Memorandum to Hon PM by CBPRO regarding pensioners' long pending issues

We reproduce below Memorandum to Hon PM by CBPRO regarding pensioners' long pending issues 
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Dated: 17.12.2018
To
Shri Narendra Modiji
Honourable Prime Minister of India
South Block
New Delhi
Honourable Sir,
Sub: Pending issues of Bank Pensioners and Retirees
We on behalf of CBPRO (Coordination of Bank Pensioners and Retirees
Organisation) and AIBRF (All India Bank Retirees Federation) representing the
entire community of Bank Retirees and Pensioners (100%) have been pursuing
with the Government and Ministry of Finance and IBA for resolving the following
long pending issues of Bank Pensioners and Retirees for which we have written to
your goodself on several occasions and submitted detailed memorandum:
1. Pension Updation (Pension Revision);
2. Revision in Family Pension in line with Government and RBI Pensioners;
3. 100% D.A. Neutralisation to pre-2002 retirees;
4. Pension @ 50% of the last drawn Basic Pay to all SBI employees and
officers;
5. Removal of anomalies in Fixation of Pension in SBI including Commutation
at par with Industry and reckoning Probationary period of service
for Calculation of Pension;
6. Defined Benefit Pension Scheme to those who are recruited after April
2020.
7. Pension to resignees with pensionable service;
8. Full reimbursement of medical insurance premium as extended to serving
employees;
9. Reckoning special allowance component of pay for gratuity and pension;

10. Negotiating rights in regard to pensioners and retirees issues with Indian
Banks Association/Government;
11. Implementation of all Supreme Court Judgements for pensioners and
retirees of all Private and Public Sector Banks; and
12. Enhancement of gratuity to Rs. 20 lakhs w.e.f. 01.01.2018 as in the case of
Central Government employees
Since there has been no resolution in sight of our pending issues, the Bank
Pensioners and Retirees are thoroughly disappointed and agitated. Accordingly
our Organisations have decided to hold Dharnas and Demonstrations at all
important centres including State Capitals throughout the country from
01.12.2018 to 15.01.2019 and many centres like Bangalore, Trivandrum,
Ernakulam and Kolkata have already held dharnas. The demonstration
programme also includes a massive Dharna at Jantar Mantar on 08.01.2019
followed by a march to Parliament in the afternoon on the same day. We also
wish to submit a detailed memorandum to your goodself again on the same day.
We as Senior and Super Senior Citizens having served the country for several
decades shall be grateful if suitable arrangements are made receiving our
memorandum around 02.30 p.m. at Parliament House or at your office.
It is reiterated that all our financial demands are not only legitimate but also can
be met out of the statutory funds created for the respective purposes including
contributions by us by way of surrendering Provident Fund. It is also pertinent to
bring to your kind notice that Pension Funds of all the Banks put together
aggregates to more than Rs. 3 lakh crores and annual disbursements towards
pension and family pension are not even 40% of the annual yield and
contributions to the fund. It is thus clear that resolution of our demands will not
cause any extra burden on the Balance Sheets of the Banks. Unfortunately Indian
Banks Association and other vested interest groups are thoroughly misleading the
Government about cost implications and denying us of our dues in violations of
Pension Regulation 35(1) which clearly provides for Updation of Basic Pension and
Additional Pension. In utter disregard to the National Litigation Policy of the
Government, the Senior Citizens and Super Senior Citizens are being driven to
seek judicial recourse at a heavy cost in terms of time and money in the evening
of their life.
Honourable Sir, we are confident that with your goodself at the helm of affairs of
the Government, the Senior Citizens and Super Senior Citizens who have
wholeheartedly contributed for the economic growth and social upliftment of the
people of the country by implementing all the schemes, programmes and policies
of the Government during last five decades, including Financial Inclusion, PMJDY,
Mudra, Skill India, Start Up India, Make in India, Demonetisation and other
programmes, shall get justice at your hands.
With regards,
Yours faithfully,
(A.Ramesh Babu) (K.V. Acharya)                   (S.C. Jain)
       Joint Conveners, CBPRO                  General Secretary, AIBRF
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Kolkata High Court, Division Bench Judgement on 100 Percent Dearness Allowance- Review Petition

Circular issued by AIBRF on the above subject is reproduced below
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Ref:2018/606                                            Date:12.12.2018
The Office Bearers/Central Committee Members/ State Body
Chiefs
Dear Comrades,Re: Kolkata High Court, Division Bench Judgement on 100 Percent Dearness Allowance- Review Petition

