AIBPARC CIRCULAR ON PENSION FUND

[Niranjan Cn]

Sirs,

In response to the AIBPARC Circular, a write up has been made, considering IOB Pension Fund as an example as the Top leadership of AIBPARC are from IOB.  Please refer to the attached-write up for workings/details.

For ready reference, the following are questions which are to be answered/clarified by AIBPARC.  I have shared the write up with all the office bearers of AIBPARC two days back and so far no response ( may be preparing answers).

AIBPARC thinks that DFS, IBA, Banks, Board, Investors, RBI, IBA, UFBU, etc are ignorant and only AIBPARC is fountain of knowledge/experience with regard to Pension Funds

In view of the above, Hope and Wish  AIBPARC  to clarify/answer the following points to all the members:

a)       If sufficient funds are already available, why IOB opted for amortization for five years of additional burden due revision in Family Pension ?

b)      10% of mandatory contribution as per Regulations works out (appx) only to Rs. 43.79 crores

c)       But, Bank has contributed Rs.786.51 crores towards additional contribution due actuarial valuation shortfall why ?

d)      Whether IOB providing to Pension Fund is wrong OR your calculations are wrong ?

e)      If IOB Pension Fund contributions are incorrect – what steps/action has been taken ?

f)        Whether Acturaial Valuations of IOB Pension Fund is WRONG ?

g)       Whether Bank Board – blindly provided the funds to Pension Fund – in excess ??

h)      Whether Statutory Auditors – allowed excess funds to Pension Fund ?

i)        Whether RBI Auditors also turned blind eye to Excess providing to Pension Fund ?

j)        Why Bank provided Excess Amount to Pension Fund by reducing the Profit ?  Any benefit to the Bank ?

k)       As per AIBPARC – when so much funds are available why not demanding Pension of Special Allowance also as the huge funds are available.

l)     Is it not naïve to assume that Bank Boards, Statutory Auditors, RBI, DFS, Investors,IBA, UFBU, etc  are ignorant ?? And only AIBPARC is smart ??

m)   Why AIBPARC so far not complained to  Institute of Actuaries of India regarding wrong calculations by Acturies in case of Bank Pensions ?

Niranjan

Ex-canara