Monday, May 30, 2011

Letter by Shri C. H. Vekatachalam, GS - AIBEA, to FM on various issues pertaining to Pension and Retirees

Mr.C.H.Venkatachalam, General Secretary of  AIBEA has written a letter to or FM,on important issues pertaining to retirees:

Same is reproduced here below for the information

AIBEA/GS/ 2011/52

25th May, 2011


Shri. Pranab Mukherjee,
Hon’ble Minister for Finance,
Government of India,
North Block,
New Delhi

Dear Sir,

                        Reg : Grievances of Bank Retires

The All India Bank Retirees Federation and United Forum of Bank
Retirees Organisation have been representing to the Government and Indian Banks Association to redress some of their genuine grievances and demands but with no effect so far.  You are well aware that the Pension Scheme evolved and introduced in the Banks is exactly on the lines of Central Government Pension Scheme and hence some of the improvements that have been incorporated in the Government Pension Scheme consequent to the 6th Pay Commission need to be extended to the bank retirees also.  The recent extension of one more option to join the Pension Scheme has brought great relief to number of retired employees and officers who are today covered by the Pension Scheme and we are thankful to the Government for the same.
But the following issues of the bank retirees deserve the special
attention of the Government and your sympathetic consideration.

1.      For the Government employees, on occasions of salary revision,
pension revision is also given and accordingly their pension is updated.  But in the case of bank retirees, the Pension remains static as sanctioned at the time of their retirement and does not undergo any change thereafter.  The periodical updation of pension along with salary revision of in-service employees is very genuine and fair expectation, especially when the same is available to the Government

2.      Since their pension is fixed based on their pay at the time of
their retirement, there are currently 5 different price index (600,1148, 1684, 2288 & 2836) on which DA is paid to the retirees depending upon their period of retirement i.e. 1-1-86 to 31-10-92,  1-11-92 to 31-3-98, 1-4-98 to 31-10-2002, 1-11-2002 to 31-10-2007 and from 1-11-2007 onwards.  Their pension needs to be adjusted and upgraded to a common price index by merging the DA upto that level .  This will bring in uniformity of indexing the Pension of the retirees.

3.      In payment of DA, after introduction of 100% neutralization against
price rise from 1.11-2002, those who have retired after this date are being given 100% neutralization for price rise while the past retirees continue to be paid DA on a tapering basis with 4 slab formula of the
earlier system.  There is a genuine need to extend 100% DA
neutralization to all the retirees atleast from a prospective date.

4.      While the in-service employees get DA variation on quarterly basis,
  for retirees, DA on Pension is paid on half yearly basis.  This needs to be changed to quarterly basis for retirees also.

5.      Under the 6th Pay Commission Report, there are improvements in the
rate of pension for very aged senior citizens, in the commutation of pension, eligibility service to get full pension, etc for the Government pensioners and these need to be extended to the bank retirees too.

6.      It is also experienced that the quantum of Family Pension is very
inadequate and this requires a sympathetic approach from the Government to revise the same suitably.

7.      Since the Pension Scheme was introduced in the Banks from 1.1.1986,
the pre-1986 retirees are being given a Ex Gratia of Rs.300 per month + DA and their widows are being paid a fixed lumpsum Ex Gratia of Rs.1000 per month.  These pre-1986 retirees are aged 85 years and above and are very few in number, may be around 6000 persons in the entire banking sector. Considering their age, ill-health, etc. the Government should kindly increase the Ex Gratia amount.

8.      There are number of grievances of the retirees at the Bank Level
regarding delay in sanction of Pension, delay in disbursements, etc. and hence Government / IBA should give proper guidelines to all Banks to put in place a regulated mechanism to redress these grievances. This will help in avoiding / reducing litigations, etc. on the part of the retirees.

9.      Government has already advised the Banks to set apart a portion of
  the amount allocated for Staff Welfare from the Net Profit of the Banks towards benefiting the retirees. Still it is not being implemented properly. Hence Government may consider advising the Banks to set apart an uniform percentage of funds from out of the profits towards Welfare Schemes for the retirees.

10.     The in-service employees are entitled to reimbursement of medical
  expenses on occasions of hospitalisation but after retirement, the retirees are not covered by such facilities.  In the context of ever increasing cost of medical treatment, retirees become extremely vulnerable when they fall ill and hence some uniform medical expenses reimbursement scheme needs to be made available to them.

These are some of the important grievances and demands of the bank
  retirees.  We request you to take a positive view of their grievances and advise necessary steps to be taken by the Government / IBA in this regard.

Thanking you,

Yours faithfully,



Copy to :-

Indian Banks Association,

The letter does not cover plight of pension option to VRS retirees of PF optees and of Resigned staff. PRESUMABLY, THE matter is subjudice and hence possible exclusion. Lets hope good things happen to all.

Source: Shri Mohan V. R.  - Chennai
                       Bankpensioner google Group Member


  1. Now a days some Hospitals are offering special discount(s) to Cancer Patients. Similarly our leaders come out with news ideas. They oppose scrutiny by members. See what they have done to their members retired between 1.11.2007 to 23.05.2010 on Gratuity Issue?. They have conveniently forgotten their members on the issue. Its like getting duped by childhood friends. Hope good things happen to selected few;

  2. No doubt, pension option to VRS optees / Resignees is under subjudice; but it can be withdrawn anytime, if the matter can be settled amicably. Then what prevents CHV in pushing forth the same ?
    Because more the delay, less the number of would-be-beneficiaries in view of their advanced age.

  3. Let the ill fated officers of PF optees and who have come out of service under bank VRS scheme pray the Almighty to bestow on them kindedness and Grace and render JUstice in getting the Pension.
    Qupoting the subjudice is only an excuse.But National organisations can pursue the matter wirh IBA and Govt. for salvation. if it is settled, cases can be withdrawn in courts.
    But nobody is willing to move the matter further. and waiting for the LAW to take its own course.
    definitely Law will prevail upon the the ill fated officers to render JUSTICE finally.