PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

[Debasish Mukherjee]

It has been clearly proved that the PSU Banks pension corpus has been siphoned off and illegally diverted towards writing off of NPA A/Cs with the consent from Finance ministry and PMO and the UFBU even the leaders of retiree Association leaders also agreed to this illegal acts against gratifications to the leaders by the Banks to keep their voice shut. Now the Finance ministry as also the UFBU and retiree Association leaders are in a very embarrassing position which compelled the F.M. and MOS, Finance to issue false and fabricated statements on updation stating pension regulation did not have provision of updation and Bank pensioners pension is disbursed from revenue earnings of the Banks as also other fabricated versions. At the same time all the UFBU constituents and leaders of the retiree Associations are maintaining silence as because they have no face to meet the retirees and came to know for certain that the retirees will have to continue without updation and suffer since pension corpus with the Banks have become nil. 

Debasish Mukherjee,

mumb...@rediffmail.com



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[Debasish Mukherjee]

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[Kalyanasundaram Subramaniam]

Banks are maintaining pension corpus fund and this was originally started with the funds transferred from PF Account of employees who opted for pension. 

The funds get monthly addition out of recovery and investment return. The funds get debited for the pension paid every month. 

At the end of every year, based on actuary valuation, enough balance is maintained. Actuary estimation of balance to be kept depends on various factors like mortality rate, rate of return in future, future expected increase in salary structure etc. If the corpus fund is less than the estimation, then Bank has to transfer funds from P&L Account. If the corpus fund is having surplus, the bank may take it back to P&L account. When the banks accounts are audited, the auditors have to certify that pension fund is properly maintained and covers future liability. 

What is illegal in this? Where is the question of siphoning off pension fund here? Let us not make sweeping remarks. 

Regards.

S Kalyanasundaram

[JSOMA SHEKARA]

This is just my opinion.

Pension fund is created for the specific purpose of paying pension to pensioners of PSU Banks. It is the responsibility of the Individual Banks to provide funds to such funds whenever required as stipulated in pension regulations. Such provision is made from revenues only.

Utilizing such funds for any other purpose against stipulations of Pension Regulations amounts to embezzlement of funds. I do not think responsible central ministers will be party to such criminal act.

Further what will banks gain by such diversion of funds? In the end banks only have to provide funds for paying pension from revenues.

In 2009 SC passed a verdict directing Bank to pay 5 years benefit arrears.

In 2018 again SC passed verdict in case of 1616-1684 case and 5 years benefit for SBM and other associate Banks pensioners.

Banks had to pay thousands of crores arrears at a time. But they provided funds without any difficulty.

In case of need whether for updation, 100% DA or any other matter banks will provide funds.

Our updation issue is no way connected to position of pension funds.

Retirees are victims of faulty BPS System

BPS is also labelled as collective bargaining.

Govt has recognized BPS system and has given authority to negotiate wages and Pension issues to IBA and UFBU. If both iBA and UFBU negotiate  updation issue and send proposal DFS may consider it.

Problem lies here.

Though we call it collective bargaining major decisions impacting lifetime pension benefits of pensioners are taken at whims and fancies of two GS.

Who gave authority to two GS to agree for converting Basic pay as Special allowance and then agree that this does not qualify for pension?

Have they consulted retiree associations before taking such decisions?

IBA may make impossible demands. How can UFBU agree such illegal and unethical proposals? Who is cooperating with IBA in the dubious act of hiding cost data for 10 years? It is open secret that AIBRF is puppet of AIBEA and AIPPARC is puppet of AIBOC.  Instead of meeting MPs AIBRF and AIBPARC can denmand their own leaders to approach IBA andspped up sending proposal to DFS? Why there is no single letter from these retiree associations to AIBOC and AIBEA to follow up matter and just reproducing crculars of UFBU?

Whatever benefits pensioners received so far through court verdict came because of efforts of Sri.C.N.Prasad, Sri.Palani and others, Mohandas&others, Sri.D.S.Murthy of Syn Bank and other pensioners of Canara Bank and Vijya Bank etc.

