supreme court ruling on special allowances in 10 th bipartite settlement

[Daum.net]

V. Raghunath Sharma started this petition to Ministry of Finance and Indian Bankers Association.

I refer to the landmark judgment of the supreme court in special leave petition No 20661-20668/2012 .where in the “Supreme court upholds the definition of Pay as per Bank employees’ pension regulation 1995 for calculation of pension in the judgment pronounced on 13-02-2018 vide canara bank v/s Savitri Venugopal and others. 

 Among other things the court  has observed the following which are relevant to the bank employees who retired after November 2012. :

 1)  There cannot be two pay scales  1) one for the purposes of calculation of salary and   2)   the other for calculation of pension.   In other words the pay taken for the calculation of salary should be reckoned for the purpose of pension also.

In case of employees retired on or after 01-11-2012 the bank had introduced a new pay called " Special Pay"  which was eligible for payment of  DA  etc  but kept it out of the preview for calculation of pension for retirees under the  10th  Bipartite settlement with a clause as under

 QUOTE:    Special Allowance (w.e.f. 1.11.2012) With effect from 1.11.2012, officers shall be paid Special Allowance as under: 

Scale I-III - 7.75% of Basic Pay + applicable Dearness Allowance thereon 

Scale IV-V - 10% of Basic Pay + applicable Dearness Allowance thereon 

Scale VI-VII- 11% of Basic Pay + applicable Dearness Allowance thereon

  Note : The special allowance with applicable DA thereon shall not be reckoned for superannuation benefits, viz, pension including NPS, PF and Gratuity.

" The said supreme court judgment has very clearly laid down that the above system of having two pay scales one for the purpose of calculating salary and the other one for calculation of  pension is illegal"

The special allowance which was “carved” out of basic pay portion and given a new nomenclature with intention to deprive the actual pension benefits of the pensioners ( with a view to manage the cost agreed upon and benefit only the existing staff) and is  held  as illegal by the supreme court.

The 10th bipartite  settlement signed between the unions and IBA through the above said " New Allowance", which  was a part of basic pay for calculation of Salary did not find a place for calculation of Pension thereby the Banks, in agreement with IBA had two separate set of calculations for Salary and Pension.  Now that the Supreme court has held that " there can not be two separate calculations for salary and pension" the banks have to include the New allowance paid for salary for calculation of pension also.

The act of introducing two separate scales for calculation of salary and pension has resulted in reduction of pension payment to the retired bank employees which also resulted in recovery of pension paid to the pensioners according to the earlier settlement.   Normally the revision of salary for Employees of Insurance sector is on the same patron followed in Banking industry ( as both banking and Insurance come under the same finance ministry) but strangely this injustice has been avoided in the Insurance sector wage revision.

The supreme court judgement now provides relief to the pensioners. The ministry has to instruct the Indian Banks Association to take corrective measures and calculate pension for the retirees on the basis of 10 months'  ‘average emoluments’, as defined in Regulation 2(d) of the Regulations of 1995, (specified that the average of the pay drawn by the employee during the last ten months of his service in the Bank) shall be taken as “Average Emoluments”, so as to work out the pension under Regulation 35(2).  This in effect would mean that the bank managements have to re-calculate pension as per Pension Regulations, 1995 and pay arrears from the date of retirement. 

With this  the retired Bank employees will get :

1) Refund of  recovery made on illegal recovery of pension,

2) Get the basic pension re fixed at legitimate levels,

3) Get arrears on gratuity, commutation of pension etc.

This gives great relief to the retired staff who solely depend of pension and superannuation benefits for the rest of their life.

 

Trust truth prevails and  justice done.

 

 

[naresh sharma]

dear all, please provide the complete copy of the judgement pronounced by supreme court in the matter of CANARA BANK Vs Savitri venugopal and ors.dated 13.02.2018

Regards,

N.C SHARMA

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[Roshan lal]

Dear sir, 

It is good news and please elobrate whether, this judgement effect the pensioners of SBI also?

If possible any body provide the copy of above judgement 

Regards,

Roshan Lal SBI RETIREE JUNE 2014

Mobile : 9518228062/9896344113

[harinarayana sarma nandivada]

It appears to be a good news and another victory for Bank Pensioners.  What is the date of this judgment?  Mr.Raghunath Sharma is requested to inform the date of this judgment .