We request you to refer our circular No. 2018/601 dated
08.12.2018 advising that our affiliate and petitioner in the case, United Bank of India Retirees’ Welfare Association had moved review petition in the division bench with the request it to make some corrections/typographical errors in the judgement delivered on 26th September, 2018 in the matter of 100 percent Dearness Allowance to pre-November,2002 retirees. As advised earlier the judgement was in favour of the retirees.
2. Now we are pleased to inform you that the corrections sought by the petitioner(us) have been accepted by the bench and passed the necessary order in this regard on 05.12.2018. With these modifications, the judgement on the subject has become free from any ambiguity and strengthen hands of the retirees in its implementation. Copy of the order passed by the court on 05.12.2018 is enclosed for your ready reference.
3. Your attention is drawn on the following modifications
(a) In Para 3 of the judgement, the word Pension Regulations has been replaced with the clause 6th of the Bipartite Settlement dated 29th October, 2018. It means that clause 6 where in it is written that DA formula for pensioners will be at par with RBI formula should be implemented and DA should be paid accordingly to those retired before November 2002 irrespective of whatever written in Pension Regulations. This is very important and welcome modification.
(b) In paragraph No18, new sentence has been added giving
specific direction to the bank to comply with Regulation No
37 and pay DA to pre-2002 retirees at par with those enjoyed by the post 2002 retirees.
4. We hope now IBA/ Bank managements will take the judgement in proper sprit and implement it without any further
delay. We are taking up the matter with IBA/ Government for
Its immediate implementation.
5. We hope Unions will also take up the issue with IBA/
Government for implementation of the judgement. We seek their support in this regard. This has been the demand of UFBU and its constituents. We hope Unions will show unity and solidarity with the retirees by writing suitable letter to IBA/ Govt. in this regard.
6. We shall also raise the issue in the forthcoming meeting with RLC.
7. We congratulate Comrade Debesh Bhattacharya, General
Secretary, United Bank of India Retirees’ Welfare Association and  his team for this successful fight.
With Warm Greetings
Yours Sincerely,
( S.C.JAIN )
GENERAL SECRETARY.
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Click here to view original judgement by Kolkata HC
Click here to view modified order by Kolkata HC

 

Serious concern of Bank Pensioners and Retirees over the provisions of FRDI Bill 2018

We reproduce below the circular issued by AIBPARC on the above subject
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Ref. No. AIBPARC/FRDI/2018                           11.12.2018.
 To,
The Director, (CB-I & JCS),
Lok Sabha Secretariat,
Room No. 339, 3rd Floor,
Parliament House Annexe,
New Delhi-110001.Dear Sir,
Sub : Serious concern of Bank Pensioners and Retirees over the provisions of FRDI Bill 2018
Our attention has been drawn to the notification forming Joint Parliamentary Committee with Sri Bhupender Yadav, Member of the Parliament, as its head. In the said notification, views and suggestions of various stake holders and public at large have been sought for. In pursuance of the same, we are submitting our views in duplicate (as desired) to you for handing over the same to the Head of the Committee. Our
views on the subject are noted hereunder :
1) In banks, the pension which is fixed on the date of retirement remains frozen and the same is not revised with signing of Bipartite settlement which makes revision of wages/salary of the serving people. The pensioners and retirees are raising the voice in different forum to impress upon the need to update pension periodically. It may appear to you that how the subject is relevant to the provisions of FRDI Bill, 2018 and we request you to read the undernoted paragraph which will make it relevant to the context.
2) As pension is not upwardly revised, the retirees have to depend on the interest income of deposits kept by them mostly in those banks from where they have retired. This deposited amount is mostly his savings and superannuation benefits which he managed to save through a lot of difficulty to take care of his needs in the advanced years of life. The most pathetic part of the whole story is that the rate of interest on bank’s term deposits is dwindling day by day and the real income of a pensioner is reduced by every  ownward
revision of interest. When a pensioner expires, he leaves an insignificant amount for his spouse or his successors.
3) In the context of the above 2 positions, the FRDI Bill, 2018 came as a rude shock. The pensioners and retirees are suffering from terrific anxiety and anguish to think that his hard earned money which is kept as a bank deposit may evaporate by certain decisions of the government and he might stand penniless on the street. It is an established fact that the serving employees and the retired personnel are in no way responsible for the huge burden of NPA and resultant provision to take care of such NPAs. If a look is given to the topmost defaulters of loan of any bank, it would be evident who exactly are these persons and by whom they are actually favoured. The burden of so called bad-health of the bank can never be shifted on the shoulder of present and former employees. The real cause of worry lies in the “Bail-in” Clause of the failing financial institutions. It provides the use of depositors fund to shore up the financial condition of a failing institution. This clause also includes a provision of cancelling the liability owed by a specified service provider and also modifying or changing the form of liability owed by a specific service provider. Bank deposits are a form of liability on which bank has to pay interest. This change of form of liability might adversely affect the safety and security of funds kept by a pensioner or a retiree in the form of bank deposit. The bail in clause matters us because it formalizes the risk associated with depositing of money with the banks. It will completely shake the confidence of the common man on the entire banking and very adversely affect the interest of pensioners and retirees.
For us, it is a question of life and death.
We call upon all the members of JPC to please see that the proposed bill is not passed in the Parliament.
JPC will please consider the terrific latent danger which lies in the provision of bail-in. We thoroughly oppose the bill in general and the bail-in clause in particular. Our demand is that the balance lying in the S/B Account should continue to be payable on demand and the amount lying in term deposit should be made payable as per terms and conditions of the account and under no circumstances, a portion of it or full of it should be converted into share, debenture etc.
This is for kind consideration.
Yours faithfully,
( SUPRITA SARKAR )
ACTING GENERAL SECRETARY
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Filing of Case with Deputy Chief Labour Commissioner(Central), Mumbai 0n 05.12.2018 as industrial dispute in 100 percent DA matter, by AIBRF