AIBRF was involved in 100% DA case and it was utter failure.

Pensioners are not getting benefit of updation because UFBU leaders and Retiree associations are colluding with IBA and stalling any progress in updation.

In RBI employees Unions are adopting genuine trade union practices and cooperating with and consulting all employees and pensioners and achieving success one by one.

Where as we are boasting of collective bargaining but getting benefits snatched one by one and approaching judiciary for help.

Only solution is DFS should appoint a committee in the place of present BPS to look into issues of pensioners.

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[Nagaraju Kakani]

Sairam, In the interest of Pensioners ask the Bank Managements to submit the information under RTI. 

Nagaraju Kakani, 

BOI RETIREE, 

Nallagandla, Hyderabad  500019.

[Sridhar Mandyam]

Where it is proved pension fubd has been siphoned off?. Can you pl furnish reference?

On Thu, Feb 18, 2021, 09:53 'Debasish Mukherjee' via bankpensioner <bankpe...@googlegroups.com> wrote:

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[NSS]

Friends

It is a matter of serious concern that very grave allegations are being made against all including the Honourable Prime Minister and Finance Minister.  Such allegations should not be made without concrete proof.  Actuarial valuations are done to arrive at the funds required  to be maintained in the Pension Fund and the valuation as well as the funds maintained  are Audited and reported to the Govt. by the Statutory Auditors every year. These details are published by all the banks in the Annual Reports. If any adverse comments by Auditors are found in the Annual Reports, the same may be  brought to the notice of the members.  Unfounded allegations will not help us in any way. On the other hand, they may  adversely affect our cause.

It is also informed that Criminal cases have been filed and the outcome of the cases will lead to the fulfillment of our demands. In criminal cases only the guilt or innocence of the accused are decided and not the rights and liabilities of parties. Criminal cases will not get us updation etc.

Regards

N.Sankarasubramanian  

[Shrinivas Parkar]

Till present, it might be compulsion for Retirees Association to depend on Unions/ Associations of Working Class, because IBA was adopting Adamant and Arbitrary self-declared Policy of not discussing Issues of Retirees with Association of Retirees. Due to lack of Government Support, it may be possible that Retirees Associations could not do anything. But now the situation is changed. Hon'ble Finance Minister Respected Nirmalaji Madam has come in full support of Bank Retirees. Hon'ble  Prime Minister also may have support to Bank Retirees. Taking advantage of favourable situation, Retirees Associations have to leave their present submissive attitude and have to aggressively approach IBA asking IBA to discuss the Updation Proposal with Representatives of Retirees and forward the same to Finance Ministry immediately. If IBA Chairman remain adamant, Retirees Association have to report behaviour of IBA Chairman to Hon'ble Finance Minister, for taking necessary action. Still if Retirees Association continue to depend on UFBU, there may be some other reason for the same, which is not known to me.

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[LakshmanRao Kantamsetti]

Apart from punishing the guilty 

The delay of 17years or so in presenting in parliament  from the date of gazette notification ot cannot be made law and cannot be implemented 

The petition seems to have  above two aspects 

The petitioner is well versed in law 

This comes under 

Organized crime 

DFS  and IBA  (  no PM or FM ) 

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[LakshmanRao Kantamsetti]

Pension fund generates income 

Pension and family pension are paid from generated income . 

We have been hearing that this is used for purposes other than pension payment .

For payment under golden shake hand 

And a few more purposes 

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[Ramanathan Venkateswaran]

Excellent analysis Somashekarji.Only time and patience can solve this. R Venkateswaran CB SVRS 2001

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[Mani B]

Pension fund , as per ,EPR 1995, provides for credits by the bank for any shortfall, if any, and permitted only debits relating to payment of all types of pensions and there is no provision for debits in the name of excess provision. If at all there is any excess provision that has to be adjusted only in the next year's provision. STRUCTLY NO DEBIT CAN BE MADE FROM PENSION FUND FOR ANY PURPOSE OTHER THAN PENSION DEBITS. If any such extraneous debits made are noticed it will tantamount to breach of trust and will be regarded as an act of crime under IPC and the abetters n committers can be prosecuted.

