PENSION UPDATION IN BANKS - JOINT LETTER TO FM BY AIBRF&CBPRO
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PM
Mar 13, 2019, 10:54:00 AM3/13/19
to bankpensioner
Dear friends ,
A copy of letter sent by AIBRF and CBPRO jointly to Hon.Finance Minister on updation of pension to bank retirees is furnished here under:
Shri Arun Jaitley ji
Hon’ble Finance Minister
Government of India
North Block
New Delhi.
Honourable Sir,
Updation of Pension and Improvement in Family Pension
We wish to invite a kind reference to our letter dated 03.01.2019 wherein we have
listed out the pending issues and grievances of Bank Pensioners and Retirees. We
had also impressed upon the need for resolution of such of those issues which have
been causing serious concern and hardship to the Senior and Super Senior Citizens
from the Banking fraternity who had served the country and helped take Banking
services to nook and corner of the country and hitherto neglected sectors of the
society. We have always conducted ourselves as a vehicle of carrying out various
schemes of the Government for the upliftment of poor and direct benefit transfer to
more than 33 crores beneficiaries of PMJDY accounts. Having served the country
during prime of their life, the Bank Pensioners and Retirees fondly look forward to
your good self for much awaited relief through redressal of their grievances in the
evening of their life before breathing their last.
We are extremely glad to know that the Government of India, Ministry of Finance,
Dept of Financial Services vide its notification dt 05.3.2019 has approved the long
pending demand of the RBI Pensioners to update their Pension as per the formula
given in the said notification. It is a welcome step. We congratulate and thank you for
this gesture.
The decision of the Government to grant extension of the benefit of Updation
of Pension to the Employees & Officers of Reserve Bank of India has given a
ray of hope to the other Pensioners & Retirees of the Banking Industry that
similar demand from them shall also be considered immediately so as to
benefit more than 7.00 lacs families who have been patiently waiting for
Updation of Basic Pension for more than two decades.
1. Updation of Pension:
Further we would like to draw your kind attention on the following points in
support of Bank Retirees demand for Updation
Our request for Updation is not a request for any fresh benefit. Pension Regulation
35(1) provided for Updation of Basic Pension and Additional Pension in respect of
those Employees/Officers who retired between 01.01.1986 and 31.10.1987 and at the
time of introduction of Pension Scheme in Banks during 1995-96 it was so given to
them as they alone were eligible for Updation at that stage.
b. Periodic Wage Revision entails periodic Pension Updation. Pay Revision and Pension
Revision are inseparable. Hence Pension updation has to be implemented in respect of SBI
Pensioners, All Public and Private Sector Bank Pensioners who were employees of the
member Banks of IBA. More over Pension is a deferred wage and it is paid out of Pension
Fund
c. Pension Regulation 35(1) was later amended vide Gazette Notification No:9 dated
01.03.2003 providing for Updation of Basic Pension and Additional Pension wherever
applicable thus making it an open-ended scheme to provide the benefit of Pension
Updation to all Retirees who become eligible on periodical revision of Pay through
Industry level Wage Settlements.
d. IBA/Government has been denying the benefit of Pension Updation despite clear
provision in Pension Regulation 35(1) sighting cost consideration and implications.
e. Pension is a Deferred Wage and a property under Articles 19(1) (f) and 31(1) of Constitution
of India and hence a statutory obligation of the Banks which are States within the meaning
of Article 12 of Constitution of India.
f. Pension including updated Pension and Family Pension become payable out of Pension
Fund. The present Pension Fund of the Public Sector Banks including State Bank of India is
quite robust and healthy at more than Rs. 300,000 crores with potential to afford paymen of
3to4 times of present disbursements on account of Pension and Family Pension.
g. In Banks Pension is paid out of Pension Fund which is created by the surrender of the
mandated management contribution of Provident fund by the Bank Employees and
Officers during their service. Pension is not paid out of profits but out of the Pension
Fund so created. Hence payments to be so made as per Pension Regulations will
not affect the Balance Sheet of the Banks. Provision, if any for Pension Fund is a
charge on Profit & Loss A/c and hence is not payable out of net profit of the
Banks. Net profit has to be arrived at only after making all provisions including
for payment of Salary and Pension which are statutory in nature. Statutory
payments cannot be denied for cost considerations.
