DISCUSSION ON REVISION OF PENSION

[mohan p]

Dear Friends,

Yes.It is true that much has been talked here about on Revision of Pension.

Reality is that, as retirees, we do not have any role in negotiations with IBA .Let serving employees do that job for early resolution of our issues. 

 In general it is not a new subject at least for Govt emoyees.In RBI too revision of pension has been  allowed in 2019.

01.In nut shell it is nothing but revising one’s Basic Pension, in tune with revised Basic Pay under latest BPS/JN in same scale with same service .In other words, if an employee continued in service,what would have been his/her Basic Pay and 50% of the same should have been his/her Basic Pension right now.Though few still harp on R.35(1) which has been rejected by different High Courts in our country.

IF A PENSIONER CONTINUED IN SERVICE WHAT WOULD HAVE HIS PENSION NOW.
As on January.2023		Vth BPS	VIth BPS	VIIth BPS	VIIIth BPS	IXth BPS	Xth BPS	XIth BPS
Basic Pay		4390	8740	13560	19920	28100	45950	69810
Basic Pension		2195	4370	6780	9960	14050	22975	34905
Current DA(Aug.22)		26295	24250	23167	27645	29611	23067	12853
Gross.Pension		28490	28620	29947	37605	43661	46042	47758

 

-From the above illustration it may be observed that a person retired under 7^th BPS/JN period may naturally have benefit of Rs.17811.if he retire today.( or if revised the pension in tune with wage revision ) 

- Where as  to a Xth BPS retiree the benefit may be less @ ₹10153.

Here again, IBA may bring any formula with lesser benefit,since no regulation define on payment of revision of pension as and when wage revision takes place at industry level in banks.

As we all know,  bank pensioners are currently  drawing 50% of last drawn average basic pay, fixed on the date of his/her retirement,with applicable DA based on period of retirement without any change,ie: from 1995 to 2023.

02.Even then, the  payment of Dearness Relief is not at  the uniform rate to all bank pensioners.Reason being the merger of CPI in each BPS/JN at different rate.From 600 CPI points under 5^th BPS to 6352 points in 11th BPS.

Here again employees retired under 5^th,6^th &7^th BPS/JN period are drawing DR under Tapered formula, without hundred per cent neutralisation as compared to retirees under 8^th BPS to 11th BPS.

As on January.2023		Vth BPS	VIth BPS	VIIth BPS
Basic Pension		2195	4370	6780
Current DA(Aug.22)		26295	24250	23167
On Extn of 100%DA		30201	27944	27548
Diff/Shortfall		3906	3694	4381

 

03.Now it is reported by UFBU that IBA has put forward a proposal for Revision of Pension of retirees under 5^th,6^th and 7^th BPS/JN period,in phased manner starting from above category first.Let  IBA do it,with a time bound schedule on revision of pension of other segments under 8th to 11th BPS/JN.

First of all the existing DA for them,  may come in uniform with higher amount  with 100% DR as in the case of others, on revision of pension automatically.

Since IBA has not spelt out clearly so far, on a formula on which they propose to carry out Revision of Pension to these groups we cannot predict on details of implementation.

04.When we talk about RBI formula on Revision of Pension, we should bear it mind that, for RBI pensioners, the above issue of payment of 100% DR was resolved years back.In our case same is yet to be resolved.Payment of 100% DR to 5^th to 7^th BPS/JN pensioners is not revision of pension.Further formula different from RBI is inevitable for revision of pension even for that group,leave other segments.In RBI too it is a one time process up to 2012.

05.Transperancy is missing in the case of activities of IBA,where as MOF/FM is crystal clear on our issues, in their replies given in parliament.Once a proposal reaches at MOF, from.IBA on revision of pension same may be considered.Same has not happened so far.

06.Under legal front we were looking forward to a case on revision of pension at Apex Court filed by Late M.C.Singla, which is yet to come up for hearing.Mean time few have came up by impleading / transferring cases of similar nature from other HCs which will certainly delay the process .We do not know why such actions are forthcoming from pensioners itself to delay the matter ,though we cannot expect much in this case.

