Pension Updation in Banks. Letter to IBA

Letter by AIBPARC to the chairman IBA regarding Pension Updation in Banks is reproduced below

Quote :
AIBPARC/IBA/PENSION UPDATION/EMAIL/2021                November 12, 2021.
Shri A.K. Goel,
Chairman, IBA,
& MD & CEO, UCO Bank.
Respected Sir,
Sub : Pension Updation in Banks.
We mention hereunder the chronological developments of the above issue for your kind information and ready reference:
 There had been a time when the issue of pension updation, when raised in Parliament, was addressed by a standard reply that it was a funded scheme and determined by bilateral negotiations between IBA and Unions/Associations. Hence, it was contended that government had little scope for intervention in this regard.
 The issue was first focussed into surface by AIBPARC when the organisation highlighted that Regulation 35.1 clearly mentioned the modality of updation of pension in its appendix 1 and it was not an unheard-of subject in the Banking Industry. An opposition came from certain quarters that the Regulation 35.1 mentioned about a particular batch only (01.01.1986 to 31.12.87) and it was not applicable to other retirees. It is AIBPARC which cited again that the Regulation 35.1 was amended in the year 2003 and it was made open-ended to make pension updation applicable for all and it was to take place in a concurrent manner with each salary revision for serving employees/officers in the Industry.
 Next came the issue of affordability of funds. This is often argued that pension updation would create a serious pressure on the balance sheet of banks. It is partially e myth. The total corpus of all the banks including that of SBI is far above Rs.3 Lac crore and the net out-go for updation of pension even as per RBI formula can be safely managed by the pension corpus which was created out of the surrender of the management contribution to PF by the employees during their service life. Any shortfall, after government- approved Actuary’s annual estimation, has to be made good by banks every year to the debit of PL account and it is a statutory obligation of banks as per Pension Regulations.
 The situation underwent a sea change with the following developments :
Hon’ble Union Finance Minister had expressed her concern about the well being of the retirees in an interview at a leading newspaper being followed by her address in the 73rd AGM of IBA. She expressed her concern for the retired employees and their families. She kept her commitment by arranging for a quick clearance of the improvement of family pension that was recommended by IBA. We profusely thanked Union FM, officials of MOF and UFBU for addressing an issue which remained unattended for a long time.
 The issue of pension updation was raised in Parliament again. This time the reply of MOS, Finance, was a departure from what was said in earlier occasions. It was told that government would consider with favour any proposal on pension updation if the same is recommended by IBA.
 Consequent upon this, IBA formed a five-man committee headed by Shri CH. Mallikarjuna Rao, MD & CEO, PNB to look into the subject of Pension updation. The said committee, it can be reasonably expected, was formed by IBA at the instance of GOI. The first meeting of the committee with UFBU took place on 22.07.21. It has been learnt from different communications that it was a one-sided affair where the members of the committee heard the views of the constituents of UFBU. It was expected that the committee would meet soon and the views of the members would be made known but things did not happen in the direction. Meanwhile, we have been hearing from different responsible sources that the members of the committee are making serious application of mind on the issue of updation and they are acting with a positive frame of mind to do something tangible for the retirees of the industry.
 The committee on government assurances, Rajya Sabha, under the chairmanship of Shri A. Navaneethakrishnan, MP, visited Bhubaneswar and Kolkata and met the officials of IBA, Functionaries of DFS and MD & CEO of selected banks and discussed the issues related to updation of pension. Our organisation has submitted a detailed memorandum in the hands of the Chairman of the Committee. We expect that the report submitted by the committee has already reached the decision making authorities.
 We have repeatedly harped on a careful reading of Regulation 56 of BEPR which states that in case of any doubt in regard to implementation of Pension Scheme in Banks, reference should be made to the corresponding provisions of Central Govt. Pension Scheme. It may please be noted that in the Agreements with the employees and officers organisations, it was clearly stated that the Pension Scheme in Banks was modelled on RBI pattern and Pension updation has been allowed in RBI.
 100% DA neutralisation has been denied to pre-November, 2002 retirees and as a result of it a substantial chunk of older citizens are suffering from double jeopardy due to non-revision of pension and lower DA compensation.
 Hon’ble SC has held that pension is a deferred wage and not a bounty and wage revision and pension revision are inseparable.
 We have been remaining in dark for quite a considerable period of time. We have sent our representation to the Chairman of the five-man committee and copies have been endorsed to all other honourable members of the committee. We have also made it clear that the leaders of our organisation would be available at a reasonable notice to present ourselves before IBA or any other authority to explain in person what is the legality of our demand and what is the base of our contention that the outgo of fund required for updating the pension as per RBI formula is within a manageable extent. We have not received any communication so far.
Sir, the Retirees, being senior and super-senior citizens of the country, do not have sufficient time in hand to wait endlessly. They definitely require a consideration on a faster pace. We sincerely hope that you would kindly ensure that the five-man committee quickens the process of decision making and the issue of updation is carried forward to a logical conclusion without any loss of time. We also wish that the organisations of retirees, being one of the principal stake holders, must be given an opportunity to present their views for consideration. When the Union Govt. and various state governments offer consultative status to the organisations of retirees, we fail to understand what actually prohibits IBA to offer consultative status to the organisations of retirees. In a detailed memorandum, we have explained our views before IBA that as per instruction of MOF, GOI, IBA a few years of back asked every bank to form a committee at corporate level to hear the grievances of the retirees and the process is continuing with different member banks. When IBA passes instruction to form committees to discuss grievances of retirees at bank level, it really turns to be an anomaly and dichotomy when IBA at its own level denies consultative status.
We make a fervent appeal before your goodself to consider with favour the views expressed by us in the foregoing paragraphs and call us for discussion.
With kind regards,
(K.V. Acharya )                                                           ( Suprita Sarkar )
President, AIBPARC & Jt. Convenor, CBPRO      General Secretary, AIBPARC