Copy of cir Ref: 2018/601 dated:08.12.2018 issued by All India Bank Retirees Federation (AIBRF) to its  Office Bearers/ Central Committee Members/ State Body Chiefs on 100% DA issue, is reproduced here under for information:
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Dear Comrade,
                                                      Re: Filing of Case with Deputy Chief Labour Commissioner(Central), Mumbai 0n 05.12.2018   as industrial dispute in 100  percent DA matter                                                   We wish to advise you that as per the decision taken in Nagpur Central Committee Meeting, We have since filed the case as industrial dispute in the matter of 100 percent Dearness Allowance with the Deputy Labour Commissioner (Central) Mumbai on 05.12.2018. The notices have been served to the Indian Bank Association and unions who are parties to the settlement.

 2. As per the advice of the advocate handling the matter, broadly the following points have been raised in our petition

(a)Dearness Allowance formula was improved for employees with effect from 01.05.2005 under the wage settlement(8th settlement) signed, However, there is no specific provision in the settlement for improved DA allowance payable to pensioners. While issuing instructions to member banks, IBA took decision at the administrative level to exclude those retired prior to November 2002 from the benefit of improved formula. Whether such administrative instruction of IBA in the absence of specific provision in the settlement is legally tenable.

 (b) Depriving the pensioners who retired prior to November 2002 from the improved formula of DA that too without any specific provision in the settlement is discriminative and violative to the provisions of the constitution. We hope CLC will convene the meeting for conciliation proceedings in the matter shortly. We shall keep you informed the developments in the matter from time to time.

United Bank case In 100 percent Dearness Allowance decided by Division Bench of Kolkata High Court.
 We may also inform you that in coordination with AIBRF , United Bank of India Retired employees Welfare Association has since filed caveat in the Supreme Court with the prayer to hear retiree stand before admitting any SLP filed by the bank management. Further as per the legal advice received , the United Bank of India Retired employees; welfare association had filed review petition in the Division bench of Kolkata High Court for making some correction in the judgement which inadvertently crept in with the prayer to make the required modification to remove any ambiguity in the judgement. We understand the review petition was argued two days back and closed and the decision is expected shortly.
We are keeping close watch in the matter and shall take further appropriate action required to protect interest of the retirees in coordination with the affiliate and as per the legal advice received.
Yours Sincerely,
 ( S.C.JAIN )
GENERAL SECRETARY

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Source:AIBRF website 

 

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Long pending issues of Bank Pensioners and Retirees.

We reproduce below the full text of the letter of CBPRO dated 30.11.2018 addressed to CEO of IBA

