Developments in RBI on Pension Updation Issue

Retirees in RBI are also fighting for updation of their pension. Towards this, representatives of employee unions and retirees met RBI Governor, Dr. Raguram Rajan at Kolkata on 10.12.2014. While showing full sympathy on demands of retirees he responded as under as per the communication issued by retiree organisation in RBI
“The Governor gave an attentive hearing and appreciated our
agony. He told that he is fully aware of this issue of the retirees and trying to sort it out. He mentioned that he talked to earlier F.M., Shri Chidambaram and Govt. was agreeable to consider this issue subject to certain conditionalties. RBI had complied with all formalities vis-à-vis the Government but meanwhile Govt. had changed. He said that change of Secretaries of Department of Financial Services in quick succession and also a new Finance Minister being there in place of earlier one has affected the progress in the matter. He told that he has met the new F.M. twice on this issue but then the file did not come to him. He repeated that RBI has complied with all formalities and now it is for them to respond. The Governor, however, felt that issue might not be resolved before finalization of wage talks in the banking industry, as otherwise there might be complications.  He, however, said to continue to pursue the matter, as  Government is bound by its earlier  commitment.”

Bipartite talks between IBA and UBFU on 26th Sept 2014 - Pension related matters

We reproduce below relevant paras from the circular issued by UFBU regarding bipartite talks held between IBA and UFBU on 26th Sept 2014.

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 Pension related matters i.e. 100% DA on pension for pre-Nov. 2002 retirees, improvement in family pension, provision for periodical updation of pension

After discussion, IBA informed that they are inclined to favorably consider the demand of 100% DA on pension for pre-Nov. 2002 retirees.  IBA further informed that cost aspect on improvement in family pension is being worked out and they would soon take a decision on the same.  IBA responded positively on this issue. As regards updation of pension, IBA informed that in view of the high cost involved, it would be difficult to agree to the same.  On our insistence, IBA agreed that any viable and affordable proposition from the UFBU in this regard would be examined.

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UBFU has decided to go on agitation path as they are not satisfied with offer by IBA regarding wage revision.  Agitation program includes demonstrations  and one day strike.

Click here to view UFBU circular.

Pension option to CRS employees - Supreme Court Decision

Pension option to Compulsorily Retired employees was denied under 9th Bipartite Settlement in which pension option was given to other eligible retirees. Recently Division Bench of Supreme Court dismissed special leave petitions by Andhra Bank Management against Andhra High Court order allowing pension option to the compulsory Retired Employees also along with the option given to other eligible retirees under 9th settlement. 

Since the judgement has been given by highest court of the country, Andhra Bank management is under obligation to give pension option to the petitioners and other eligible retirees in the bank.
Order passed by the Supreme Court in the above referred SLPs and  the principles laid down by division bench of Andhra High Court while delivering the judgement in the matter  are applicable not only to the petitioners but to all affected compulsory Retired employees
AIBRF has written a letter to Chairman IBA requesting him to advise all member banks to pass the benefit  and give pension option to all compulsarily  retired employees.

Source : AIBRF website

 

Increase in D.A. for pensioners w.e.f. Aug 2014 - 17 slabs more

D.A.  rates for pensioners (%) - 17 slabs more

Retired prior to 01-11-1994 - 1242 Slabs over 600 points
Upto 1250    1251-2000    2001-2130    Above 2130
  832.14%       683.10 %      409.86 %        211.14 %     
  
After 01-11-1992 upto 31-03-1998 -1105 Slab over1148 points
Upto 2400    2401-3850    3851-4100    Above 4100
  386.75 %     320.45%       187.85 %        99.45  %     

After 01-04-1998 upto 31-10-2002 -971Slabsover 1684 points
Upto 3550    3551-5650    5651-6010     Above 6010
   233.04%    194.20 %      116.52 %          58.26  %     

Retired on or after  1-11-2002 - 820 Slabs over 2288 points
For the entire Basic Pension Amount    147.60%
 
Retired on or after  1-11-2007 - 683 Slabs over 2836 points
For the entire Basic Pension Amount    102.45%
 

D.A calculator is available for calculating revised D.A. and difference. For calculating D.A , enter basic ( original basic without reducing commutation amount) and click on the calculate button. Revised D.A , Present D.A. and difference will be displayed on the calculator. Select appropriate retirement date range according to the date of retirement.