Unquote 

 

 

DEARNESS RELIEF PAYABLE TO PENSIONERS FROM 1st AUG'21 TO 31st JAN'22

 D A rates for pensioners (%) 23 slabs more

 

Retired prior to 01-11-1992 -        1835 Slabs over 600 points 

Upto 1250               1251-2000             2001-2130        Abv 2130
  1229.45%              1009.25%                605.55%          311.95% 

 After 01-11-1992   upto 31-03-1998 - 1698 Slabs over 1148 points

Upto 2400                2401-3850             3851-4100        Abv 4100 

   594.30%                 492.42%               288.66%           152.82% 

After 01-04-1998 upto 31-10-2002 - 1564 Slabs over 1684 points 

Upto 3550                3551-5650             5651-6010         Abv 6010 

375.36%                    312.80%                187.68%             93.84%
Retired on or after 01-11-2002 -   1413 Slabs over 2288 points 

For the entire Basic Pension Amount 254.34% 

Retired on or after 01-11-2007 - 1276 Slabs over 2836 points 

For the entire Basic Pension Amount 191.40%
Retired on or after 01-11-2012 - 875 Slabs over 4440 points

For the entire Basic Pension Amount 87.50% 

Retired on or after 01-11-2017 - 397 Slabs over 6352 points 

For the entire Basic Pension Amount 27.79% 

 

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.

 
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  D.A. Calculator

 

