Payment of Ex-gratia Adhoc pension to pre-1986 retirees /surviving spouse

A letter written by AIBEA Gen. Secretary to Finance Secretary, Govt. of India is reproduced below.

 TO
Mr. D.K. Mittal
Secretary,
Department of Financial Services,
Ministry of Finance,
Government of India,
New Delhi.
Dear Sir,
Reg: Payment of Ex-gratia Adhoc pension to pre-1986 retirees /surviving spouse
Ref: Government guideline dt. 26.11.1998 and 13.09.2006
We draw your kind attention to our letter No.32 dt. 16.3.2012 written to you in this regard.
Since Pension Scheme in the banks was implemented from 1.1.1986 after implementation of 4th Pay Commission Recommendations, the employees and officers who had retired prior to 1.1.1986 were not covered by any Pension Scheme.
However, in RBI an adhoc Ex-gratia Pension was extended to these employees who had retired prior to 1.1.1986. On our taking up the matter, the Government issued their guidelines No.F11/3/92-IR dt.26.11.1998 extending an Ex-gratia adhoc pension of Rs.300/- (plus DA).
Subsequently, the Government also extended a fixed lumpsum ex-gratia payment of Rs.1000/- per month (without DA) to the surviving spouse of pre-1986 retirees upon the death of such pre-1986 retirees. This guideline was issued on 13.9.2006. 

There have been frantic representations from these sections of retired employees and officers and also from the All India Bank Retirees Federation to enhance the Exgratia amount. You will kindly appreciate that looking to the inflation, price rise and cost of living at present , this Ex-gratia amount needs to be revised. You will further kindly appreciate that these group of retired employees are in the age-group of 85
years and above and their number is also very meager in the entire banks.
Hence, we have been repeatedly requesting the Government to sympathetically consider some enhancement in the Ex-gratia amount being paid to the pre-1986 retired employees/officers and the surviving spouses. We once again urge upon you to consider our representation favourably and enhance the Ex-gratia amount suitably.
Thanking you,

Yours faithfully,

C.H.VENKATACHALAM
GENERAL SECRETARY

Source : AIBRF Website

Pension option to VRS optees and others

Department of Financial Services, Government of India has asked vide its letter dated 25.07.12 to IBA to withdraw the words “ on superannuation “ from its communication addressed to banks while advising government approval on one more pension option as per the settlement dated 27.04.2010 and extend pension option benefit to eligible retirees.

Even after lapse of about 2 months from the date of the government letter IBA has not sent revised communication to banks despite the fact that the government stand in the matter is very clear and unambiguous right from the beginning that while communicating approval on pension option it never asked IBA to add the words “ on superannuation.

 AIBRF has written a letter to UFBU , requesting  leaders of UFBU to ask IBA to advise banks to implement the government instruction without delay so the left over retirees whose age is advancing every day get benefit of the pension scheme.

Click here to view letter by AIBRF

 

Charter of Demands of pensioners

 AIBRF has prepared a charter of demands of pensioner which contains following demands

1  100 per cent D.A. neutralisation to Pre-2002 retirees.

2.  Pension updation on the pattern of 6th Pay Commission.

3.  Uniform Medical Scheme for retirees.

4. Two percent of bank profit should be allocated for Welfare of bank retirees.

5. One more option of pension should be given to all past retirees who are originally   eligible as per provisions of Pension Regulations 1995.

6.  Differentiation between retirees and resignees should be removed for the purpose of pension option.

7.  Establishment of proper grievance Redressal Mechanism for retirees in all banks at Corporate and Zonal Level.

8.  Index based dearness rates should be granted to retirees on quarterly basis along with serving employees instead of in six monthly basis.

9.  Improvement in Ex-gratia amount payable to Pre-1986 in view of steep rise in inflation. 

Source : AIBRF Website

United Forum of Bank Retirees’ Organisations ( UFBRO ) seeks appointment with Finace Secretary regarding bank reitrees' issues

 

United Forum of Bank Retirees’ Organisations ( UFBRO ) is the confederation  of all India retiree organisations functioning in the banking industry. It claims that it represents more than 1 lakh bank retirees of 41 banks from public and private sector. It was formed 8 years back to coordinate activities of the retiree organisations to protect interest of bank retirees.

UFBRO  has written a letter to Finance Secretary seeking his appointment, as IBA is not consulting retirees' representatives or ready to discuss retirees' issues. IBA is refusing to meet representatives of retirees and hold any sort of consultation on the plea that they do not have mandate from the government in this regard. 

Following examples  of IBA's attitude quoted in the said letter  are worth noting.

 (a) While introducing the pension scheme, IBA refused to give pension option to those who took VRS between 1986 to 1995.The matter went up to Supreme Court   and with court intervention IBA had to amend its stand in the matter and benefit had be passed to VRS .optees.

 (b) Special VRS Scheme was introduced in banking industry during 2000/2001 as a part of manpower planning. About 1 lakh employees opted for VRS. The retirees of this category were denied benefit of 5 years of notional service to calculate basic pension by amending the regulation in improper and illegal manner. In the absence of proper mechanism to look into retirees point of view large number of writ petitions were filed by the affected retirees  in high courts. Ultimately with the intervention of Supreme Court  the benefit was given to the retirees. It is highly regrettable that still some banks like Allahabad Bank Vijaya Bank and associated banks of SBI have not passed on the benefit to the eligible retirees.

  (c) Under 7th Wage Settlement IBA entered into agreement to do fundamental violation in the basic provision of pension regulation by fixing basic pension on notiona pay instead of actual pay drawn at the time of retirement thereby reducing basic pension from 50 percent to 41 percent for those who retired between 1998 to 2002. This was a blatant violation  and on realisation the mistake IBA corrected it in the 8th settlement but refusing to pay arrear from the original date of retirement. WPs have been filed in high courts on this issue and IBA has already lost the case in high court and it has approached supreme court . 

 (d) IBA had introduced concept of 100 percent DA neutralisation to all categories of employees as well as retirees on the basic premise that inflation hurts all equally. However it is unfortunate that IBA did a gross injustice to the retirees who retired prior to 2002.Since this amendment was voilative the fundamental right of equality conferred on the citizen uner the constitution, the retirees were forced to approach courts in the matter.

  ( e) In 9th wage settlement  one more pension option was given to employees as well as past retirees however the VRS optees and compulsory retired employees were denied the pension option by inserting the word ‘superannuation” in the circular sent by IBA to banks .This resulted into avoidable litigation in large number. Ultimately, in view of large number of pending cases in courts the department of financial services was kind enough to ask IBA to withdraw word ‘superannuation’ and  give pension option to left over retirees.

 (f) On several occasions the regulations have been amended from retrospective effects which is not permissible under law. IBA has also failed to take into account  the various developments taking place in the country on pension related matters like pension updation exercise carried out in RBI, improvement in family pension by RBI and many special features  and benefits given to government retirees under 6th pay commission  and act in pro active manner for the welfare of senior citizen and also hold periodical consultation with representatives of retirees in this area.

Click here to view full letter by UFBRO

Source - AIBRF website