PENSION OF All banks AND PENSION OF RBI EMPLOYEES

[ashok goel]

DEAR PENSIONERS FOR YOUR INFORMATION PLEASE AND DISCUSSION FOR GETTING
THE AMRITAM
____________________________________________________________

DOWN LOADED FROM THE SITE OF AIRBIOPF
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RBI Pension Scheme and Related Issues
The brief background of the case is as following:
· Reserve Bank of India Pension Regulations was introduced in the Bank
in lieu
of contributory Provident Fund in the year 1990 effective from January
1,
1986, basically on line of the Pension Scheme available to the Central
Government staff.
· Since the employees were then demanding pension as third retirement
benefit, RBI explained to the staff of the advantage of the pension
scheme in
line with the Central Government employees and stated in writing
through
Bank's circular dated March 13, 1992, that one of the positive
features of the
pension is regular updating of pension.
· In their circular dated March 13, 1992, the Bank specifically
mentioned ‘….
The general consensus is that globally pension is considered to be one
of the best social security measures as compared to others, because of
its certain unique features such as updation of basic pension,……’ .
· The Bank’s assurance on updation of the basic pension was the USP of
the
scheme and, indeed, this was one of the most important considerations
for
employees to opt for pension overwhelmingly by surrendering the
benefits of
CPF.
· For those joining the Bank’s service after November 1, 1990 the
pension
scheme was made compulsory.
· Pension updation refers to updation of basic pension pay after every
wage
revision. This is based on a formula used extensively world wide
wherever
similar schemes are available in the absence of other social security
measures by the state.
· If a person had retired with a basic pay of “X” and after wage
revision, a
serving employee drawing a basic pay of “X” has his basic pay revised
upwards to “Y”, the basic pension pay of the retired employee is also
suitably
enhanced by using well established principles. Similar principles are
used in
the case of Central Government employees.
2
· Pension updation was a recurrent demand of the associations / unions
within
the Bank and the concept of pension updation has been accepted by the
hon’ble courts in the country.
· Subsequent to the introduction of the pension scheme, the pay of the
employees of the Bank have been revised on three occasions, viz., with
effect
from November 1, 1992, : November 1, 1997 and November 1, 2002.
· Accordingly, the first up-dation of pension was carried out by the
Bank, with
the prior approval of its Central Board of Directors, in 2002. The
pension updation
was introduced with effect from November 1, 2002 for pre 1997
retirees, which now stands withdrawn with effect from October 2008,
after six
years of its implementation.
· In view of the objection by the Ministry, the benefits of the wage
settlement
of Nov 2002 {finalised in Dec 2006} have not yet been extended to
pensioners.
· Had it been extended, the benefits would have gone to all pre Nov
2002
pensioners.
· The background to the withdrawal of this benefit in RBI lies in
difference of
opinion during the last six years between the Central Board of Reserve
Bank
and the Ministry of Finance on the powers of the Central Board to
introduce
the scheme of pension up-dation without taking the approval of the
Government of India.
· The Ministry of Finance had raised the objection on technical ground
that
Reserve Bank did not seek permission from the Government of India to
change the definition of "average pay at the time of retirement",
though
Central Government is also having a similar definition of average pay
for their
pensioners that they have been changing after every pay commission.
· If the Ministry so desired, the approval could be given a post
facto. It is further
understood that the ministry also conveyed that this up-dation of
pension by
RBI might prompt retirees from other institutions to raise similar
demand
resulting in greater pension outgo.
3
· Under the direction of the Government, the Reserve Bank management
withdrew the aforesaid Administration Circular No. 2 dated September
1,
2003, vide its circular dated October 10, 2008 and reverted the basic
pension to the level originally sanctioned, prospectively from the
month of
October 2008.
· The pension scheme of the Bank is entirely funded by the Bank and,
unlike
the pension scheme of Government employees, is not a burden on the
exchequer.
· RBI pension fund is self-sustaining. The entire CPF of those
employee
who had opted for pension scheme in 1990 and again in 1995 when the
option was again re-opened had to be surrendered and the bank made a
contribution and the Pension Corpus was thus created.
· While pension has been made available to Central Govt. employees,
Bank
and Insurance employees in lieu of their PF @ 8.33%, the sacrifice is
more for
RBI employees, as they were entitled to 10% CPF. However, instead of
making this differential to be factored in while computing pension
benefits of
RBI staff as and when they retire, the RBI employees were forced to
accept
this withdrawal decision.
· We also understand that various legal opinion the Bank had sought
from the
legal experts on the issue did not find any illegality in updation of
basic
pension by the Bank
· The 5th pay commission clearly stated that an autonomous institution
like RBI
can have their own pension scheme provided their fund permits.
· The 6th pay commission clearly stated that the salary structure
designed by
them applies to all including regulatory organisations. This paves the
way
open for RBI to devise a truly independent pay, perquisite and
superannuation
structure.
· This has altered the basic nature of the scheme unilaterally
although the
original scheme was introduced after elaborate deliberations with all
recognized Associations / Unions of the employees of the Bank. The
assurances given by the Bank have been seriously compromised.
4
· All present employees will be adversely affected as and when they
retire.
· Existing employees are undergoing a trauma as the basic premise of
their superannuation calculations are now found to be completely
missing.
· For all future retirees, pension updation is critical since (i) we
are
certainly going to retire, (ii) cost of living will continuously go
up, (iii)
future rate of interest though unpredictable, is likely to be low, may
be
even lower than today, (iv) as retirees, we don’t have fresh earnings.
(v)
salary structure is not so high as to enable existing employees to
plan a
suitable investment policy creating a personal old age insurance in
the
form of annuity payments.
· In case of Central Government pensioners, however, pensions are
upwardly
revised after every pay commission and the 6th pay commission had
introduced certain other welcome features also like gradual increase
of
basic pension with retirees' age.
· Some of the benefits to central government retirees after the 6th
Pay
Commission are briefly:
o Maximum and minimum pension raised from Rs. 33,075/- and
Rs.2813/- to Rs. 52.200/- and Rs. 4060/- respectively.
o Full pension after 20 years of service.
o The recent 6th pay commission have even recommended gradual
increase of basic pension with the retirees’ age even suggesting
that if a pensioner reaches the age of 100, his/her basic pension will
be
doubled.
o Family pensioners will get full pension for first 10 years
· The altered pension scheme of the Bank is now substantially inferior
to the
Government scheme even excluding the recent improvements, even though
the employees of the Bank had to make larger sacrifice to get the
same.
Compiled by Reserve Bank of India Officers Association.


