Restoration of commutation

[Kalyanasundaram Subramaniam]

I am sharing whatsup message received :

 Why commutation of Pension is restored after 15 years ? Commutation of pension started as a welfare measure. For those retired before 2.09 2008 it is recovered with interest in 12.08 yrs. While for those retired after 2.09.2008 it is recovered in 10.194 yrs ( 8.194 yrs principle & 2 yrs Intt) then why Govt continue to deduct for 15 yrs. Is it not unjust enrichment by Govt at the cost of senior citizens? Fixing of 15 years recovery is arbitrary and without any mathematical calculations. Govt.says mortality factor is taken into account.Because after death recovery is to be waived off. But it is not true because after death , family pension is just halved after 7 yrs from date of retirement . Before 2008 Govt was charging intt. Of 4.75% but after 2008 they are charging market rate of 8%. So where it remained a social welfare measure? Then life expectancy is increasing and interest rate r falling, after increase of age of retirement from 58 to 60 and new commutation formula Govt.liability has decreased by 16.5 %, commutation factor came down from 10.86 to 9.81to 8.194 Should the benefits be not passed on to Retired senior citizens. Recently FORIPSO, a retired IPS officers forum has filed IPL in Delhi High Court and high court has asked the Govt to file basis of calculation of 15 Years. Case is pending. Should Bank's union also file PIL against Govt for this unethical & immoral loot by Govt by charging higher intt. Rate and continue to deduct illegaly from pension of poor senior citizen even after full payment of Principle & intt. In 10.194 years & hence for reduction of 15 years period for restoration of full pension.

S Kalyanasundaram

[Mani B]

Logic in this message is very good and the same feeling is also in my mind for quite a long years. This arbitrary 15 yrs repayment period has to be given a serious look immediately by the unions.

Previously when there were no openness in everything rank n file accepted everything stated by uion leaders word by word without raising Ang doubt over their statements.

With increasing awareness due to open discussions in social media about the in and outs of every thing people are more interested to know the fathom of the subjects they deal with. This is one more subject that need fair address by all concerned.

Bala

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[Logu Kuppan]

Yes sir,

Our unions has to take steps to join with full interest and save hard earned pension benefits.Will the come forward.

[Seshaiyer Devadass]

Sir the case filed by FORIPSO in 2015 is dismissed on 17-01-2019. I post the judgement for the benefit of our members.

And also Kalyanasundaram Sir, is there any govt memorandum on the period of restoration of commuted pension below 15 years for those retired before 02-09-2008? Kindly post the same. Because in a GO dated 23-06-1987, it is stated that the period is 15 years only. Sir kindly clarify

With regards

S.Devadass, State Bank of India - Retd, Palani-624601

Cell:9442250104

Virus-free. www.avast.com

[JSOMA SHEKARA]

Indian Overseas Bank Unilaterally reduced commutation factor from 9.81 to 8.194 wef 30.06.2021 for all employees.  DFS had only directed IBA to apply a reduced commutation factor from  9.81 to 8.194 only for whole time directors and career officers. IBA has so far not issued any instructions so far, but  IOB has taken this retrograde step.

There is a perception among management that any violation of Pension regulation can be done and no union will protest.

IBA has rejected many benefits provided in pension regulations, court orders also not implemented, but no union has taken interest to rectify this. Under these circumstances it is no wonder IOB has taken this unilateral step. Managements are aware that unions will keep silent and in  absence of Banking tribunal, only alternative left to pensioners is approaching court which gives management a relaxing time of 10-15 years.

There are already a few anomalies pending to be resolved and this will be a new addition in that list.

[Kalyanasundaram Subramaniam]

Thank you Mr Seshaiyer Devdass for the response. I am not aware of anything about the ' restoration of commuted pension below 15 years for those retired before 02-09-2008' asked by you. 

Regards.

S Kalyanasundaram 

[Srirama Murti]

dear friends ,

at the time of Pension introduction, in the year around 1995, in the Hindu, there

appeared a report by Mr.Thomas that commutation is restored after 15 years,

that is commutation given further second time. But we do not exactly know

the position. But it is clear now Only one time commutation is allowed and no

question of second time after first term completed. 

The realty is though second time can be commuted theoretically,, certain practical

and legal hurdles are there for giving second time. The position is , if the pensioner

dies in the middle of the commutation term, the balance of the recoverable liability will not be recoverable from the spouse of the pensioner. and it is waived from the spouse of the pensioner.

And if anyone not opted in the beginning, along with other pensioners, he can opt for commutation subject

to rules including medical examination.

Thus the above is clarity given now by the legal professionals.

with Regards,

S.S.R.Murthy, ex-Canara Bank,

(Singampalli Sri Rama Murthy 

Mobile ph: +91 9391147762

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