We reproduce below the circular issued by All India Canara Bank Retirees' Federation on the above subject.
Ref. No:55:2011
To: All Affiliated Units/Office Bearers/Central Committee Members
Dear Sir,
DIVISION BENCH OF MADRAS HIGH COURT DELIVERS JUDGEMENT IN FAVOUR OF RETIREES IN RESPECT OF DEVIATION IN BASIC PENSION
Regulation 35 (2) of Pension Regulations states that ….” The amount of Basic Pension shall be calculated at 50% of the average emoluments”
In the VII Bipartite Settlement, a new definition of “Pay for the purpose of Pension” was introduced, in contravention of Regulation 35 of Pension Regulations stating that “Pay for the purpose of pension shall be aggregate of pay drawn by the member in terms of Joint Note/VI Bipartite Settlement dated 14-02-2005 and the Dearness Allowance thereon calculated upto Index Number 1616 points in the All India Average Consumer Price Index Numbers of Industrial Workers (Base 1960 = 100) This definition was applied to all the persons who have retired after 01-04-1998. This resulted in reducing the Basic Pension payable to the pensioners from 50% of basic pay to about 41% of Basic Pay.
This anomaly was rectified in the VIII Bipartite settlement/Joint Note which restored the definition of Pay and re-fixed Basic pension of retirees to 50% of the actual average emoluments drawn by the retirees covering all Post 01-04-98 retirees, but only with prospective effect from 01.05.2005.
As this is only a correction of an earlier distortion, retrospective effect has to be given from the date of retirement of the pensioner concerned and the difference in commutation of pension also has to be paid. Urging these points, Bank of Baroda Retirees in Chennai filed Writ Petition in 2002. Against adverse judgement in this regard, they preferred writ appeal before the Division Bench of Madras High Court which delivered the judgement on 28.06.2011 in favour of retirees, ordering the BOB management to pay the arrears of pensionary benefits from the date of retirement. Full details of judgement are awaited.
Our Writ Petition on the subject matter is still pending before the Madras High Court and we are actively pursuing the case through our Advocate at Chennai.
We heartily congratulate the Bank of Baroda retirees for their patience and sustained efforts in pursuing the case.
With Warm Greetings,
Yours sincerely,
(S V Sinivasan)
General Secretary
--
Source -Shri Mohan.V.R. Chennai
RETIREES OF 1998 TO2002 PENSION DRAWN ON NOTIONAL BASIC UPTO 30.4.2005
ReplyDeleteSOME COURT ORDERS FOR PAYMENT OF ACTUAL BASIC AND COMMUT FROM THE DATE OF RETIREMENT
LOSS DUE TO BELATED PAYMENT OF COMMUTATION IF ANY
THE retirees had already completed more than 11 years of service after retirement
A person retired after completion of 54 years of age will have a commutation factor of 11.73
I.e. he will get commutation of (commuted value*12*11.73) at the same time recovery will be made
For the past period of 11 years (commuted value*12*11 ) Thus commutation will be received for a factor of just 0.73 but commutation will be restored only after a period 15 years. This means commuted value will be deducted from pension for next 4 years and will put the pensioner to loss.
Let us presume in the above case a pensioner had commuted additional amount of Rs 400 at the time of receiving arrears.
An amount of Rs 400*11.73*12=56304 will be received by way of commutation difference
An amount of Rs400*11*12 =52800 will be recovered for the past period of 11 years
Net amount of commutation received will be 56304-52800=3504 only.
Now let us calculate the amount to be repaid in next 4 years before the commutation is restored.
400*4*12=19200
Receiving 3504 and making payment of 19200 is it not loss to the pensioners?
TO day there was news that bob pensioners organization has won the appeal and madras high court has directed to pay pension on actual pay and not on notional pay from date of retirement to 30.4.2005.
Payment on actual pay is welcome but payment of commutation difference may not be attractive.
Since commutation factors are different individual pensioner will have to calculate and decide to go for the commutation or not.
gajanan_0409@yahoo.com
1)Retirees need not apply afresh for ADDITIONAL COMMUTATION DUE, as a result of this judgement.2) Difference in commutation payable now is to be recovered for 15 years from the DATE OF PAYMENT OF ACTUAL PAYMENT OF ADDITIONAL COMMUTATION AND NOT FROM THE DATE OF RETIREMENT. 3)Ref. Para 56 of Pension Regulation and Office Memorandum No.38/79/2008 P &PW(G) dated 16.02.2009 issued by Dept.of Pension and Pensioners's Welfare, Government of India.
ReplyDeleteBank Managements are not applying proper method of working while making payment of additional commutation. Even the retirees simply concur with the improper working of commutation and are not thinking beyond what the Bank Management say. I would like to highlight the following:
ReplyDelete1) Refer para 56 of PENSION REGULATION.
2)Reduction in the amount of pension on account of upward revision of commutation of pension shall become operative from the date of receipt of commuted value by the Pensioner.(Office Memorandum No.F34(3)-PU 80dt 10.07.1980 issued by Dept.of Personnel and A.R., Govt.of India.
3) The reduction in the amount of pension shall be made from the respective dates of the payments.(Rule 6 of Central Civil Services(commutation of pension)Rules 1981.
4)Reduction in pension on account of additional commutation of pension will be in two stages as per the provisions contained in Rule 6 of Central Civil Services(commutation of pension)Rules 1981.
( Office Memorandum No.38/79/2008-P&(G) dated 16.02.2009 issued by Dept.of Pension and Pensioners' Welfare, Govt.of India. 5)An applicant who has commuted a fraction of his final pension and after commutation, his pension has been revised and enhanced retrospectively as a result of
govt' s decision (in this case as per the judgements of Division Bench of Madras High Court ) the applicant shall be paid the difference between the commuted value determined with reference to enhanced pension and commuted value already authorised. For the payment of difference, the applicant shall not be required to APPLY AFRESH. (Rule 10 of Central Civil services (commutation of pension)Rules 1981.
G JANAKIRAMAN(VRS 2000 retiree)
n the following which I have copy pasted, I find some mix up with regard to the dates/BPS No's. Please checkup & correct the same.
ReplyDeleteCopy pasted from THURSDAY, JUNE 30, 2011's BLOG
{In the VII Bipartite Settlement, a new definition of
“Pay for the purpose of Pension” was introduced, in contravention of Regulation 35 of Pension Regulations stating that “Pay for the purpose of pension shall be aggregate of pay drawn by the member in terms of Joint Note/VI Bipartite Settlement dated 14-02-2005 and the Dearness Allowance thereon calculated upto Index Number 1616 points in the All India Average Consumer Price Index Numbers of Industrial Workers (Base 1960 = 100) This definition was applied to all the persons who have retired after 01-04-1998. This resulted in reducing the Basic Pension payable to the pensioners from 50% of basic pay to about 41% of Basic Pay.
This anomaly was rectified in the VIII Bipartite settlement/Joint Note which restored the definition of Pay and re-fixed Basic pension of retirees to 50% of the actual average emoluments drawn by the retirees covering all Post 01-04-98 retirees, but only with prospective effect from 01.05.2005.}
Thanks & Regards
KSR
I think the correct date was 14.12.1999 and not 14.02.2005
ReplyDelete