.2. Uniform 30% Family Pension at par with Government and Reserve Bank:
a. The present methodology of computing Family Pension in Banks provides for a range
of percentage from 15 % to 30 % where in a lower percentage is assigned to higher
Basic Pay with specified ceiling as a cap on Basic family pension.
b. The above methodology effectively results in the Family Pension working out merely
to 7 to 10% of last drawn pay restricting Basic Family Pension to a meagre sum of Rs.
4,000/- to Rs. 14000/- after attainment of notional age of 65 years by the deceased
employee or 7 years from the date of death whichever is earlier.
c. Government and RBI Pensioners are paid Family Pension uniformly at 30% of last
drawn pay without any ceiling.
d. Un-affordability of proposed improvement in Family Pension is being arbitrarily quoted
to deny the benefit despite there being adequate provision made during the service tenure
of the employee by the Bank for payment of full Pension to the employee. Thus Family
Pension being lesser than the Pension of the Employee, it would involve a negative
cost to the Pension Fund. Hence the contention of IBA/Government about cost
consideration defies logical, economic sense, rationality and above all humane
consideration.
e. Family Pensioners are largely the widows and hence the issue of rendering justice
to them at par with Government and RBI pensioners assumes greater and emotive
significance. Improvement in Family Pension at par with Government and RBI family
pension is therefore a genuine need and merits a sympathetic consideration.
Since it is a very emotive and justified issue, we earnestly request you to intervene and help
much deserving Family Pensioners largely the women folk.
We as the coordination of Bank Retirees Organisations representing 100% of Bank
Pensioners and Retirees, have conducted dharnas and demonstrations at about 30
important centres throughout the nation and more than 1,00,000 Bank Retirees and
Pensioners had participated. The success of our demonstrations and dharnas is a
reflection of the seriousness of the Pending issues and anxiety in the minds of
Senior Citizens about protracted delay in redressal of their grievances by a
government which is known for its objectivity, transparency, speed, and fairness in
disposal of the pending matters. In this background we once again request your
good selves to consider all our pending issues more particularly the foregoing two
important and urgent issues:
It is thus clear that the cost of Updation will be absorbed by the yield on the Pension Fund
without denting the Balance Sheets of the Banks in any manner whatsoever.
J-208, Vijay Rattan Vihar, Sector-15, Part II, Gurgaon-122001
Tel: 01244270198 Mob: 9868220338
---------------------------------------------------------------------------------------------------------------------------------------------------
4
Honourable Sir, We have fond hope of getting justice at your hands and hence we on behalf
of more than 7,00,000 Bank Pensioners and Retirees make an earnest and fervent appeal to
your good self to consider our above requests favourably and help resolve the same by
advising Indian Banks’ Association and Dept of Financial Services, at the earliest.
With Respectful Regards,
Yours faithfully,
(A.Ramesh Babu) (K.V. Acharya) (S.C. Jain)
Joint Conveners, CBPRO General Secretary, AIBRF
A copy of letter sent by AIBRF and CBPRO jointly to Hon.Finance Minister on updation of pension to bank retirees is furnished here under:
Shri Arun Jaitley ji
Hon’ble Finance Minister
Government of India
North Block
New Delhi.
Honourable Sir,
Updation of Pension and Improvement in Family Pension
We wish to invite a kind reference to our letter dated 03.01.2019 wherein we have
listed out the pending issues and grievances of Bank Pensioners and Retirees. We
had also impressed upon the need for resolution of such of those issues which have
been causing serious concern and hardship to the Senior and Super Senior Citizens
from the Banking fraternity who had served the country and helped take Banking
services to nook and corner of the country and hitherto neglected sectors of the
society. We have always conducted ourselves as a vehicle of carrying out various
schemes of the Government for the upliftment of poor and direct benefit transfer to
more than 33 crores beneficiaries of PMJDY accounts. Having served the country
during prime of their life, the Bank Pensioners and Retirees fondly look forward to
your good self for much awaited relief through redressal of their grievances in the
evening of their life before breathing their last.
We are extremely glad to know that the Government of India, Ministry of Finance,
Dept of Financial Services vide its notification dt 05.3.2019 has approved the long
pending demand of the RBI Pensioners to update their Pension as per the formula
given in the said notification. It is a welcome step. We congratulate and thank you for
this gesture.