But, how to find out such deviations?

Bala

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[Ramesh Sehgal]

Dear Sri Debasish Mukherjee,

An RTI can be filed to know the Pension Corpus of respective banks as on 31.03.2018, 31.03.2019 and 31.03.2020 to know the diversion of pension corpus to NPA Accounts of the banks.

Regards.

Ramesh Sehgal

91-9990217028

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From: 'Debasish Mukherjee' via bankpensioner <bankpe...@googlegroups.com>

To: bankpensioner <bankpe...@googlegroups.com>

Sent: Thursday, 18 February, 2021, 10:12:47 am IST

Subject: bankpensioner Fw: PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

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From: "Debasish Mukherjee"<mumb...@rediffmail.com>
Sent: Thu, 18 Feb 2021 01:10:46 GMT+0530
To: "bankpensioner"<bankpe...@googlegroups.com>
Subject: PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

It has been clearly proved that the PSU Banks pension corpus has been siphoned off and illegally diverted towards writing off of NPA A/Cs with the consent from Finance ministry and PMO and the UFBU even the leaders of retiree Association leaders also agreed to this illegal acts against gratifications to the leaders by the Banks to keep their voice shut. Now the Finance ministry as also the UFBU and retiree Association leaders are in a very embarrassing position which compelled the F.M. and MOS, Finance to issue false and fabricated statements on updation stating pension regulation did not have provision of updation and Bank pensioners pension is disbursed from revenue earnings of the Banks as also other fabricated versions. At the same time all the UFBU constituents and leaders of the retiree Associations are maintaining silence as because they have no face to meet the retirees and came to know for certain that the retirees will have to continue without updation and suffer since pension corpus with the Banks have become nil. 

Debasish Mukherjee,

mumb...@rediffmail.com



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[Mani B]

Thus the relationship ship of a pensioner with pension fund is coexisting and it is inseperable till the pensioner or the fund cease to exist.

Bala

On Thu 18 Feb, 2021, 23:26 Mani B, <mani...@gmail.com> wrote:

Many people conveniently forgotten about pensioners contributing to pension fund, after retirement, like contributed by transferring their CPF portion in 1995 and in 2010. 

How? Let us see.

All pensioners who survive 10 years after retirement / super annuation contribute their commutation portion to next five years since recovery of commutation in any case is fully recovered in 9 1/2 years (approx). 

People may argue that what about the cases of deceased within 10 years. In that cases banks will be paying only a maximum of 30% of LPD only and that 20% will cover the unserviced commutation return. 

So not only in-service employees but also pensioners do contribute to pension fund till their life and there after too.

So, pension fund will be a growing fund only and has  no reason for a shortfall / depletion in the fund for making revisions/updations periodically, unless there is any breach of trust incidences are wantenly created by the perpetrators. If at all any breach of trust sprout out the managers of the fund are to be put behind the bars as per IPC.

Bala

[Mani B]

Thus each and every pensioner has got every right to claim and get a copy of statement of pension account with auditor's certificate, like PF statement (individual) was given while in service.rt us all first start calling for the account statements with auditor's note and then we can make out and enlist the wrongdoings , if any, record wise and think of further corrective steps. Without no details on our hand let us not make any sweeping remarks adversly on the banks.

Bala

[Mani B]

Many people conveniently forgotten about pensioners contributing to pension fund, after retirement, like contributed by transferring their CPF portion in 1995 and in 2010. 

How? Let us see.

All pensioners who survive 10 years after retirement / super annuation contribute their commutation portion to next five years since recovery of commutation in any case is fully recovered in 9 1/2 years (approx). 

People may argue that what about the cases of deceased within 10 years. In that cases banks will be paying only a maximum of 30% of LPD only and that 20% will cover the unserviced commutation return. 

So not only in-service employees but also pensioners do contribute to pension fund till their life and there after too.