Bipartite Meeting with IBA on Pension - joint circular by employees' unions

Joint circular by employees' unions is reproduced below

 No. 2021/Joint Cir/02          22nd July, 2021
To All Units & Members
Dear Comrades,
Bipartite Meeting with IBA on Pension
Our unions and members are aware that after signing the 11th Bipartite Settlement on 11th November, 2020, we have been pursuing some of the issues that could not be finalised with the IBA in the Settlement. Accordingly, a round of discussions took place with IBA on 10-12-2020 and minutes were also signed on these residual issues.
Out of these issues, updation of pension was one of the important issues raised by us in that meeting and IBA agreed to discuss the issue further. Due to the second wave of pandemic, meetings could not be held so far. In the meantime, IBA, set up a Committee headed by Shri CH S S Mallikarjuna Rao, MD&CEO, PNB to deal with the issue of Pension.
On following up the matter with the IBA, today, IBA convened a Bipartite meeting between the Committee and our Unions (AIBEA-NCBE-NOBW-INBEF). The meeting was held under video conferencing.
IBA’s Committee was represented by Shri CH S S Mallikarjuna Rao, (MD&CEO, PNB) Chairman of the Committee, Shri. M V Rao (MD&CEO, Central Bank of India), Vice Chairman and Mr. Om Prakash Mishra (DMD, SBI), Shri S L Jain (ED, BOB), Shri D. Mukherjee (ED, Canara Bank), and Shri Gopal Murli Bhagat, Dy Chief Executive, IBA.
We were represented by Com. Rajen Nagar and Com. C.H. Venkatachalam from AIBEA, Com S.C Balaji and Com. S K Bandlish from NCBE, Com. Upendrakumar from NOBW and Com. O.P Sharma from INBEF.
While thanking the IBA for commencing the discussions on the important issue of review of pension scheme, we urged upon the IBA to hold discussions on all other residual issues also so that the same can be resolved amicably at the earliest.
Regarding pension related issues, we raised the following points:
a) Provision to be incorporated for ensuring revision in pension during every wage revision settlement.
b) Pending this finalisation, updation of pension for all pensioners who retired from 1-1-1986 to 31-10-2017.
c) While updating pension as above, pre-November,2002 pensioners to be kept in mind keeping their earlier tapering DA formula.
d) Improvements in pension scheme like additional pension above the age of 80, 90 and 100, full pension to be given for 20 years service and above instead of present 33 years, calculating basic pension based on average of last 10 months or last month basic pay whichever is beneficial to the pensioner, etc. on the lines of RBI/Government scheme
e) Bringing pension of all retirees at the uniform price index of 6352 points.
f) Revision in Ex Gratia pension of pre-1986 pensioners.
g) Pension for resigned employees
h) Clarification on false complaints of diversion of pension fund of Banks.
We further informed that all these issues can be further discussed in detail by convening a physical meeting for negotiations at the earliest when understandings can be reached on all these matters looking to cost aspect, etc.
Improvement in Family Pension at 30% without ceiling / Enhancement of management’s contribution from 10 to 14% under NPS for post-2010 employees:
We pointed out that the Improvement in Family Pension at 30% without ceiling and enhancement of management’s contribution from 10 to 14% under NPS for post-2010 employees have been agreed upon and are part of the Bipartite Settlement but the matters are still pending for approval with the Government. We urged upon the IBA to follow up the matter with the Government to expedite the approval without further delay.
Comrades, all our members will recall that on the same day last year i.e. on 22-7-2020, there was a crucial negotiation between IBA and Unions when the MoU was finalised and signed which paved the way for the successful 11th Bipartite Settlement with adequate wage revision and many improvements in the service conditions which are being hailed by the employees. We hope that the commencement of the discussions today on pension issues will also similarly lead to further fruitful discussions and successful culmination at the earliest.
Further developments will be informed in due course.
With greetings,
Yours comradely,
C H Venkatachalam S K Bandlish         Upendrakumar     O P Sharma
Gen. Secretary         Gen. Secretary       Gen. Secretary     Gen. Secretary
AIBEA                     NCBE                    NOBW                INBEF

AIBPARC holds virtual GC meeting on 8th July, 2021, Takes stock of contemporary issues and decides programme of action