N.Harinarayana Sarma

[Daum.net]

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From: Roshan lal <rl14...@gmail.com>
To: bankpe...@googlegroups.com
Cc: bram...@yahoo.com; darshann...@gmail.com; krnim...@gmail.com; aiboc...@gmail.com; dbra...@gmail.com; penca...@yahoo.com; RAMACHANDRAN S <raman...@gmail.com>; acharyav...@yahoo.com; bgmana...@hotmail.com; crbe...@gmail.com; bharat...@gmail.com; pady...@yahoo.com; ankulka...@gmail.com; kkna...@yahoo.co.in; R.K. Pathak <ratnaka...@gmail.com>; bgrai...@yahoo.co.in; deshpa...@gmail.com; rajendr...@hotmail.com; SBI Sujoy Kumar Ghosh SBIPA Bengal Circle <sujoyku...@rediffmail.com>; SBIPA-Bengal Circle <sbi...@gmail.com>; oblende...@gmail.com; jsomase...@gmail.com; rk6...@yahoo.com
Sent: Friday, 5 October 2018 8:59 AM
Subject: Re: bankpensioner supreme court ruling on special allowances in 10 th bipartite settlement

[naresh sharma]

I have not received the copy of the above judgement because of failure of delivery please sent me again

On Sat 6 Oct, 2018 10:04 am 'Daum.net' via bankpensioner, <bankpe...@googlegroups.com> wrote:

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From: Roshan lal <rl14...@gmail.com>
To: bankpe...@googlegroups.com
Cc: bram...@yahoo.com; darshann...@gmail.com; krnim...@gmail.com; aiboc...@gmail.com; dbra...@gmail.com; penca...@yahoo.com; RAMACHANDRAN S <raman...@gmail.com>; acharyav...@yahoo.com; bgmana...@hotmail.com; crbe...@gmail.com; bharat...@gmail.com; pady...@yahoo.com; ankulka...@gmail.com; kkna...@yahoo.co.in; R.K. Pathak <ratnaka...@gmail.com>; bgrai...@yahoo.co.in; deshpa...@gmail.com; rajendr...@hotmail.com; SBI Sujoy Kumar Ghosh SBIPA Bengal Circle <sujoyku...@rediffmail.com>; SBIPA-Bengal Circle <sbi...@gmail.com>; oblende...@gmail.com; jsomase...@gmail.com; rk6...@yahoo.com
Sent: Friday, 5 October 2018 8:59 AM
Subject: Re: bankpensioner supreme court ruling on special allowances in 10 th bipartite settlement

[kaushal kishore]

expected date of  arrears payment be adviced. thanks

whether date of payment of arrears  is  mandatory or expected date for payment

[KUNAL SINGH KHARAYAT]

If there is such a judgement then what stops banks to implement.  It will benefit only if such judgements get implemented otherwise it has no meaning.

 

Sent from Mail for Windows 10

 

From: kaushal kishore
Sent: 26 January 2019 18:19
To: bankpensioner
Subject: Re: bankpensioner supreme court ruling on special allowances in 10thbipartite settlement

 

On Sunday, October 7, 2018 at 10:00:38 AM UTC+5:30, sharma.naresh4721 wrote:

I have not received the copy of the above judgement because of failure of delivery please sent me again

 

 

On Sat 6 Oct, 2018 10:04 am 'Daum.net' via bankpensioner, <bankpe...@googlegroups.com> wrote:

This message is eligible for Automatic Cleanup! (bankpe...@googlegroups.com) Add cleanup rule | More info

 

[KUNAL SINGH KHARAYAT]

 

 

Sent from Mail for Windows 10

 

From: kaushal kishore
Sent: 26 January 2019 18:19
To: bankpensioner

Subject: Re: bankpensioner supreme court ruling on special allowances in 10thbipartite settlement

 

How old is this decision?  I think this is very old and nothing is the outcome of this till date.  I doubt if this will be implemented.  We can only wait and wait.

On Sunday, October 7, 2018 at 10:00:38 AM UTC+5:30, sharma.naresh4721 wrote:

I have not received the copy of the above judgement because of failure of delivery please sent me again

 

 

On Sat 6 Oct, 2018 10:04 am 'Daum.net' via bankpensioner, <bankpe...@googlegroups.com> wrote:

This message is eligible for Automatic Cleanup! (bankpe...@googlegroups.com) Add cleanup rule | More info

 

[KUNAL SINGH KHARAYAT]

The judgement is dated 13-02-2018 but no outcome.

Such judgement come and go.  Banks are not implementing, so no fruitful results.

 

Sent from Mail for Windows 10

 

From: kaushal kishore
Sent: 26 January 2019 18:19
To: bankpensioner

Subject: Re: bankpensioner supreme court ruling on special allowances in 10thbipartite settlement

On Sunday, October 7, 2018 at 10:00:38 AM UTC+5:30, sharma.naresh4721 wrote:

I have not received the copy of the above judgement because of failure of delivery please sent me again

 

 

On Sat 6 Oct, 2018 10:04 am 'Daum.net' via bankpensioner, <bankpe...@googlegroups.com> wrote:

This message is eligible for Automatic Cleanup! (bankpe...@googlegroups.com) Add cleanup rule | More info

 

[kaushal kishore]

expected  date of its payment  and it must be applicable for  encashment of P.L.

kaushal Kishore

retired officer  syndicate bank

 

 

en it will be paid. and it should be applicable for  encashment of P>P>