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To
The Chief Executive Officer,
Indian Banks’ Association,
World Trade Centre 6th Floor,
Centre 1 Building,
World Trade Centre Complex,
Cuff Parade, Mumbai 400005
Respected Sir,
Sub: Long Pending Issues of Bank Pensioners and Retirees
We understand that the Managing Committee of IBA in its meeting held on 29.7.2018 to consider the issues pertaining to Retirees resolved that in the absence of specific mandate from Member Banks to IBA to discuss the issues on their behalf betreated as withdrawn. The absence of mandate from the Member Banks to discuss these issues was cited as reason for nottaking any further action on those issues.
In this connection we would like to invite your kind attention to Charter of Demands submitted to IBA by the organisations of  serving officers and employees in October 2012 contain a separate chapter on Superannuation Benefits including Pension. You will appreciate that IBA had then forwarded a copy of the said Charter of Demands to all the Member Banks and sought requisite mandate to discuss the Charter of Demands. Accordingly all the Member Banks had given mandate to IBA authorising it to discuss Charter of Demands including Superannuation Benefits. Under such circumstances the reason given by IBA for not taking any further action is unfounded and factually incorrect. We request you to examine the issue in right perspective.It is also pertinent to mention that the Pension issues of Bank Employees and Officers are governed by Bank Employees Pension Regulations 1995. A perusal of Pension Regulations would reveal that there is no provision to secure mandate from Bank Managements as a pre condition to consider any improvement. Even on this count, the ground for not taking any further action by IBA is violative of Pension Regulations.
The very fact that IBA had signed a Record Note at the time of signing Xth Bipartite/Joint Note on 25.05.2019 on all the pending issues of Retirees including improvement in Family Pension, 100% DA neutralisation to pre 2002 Retirees and updation of Pension etc stands a mute testimony to the legitimate demands of Retirees in this regard. The said record note need to be
respected by IBA by settling the issues contained therein at the earliest. 

 The very fact that IBA has collected from Member Banks the data relating to (i) 100% DA for pre 2002 Retirees (ii) Improvement in Family Pension (iii) Pension Updation and (iv) One more Pension option to leftover Retirees/Resignees vindicates the desirability of a positive consideration of our demands.
It is also reiterated that at the time of signing of Record Note IBA has given a solemn assurance about resolving the issues amicably. It is disheartening that despite such a commitment, IBA has been changing its stance to avoid a meaningful discussion to resolve the issues giving lame excuses irrelevantly. We have been repeatedly requesting you to hold negotiations with the Coordination of Bank Pensioners’ and Retirees Organisations (CBPRO) which comprehensively represent the Bank
Pensioners and Retirees. We once again request you to honour the commitment by initiating meaningful discussion for resolving the issues relating to Bank Pensioners and Retirees.
As regards the contention of IBA that Pension Scheme of Banks is a Funded Scheme and additional liability if any towards pension is to be allocated from the profits of the Banks is misleading. We wish to invite to your kind attention to Pension Regulation 5(3) which provides that the Banks shall be a contributor to the fund and shall ensure that the sufficient sums are placed in it to enable the trustees to make due payments to beneficiaries under these Regulations. Regulation 11 further provides that Bank shall cause an investigation to be made by an actuary into the financial condition of the fund every financial year on the 31st day of March and make such additional contributions to the fund as may be required to secure payment of the benefits under these Regulations. It is thus clear that the Pension Regulations do not provide for allocation ofadditional funds from the profits of the Banks. Hence inadequacy or otherwise of profit cannot be cited as a ground for declining the legitimate demands of Bank Pensioners and Retirees. Various Judicial pronouncements including by Hon’ble
Supreme Court also substantiate our contentions. It is reiterated that the Pension is considered as deferred wages and hence the Bank Pension Scheme being a DEFINED BENEFIT PENSION SCHEME cannot by any stretch of imagination be sought to be distorted by the Managing Committee of IBA.
It is also clarified that the contributions to the Pension Funds are covered under Pension Regulations which are subordinate legislations and hence it is mandatory on the part of Banks to adequately provide for Pension Fund. It is a paradox that the Regulatory Provisions dictated by RBI for Non Performing Assets (NPA) are made by the Banks without any application of mind irrespective of profitability of the Banks. It is submitted that Regulatory Provisions of RBI cannot be treated superior to Legislative Provisions. You are therefore requested to consider the issues relating to Bank Pensioners and Retirees holistically in this perspective.
We once again reiterated that the Pension Regulation 35(1) provides that Basic Pension and additional Pension, wherever  applicable shall be updated. You will appreciate that this provision providing for Pension updation was implemented in true spirit at the time of introduction of Pension Scheme in the Banks by effecting updation in respect of those employees who superannuated between 1.1.1986 and 31.10.1987. The present demand is relating to updation of Basic Pension and hence is to restore the practice of updation.
In view of the foregoing facts we request you to hold talks with us on all the pending issues concerning the Bank Pensioners and Retirees and resolve the same immediately.
Thanking you,
A.Ramesh Babu       K.V.Acharya
            Joint Conveners

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Extension for joining - IBA mediclaim scheme for the retirees for the year 2018-17

One more opportunity is being offered to the following categories of the retirees to join the IBA Mediclaim Retirees scheme.

1. Bank employees who have retired in 2019-16. (Between 1st Oct 2019-30th Sep 2018) and were covered under expiring employee's policy.
2. Retiree's who were covered under expiring retirees policy, but could not renew by remitting the premium in time.