AIBPARC circular on the above subject is reproduced below

Circular No. 31/21                                                                                       09.07.2021.
(For circulation among members of the governing council of AIBPARC,
State Secretaries, Special Invitees and Advisors.)
Dear Comrades,
Sub : AIBPARC holds virtual GC meeting on 8th July, 2021,
Takes stock of contemporary issues and decides programme of action
We have much pleasure to inform all concerned that the meeting of the Governing Council of the organisation took place on 8th July, 2021 virtually. We report hereunder the principal highlights of the meeting :
❖ The attendance was cent percent.
❖ Com. C. Gangadhar Yadav, our Working President, acted as the host. We are thankful to Com. Yadav and his team for the technical support.
❖ Com. K.V. Acharya, President, presided over the meeting which continued for 5 hours at a stretch without any break.
❖ 25 speakers including Advisors and Senior Office-bearers took part in deliberations. The exchange of ideas at a crucial time enriched the organisation and helped to arrive at the following decisions :
• The house expressed anguish and annoyance at the raw deal given to the elder citizens of the Banking industry by the Government in regard to not giving the clearance so far to the improved Family Pension although it was agreed upon long back in MOU and Bipartite Settlement/Joint Note and IBA’s recommendation to the effect was sent. Repeated clarifications sought for by the Government have reportedly been answered by IBA. The organisation has been very reasonably expecting the clearance on any day but till the date of holding the meeting, it has not come. The house notes the level of frustration in the minds of members and decides to convey the same to the authorities concerned.
• The house endorses the stand taken by the leadership in respect of lodging its claim as a principal stake holder before the IBA that it should be called for discussion on updation of pension which is currently being studied by an internal committee comprising of several CEO and MDs formed by IBA. The house records its anxiety in the matter of astronomical cost which was often projected by the actuaries appointed by IBA in the matter of updation of pension and family pension. This is demanded that the assumption  should be  realistic and the calculation sheets already presented before the Govt., IBA and UFBU by AIBAPRC be given due cognizance. AIBPARC, given the opportunity, will be making its presentation before IBA.
• The house appointed a two-man committee comprising of Com. P. S. Patki, Working President and Com. K. Chandrasekharan, Dy. General Secretary and State Secretary, Tamil Nadu to finalize the suggestions of AIBPARC on Group Medical Insurance Scheme for the year November, 2021 to October, 2022. The General Secretaries of all our affiliates are earnestly requested to mail their suggestions/ recommendations to the members of the committee at the following E-mail ID : patkiprakash@gmail.com and presidentchandru @gmail. com. within next 3 days and the committee will take 7 days to finalize. The urgency is felt as IBA has formed a sub-committee to study the subject and negotiations will be starting shortly. The house also felt that the last-moment hurry as experienced in previous years should not be repeated this time.
• The house decided to re-lodge its claim before IBA demanding official negotiation status. This is paradoxical to note that IBA by its official communication asks all banks to create grievance-redressal machinery but denies the same at its own level. IBA should again be approached to give cognizance to different issues escalated by the organisation at different points of time which include inter-alia the delay in sanction of stagnation increments (to eligible pensioners retiring between 01.11.12 and 30.04.15) by all banks, diversified interpretation made by banks for paying commutation arrears and interest thereon arising out of refixation of basic pay to rectify DA anomaly for a specified group of retirees, special allowance to be treated as part of basic pay, the address of different communications to CEO and MDs of public sector banks instead of writing to all the parties participating in Bipartite Settlement/Joint Note and different other issues taken up by the organisation.
• The house decided to re-lodge its demands before the Government that separate interest bracket is to be created for the elder citizens of the country to protect the interest income which is being drastically reduced by repeated curtailment of rates and extension of the best possible HR practices followed by the merging banks and the anchor bank to the retirees as per promises made by the government at the time of merger of banks.
• The house expressed serious concern at the much-floated news that government is going to take steps to privatize several nationalised banks. It is considered as a measure to push the wheels backward and it will not be beneficial to the country and the nation. The organisation will take part in all action programmes which will be declared by UFBU and AIBPARC will also formulate its own programmes in conducive situation when free movement will be permissible.
• The house notes with concern that some persons/organisations are floating different messages in whatsapp on various issues and such news are in most cases without any base. It is creating unnecessary tension and turmoil in the minds of retirees. It is nothing but cherishing a notional satisfaction. The organisation calls upon its members to rely upon a communication of AIBPARC only.
• The house accords its consent to the following co-options which had been long pending. The EC member from our affiliate in Central Bank of India, Com. D.H. Lahane will be upgraded to the post of Dy. General Secretary for the remaining period of the term and Com. M.L.Verma from the same affiliate will be inducted in the Governing
Council as an EC member.
• The house takes the following action programmes :
The members of the Governing Council will first send a memorandum to Union Finance Minister in a common format. If no action is taken by the government, then the membership will be called upon to submit a memorandum individually to Union Finance Minister conveying his/her dissatisfaction for non-resolve of long pending issues. The programme will be initiated in the month of July, 2021. The action points with specific dates of implementation and the circulation of common draft will be fine-tuned in consultation with senior office bearers and the same will be made known before 19th July, 2021 – a date which is very near to the hearts of all the Bankmen in the country.
• Comrades, you will appreciate that different issues are discussed and decisions are arrived at in such meetings. It is not possible to mention all the points in the circular. The viewpoints/concerns expressed by members are duly noted for follow up at different levels. To sum up, the meeting has been very purposeful. All the members are fervently hoping for restoration of normalcy in free movement at different parts of the country. As it is very difficult to go for demonstrative actions at the present moment, the digital front is going to be exploited to the maximum possible extent. If no result forth-comes, the organisation decided to go for demonstrative actions in permissible and conducive situation when the corona scare will not be there.
With best wishes and regards,
Comradely yours,
(SUPRITA SARKAR )
GENERAL SECRETARY 

