CBPRO letter to CEO of IBA, on need for updation of pension

Text of CBPRO letter to CEO of IBA, on need for updation of pension is reproduced below for information

 Dated: 24.08.2020

Shri Sunil Mehta
Chief Executive
Indian Banks’ Association
Mumbai

Respected Sir

Updation of Pension/Revision

We as a Coordination Body (CBPRO) of Five Major Organisation of Pensioners consisting of  Federation of SBI Pensioners Associations, AIBPARC, RBONC, AIRBEA and FORBE have  been pursuing the matter relating to the Updation of Pension for Bank Pensioners.

 We are  happy to learn that the matter is on the negotiating table with UFBU.

 In this connection, we  wish to submit the following for the kind and sympathetic consideration of all the parties to the Negotiation:

1) Salary Revision and Pension Revision are inseparable as pension is a deferred wage and not a Bounty as held by the Hon'ble Supreme Court of India.
  
2) But there had been no updation in the case of Bank Pensioners despite several Salary Revisions. Pension being a Deferred Wage its Updation/Revision is a natural corollary to wage revision.

 
3) The Pension Scheme in the Banks is akin to that of Government Pension Scheme and Regulations provide that in case of any doubt, a reference be made to Central Civil Pension and Commutation Rules 1972.

4) The Pension Updation is religiously undertaken for the Central Government Pensioners simultaneously with Central Pay Commissions. It is intriguing as to why the Bank Pensioners are subjected to discrimination.

5) Bank Pensioners were happy and hopeful of their Pension Updation last year when the benefit of Updation was extended to all the Pensioners of RBI w.e.f.1.4.2019. But we were again ignored.

6) It is again heartening to learn that NABARD vide its Cir. No. 733/2020 dated 20 August
2020 has decided to affect the Revision of Pension pending approval of Government of India. NABARD Has decided to grant Interim Relief @ 60% of the total amount of the notional pension based on the multiplication factors which are broadly on the lines allowed for RBI Pensioners and DA Relief thereon to those pensioners who have retired upto 31.10.2012.

The revised pension is to be paid using the following factors:
Pensioners retired between Factors
--------------------------------------------------------
Pre-November 1992           12.34
1.11.1992-31.10.1997.         5.85
1.11.1997-31.10.2002          3.63
1.11.2002-31.10.2007          2.44
1.11.2007-31.10.2012          1.76


Since our Salary Revision due from 1.11.2017 is already settled vide MoU Dated 22.7.2020, our Pension Revision for those who retired between 1.11.2012 and 31.10.2017 is also due  and the Updation Factor for them, based on the above factors would be 1.62.

Covid 19 has taken a heavy toll of the people of this Country and also elsewhere across the world. Bank staff are at great risk in their place of work due to their nature of work. Many serving Staff are also becoming victims to the Pandemic. There is growing anxiety among
the Bank Retirees who are in the most vulnerable age group apart from various other age-related serious ailments. In the light of this also, we hope IBA will look into the Grievances and expectations of The Senior Citizens of Banking Industry from a highly Humanitarian perspective.

We, therefore request you to help resolve this long pending issue of Updation of Pension before signing the Final Settlement (11th BPS) and render justice to Bank Pensioners who have made enormous contributions to the Growth of Banking in India during their active service. Even after their Retirement, they voluntarily extended assistance to Bank Staff during the unprecedented work pressure on Bank Staff due to JanDhan Account Mobilisation Campaign, Demonetization Exercise and the other developmental activities of the Banks which they had served.

With Regards,

Yours faithfully

(Ramesh Babu) (K.V. Acharya)
 Joint Conveners, CBPRO