So, pension fund will be a growing fund only and has  no reason for a shortfall / depletion in the fund for making revisions/updations periodically, unless there is any breach of trust incidences are wantenly created by the perpetrators. If at all any breach of trust sprout out the managers of the fund are to be put behind the bars as per IPC.

Bala

On Thu 18 Feb, 2021, 23:06 Mani B, <mani...@gmail.com> wrote:

[LakshmanRao Kantamsetti]

Yes 

One  bank pensioner who is well versed with law made the petition after establishing  the facts . The case is posted to march 10th. Let us wait and watch. 

To view this discussion on the web visit https://groups.google.com/d/msgid/bankpensioner/CAJR4tp%2Bw%3DP%3DXrLugdF215E5%2BBJ_zYhrqGg64JoB4MgJ8O_V2wg%40mail.gmail.com.

[Kalyanasundaram Subramaniam]

Clause 11 of the Regulation provides

The Bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund every financial year, on the 31st day of March, and make such additional annual contributions to the Fund as may be required to secure payment of the benefits under these regulations:

Clause 13 provides

The payment of benefits by the trust shall be administered for grant of pensionary benefits to the employees of the Bank or the family pension to the families of the deceased employees of the Bank.

I do not find any prohibition to transfer back excess funds available in the pension fund to the banks P&L Account. If shortfall has to be provided by the bank out of its P&L, then the excess reversal should also be permitted. Is it not?

S Kalyanasundaram

[LakshmanRao Kantamsetti]

Yes 

The fund is not properly protected or taken care of. 

Hence one bank pensioner well versed with law filed a case in 2018. 

Now the case has been posted to march 10th. 

Let us wait and watch. 

There is no ethics in many spheres of life as you are aware. 

Scams  frauds  cheating 

Selfishness of man is getting multiplied. 

Just sharing my mind. 

KLRao

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[LakshmanRao Kantamsetti]

It is established 

The account being debited for other than pension payment. Hence the case filed. 

On Fri, Feb 19, 2021, 09:38 Mani B <mani...@gmail.com> wrote:

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[Sridhar Mandyam]

How much is our, pre 2002 retiree's contribution.  How much income our contribution generate? 

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[Debasish Mukherjee]

Mr.Kalyanasundaram, pls.recollect discussions, replies,correspondences the UFBU had with the IBA since Xth BPS in 2015. First the IBA straigtway rejected updation of pension when first raised by UFBU at the conclusion of xth BPS when signed joint record note stating the Banks have no obligation towards the retirees and the UFBU did not raise any objection nor the UFBU did pursue with the IBA nor even thought it necessary to take legal recourse against the IBA for the IBA version in the joint record note. Since after xth BPS many a times whenever the retirees raised updation issue either with the UFBU or IBA both more or less informed the retirees sometime Banks have no required funds for updation, sometime there is no provision of updation in the regulations and after 2017 the IBA continued different versions sometime stated 95,000 crores required for updation next came further down to 42000 crores and every time added the Banks cannot shoulder this financial burden even for Rs.42000 crores. UFBU leaders also echoed IBA version and were never willing nor called for any agitational programme for the cause of the retirees. Most surprising part in spite of knowing well the provision of updation existed vide regulation 12 in the original agreement dt.29.10.1993 which AIBEA itself signed AIBEA leaders maintained stark silence and did not oppose whenever the IBA or finance ministry stated non existant of provision of updation. Even at present on 02.02.2021when the F.M. made the similar statement replying to a member in R.S. Particularly knowing well that the regulation 35(1) was already amended on 30.11.2002 and covered all the retirees for updation in addition to retirees of 1986 & 1987 UFBU did not raise voice opposing the F.M. Incidentally I want to state here that the scanned copy of original agreement dt.29.10.1993 was actually sent to me by none other than AIBEA President Rajen Nagar sometime in 2019 when we this blog members discussed on this point.