 

 

AIBPARC letter to Union Finance Minister regarding GST on group mediclaim policy and medical bills

 AIBPARC letter on the above subject is reproduced below

.Quote
May 23,2021.
Ms Nirmala Sitharaman,
Hon'ble Union Finance Minister,
Government of India, New Delhi.
Respected Madam,
Sub: A frantic appeal on behalf of the Retirees of the Banking Industry
to abolish the present GST rate of 18pc on premium of Group Mediclaim
and also on medical bills.
We learn that the meeting of the 43rd GST Council is expected to be held
shortly under the Chairpersonship of your good self. The whole country is
eagerly expecting that the Council would be considering, inter alia, the
reduction of GST rates on various medical essentials to curb the financial
burden of Covid 19 treatment. We seize this opportunity to place before you
the aforesaid proposal in brief without any elucidation since we have already
represented before your good self, Hon’ble MOS for Finance and Chairman,
IBA on a number of occasions.
Madam, the Retirees of the Industry, being elder and super elder citizens of
the country, are extremely vulnerable in the pandemic situation and the
number of unfortunate deaths reported from different parts of the country is
also considerably high. The Retirees are totally dependent on the medical
insurance which they have to purchase each year at an ever--increasing cost
and the high rate of GST is further escalating the burden to an unbearable
proportion.
We appeal to you to kindly consider our proposal with sympathy and favour
as a part and parcel of the proposed relief to be extended for reduction of
financial burden of Covid 19 treatment and it would immensely benefit the
Retirees with scanty monthly pension & ex-gratia and family Pensioners
whose pathetic plight is already known to you.
With Kind regards,
Yours faithfully,
Suprita Sarkar
General Secretary.

Unquote 

 

 

DA rates for bankpensioners from Feb 2021 to July 2021 - 77 slabs increase

               

D.A. Rates for Pensioners (%)  from Feb 2021
Retired prior to 01-11-1992 - 1812 Slabs over 600  points
Upto 1250	1251-2000	2001-2130		Abv 2130
1214.04%	996.60%	597.96%		308.04%
After 01-11-1992 upto 31-03-1998 - 1675 Slabs over 1148 points
Upto 2400	2401-3850	3851-4100		Abv 4100
86.25%	485.75%	284.75%		150.75%
After 01-04-1998 upto 31-10-2002 - 1541 Slabs over 1684 points
Upto 3550	3551-5650	5651-6010		Abv 6010
369.84%	308.20%	184.92%		92.46%
Retired on or after 01-11-2002 - 1390 Slabs over 2288 points
For the entire Basic Pension Amount			250.20%
Retired on or after 01-11-2007 - 1253 Slabs over 2836 points
For the entire Basic Pension Amount			187.95%
Retired on or after 01-11-2012 - 852 Slabs over 4440 points
For the entire Basic Pension Amount			85.20%
Retired on or after 01-11-2017 - 374 Slabs over 6352 points
For the entire Basic Pension Amount			26.18%

 

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