The insurance premium and period will be with the following modalities as below:
1. Retirees would be covered from 16th Dec 2018 to 31st Oct 2018. Retiree has to pay the FULL premium as mentioned below

Premium for joining the scheme is as under

Option I: Normal Renewal on As Is Basis (Without Domiciliary cover)

For Retired Officers (Sum Insured of Rs. 4,00,000)       : Rs. 13,935 Plus Service Tax @15% = Rs. 16,025/-
For Retired Award Staff (Sum Insured of Rs. 3,00,000) :  Rs. 10,452 Plus Service Tax @15% = Rs. 12,020/-

Option II: With Domiciliary Expenses Benefits Option ( 59 diseases as per Employees Policy).

For Retired Officers - Domiciliary Cover of Rs. 40,000 with overall Sum Insured of Rs. 4,00,000.
For Retired Award staff - Domiciliary Cover of Rs. 30,000 with overall Sum Insured of Rs. 3,00,000.
For Retired Officers         : Rs. 17,400 Plus Service Tax @15% = Rs. 20,010/-
For Retired Award Staff   :  Rs. 13,000 Plus Service Tax @15% = Rs. 14,950/-

Dena Bank and Bank of India has already issued circular in this regard.

Awaiting Supreme Court Judgement on 100 per cent DA

Circular by AIBRF on the above subject is reproduced below
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 Ref:2018/127                                              Date:02.12.2018

    The Office Bearers/ Central Committee Members/ State Body Chiefs

    A.I.B.R.F.

    Dear Comrades,

                     Re: AIBRF INTERVENTION APPLICATION IN SUPREME

                       COURT IN THE MATTER OF 100 DEARNESS ALLOWANCE

                    Re: Awaiting Supreme Court judgement.

We request you to refer our last  circular no 2018/93 dated 31.08.2018 issued  on the above subject.

3.We may inform the membership that Supreme Court judgement in the above intervention application of AIBRF and SLP of United Bank is still awaited. More than 3 months have passed since the matter was last argued on 01-08-2018, 02-08-2018 and 23-08-2018 and submission of written by AIBRF on 31.08.2018. In view of the delay of 3 months in delivering the judgement and time being taken is more than expected, members’ anxiety is on increase on passing of each day. We appreciate the anxiety and eagerness of the membership in this important matter.

4. We wish to inform that we are in regular touch with our advocates and are monitoring the matter closely. We have been advised by our advocates  that some time because of work pressure and the complicated issues involved in the case, time taken in delivering the judgement is  longer than expected. In our this case, as you know, many unusual developments liking recalling earlier dismissed SLPs, two contradictory judgments of high courts have taken place. Therefore time being taken for delivering the judgement is more than normal.

5. We request the membership to keep pertinence and pray for favourable decision. We shall advise the date of the judgement as soon announced by Supreme Court Registry and informed to our advocates.       

                                        

                        With Warm Regards,      

                                                                         Yours Sincerely,

                                                     

                                                                   

                                                                       ( S.C.JAIN)

                                                                GENERAL SECRETARY

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Dharna/ Demonstrations at Large Centres throughout the Country CBPRO circular

Circular by CBPRO is reproduced below

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                                                                                                       Dated: 29.11.2018

The General Secretary,

All Constituents of CBPRO & AIBRF

Dear Comrade,

Dharna at Large Centres throughout the Country

We refer to our circular no. 007/2018dated 26.10.2018 advising our constituents about the proceedings of a joint meeting of CBPRO and AIBRF held on 24.10.2018. It was decided in the said meeting to hold massive Dharna and Demonstrations in important cities across the country culminating in big Dharna/Demonstrations in Delhi & Mumbai.  Accordingly it has been decided to hold Dharna/Demonstrations at important centres like (1) Kolkata, (2) Chennai, (3) Bengaluru, (4) Hyderabad, (5) Ahmedabad, (6) Cochin, (7) Thiruvananthapuram, (8) Delhi, (9) Mumbai and other State Capitals.

The date for Dharna / Demonstrations at individual centres maybe mutually decided by the leaders of the constituents of CBPRO & AIBRF at respective centres between 15.12.2018 and 15.01.2019. A list of centre wise leaders/organisers of the constituents of CBPRO & AIBRF will be furnished separately to facilitate mutual contacts to successfully hold Dharna/Demonstrations.

  It is also proposed to submit a Joint Memorandum to the Hon’ble Prime Minister and to the head of local chapters of IBA and the MD & CEO of the Bank having head quarters at respective centres.  A copy of the joint memorandum on Pending Issues of Bank Pensioners & Retirees is enclosed for use of the leaders at the designated centres of Dharna & Demonstrations.

