Pension updation

[K Balasubramanian]

Without ground reality we are thinking that everything is well and updation as per RBI norms is possible .if funds position are very comfortable without pinching the banks pocket then austerity in merging basic since 9 th bipartite to 2 to 3 percent only would not have happened. Similarly bulk increase in special pay not ranking for person would not have been happened . Family pension cost 48 k crores is amortized for 5 years . 100 percent DA sacrifice for 18byears would not have been happened. Banks are expected to provide the deficiencies in every financial year .even though the pension fund is showing huge balance in the years to come as the number of pension opted retirees are going up the investment return may not be sufficient . Banks will start feeling the pinch in another 5 years or so. If the pension updation and merger of DA is going unchecked then no body can estimate the level of burden . Whatever account is debited it is out flow . So they want to tighten the belt slowly from 9 th bipartite onwards 

 This family pension benefit and 100 percent DA benefit is expected to cost the pension fund sizeably . A clerical retiree mat draw more than 50 k as pension officer retirees mat draw pension of 60 k 100 k depending on their level. Plus routine DA increase is there .

So honestly speaking unless and otherwise Banks is providing funds every year the corpus will Fer depleted in the years to come. 

Even actuaries can not estimate the quantum of outflow out of DA increase and longevity etc correctly .

Government is pension is funded by consolidated fund of india and even at the cost of more fiscal deficit they can pay . Time has come even for them to make pension reforms when 8 th pay commission is implemented . For them babus are keeping quiet and reaping the benefits. 

Govt is providing funds to stre6 the capital and to maintain the capital adequacy ratio. Bad debts are totally removed from the balance sheet and held separately and hence it is looking healthy and performing well in the stock market .

We are claiming our pension is self financing scheme .

Every pensioner to calculate actually the amount they surrendered less commutation value received for comparison purpose .the balance may not be sufficient for paying pension through his life .

IBA should appoint three different actuaries and get the ability of the present corpus to take care of by taking all the inputs like addition to the fund DA increase etc and act based on the majority two in three findings .

This is one way to solve the problem . As a stop gap arrangement and want to be liberal atleast with the pre 2002 retirees who are in late seventies and 80 s by suggesting ex gratia type payment which is going to be sizeable amount which will not attract DA . Even unbiased union leaders are aware that RBI pattern is next to the impossible .the salary has gone up steeply by 50 percent in VI th pay commission to govt employees . Quoting that only RBI got steep hike 

LIC also got good hike .

Our leaders could not achieve the same level of increase and they managed to get fair hike by introducing the concept of special pay not ranking for pension .

FM and repeat FM alone is responsible for giving relief to pre 2002 retirees 100 percent DA and widowers 30 percent family pension without ceiling .as an extension they want to update the pension for pre 2002 retirees. But junior retirees and unions not agreed .pension has gone up considerably in 9 th bipartite and created a visible gap between 7 th and 9 th . 

Since updation for all slogan got strengthened they are coming out the concept of exgratia with out DA . Here also the beneficiaries are going to be pre 2002 retirees . DA or NO DA pre 2002 retirees may not bother much as 7 to 10 k they may get for few years till their death their souls will leave the world .that is what FM wants .so allowing the government to go with the exgratia without surrendering the legal right to fight for updation is the sensible option instead of making a hue and cry for RBI pattern .if not allowing updation is an issue then why 10 th bipartite onwards only peanut basic load .if justice to be done correctly means their special allowance should be taken for pension before thinking of updation that too on rbi pattern.

Since it is impossible to maintain the pension fund in future years with good health austerity at all levels including serving future pensioners .

The above is my views written like flow of water from mountain. 

Those who like may think .otherwise leave it .

I am a pre 2002 retiree having a habit analyzing a problem with unbiased attitude .

[Logu Kuppan]

Have you ever think of how RBI pensioners getting the updation and extended from 2022 also out of their pension fund.

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[Chandrasekaran V]

Thanks, being a pre 2002 retiree with unbiased attitude.

Is it true that RBI pattern of updation was signed in MOU and OUT OF 43 points,  42 points were incorporated in the Pension Regulations , MEANING THEREBY,   only the RBI pattern of updation was deliberately missed out ?      

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[Niranjan Cn]

Sir when RBI updation took place ??  Was there any clause RBI before 2019 ??

Niranjan

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[Narayanan Venkateshwaran]

Mr.Niranjan

You get RBI Pension Regulation in the Net,

Original one does not contain clause on Updation

But then they are Unitary entity and pensioners are hence not left discontented. But ours is a group of 12 banks and some of them are delinquent.

Not withstanding such a situation working employees get hike once in 5 years .But Pensioners are left high and dry.

In this context only I  had mooted an idea of Amalgamation Of PENSION FUND to see if it can provide a solution.

 You are kindly aware of such micro level Amalgamation that happened when some bank  merger took place.

Unfortunately  instead of constructive criticism it drew a sort of  ridiculing. and holier than thou type criticism from some quarters.

Regards

C V Narayanan 

[Niranjan Cn]

Sir, I beg to differ.  None of the Pension Funds can have additional funds or shortfall in Funds in their respective Pension Funds.  That being the case - amalgamation or otherwise it does not make any difference.  By amalgamation - one more head ache will be added as it carries no merit.

Niranjan

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[Narayanan Venkateshwaran]

Sirs

"Need not have" will be correct expression and not" cannot have". Actuarial exercise of consolidated fund will be an easier task than that of multiple Banks.

Presently, incapacity of a couple of banks in managing the fund makes it a drag in decision making  and resultantly affecting all Bank Pensioners.

Alternatively the status quo can continue,  and and not so strong Banks in managing fund requirement in bulk  can have borrowing inter bank or from RBI on softer terms. It should be  realised  that legitimate rights of pensioners cannot get negated for not so plausible reasons far too long.

These are loud thinking and need to be examined in depth instead of discounting at our level.

Regards

C V Narayanan

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