The decision of the Government to grant extension of the benefit of Updation
of Pension to the Employees & Officers of Reserve Bank of India has given a
ray of hope to the other Pensioners & Retirees of the Banking Industry that
similar demand from them shall also be considered immediately so as to
benefit more than 7.00 lacs families who have been patiently waiting for
Updation of Basic Pension for more than two decades.
1. Updation of Pension:
Further we would like to draw your kind attention on the following points in
support of Bank Retirees demand for Updation
Our request for Updation is not a request for any fresh benefit. Pension Regulation
35(1) provided for Updation of Basic Pension and Additional Pension in respect of
those Employees/Officers who retired between 01.01.1986 and 31.10.1987 and at the
time of introduction of Pension Scheme in Banks during 1995-96 it was so given to
them as they alone were eligible for Updation at that stage.
b. Periodic Wage Revision entails periodic Pension Updation. Pay Revision and Pension
Revision are inseparable. Hence Pension updation has to be implemented in respect of SBI
Pensioners, All Public and Private Sector Bank Pensioners who were employees of the
member Banks of IBA. More over Pension is a deferred wage and it is paid out of Pension
Fund
c. Pension Regulation 35(1) was later amended vide Gazette Notification No:9 dated
01.03.2003 providing for Updation of Basic Pension and Additional Pension wherever
applicable thus making it an open-ended scheme to provide the benefit of Pension
Updation to all Retirees who become eligible on periodical revision of Pay through
Industry level Wage Settlements.
d. IBA/Government has been denying the benefit of Pension Updation despite clear
provision in Pension Regulation 35(1) sighting cost consideration and implications.
e. Pension is a Deferred Wage and a property under Articles 19(1) (f) and 31(1) of Constitution
of India and hence a statutory obligation of the Banks which are States within the meaning
of Article 12 of Constitution of India.
f. Pension including updated Pension and Family Pension become payable out of Pension
Fund. The present Pension Fund of the Public Sector Banks including State Bank of India is
quite robust and healthy at more than Rs. 300,000 crores with potential to afford paymen of
3to4 times of present disbursements on account of Pension and Family Pension.
g. In Banks Pension is paid out of Pension Fund which is created by the surrender of the
mandated management contribution of Provident fund by the Bank Employees and
Officers during their service. Pension is not paid out of profits but out of the Pension
Fund so created. Hence payments to be so made as per Pension Regulations will
not affect the Balance Sheet of the Banks. Provision, if any for Pension Fund is a
charge on Profit & Loss A/c and hence is not payable out of net profit of the
Banks. Net profit has to be arrived at only after making all provisions including
for payment of Salary and Pension which are statutory in nature. Statutory
payments cannot be denied for cost considerations.
.2. Uniform 30% Family Pension at par with Government and Reserve Bank:
a. The present methodology of computing Family Pension in Banks provides for a range
of percentage from 15 % to 30 % where in a lower percentage is assigned to higher
Basic Pay with specified ceiling as a cap on Basic family pension.
b. The above methodology effectively results in the Family Pension working out merely
to 7 to 10% of last drawn pay restricting Basic Family Pension to a meagre sum of Rs.
4,000/- to Rs. 14000/- after attainment of notional age of 65 years by the deceased
employee or 7 years from the date of death whichever is earlier.
c. Government and RBI Pensioners are paid Family Pension uniformly at 30% of last
drawn pay without any ceiling.
d. Un-affordability of proposed improvement in Family Pension is being arbitrarily quoted
to deny the benefit despite there being adequate provision made during the service tenure
of the employee by the Bank for payment of full Pension to the employee. Thus Family
Pension being lesser than the Pension of the Employee, it would involve a negative
cost to the Pension Fund. Hence the contention of IBA/Government about cost
consideration defies logical, economic sense, rationality and above all humane
consideration.
e. Family Pensioners are largely the widows and hence the issue of rendering justice
to them at par with Government and RBI pensioners assumes greater and emotive
significance. Improvement in Family Pension at par with Government and RBI family
pension is therefore a genuine need and merits a sympathetic consideration.
Since it is a very emotive and justified issue, we earnestly request you to intervene and help
much deserving Family Pensioners largely the women folk.