Until IBA openly spell out on details of revision of pension in phased manner to 5^th to 7^th BPS pensioners first  /or others later, these discussion may be continued with ones own assmptions and presumptions!

Let IBA-UFBU  commence the process early !

[Paul Wilson]

See your post mentions the inadequacy of Reg 35(1). Of course in it's original format of 1995 it had inadequacy. It was revised in 2003 to read " pension and addnl pension shall be updated wherever applicable" The updation provisions in PR 1995 and it's amendments are far better than RBI PR provisions in the matter. RBI did it up to 2019 with just a circular to cover the period from 1986 to 2002 and give all the past retirees the benefit while updation was done up to 2012 applying the multiple for revision. 

So it can be done here also. Why are we still hanging around the adequacy of Reg.35(1) after the amendment in 2003?

Courts are also briefed about Reg 35(1) when the amendment is not seen discussed at all.

Paul

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[Parvatam Veera Bhadra Swamy]

Thank you so much PM sir for your email giving clear picture of pension updation process and likely to be resolved in future too. 

As you have rightly pointed out that much cannot be expected from  singla's case as some more cases are being added at the eleventh hour of judgment which  will definitely delay the process of pension updation. 

Now ufbu is taking up the issue updation and 5 day banking  as residual issues which are to be resolved before starting of 12 th bipartite settlement which is very good sign of beginning of updation of pension atleast for senior most retirees in the banking industry and we all should welcome this development with a magnanimous heart.

Pvbswamy 

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[JSOMA SHEKARA]

As per my knowledge apart  from Pending case SLP 5561/2016 in SC, only  Sri.C.N.Venugopalan and others are fighting court cases, in individual capacity taking different issues. This is not new development as Mr.Venugopalan has been doing it since last 5-6 years. UFBU/IBA have not taken him seriously. Two retiree organizations AIBRF and AIBPARC.are really creating trouble often. These two organizations will not fight any case on their own or give financial assistance to any individuals fighting court cases. But ready to spoil cases filed by others by joining as impleaders at the last moment.

Apart from this I do not think any other pensioners are creating any trouble for UFBU. On 04.01.21 itself Both AIBEA and IBA signed minutes agreeing for updation for Pre 2002 retirees first. Now 2 years have passed. No action has been taken except repeating the same dialogue that pre 2002 retirees should get updation first.

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[mohan p]

What I have referred is a fact.

Please go through the verdict dated,26th March 2021,of Karnataka High Court on the subject dismissing the  WP No.48905/2018 attached herebelow:

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[Niranjan Cn]

Sirs,  Better to ignore Sri. C N Venugopalan - who is unnecessarily invoking various non-issue to be in news - which are of no help to pensioners.  All his cases - only hype is created - end result is damage to pensioners movement.  It is high time we ignore these individuals.

Niranjan

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[JSOMA SHEKARA]

We need not worry about Reg35,/1, availability of pension fund and huge cost etc. Nothing prevents IBA and UFBU from discussing updation and arriving at a solution except will power. IBA is only saying there is no provision in Pension regulations. IBA has not filed any affidavit that in the absence of provision for updation in Pension regulations pension revision cannot done. IBA just created such an assumption. Issues like Reg35/1, excess pension funds raised by pensioners not by IBA. IBA only filing it's reply in court. The only issue raised by IBA is cost.  UFBU leaders should have demanded authentic  cost details of updation from IBA and find out how it can be achieved. Cost can be spread over 5 years and DFS also can infuse funds as one time measure. As on date there is no clarity regarding updation to Pre 2002 pensioners first.

 

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[Narayanan Venkateshwaran]

I feel it is time to give a little respite to the debate on the subject.

It appears as though we are looking for a black cat which is not there in a dark room

Let us open the windows and door and let in some good sunlight and cool breeze to rejuvenate us.

Let us  look for ways and means to reduce our burden on medi insurance premium which is quite a drain every year

Some of our colleagues have discontinued the cover from affordability angle putting the burden on Almighty

Txs 

Narayanan