As regards your objection of my view on siphoning off of pension corpus by diverting and misutilised for cleaning Balance sheets in writing off of NPA funds even though Balance sheets of the Banks shown funds which have been certified by the Auditors I strongly stand on my observation as a dangerous trend of manipulation of A/Cs and Balance sheets are published by many corporates which practice is also followed by Banks. Such manipulations can only be detected if permitted to access of pre published/Audited Balance sheets i.e. Balance sheets prepared before appropriation/provisions. The way India's financial sector is administered since 2016 common apolitical citizens have reason to be concerned. I had personal discussions with a number of R.B.I. empaneled Statutory Bank Auditors who are assigned Statutory  Audit of Banks by R.B.I. confirmed that such a practice exist and the Auditors have to certify any such proposal by the Banks & R.B.I. I have recorded such discussions with those auditors and will produce in the courts in case of need.

Debasish Mukherjee.

Sent from RediffmailNG on Androidecourse From: Kalyanasundaram Subramaniam <1952...@gmail.com> Sent: Thu, 18 Feb 2021 16:09:15 GMT+0530 To: bankpensioner <bankpe...@googlegroups.com> Subject: bankpensioner PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs. Banks are maintaining pension corpus fund and this was originally started with the funds transferred from PF Account of employees who opted for pension.

The funds get monthly addition out of recovery and investment return. The funds get debited for the pension paid every month.

At the end of every year, based on actuary valuation, enough balance is maintained. Actuary estimation of balance to be kept depends on various factors like mortality rate, rate of return in future, future expected increase in salary structure etc. If the corpus fund is less than the estimation, then Bank has to transfer funds from P&L Account. If the corpus fund is having surplus, the bank may take it back to P&L account. When the banks accounts are audited, the auditors have to certify that pension fund is properly maintained and covers future liability.

What is illegal in this? Where is the question of siphoning off pension fund here? Let us not make sweeping remarks.

Regards.

S Kalyanasundaram

On Thursday, February 18, 2021 at 9:53:37 AM UTC+5:30 Debasish Mukherjee wrote:

It has been clearly proved that the PSU Banks pension corpus has been siphoned off and illegally diverted towards writing off of NPA A/Cs with the consent from Finance ministry and PMO and the UFBU even the leaders of retiree Association leaders also agreed to this illegal acts against gratifications to the leaders by the Banks to keep their voice shut. Now the Finance ministry as also the UFBU and retiree Association leaders are in a very embarrassing position which compelled the F.M. and MOS, Finance to issue false and fabricated statements on updation stating pension regulation did not have provision of updation and Bank pensioners pension is disbursed from revenue earnings of the Banks as also other fabricated versions. At the same time all the UFBU constituents and leaders of the retiree Associations are maintaining silence as because they have no face to meet the retirees and came to know for certain that the retirees will have to continue without updation and suffer since pension corpus with the Banks have become nil.

Debasish Mukherjee,

mumb...@rediffmail.com Sent from RediffmailNG on Android

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[LakshmanRao Kantamsetti]

No idea .

I just shared a petition made by one bank pensioner as I'know. 

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[Debasish Mukherjee]

Logically it is correct. But whether any excess payment is actually made by the Banks in settling/payment of pension or pensionery benefits to the retirees who verified? Actuaries or Auditors submit reports and certificates as per statements or figures presented to them by the Banks authorities. Digitisation and internet mode of transactions and services have many advantages and manipulating of A/Cs and records. Though as per rule Pension trusts should be constituted from Banks, employees and one from independent as trustees. Even the trusts exist trustees particularly employee and independent trustees rarely scrutinise records and just sign whatever Banks nominees present. So is certified  by the Auditors and Actuaries. From the statements published by RBI in 2016 & 2017 Pension corpus of the Banks were about Rs.2•29 lacs crores in 2017(March) with an average annual surplus of Rs.33,000=00 crores after infusing by the Banks and deductions towards pension and pensionery benefits. From the statement it was also evident that only 3 or 4 Banks had negative pension corpus and only those Banks might had to transfer from Pension corpus to Balance sheet though that can be treated illegal/unethical acts. Mr.Kalyanasundaram when many a times you quoted from Indian Labour Acts or tribunal laws how could you say that if the Banks have to transfer from revenue heads to pension corpus Banks can also transfer from pension corpus to Banks revenue heads. This has not permitted in the Pension Act. 