We as the coordination of Bank Retirees Organisations representing 100% of Bank
Pensioners and Retirees, have conducted dharnas and demonstrations at about 30
important centres throughout the nation and more than 1,00,000 Bank Retirees and
Pensioners had participated. The success of our demonstrations and dharnas is a
reflection of the seriousness of the Pending issues and anxiety in the minds of
Senior Citizens about protracted delay in redressal of their grievances by a
government which is known for its objectivity, transparency, speed, and fairness in
disposal of the pending matters. In this background we once again request your
good selves to consider all our pending issues more particularly the foregoing two
important and urgent issues:
It is thus clear that the cost of Updation will be absorbed by the yield on the Pension Fund
without denting the Balance Sheets of the Banks in any manner whatsoever.
J-208, Vijay Rattan Vihar, Sector-15, Part II, Gurgaon-122001
Tel: 01244270198 Mob: 9868220338
---------------------------------------------------------------------------------------------------------------------------------------------------
4
Honourable Sir, We have fond hope of getting justice at your hands and hence we on behalf
of more than 7,00,000 Bank Pensioners and Retirees make an earnest and fervent appeal to
your good self to consider our above requests favourably and help resolve the same by
advising Indian Banks’ Association and Dept of Financial Services, at the earliest.
With Respectful Regards,
Yours faithfully,
(A.Ramesh Babu) (K.V. Acharya) (S.C. Jain)
Joint Conveners, CBPRO General Secretary, AIBRF
Vvns Varaprasadrao
Mar 14, 2019, 12:15:59 AM3/14/19
to bankpe...@googlegroups.com
These leaders are experts in writing letters. On several ocassions it is proved also.
Getting reply from DFS is doubtful.
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Shrinivas Parkar
Mar 14, 2019, 12:17:35 AM3/14/19
to bankpe...@googlegroups.com
I feel that we should wait 15 to 30 days for response from Finance Minister. In case of ni response during this time limit or negative response, we should approach Hon'ble Prime Minister. In case of no response or negative response from Hon'ble Prime Minister also, we should go on hunger strike, Gherao to IBA Chairman & various other independent agitation programme. If necessary, we can take support from Federation of Association of Senior Citizens. Excessive dependency on UFBU to be strictly avoided, because UFBU is having proven record of backstabbing retirees. We have to continue our independent agitation till either we succeed or departs from this world. But, battle should not end only by writing this type of letter & then take a long sleep.
Chandrasekaran V
Mar 14, 2019, 6:20:39 AM3/14/19
to bankpe...@googlegroups.com
WHEN IT WAS SENT ? WHAT IS THE DATE OF THIS LETTER ?
Shrinivas Parkar
Mar 14, 2019, 6:20:41 AM3/14/19
to bankpe...@googlegroups.com
If AIBRF & CBPRO are seriously interested, I am having some humble suggestions. Upgradation in RBI became possible since RBI Governor had recommended the same to the Government. In our case IBA is having negative attitude towards retirees. We have first to target IBA to change its arbitrary Policy & adamant attitude as follows. In 2004, IBA informed Retirees Association that it is not policy of IBA to discuss issues of retirees with Association of Retirees. This is totally arbitrary & self-declared policy of IBA and is not supported by any law. We have first to target this policy of IBA so that retirees issues are discussed & settled with representatives of retirees only. For this purpose, we have to make strong agitation before the office of IBA in Mumbai. This may include Dharane, long March, Gerao to IBA Chairman etc. If necessary, we can take support from militant political parties in Mumbai. In Mumbai 50% of Award staff are members of AIBEA's rival union, namely SLS, ( Branch of militant political party in Mumbai, i.e. Shivsena). SLS always take stand opposite that of AIBEA. If IBA still continues to be adamant, we have to approach Hon'ble Prime Minister or Hon'ble Finance Minister for appointment of separate committe/ commission to look into matter of issues of retirees. Still unsuccessful, we have to initiate hunger strike as done by Mahatma Gandhi.Just writing casual letter occassionally is of no use is not going to solve the problem, because Hon'ble Finance Minister will forward this letter to IBA & then everybody will take long sleep. I hope AIBRF & CBPRO will seriously consider my humble suggestion.
mohan p
Mar 14, 2019, 6:34:29 AM3/14/19
to bankpensioner
Letter addressed by AIBRF and CBPRO to FM, is dt 12.3.19
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