 
Click on the following link for  D A Calculator. 

  

D.A. Calculator

 

Bipartite talks on 14-06-2014 - Retiree issues

It is learnt that,  in the bipartite talk of 14-06-2014 the retiree issues were discussed and IBA informed as under.

(1) IBA is favourably inclined  to  consider    100   percent   
     Dearness Allowance to all  retirees  including  pre-2002  
     retirees and have written to  the government for approval.   
     Approval is awaited.
(2) As regards improvement in family pension, IBA is  
     favourably inclined to consider and will recommend to the 
     government for approval after studying cost implications.
(3) As regards updation exercise for the past retirees, IBA is
     apprehensive about it in view of huge cost involved in it.

Source : AIBRF Website

P.J. Nayak Committee Recommendations on Governance of Boards of Banks in India - consequences and effects on retirees and emloyees

 We reproduce below the circular issued by AIBRF on the above subject.

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Committee was constituted by Reserve Bank of India under the chairmanship of Shri P.J.Naik to review governance of Boards of banks in The committee has submitted the recommendations which will have far reaching consequences on functioning and ownership of public sector banks in India. If recommendations given by this committee are implemented all public sector banks will stand privatised and will get status they were enjoying before nationalisation of banks in 1969 including adding “ Limited” word with their names.

MAJOR RECOMMENDATIONS OF THE COMMITTEE

(1) Government holding in public sector should be brought below 51 

(2) Nationalisation Act and State Bank of India Act should be repealed
(3) The public sector should be incorporated under Companies Act and word “Limited” should be added with the respective name as per the legal requirement of this act.
(4) The public sector banks will come out of purview of CVC/CBI
(5) Performance of public sector will not be monitored by Finance ministry.
(6) Equity owned by the government after reducing holding below 51 percent should be transferred to the newly formed Investment Company.
(7) Banks will have to arrange requirement of additional capital either from internal generation or tapping the capital market and will not look to the government for budgetary support.
(8) Bank functioning and survival will depend on its performance and quality of assets and profitability.

These recommendations if implemented are nothing but an attempt to privatise public sector banks and hand over huge national financial resources mobilised in last 45 years in the hands of corporate sector which will be used for their benefits rather than for welfare of common

The report of the committee will be placed for adoption before the new government which will be in place in next few days.

The full report is available on Reserve Bank of India web-site.

CONSEQUNCES AND EFFECT IF RECOMMENDATIONS OF THE COMMITTEE ARE IMPLEMENTED

(1 ) The employees and retirees will lose WRIT JURISTICTION to protect their legal right. Legal recourse available will be through civil suits

(2) On scrapping the Nationalisation Act, constitutional guarantee available at present for payment of pension will stand withdrawn.

(3) Bipartite mechanism available for deciding service conditions of employees / retirees may be under threat

(4) Individual private banks may adopt hire and fire policy endangering job security.

(5) Nation savings and precious financial resources will go under the control of private hands which could threaten financial stability of the country which we have witness in western countries during sub-prime crisis of 2008.

AIBRF STAND

We strongly oppose these recommendation and if implemented could prove dangerous and divesting for the nation and common people. We shall lunch agitational programme if the recommendations are not rejected by the government.

We understand that unions are opposing recommendations of Nayak

 Regards

 Yours Sincerely.

 ( S.C.JAIN )

 GENERAL SECRETARY

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Apex leadership of bank retirees finalise the text of common memoradum of the demands of bank retirees

The apex leadership of three organisations of Retirees in the Banking Sector viz. All India Bank Pensioners & Retirees Confederation, All India Bank Retirees’ Federation and Federation of SBI Pensioners’ Associations met together at New Delhi on 16^th April, 2014 to finalise the text of a common memorandum on the demands of the Retirees.  After a threadbare discussion, the memorandum was finalized and signed Sarbashree S.R. Sengupta, S.C. Jain and P.P.S. Murthy. 

