AIBOC has issued circular regarding 2nd Pension option implementation - hurdles of litigation. The case in Madras High Court is getting listed but could not reach the stage of hearing so far.
There are certain developments in between.The payment of arrears in Canara Bank took place after the temporary stay was granted by the Court; the petitioners have raised the issue of contempt of court and compelled the Management of Canara Bank to refund the amount recovered. Fearing the contempt proceedings Canara Bank has returned the amount of 2.8 times revised Nov.2007 pay, recovered from the award staff. As the Confederation or any other Officers’ organization is not a party to this petition, they have not returned the amount recovered from the Officers concerned.According to AIBOC, IBA is now planning to go before the Bench of Hon’ble High Court of Madras, raising the issue of urgency in getting the agreement implemented and seeking quashing of the case. A meeting of the United Forum of Bank Unions is scheduled on 26th of July 2010 at Mumbai to deliberate on all these developments and take appropriate decision in the matter. For viewing the AIBOC circular click on the link below.
AIBOC Circular dtd. 24/07/2010
EROSION OF COMMUTATION VALUE OF PENSION
ReplyDeleteBasic pension is fixed on the basis of last drawn pay of a employee. If the employee opts for voluntary retirement at the age of, say, 55, his commutation value at that time is 11.73
When the second pension option is introduced after a lapse of 9 years, as in the present instance, his present age will be 64 and commutation value stands reduced to 8.62, for no fault of his.
So, age of an employee should not be arbitrarily decided due to factors totally out of his control, as in the present scenario.
Hence along with the last drawn salary, age at the time of retirement of the employee should also be PERMANENT BASIC PARAMETER, for reckoning commutation value, irrespective of when pension becomes payable, as inordinate delay in arriving at a decision, as in the present case, deprives the pensioner of invaluable commutation value, which keeps eroding with delay of each passing year.
With few more years left, with failing health, with meager savings at our disposal, this gesture will be an acknowledgement for the dedicated decades of service we have put in, with most of the work being done manually, without even basic calculators during those years.
WHEN THE BASIC PENSION IS ARRIVED AT ON THE BASIS OF BASIC SALARY AT THE TIME OF RETIREMENT/VOLUNTARY RETIREMENT, AGE FOR ARRIVING COMMUTATION VALUE ALSO SHOULD BE RECKONED, AS EXISTING ON THE DATE OF RETIREMENT ONLY, IRRESPECTIVE OF WHEN THE ELIGIBILITY FOR PENSION PAYMENT IS ARRIVED AT.
The various associations/unions striving for improvement in the 2nd pension option, should unitedly and wholeheartedly impress upon IBA and the Finance Minister to accede to the above request, as a good will gesture towards the aging retired employees, as an appreciation and rewarding the decades of dedicated, sincere and tireless efforts of the work force, who are now in their twilight years.
V.R.Sridharan
(a 2001 vrs optee of Bank of Baroda)
vrsridharan47@rediffmail.com/09886884162
SOME POINTS FOR DISCUSSION REGARDING PENSION PAYMENT TO BANK EMPLOYEES RETIRED MAINLY PRIOR TO 1.11.2002.
ReplyDeleteFrom the beginning neither IBA nor in-service employees/officers - unions/associations have shown any consideration or attention for the retired employees, who have opted for pension.
While concluding settlements, (specifically prior to 1.11.2002) many discrepancies were left unsolved. To say, that they were not having knowledge about them-may be a green lie. By arbitrarily fixing a cut of date for payment of quantum of pension, gratuity amount etc. the retired employees have to seek court intervention to get their grievances redressed. Again in the settlement which came into effect w.e.f. 1.11.97; instead of allowing pension against the last 10 months salary drawn- an arbitrary clause was included reducing the merging points from 1684 to 1616. In effect this affected all pensioners who had retired between 1.11.1997 to 31.10.2002. As the amount deprived was huge, again some pensioners filed suits in many High Courts in India-. For each anomaly – arbitrarily created during settlements-pensioners have to seek legal intervention. Unless the highest court in India give a judgment in employees favor- IBA would never listen to us .In getting a favorable judgment it may take a minimum of 10 to 15 years. Considering the fact that most of the retirees are Senior Citizens- it suggested that IBA should be forced to institute Tribunal at appropriated level to redress the grievances of pensioners.
It is observed that IBA has taken legal opinions prior to implementation of 8th wage revision. This fact has been mentioned in their own circular. One of the legal points referred was relating to anomalies in the merger of DA to Basic in the previous settlement. That is regarding definition of “pay” for the purpose of pension. At the time of reference cases relating to this point were pending in various High Courts ( for arbitrarily fixation of Basic Pension by merging only 1616 points instead of 1684 points).Knowing well that IBA cannot win the case through the back door they conceded this point w.e.f 1.5.2005 and paid the arrears of pension from that date. But as the cases were filed before that date we have to get arrears from the date of retirement. IBA is conspicuously silent about this matter. The question here is
Whether it would be possible for us to get the legal opinions obtained by IBA( in this matter) through RTI act. If we could get the same all our cases can made in our favour very easily.
In view of the above we should get 100% neutralisation DA for those who have retired prior to 1.11.2002 and opted for pension. We should also get arrears of pension- for those who had retired between 1.11.1997 and 31.10.2002 .
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