIC across the country are drawing pension based on the last pay at the time of their retirement. The "inaction" of the the LIC in implementing the board decision was challenged by Krishan Murari Lal Asthan, General Secretary of Retired Insurance Employees' Association of LIC. The LIC board did not implement the resolution on the ground that the Finance Ministry has not given its approval. Disposing of the writ petition filed by Asthana, single judge bench of Justice Munishwar Nath Bhandari in its order dated January 12, 2010 had asked LIC to take immediate steps to implement the resolution of LIC board and held, "In the present matter, there was no reason to seek approval of the central government". The SLP filed by the LIC was also dismissed by the Supreme Court and subsequently the division bench has also dismissed a review petition filed by LIC but still the order of High Court was not complied with.

Source : PTI

Writ Petition by Resigned Bank Employees Association admitted by Delhi High Court

Resigned Bank Employees Welfare association had filed WP in Delhi High Court ( WPC 7413 of 2011) for pension option.

 

The petition was heard today 17/10/2011 & honorable justice after arguments, admitted the petition & issued notices to 33 respondents.

 

The next date is 11/01/2012.

100 % D.A. neutralization to pensioners - AIBOC letter to IBA

There is long pending demand for 100 % neutralization of DA to pensioners/ family pensioners retired from the services of the bank prior to 1/11/2002. AIBOC addressed a letter to IBA highlighting the need to extend 100% DA neutralization to pensioners and family pensioners in the banking industry who retired before 01.11.2002 on par with RBI scheme w.e.f.,  01.05.2005. Click on the link below to view the circular on this subject.

AIBOC  Circular

Bank loses Rs 5 Lakhs in bid to deny 9 Lakhs VRS benefit

MUMBAI: The Central Bank of India spent Rs 5.33 lakh in a 10-year legal battle to avoid paying Rs 9.5 lakh as retirement benefit to an employee on the grounds that she died two days before they cleared her name for the voluntary retirement scheme (VRS). But both the Bombay High Court and the Supreme Court have ruled that Homai Darayas Postwala - an officer in the investment department - was entitled to the benefits.
Postwala, who served the Central Bank for 30 years, died on June 23, 2001. The bank argued that as it accepted her in the VRS retirement scheme on June 25 - two days after her death - her heirs were not entitled to the benefits of the scheme.
Eight years later, the HC ruled that as the bank had failed to provide the family any record or notification of her acceptance (or rejection) under the scheme, "it would have to be held that the application was accepted when she (Postwala) was alive".
When her husband and son filed an RTI application in June 2011, they learnt that the bank had spent nearly half the amount due to Postwala fighting the case. They have now moved the Bombay High Court to enhance her pension from Rs 4,700 to Rs 6,700 per month after the Supreme Court accepted her rights under VRS.
Postwala had applied for the bank's VRS scheme on February 22, 2001- the day it was announced. The bank did not include her in the first list, but her name appeared on the second list on June 30, 2001. The bank claimed that they had approved her name for the second list on June 25, two days after her death.
While arguing their side of the case in court, Postwala's heirs said the bank had failed to communicate their decision, be it an acceptance or rejection, as is the norm. In fact, the family learned of her acceptance under the scheme only when they enquired with the bank after her death. They were told that she was not eligible for VRS.
The HC in July 2009 directed the bank to pay retirement and other dues under VRS to Postwala's legal heirs in three months. The bank then appealed to the Supreme Court, which upheld the HC order in April 2011.
Postwala's family has now filed a contempt petition in the HC since the pension amount has not been increased retrospective from July 2001. The family has also filed an appeal against the RTI order because the bank refused to provide receipts showing money paid to the lawyers. 

Source - Times of India, 18th Sept. 2011