downloaded at 10.40 a.m.
ashok
goel----------------------------------------------------------------------------------------------------------------

[Mohan badi]

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From: ashok goel <ashok...@gmail.com>
To: bankpensioner <bankpe...@googlegroups.com>
Sent: Tuesday, 2 August 2011 10:32 AM
Subject: bankpensioner PENSION OF All banks AND PENSION OF RBI EMPLOYEES

Dear Ashok Goelji,

Your RBI's and 6th pay commission  excerpts are of great help to all pensioner and retirees at large.
Sir I was punished by the bank twice one for long absenting-with 4 increments from the past scale, on 30.12.1998 and other with dismissal with immediate effect on 22.02.1999 and Karnataka High Court Bangalore, asked bank's Lawyer to consult Bank Authorities to convert these two punishment into compulsory retirement, mean while I was absenting from duties from 19.09.1995,
I had joined bank on 01.01.1973 till 18.09.1995, Due t0 sickness I had submitted medical certificates time to time from bank's doctor from 19.09.1995 till 30.06.1998, and had also resigned on medical ground on 18.07.1998 and Bank replied on 22.08.1998 asking whether I want pension or PF, (This letter was kept by branch and was not delivered till 14.10.1998)Ist chargesheet was for absentism and second was for having taken employment  somewhere, but bank did not prove anytime as it was only presuption by bank as to how I could survive without money as we are six member family ,actually I had survived on MVC case compensation payment of first wife's death.both the inquiries held ex-party and as inquiries were held during my sick period.from19.09.1995 to
30.06.1998 there after I had submitted resignation.  12.10.1998 and 14.10.1998 I got final inquiry reports and subsequent pnishments on 30.12.1998, and dismissal on 22.02.1999. Appeal sent on 01.06.1999 not considered and high  court in 2004 asked bank to dispose appeal, where in on 15.03.2004 bank replied upholding dismissal is correct and just. Again I file one more petition in  2006 now the hearing is going on and now Hon'ble Judge asked bank lawyer to consult HO. Kolkata, CRM at RMO Mumbai bank whether bank will convert two punishment into Compulsory retirement and give all my legitimate retiral benefits first charge sheet was slapped in 1996 and second on 11.07.1997. Inquiries got  concluded on 12.10.1998 and 14.10.1998

Now I want to know from you, from what date bank shall decide my CRS and whether I will  get pension and arrears and what other benefits available to me . I have forgotten so many things Plz give me necessary guidance, as you know lawyers  are just making fun of us and I had to change three lawyers so far.I want to know how my bank will listen to , and act upon court oral advice asking whether bank is ready for giving CRS to me? through bank's lawyer. Here till today case stands. within next two week case shall get disposed by the court whatever may be reply from bank, but there is a curiosity to know as to how bank will act and what all benefit bank would be ready to consider and pay me finally. On 18.09.1995 I was in Officer's  scale-I and getting basic pay of  8050.00. if you need any other detail plz kindly ask me and  I will reply soon.
 with  regards

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