Debasish Mukherjee.

Sent from RediffmailNG on Android From: Kalyanasundaram Subramaniam <1952...@gmail.com> Sent: Fri, 19 Feb 2021 15:55:31 GMT+0530 To: bankpensioner <bankpe...@googlegroups.com> Subject: Re: bankpensioner PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

Clause 11 of the Regulation provides

The Bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund every financial year, on the 31st day of March, and make such additional annual contributions to the Fund as may be required to secure payment of the benefits under these regulations:

Clause 13 provides

The payment of benefits by the trust shall be administered for grant of pensionary benefits to the employees of the Bank or the family pension to the families of the deceased employees of the Bank.

I do not find any prohibition to transfer back excess funds available in the pension fund to the banks P&L Account. If shortfall has to be provided by the bank out of its P&L, then the excess reversal should also be permitted. Is it not?

S Kalyanasundaram

On Friday, February 19, 2021 at 9:36:54 AM UTC+5:30 mani...@gmail.com wrote:

Pension fund , as per ,EPR 1995, provides for credits by the bank for any shortfall, if any, and permitted only debits relating to payment of all types of pensions and there is no provision for debits in the name of excess provision. If at all there is any excess provision that has to be adjusted only in the next year's provision. STRUCTLY NO DEBIT CAN BE MADE FROM PENSION FUND FOR ANY PURPOSE OTHER THAN PENSION DEBITS. If any such extraneous debits made are noticed it will tantamount to breach of trust and will be regarded as an act of crime under IPC and the abetters n committers can be prosecuted.

But, how to find out such deviations?

Bala

On Thu 18 Feb, 2021, 16:09 Kalyanasundaram Subramaniam, <1952...@gmail.com> wrote:

Banks are maintaining pension corpus fund and this was originally started with the funds transferred from PF Account of employees who opted for pension.

The funds get monthly addition out of recovery and investment return. The funds get debited for the pension paid every month.

At the end of every year, based on actuary valuation, enough balance is maintained. Actuary estimation of balance to be kept depends on various factors like mortality rate, rate of return in future, future expected increase in salary structure etc. If the corpus fund is less than the estimation, then Bank has to transfer funds from P&L Account. If the corpus fund is having surplus, the bank may take it back to P&L account. When the banks accounts are audited, the auditors have to certify that pension fund is properly maintained and covers future liability.

What is illegal in this? Where is the question of siphoning off pension fund here? Let us not make sweeping remarks.

Regards.

S Kalyanasundaram

On Thursday, February 18, 2021 at 9:53:37 AM UTC+5:30 Debasish Mukherjee wrote:

It has been clearly proved that the PSU Banks pension corpus has been siphoned off and illegally diverted towards writing off of NPA A/Cs with the consent from Finance ministry and PMO and the UFBU even the leaders of retiree Association leaders also agreed to this illegal acts against gratifications to the leaders by the Banks to keep their voice shut. Now the Finance ministry as also the UFBU and retiree Association leaders are in a very embarrassing position which compelled the F.M. and MOS, Finance to issue false and fabricated statements on updation stating pension regulation did not have provision of updation and Bank pensioners pension is disbursed from revenue earnings of the Banks as also other fabricated versions. At the same time all the UFBU constituents and leaders of the retiree Associations are maintaining silence as because they have no face to meet the retirees and came to know for certain that the retirees will have to continue without updation and suffer since pension corpus with the Banks have become nil.

Debasish Mukherjee,

mumb...@rediffmail.com Sent from RediffmailNG on Android

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[Srirama Murti]

thank you Shri Shankara Subramanian garu for your clarity in the matter.