We request all our Comrades to participate in Dharna / Demonstrations in large numbers and make it a grand success. The senior leaders at respective centres are specially requested to impart guidance and use their good offices for not only total involvement of the Pensioners & Retirees but also solicit help from all those who are in the position of power and can influence early resolution of our pending issues.

With Comradely regards and best wishes for success of Dharna/Demonstrations.

Yours faithfully,

               

(A.Ramesh Babu)         (K.V. Acharya)                     (S.C. Jain)

             Joint Conveners, CBPRO                General Secretary, AIBRF

Encl: Joint Memorandum

JOINT MEMORANDUM ON PENDING ISSUES OF BANK PENSIONERS AND RETIREES

We wish to introduce ourselves as a Joint Coordination of Coordination of Bank Pensioners’ and Retirees Organisations (CBPRO, having 5 constituents viz Federation of SBI Pensioners’ Organisations, AIBPARC, RBONC, AIRBEA and FORBE) and AIBRF representing 100% of the Bank Pensioners & Retirees numbering about five lacs. We have been taking up the grievances of Bank Pensioners & Retirees with Indian Banks’ Association and Department of Financial Services, Ministry of Finance, Govt of India.  We are committed to the cause of Bank Pensioners & Retirees so as to bring about happiness and cheers on their faces in the evening of their life.  The following issues remain unresolved despite our several requests, reminders and personal meetings with the competent authorities.  We therefore request you to help us in getting these matters resolved early.

1. Uniform 30% Family Pension :

a.    Family Pension in Banks is payable @ 30%, 20% and 15% of last drawn pay where lower percentage being assigned to higher pay with a specified ceiling on the amount of Basic Family Pension.

b.    The above mythology effectively resulted in the Family Pension working out to nearly 7 to 10% of last drawn pay restricting Basic Family Pension to a meagre sum of Rs. 4,000/- to Rs. 14000/- after attainment of notional age of 65 years by the deceased employee or 7 years from the date of death whichever is earlier.

c.    Government and RBI Pensioners are paid Family Pension uniformly at 30% of last drawn pay without any ceiling.

d.    Un-affordability of proposed improvement in Family Pension is being arbitrarily quoted to deny the benefit despite there being adequate provision made during the service tenure of the employee by the Bank for payment of full Pension to the employee. Thus Family Pension being lesser than the Pension of the Employee, it would involve a negative cost to the Pension Fund.  Hence the contention of IBA/Government about cost consideration defies logical, economic sense, rationality and above all humane consideration.

e.    Family Pension being a highly emotive issue needs to be resolved urgently as assured at the time of last Wage Settlement vide second issue listed in Record Note dated 25^th May, 2019.

2. Updation of Pension:

a.    Pension Regulation 35(1) provided for Updation of Basic Pension and Additional Pension in respect of those Employees/Officers who retired between 01.01.1986 and 31.10.1987 and at the time of introduction of Pension Scheme in Banks during 1995-96 it was so given to them as they alone were eligible for Updation at that stage.

b.    Pension Regulation 35(1) was amended vide Gazette Notification No:9 dated 01.03.2003 providing for Updation of Basic Pension and Additional Pension wherever applicable thus making it an open-ended scheme to provide the benefit of Pension Updation to all Retirees who become eligible on periodical revision of Pay through Industry level Wage Settlements.

c.    IBA/Government has been denying the benefit of Pension Updation despite clear provision in Pension Regulation 35(1) quoting cost consideration.

d.    Pension is a Deferred Wage and a property under Articles 19(1) (f) and 31(1) of Constitution of India and hence a statutory obligation of the Banks which are State within the meaning of Article 12 of Constituents of India.

e.    Pension including updated Pension and Family Pension become payable out of Pension Fund.  The present Pension Fund of the Public Sector Banks including State Bank of India is quite robust and healthy at more than Rs. 300,000 crores  with potential to afford payment of 3 to 4 times of present disbursements on account of Pension and Family Pension.

f.        In Banks Pension is paid out of Pension Fund which is created by the surrender of the mandated management contribution of Provident fund by the Bank Employees and Officers during their service.  Pension is not paid out of profits but of that fund so created.  Hence payments so to be made as per Pension Regulations will not affect the Balance Sheet of the Banks.  Provision, if any, for Pension Fund is a charge on Profit & Loss A/c and hence is not payable out of net profit of the Banks.  Net profit has to be arrived at only after making all provisions including for payment of Salary and Pension which are statutory in nature.  Statutory payments cannot otherwise also be denied for cost considerations.

g.    Banks have introduced New Pension Scheme for those employees who have been recruited after April 2020 and there is separate Fund created for the same.  This limits the number of Pensioners under Old Pension Scheme and even this number is subject to reduction with every passing year.  Ultimately when all Pensioners die their Pension Fund which is held in Trust shall remain hugely underutilised.  This further strengthens our contention for improvement in pension by periodical updation so that the Pension Fund of the Retired Employees is put to proper and intended use.