It was decided in the meeting that the copy of the memorandum along with a forwarding letter signed by all the organisations would be sent immediately to the Secretary, Department of Financial Services, Banking Department, Government of India, the Chairman, Indian Banks Association, the Convener of United Forum of Bank Unions and also to the constituent organisations belonging to UFBU.

 The full text of the memorandum  reproduced below

Bipartite talks between IBA and UFBU held on 13th March 2014 - Pension related issues.

 Bipartite talks were held between IBA and UBFU on 13th March 2014, at Mumbai. Pension related issues were also discussed in the meeting. UBFU has issued a circular regarding the bipartite talks. Contents from the UFBU circular pertaining to the pension issues are reproduced below.

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 On our demand for improvement in the Family Pension scheme, extension of 100% DA formula to pre-2002 pensioners, etc., IBA was considerate and agreed to work out the cost implications to enable them to take a view on these demands.  To our demand on periodical updation of pension on occasions of wage revision, IBA felt that the issue has to be examined, in its entirety, looking at the cost involved, outflow, etc. On reverting to old pension scheme from NPS, IBA expressed their inability to accede to our demand but we reiterated the same.

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Dharana Program at Jantar Mantar , Delhi organised by AIBRF

All India Bank Retirees Federation (AIBRF) had organized Dharana Program at Jantar Mantar, New Delhi on 7th March 2014, for following long pending demands of Bank retirees. 

 * UNIFORM DA TO ALL PENSIONERS
 * UPDATION OF BASIC PENSION OF PAST RETIREES
 * IMROVEMENT IN FAMILY PENSION ON THE LINES OF RBI
 * ANOTHER PENSION OPTION TO LEFT OUT RETIREES
 * UNIFORM  HOSPITALISATION SCHEME TO ALL BANK       
    RETIREES  
 * CONSULTATION WITH THE RETIREES ON THEIR   
    ISSUES   

According to a source there was a massive turnout at the rally. Bank Retirees from all over India and  from Delhi in particular participated in the program.  Hon MPs Shri Gurudas Dasgupta and Shri D. Raja were present at the rally , assuring their fullest support  to  bank pensioners in their struggle.

Click here to view press release by AIBRF 

Increase in .D.A. w.e.f. Feb 2014 - 73 slabs more

D.A. Rates for Pensioners (%) – 73 Slabs more

Retired prior to 01-11-1994 - 1225 Slabs over 600 points
Upto 1250    1251-2000    2001-2130    Above 2130
820.75%        673.75%      404.25%         208.25%
After 01-11-1992 upto 31-03-1998 - 1088 Slabs over 1148 points
Upto 2400    2401-3850    3851-4100    Above 4100
380.80%        315.52%      184.96%         97.92%
After 01-04-1998 upto 31-10-2002 - 954 Slabs over 1684 points
Upto 3550    3551-5650    5651-6010    Above 6010
228.96%        190.80%      114.48%          57.24%
Retired on or after  1-11-2002 - 803 Slabs over 2288 points
For the entire Basic Pension Amount    144.54%
Retired on or after  1-11-2007 - 666 Slabs over 2836 points
For the entire Basic Pension Amount    99.90%

D.A calculator is available for calculating revised D.A. and difference. For calculating D.A , enter basic ( original basic without reducing commutation amount) and click on the calculate button. Revised D.A , Present D.A. and difference will be displayed on the calculator. Select appropriate retirement date range according to the date of retirement.

 
Click on the following link for  D A Calculator. 

  

D.A. Calculator

Negotiations with IBA failed - Two days strike on 10th & 11th Feb 2014

Negotiations held between UFBU and IBA  held on 27 th Jan 2014 failed,  as  IBA improved their offer by .50% (i.e.10 % instead of earlier offer of 9.50%) .  The final offer of 10% is  on payslip component excluding superannuation and other costs.  The reason once again cited for this lower offer was the stress on the balance sheets of  various  banks.  UFBU rejected the offer made by IBA instantly. Immediately in the meeting of constituents,  UBFU decided to go on strike on 10th and 11th Feb 2014 and served strike notice on IBA.