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[Debasish Mukherjee]

Sent from RediffmailNG on Android

From: "Debasish Mukherjee"<mumb...@rediffmail.com>
Sent: Fri, 19 Feb 2021 19:00:16 GMT+0530
To: "bankpe...@googlegroups.com"<bankpe...@googlegroups.com>
Subject: Re: bankpensioner PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

Mr.Kalyanasundaram, pls.recollect discussions, replies,correspondences the UFBU had with the IBA since Xth BPS in 2015. First the IBA straigtway rejected updation of pension when first raised by UFBU at the conclusion of xth BPS when signed joint record note stating the Banks have no obligation towards the retirees and the UFBU did not raise any objection nor the UFBU did pursue with the IBA nor even thought it necessary to take legal recourse against the IBA for the IBA version in the joint record note. Since after xth BPS many a times whenever the retirees raised updation issue either with the UFBU or IBA both more or less informed the retirees sometime Banks have no required funds for updation, sometime there is no provision of updation in the regulations and after 2017 the IBA continued different versions sometime stated 95,000 crores required for updation next came further down to 42000 crores and every time added the Banks cannot shoulder this financial burden even for Rs.42000 crores. UFBU leaders also echoed IBA version and were never willing nor called for any agitational programme for the cause of the retirees. Most surprising part in spite of knowing well the provision of updation existed vide regulation 12 in the original agreement dt.29.10.1993 which AIBEA itself signed AIBEA leaders maintained stark silence and did not oppose whenever the IBA or finance ministry stated non existant of provision of updation. Even at present on 02.02.2021when the F.M. made the similar statement replying to a member in R.S. Particularly knowing well that the regulation 35(1) was already amended on 30.11.2002 and covered all the retirees for updation in addition to retirees of 1986 & 1987 UFBU did not raise voice opposing the F.M. Incidentally I want to state here that the scanned copy of original agreement dt.29.10.1993 was actually sent to me by none other than AIBEA President Rajen Nagar sometime in 2019 when we this blog members discussed on this point.

As regards your objection of my view on siphoning off of pension corpus by diverting and misutilised for cleaning Balance sheets in writing off of NPA funds even though Balance sheets of the Banks shown funds which have been certified by the Auditors I strongly stand on my observation as a dangerous trend of manipulation of A/Cs and Balance sheets are published by many corporates which practice is also followed by Banks. Such manipulations can only be detected if permitted to access of pre published/Audited Balance sheets i.e. Balance sheets prepared before appropriation/provisions. The way India's financial sector is administered since 2016 common apolitical citizens have reason to be concerned. I had personal discussions with a number of R.B.I. empaneled Statutory Bank Auditors who are assigned Statutory  Audit of Banks by R.B.I. confirmed that such a practice exist and the Auditors have to certify any such proposal by the Banks & R.B.I. I have recorded such discussions with those auditors and will produce in the courts in case of need.

Debasish Mukherjee.

Sent from RediffmailNG on Androidecourse From: Kalyanasundaram Subramaniam <1952...@gmail.com> Sent: Thu, 18 Feb 2021 16:09:15 GMT+0530 To: bankpensioner <bankpe...@googlegroups.com> Subject: bankpensioner PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs. Banks are maintaining pension corpus fund and this was originally started with the funds transferred from PF Account of employees who opted for pension.

The funds get monthly addition out of recovery and investment return. The funds get debited for the pension paid every month.

At the end of every year, based on actuary valuation, enough balance is maintained. Actuary estimation of balance to be kept depends on various factors like mortality rate, rate of return in future, future expected increase in salary structure etc. If the corpus fund is less than the estimation, then Bank has to transfer funds from P&L Account. If the corpus fund is having surplus, the bank may take it back to P&L account. When the banks accounts are audited, the auditors have to certify that pension fund is properly maintained and covers future liability.

What is illegal in this? Where is the question of siphoning off pension fund here? Let us not make sweeping remarks.

Regards.

