Denial of pension on Special Allowance

[Prasad C N]

Dear friends,

Unfortunately, Banks have introduced Special Allowance with effect from 01.11.2012.   Pension is not being paid  on amount of  Special Allowance because of restriction on cost of Superannuation Benefits.  

AIBPARC in its letter to Hon'ble Finance Minister dated 16.03.2026 has stated as under :

QUOTE:

9. The Hon'ble Finance Minister has been very kind and sympathetic to our grievance of not being granted updation of pension despite a pre-existing provision. During our official meetings with her she has emphasised that the Government has no objection to the updation of pension of Bank Pensioners provided that the Banks do not demand money from the Government for this purpose. We have clarified that Pension in Banks is paid out of the selfsustaining Pension Funds created for this purpose in terms of Regulation 5 to 11 of BEPR (1995) and there is a huge corpus of Rs.4.57 lakhs crores having capacity to absorb the additional cost of updation without any burden to the Banks and Government. 

UNQUOTE

When there is a huge Balance in Pension Fund, there is no liability for payment of pension on Special allowance.  I do not understand why those who firmly believe that there is huge funds are not demanding pension on Special Allowance, as there is no liablity at all for payment of pension on Special allowance. 

Banks will not have any problem, because Banks either save 7.5% load in respect of Superannuation Benefits during 10th, 11th and 12th BPS or can pass on this amount to their employees including officers, without any additional cost towards payment of Pension on Special Allowance.

In this connection, we are extracting from the orders of  Hon'ble Supreme Court in Contempt Petition filed in respect of Palani's case, hereunder:

QUOTE:

We are not inclined to continue with the present proceedings, but leave it open to the petitioner Association or the retired employees/officers to approach the concerned authorities or invoke appropriate proceedings in accordance with law in case they have a

grievance with regard to non-implementation or improper implementation of the judgment of this Court dated 13.12.2018.

In case any legal proceedings are initiated, the same will be dealt with expeditiously, as the matter pertains to retired employees/officers.

UNQUOTE

In case we force the Banks to accept that there is surplus in Pension Funds and make them understand that there is no liability, if Pension is paid on Special Allowance, I am confident of getting our Pension Updated, on the lines of Pension Revision in Reserve Bank of India, with the aid of orders of Hon'ble Supreme Court quoted above.  Therefore, onus is on the Organisations and its leaders to prove before Hon'ble Supreme Court in Singla's case and get it recorded in the orders.  If they do that we would not only get our Pension Updated, but also get Pension on Special Allowance.

Thanks, a Million. 

With regards,

Prasad C N

[Satyanarayana Rao]

The supreme court judges have asked the deffendent advocate
whether the banks are paying pension as per pension regulations?
There was no direct answer on the other hand the reply was the banks are paying basic pension and DA.
The judges have stated that if the banks are not paying as per Regulations they have to pay.
Sri Singla ji Case is and pension updation case is argued registration 35/1 which mandates updation and the supreme court judges have understood that there is injustice and the deffendents, the Union government DFS and IBA and UFBU combine have delegately and orbitarly suppressed the rights of Pensioners pension updation and this is against the principles of Natural justice and jurisprudence undert article 14 and 21 hence the court is revisiting the high court verdicts as there is blatent voiletion of constructional rights of Pensioners.
Here the issue of pension funds
has not come so far and it
Is irrelevant.It is the onerous duty of the state to respect the constitutional and fundamental rights of Pensioners.Therefore
the very discussion of pension funds is irrelevant.
As the judges have expressed the the banks have not paid pension as per Regulations 35/1 by updation the deffendent advocates have to update the pension by applying RBI formula which is the demand of Pensioners.
We r not demanding anything extra money, we r pleading for justice under the principles of equity and fair play and equality of law under article 14 and 21 of the constitution.
Let us wait for the final verdict which will clear all doubts raised by the learned participants for and against the regulation 35/1 etc.
Let us not blame anyone.The justice is with us and it shall come with favourable verdict.

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