Source : AIBOC website

FINALLY VIJAYA BANK CREDITS PENSION TO PETITIONER RESIGNEES ACCOUNT - A meeting of Bank Resignees is scheduled at Banglore on 03/02/2014

A communique received from Shri R.K. Pathak, President , Resigned Bank Employees Welfare Association (RBEWA), is reproduced below.




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FINALLY VIJAYA BANK CREDITS PENSION TO PETITIONER RESIGNEES ACCOUNT

On Saturday late on 25/01/2014, Vijaya Bank credited Pension to 21 petitioner resignees and still one of the petitioner is yet to get his account credited as he expired in accident in August 2013 & HRD of the Vijaya Bank is in dilemma to settle his claim.

It is expected NOW at least, management will take good decision to grant pension with commutation as on 27/11/2009 & arrears till August 2013 & there after family Pension. Let us wait & hope Bank will resolve the issue in couple of days.

To discuss the issue of pension to Resignee Petitioners, Board of Directors had its meeting on 28/12/2013, both the Directors (Workman as well as Officer) insisted for extending the pension option to all employees whose option was declined by referring clause No.7 of the circular No 10191 dated 07/09/2010. But the so called Guardian Directors of AUTONOMUS BODY refused to extend pension option to other than petitioner resignees by pointing figures towards IBA.

It is also understood that in Vijaya Bank still 90 employees having qualifying service of more than 20 years were denied pension option by referring clause No.7 of the circular No 10191 dated 07/09/2010.

In order help the resignees to get pension option, a meeting of Bank Resignees is scheduled at Banglore on 03/02/2014 to chalk out action plan & fortunately Bank Retirees Organisation too are extending their support for this meeting.

In the past too, Retirees organization, Retirees Forum of Bank of Maharsahtra & All India Bank Pensioners & Retirees Confederation had extended the financial support to Petitioner Resignees.

The Resigned Employees of Public Sector Bank with qualifying service, for more details, may please contact R K Pathak on his cell no.09373053695 or at his email id advpathak10@gmail.com

The Resignees resident of Karnataka state for their own interest are invited for meeting. 

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Strike on 20th and 21st January 2014 deferred in response to improved offer by IBA

We repoduce below the text of UFBU CIRCULAR No.UFBU/2014/16 dated 17-01-2014 

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· Bipartite Talks held with IBA today
· IBA improved their initial offer from 5% to 9.5%
· Next round of negotiations on 27th January, 2014
· Strike on 20th and 21st January 2014 deferred
We had informed our unions and members, vide our Circular No. 15 dated 13.1.2014, about the outcome of the proceedings of the conciliation meeting held in Delhi by the Chief Labour Commissioner on 13th instant. As agreed in the meeting, the IBA invited the UFBU for discussions and the bipartite talks were held today in Mumbai in the office of IBA. IBA was represented by Mr T M Bhasin (CMD, Indian Bank) Chairman of the Negotiating Committee, Mr. M V Tanksale, Chief Executive of IBA and other CMDs/EDs who are members of the IBA’s negotiating team. UFBU was represented by the representatives of all the constituent unions.


During the discussions held today, after protracted negotiations, IBA finally agreed to improve their earlier initial offer of 5% on cost of Pay slip components (which amounted to Rs. 1575 crores ) to 9.5 % (amounting to around Rs. 3000 crores) which is exclusive of retirement benefits and other costs. The IBA also reiterated that they would expedite the negotiations and conclude the Settlement by June, 2014. IBA further informed that the next round of negotiations will be held on 27th January, 2014.


From our side, while explaining the rationale behind our charter of demands, we pointed out that their offer needs to be further enhanced before we can reach any finality. However, looking to their improved offer and assurance to expedite the settlement, it was decided to defer our agitational programmes and proposed strike action on 20th and 21st January, 2014.

We congratulate all our unions and members all over the country for their enthusiastic preparation for the strike which has resulted in the above outcome.

Further developments will be informed to units after the next round of negotiations. In the meantime, it is necessary to maintain our unity and preparedness which alone can guarantee accomplishment of our demands.

Sd.. M V Murali,
 Convener

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