UFBU submitted charter of demands which includes demands for retirees

UFBU has submitted Common Charter of Demands for Bank Workmen  and Bank officers separately to IBA on 30th Oct 2012.

Pensioners/Retirees Demands/ Issues incorporated in Officers Charter of Demands are given below for information

"PART IV

SUPERANNUATION BENEFITS:

The employer has an obligation to ensure that the employees having served the institution almost life time are provided adequate superannuation benefits so that they are able to live a life of dignity, honour and above all a comfortable life for having given their blood and sweat to the institution.

The superannuation expenditure cannot be considered as a cost and be made subject matter of negotiations.  The compensation paid in the form of superannuation have been described by the highest court of the country as deferred wages paid to all those who served the institution with devotion and conviction for ensuring the prosperity, not only for the institution but the nation as well.

At present, the Banking Industry has provided for the benefit of Gratuity, the Provident Fund or Pension, Leave Encashment at the time of retirement, Medical facilities, and several other welfare facilities.

We strongly feel that there has to be an exclusive and a comprehensive dialogue between the Officers Organisations and IBA as to the improvements that are required to be made in the present superannuation benefits. 

PENSION:

The Banking Industry has introduced the Pension Scheme with effect from 1.1.1986 after protracted discussions and negotiations between the Officers’ Organizations/unions and the Indian Banks’ Association in the year 1993.  The Pension Scheme has remained as such since the beginning of the scheme in the Banking industry.

The Government servants have seen two pay commissions during this period and if we consider the date of implementation as 1.1.1986 there have been 3 Pay Commission reports providing very comprehensive improvements in the superannuation benefits to the civil servants in the Government.

The Pay Commissions have taken a very pragmatic view in the last 3 Pay Commission Reports and have made very substantial changes in the scheme. There is a need to take the same view as regards the Pensioners in the banking industry as well.

The periodical review of Pension scheme is the responsibility of the Managements of the Banks.  It cannot be tagged to bipartite settlements which has adversely affected the pensioners and ultimately the pension scheme remain as an archaic one in the Banking Industry.  As and when there are improvements in the central Govt. Pension scheme, the IBA should invite the negotiating unions and implement the same

Pension consists of the following parts:-

1. Basic Pension
2. Commutation
3. Dearness Allowance

The Basic Pension is calculated on the basis of the last drawn 10 months’ average pay by the retirees or the last pay drawn whichever is beneficial to the retiree.  The formula has remained the same.

The Government servants have been provided the benefit of updating of pension at periodical intervals to provide sufficient cushion against inflation and cost of living.

Dearness Allowance be converted as Basic Pension as and when the cost of living index increases by about 50%. The Pensioner will therefore have the benefit of enhanced Dearness Allowance and it provides a small cushion against the inflation.

The other method adopted by the Government is to bring all the pensioners on a uniform scale by merging the Dearness Allowance at the time of revision as recommended by the Pay Commission.  The facility of upgradation of pension above the age of 80 years be made available to Bank Officers as prevalent in Government. We therefore suggest as follows:-

BASIC PENSION:

Improve the present Basic Pension in respect of all the earlier retirees on the basis of the merger of Dearness Allowance at a level to be decided by mutual understanding between the IBA and the Officers’ organizations and unions.

COMMUTATION:

The present rate of Commutation has to be revised to 40% with the existing conversion factor. The full pension be restored after 10 years.

DEARNESS ALLOWANCE:

The DA formula and neutralization should be at par with serving officers. 

 GENERAL:

The voluntary retirement provided in the Officers Service Rules should be incorporated in the Pension rules and they should also be made eligible for Pension without any discrimination.

Pension scheme should be extended to all those who have been denied earlier on the basis of the misinterpretation of the understandings reached with IBA in particular those who retired under voluntary retirement scheme as per the service regulations / resigned after completing 20 years.  

The officers who joined the bank between 01.11.1993 and 26.01.1996 have to be covered under the pension regulations.

Provision of additional service as per the Pension Regulations to the extent of 5 years should be extended to each and every retirees in the banking industry.

Those having relaxation of age at the time of recruitment on account of disability etc., also to be extended additional period of 5 years to his / her service qualifying for pension.

Also, for Ex-servicemen their past services rendered in the Armed Force should be added to his / her service for qualifying for pension.

FAMILY PENSION:

The Family Pension should be on par with the Government and be at 30% of last drawn pay by the officer across the board to every one. The regular family pension will be payable for 10 years or till the 70^th year of notional age of the deceased.

 NEW PENSION SCHEME

The employees and officers who joined the banking industry on or after 01.04.2010 should be governed by the original pension settlement signed on 29^th October 1993 and Gazetted in the year 1995.

GRATUITY:

The Gratuity should be paid at the rate of one month salary and allowances without any ceiling.  The gratuity should be completely exempt from payment of income tax.

PROVIDENT FUND:

The Provident Fund should be at the rate of 12% of the total salary and allowances. The Provident Fund should be payable to all employees. 

ENCASHMENT OF LEAVE:

Encashment of entire leave at credit should also be permitted on resignation, removal and compulsory retirement. 

The existing ceiling on encashment of leave should be enhanced to 360 days at the time of resignation / superannuation.  The entire amount should be exempted from income tax as in the case of the Central Government Employees.

 MEDICAL BENEFIT SCHEME:

A comprehensive Medical Scheme for pensioners/ retirees should be framed and introduced in all the banks as available now in the case of executive directors and CMDs of the Banks.

WELFARE ACTIVITIES:

A separate allocation of funds for improvements to welfare of the pensioners should be made every year.  The facilities like Holiday Home, clinics, Transit House etc., should be made eligible for pensioners also. 

LFC/ HTC FACILITY:

LFC / HTC Facility should be extended to the retirees also at par with serving employees." 

Source : AIBOA website