Saturday, May 30, 2015

Record Note dated 25/05/15 on issues relating to retirees - AIBRF requests UFBU to clarify position and stand of UFBU on it

We reproduce below circular issued by AIBRF regarding Record note dated 25/05/15 

 Ref: 2015/190 Date 28.05.2015
Shri M.V.Murli
Convenor, United Forum of Bank Unions
Dear Sir
Re: Record Note dated 25.05.15 on issues relating
       To Retirees.
We have come to know that while signing wage settlement on  25th May, 2015, separate Record Note of discussion on retiree  issues was signed jointly by IBA and 9 constituents of UFBU.
2. We find from this document that in its opening Para , IBA
has made statement “ any demand of retirees can be examined as a welfare measures as contractual relationship does not  exist between banks and retirees “ Further it is observed that  unions have not recorded their view points on this issue separately in the document thereby endorsing the stand of IBA  while signing it.
3. As you are well aware that pension scheme applicable in the  banking industry is Defined Benefits Pension Scheme and has been designed on the models of pension schemes applicable in the government sector and Reserve Bank of India. Basic principle and premises of pension scheme applicable in banking industry and those in Govt./ RBI is that pension payment to retirees is nothing but DEFFERED WAGES and is legal right  enforceable in court of law. This right has been acquired with long drawn battles by working class of the country. The status  of deferred wage to pension has been confirmed in several  judgements delivered from time to time by courts of the  country including Supreme Court. As you know this principle has been laid down by 5 judges constitutional bench of  Supreme Court in the famous case of Nakara Versus Union of  India. The courts have further ruled that the provisions of  pension scheme under concept of deferred wages need to be  reviewed periodically along with the wage revision of  employees.
4. In view of this we are of strong view that it is not correct for
IBA to say that demand of retirees can be examined as welfare measure only and contractual relationship does not exist between banks and retirees and this statement is an attempt to reverse the hard earned legal rights of retirees and working class with serious repercussions in the coming years.
5. Considering the seriousness of the issue, we shall feel
obliged if you will clarify the position and stand of UFBU on it.
With Respectful Regards
Yours Sincerely
( S.C.JAIN )


AIBRF has also issued a circular presenting detailed analysis on various aspects / points covered in the Record Note  and future action plan.

Click here to view AIBRF circular


  1. what about CRS employers pension option

  2. Priority issue before the AIBRF is "Single DA formula for all bank pensioners".

    Next is parity of pension rules between bank pensioners & govt. pensioners as mentioned in regulation no 56 of Pension Regulations-1995 , reading as under:-

    56- Residuary provisions.
    In case of doubt, in the matter of application of these regulations, regard may be had to the corresponding provisions of Central Civil Services Rules 1972 or Central Civil Services ( Commutation of Pension) Rules,1981 applicable for Central Government employees with such exceptions and modifications as the bank, with the previous sanction of the Central Government, may from time to time determine.