3. 100% DA Neutralisation:

a.    Government of India introduced 100% DA Neutralisation in lieu of tapering DA vide 5^thpay Commission (1996).  Subsequently 100% DA neutralisation was extended to all Pensioners of the Banks except those who retired before 01.11.2002.  It was on account of wrong interpretation of the provisions of Bipartite Settlement/Joint Note signed during 2005 between IBA and Unions/Associations.

b.    Aggrieved Employees approached the Hon’ble High Courts and were awarded relief but Management of United Bank of India filed SLP in Hon’ble Supreme Court.  During the final hearing and finding merits in the arguments of the Employees, the Hon’ble Judges of Supreme Court observed that they had already passed an adverse order in a similar case and hence reversal of that order could be done only by a larger Bench.  Alternatively the Employees in whose case the adverse order was passed should file a review petition which could be tagged with the case of United Bank after condoning the delay.  Accordingly the review petitions were filed, delay condoned and petitions tagged with the case of United Bank of India.  The Hon’ble Supreme Court yet again passed an adverse order without any justification merely by stating that since earlier appeals of the employees were dismissed, the appeal of United Bank Management is allowed.

The Judgement of the Hon’ble Supreme Court came as a bolt from the blue to the employees.

c.    The Hon’ble Supreme Court based its Judgement on a misplaced ground of arithmetic consideration by stating that the improvement in DA for Pre-November, 2002 Retirees would result in exceeding the Wage Revision load factor of Rs1288 crores and thus may warrant a corresponding downward revision of Basic Pay structure of the employees and Officers which were covered by Wage Revision settlement made effective from 01.11.2002. This was completely wrong consideration as DA did not form part of the components of load factor. The arithmetical error committed by the Hon’ble Supreme Court needs correction.

d.    100% DA Neutralisation to similarlily placed Pensioners is made available to the Pensioners of RBI and LIC of India.  Hence denial to a small section of Bank Pensioners is beyond reasonable comprehension.

e.    Compelling Senior Citizens to knock the doors of judiciary to realise their legitimate claims and aspirations is against the spirit of National Litigation Policy of the Government.

4. Pension for those who Resigned after completing 20 years of Service:

a.    IBA had been denying Pension option to those who had resigned from the service of the Bank after completing minimum qualifying Pensionable service in the Bank. Aggrieved resignees sought judicial remedy and ultimately in case of the Employees of Vijaya Bank the Hon’ble Supreme Court ordered extension of the benefit of Pension option to the petitioners who were allowed to opt for Pension.

b.    IBA has refused to extend the benefit of the order of the Hon’ble Supreme Court to similarly placed persons in Vijaya Bank and also in other Banks. Expecting every individual to go to Supreme Court and struggle for several years for final judgement is unfair and also against the spirit of Litigation Policy of the Government.

c.    IBA was kind enough to extend the similar benefit to all the compulsorily retired people after few of the compulsorily retired people got favourable judgement from the Hon’ble Supreme Court.  Hence denial of Pension option to resignees is unfair and illogical.

5. National Litigation Policy:

The policy is a good initiative of Government of India.  But various instrumentalities of the Government including Public Sector Banks which are State within the meaning of Article 12 of the Constitution of India have been driving their Employees/Pensioners to seek legal remedy on settled issues, thereby defying the spirit of Nation Litigation Policy.  Such a situation causes a huge drain on the resources (judicial) of the Government while forcing avoidable financial burden on the Employees/Pensioners.  It is requested to ensure creation of a mechanism for resolving the anomalies created by wrong interpretation of the settlements or the provisions of settlements or wrong implementation and interpretation of various Regulations despite their being subordinate legislation – statutory in nature.

6. Demand for Negotiating rights with IBA:

          

 It is requested to ensure creation of a mechanism for resolving the anomalies created by wrong interpretation of the settlements or the provisions of settlements or wrong implementation and interpretation of various Regulations despite their being subordinate legislation – statutory in nature. It will also help the Retirees to strive for further improvements wherever necessary.

To obviate and resolve such anomalous situations, we demand the following:

i)        The Organisations of Bank Pensioners and Retirees should be provided a structured forum to discuss their issues with Indian Banks’ Association.

ii)       Anomaly Resolution Committee should be constituted to look into the grievances of Bank Pensioners and Retirees.

We also demand that IBA calls us for formal discussion / negotiations for resolution of Pending issues of Bank Pensioners & Retirees before sighing of 11^th BPS with the constituents of UFBU.

7:   Reckoning of Special Allowance for Pension & Gratuity:

Last wage settlement dated 25^th May, 2019 provided for introduction of a new special allowance carrying DA as applicable on Basic Pay. However the settlement also provided for a negative clause that special allowance shall not be considered for calculation of superannuation benefit viz Pension & Gratuity. This negative clause is illegal and cannot be used to the detriment of Retirees. Not reckoning special allowance for the purpose of calculating superannuation benefit is violative of Pension regulation 2 (s)(a)(ii) which provides that all allowances counted for the purpose of making contribution to the provident fund and for the payment of dearness allowance shall be included as a component of pay. It is pertinent to mention hear that provident fund not being contributory does not constitute a benefit to an employee. It leads the payment of dearness allowance as the only benefit available to employees on special allowance as in case of Basic Pay. Under such circumstances a negative clause in the 10^thBipartite Settlement to the effect that special allowance will attract DA but shall not reckon for calculation of superannuation benefits is illegal and contrary to the provision of Pension Regulation 2(s)(a)(ii). The only purpose of this negative clause was to take away the right conferred under pension regulation 2(s)(a)(ii). It was held by the Hon’ble Supreme Court in case of Pension Civil No:5525 of 2012 filed by Bank of Baroda that by signing a settlement or a joint note there is  no estoppel  as against the enforcement of statutory provisions(Pension Regulations) which could not have been tinkered with in an  arbitrary manner. Extending the same rule of law, the negative clause in the 10^th Bipartite settlement/Joint Note about not reckoning special allowance for calculating superannuation benefit is violative of existing pension regulations and hence arbitrary and illegal.

     

8.    IBA’s Medical Insurance Scheme:

In pursuance of the directives issued by Dept of Financial Services, Govt of India on 24.02.2012, IBA was expected to evolve a Medical Insurance Scheme both for Serving and Retired employees. However IBA evolved a Medical Insurance Scheme for Serving employees providing for its cost to be borne by the Banks where as in case of Retired employees the premium was passed on to the Retirees though there was no such directive in the government communication. The medical insurance premium was quite reasonable and also subsidized by many Banks initially but with every successive renewal the premium was increased and subsidy from Banks disappeared. The premium amount which was Rs7500/- in the first year has gone beyond Rs90,000/- for the current year.  The Retirees and Pensioners are rendered helpless to suffer injustice and cannot also go back to their own individual medical insurance policy discontinued after introduction of IBA scheme as they have crossed the minimum prescribed age for obtaining fresh medical insurance cover.

There is urgent need for Banks to bear the entire medical insurance scheme premium charged on IBAs Medical Insurance Scheme and also wave such premium from levy of GST so as to reduce the burden on Banks.

9.    Effective Date of Gratuity Enhancement:

The recommendations of 7^th Central Pay Commission to enhance Gratuity from Rs10 lacs to Rs20 lacs for Central Government Employees was accepted and implemented wef:01.01.2018 whereas the payment of gratuity act was amended at a later date and enhanced amount of Rs20 lacs was made effective from 29.03.2018 for the employees other than those working in Central Government. It astonishes that the Ministry of Labour & Employment has notified 29.03.2018 as the date of effect of enhanced gratuity despite a clear legal opinion from Ministry of Law & Justice, Dept of Legal Affairs that enhancement of gratuity and its admissibility/eligibility from particular date are issues relatable to social beneficial legislation and are to be construed liberally. It was further opined that according parity for quantum as well as effective date for employees governed by Payment of Gratuity Act 1972 vis a vis Central Government Employees has rationale and reasonable nexus and hence there appears to be no legal objection if said parity is allowed by Ministry of Labour & Employment. In this background the decision of the government to make the enhancement effective from 29.03.2018 thus hurting the interest of Senior Citizens is beyond comprehension.

There are other pending issues agitating the minds of Bank Pensioners and Retirees and the same are being actively taken up with Indian Banks’ Association for early resolution.  Such issues include grant of stagnation increment to those who retired between 01.11.2012 to 30.04.2019 in terms of 10^thBipartite settlement/Joint Note dated 25.05.2019 as has been allowed to the employees and officers of State Bank of India vide circular dated 18.07.2018 issued by CGM(HR) of State Bank of India, Corporate Office, Mumbai.

We request you to extend necessary help for resolution of these issues by Indian Banks Association/ Dept of Financial Services, Ministry of Finance, Govt of India at the earliest.

                  

(A.Ramesh Babu)       (K.V. Acharya)                     (S.C. Jain)

             Joint Conveners, CBPRO                General Secretary, AIBRF

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