S Kalyanasundaram

On Thursday, February 18, 2021 at 9:53:37 AM UTC+5:30 Debasish Mukherjee wrote:

It has been clearly proved that the PSU Banks pension corpus has been siphoned off and illegally diverted towards writing off of NPA A/Cs with the consent from Finance ministry and PMO and the UFBU even the leaders of retiree Association leaders also agreed to this illegal acts against gratifications to the leaders by the Banks to keep their voice shut. Now the Finance ministry as also the UFBU and retiree Association leaders are in a very embarrassing position which compelled the F.M. and MOS, Finance to issue false and fabricated statements on updation stating pension regulation did not have provision of updation and Bank pensioners pension is disbursed from revenue earnings of the Banks as also other fabricated versions. At the same time all the UFBU constituents and leaders of the retiree Associations are maintaining silence as because they have no face to meet the retirees and came to know for certain that the retirees will have to continue without updation and suffer since pension corpus with the Banks have become nil.

Debasish Mukherjee,

mumb...@rediffmail.com Sent from RediffmailNG on Android

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[Debasish Mukherjee]

Sent from RediffmailNG on Android




From: "Debasish Mukherjee"<mumb...@rediffmail.com>
Sent: Fri, 19 Feb 2021 19:37:16 GMT+0530
To: "bankpe...@googlegroups.com"<bankpe...@googlegroups.com>
Subject: Re: bankpensioner PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

Logically it is correct. But whether any excess payment is actually made by the Banks in settling/payment of pension or pensionery benefits to the retirees who verified? Actuaries or Auditors submit reports and certificates as per statements or figures presented to them by the Banks authorities. Digitisation and internet mode of transactions and services have many advantages and manipulating of A/Cs and records. Though as per rule Pension trusts should be constituted from Banks, employees and one from independent as trustees. Even the trusts exist trustees particularly employee and independent trustees rarely scrutinise records and just sign whatever Banks nominees present. So is certified  by the Auditors and Actuaries. From the statements published by RBI in 2016 & 2017 Pension corpus of the Banks were about Rs.2•29 lacs crores in 2017(March) with an average annual surplus of Rs.33,000=00 crores after infusing by the Banks and deductions towards pension and pensionery benefits. From the statement it was also evident that only 3 or 4 Banks had negative pension corpus and only those Banks might had to transfer from Pension corpus to Balance sheet though that can be treated illegal/unethical acts. Mr.Kalyanasundaram when many a times you quoted from Indian Labour Acts or tribunal laws how could you say that if the Banks have to transfer from revenue heads to pension corpus Banks can also transfer from pension corpus to Banks revenue heads. This has not permitted in the Pension Act. 

Debasish Mukherjee.

Sent from RediffmailNG on Android From: Kalyanasundaram Subramaniam <1952...@gmail.com> Sent: Fri, 19 Feb 2021 15:55:31 GMT+0530 To: bankpensioner <bankpe...@googlegroups.com> Subject: Re: bankpensioner PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

Clause 11 of the Regulation provides

The Bank shall cause an investigation to be made by an Actuary into the financial condition of the Fund every financial year, on the 31st day of March, and make such additional annual contributions to the Fund as may be required to secure payment of the benefits under these regulations:

Clause 13 provides

The payment of benefits by the trust shall be administered for grant of pensionary benefits to the employees of the Bank or the family pension to the families of the deceased employees of the Bank.

I do not find any prohibition to transfer back excess funds available in the pension fund to the banks P&L Account. If shortfall has to be provided by the bank out of its P&L, then the excess reversal should also be permitted. Is it not?

S Kalyanasundaram

On Friday, February 19, 2021 at 9:36:54 AM UTC+5:30 mani...@gmail.com wrote:

Pension fund , as per ,EPR 1995, provides for credits by the bank for any shortfall, if any, and permitted only debits relating to payment of all types of pensions and there is no provision for debits in the name of excess provision. If at all there is any excess provision that has to be adjusted only in the next year's provision. STRUCTLY NO DEBIT CAN BE MADE FROM PENSION FUND FOR ANY PURPOSE OTHER THAN PENSION DEBITS. If any such extraneous debits made are noticed it will tantamount to breach of trust and will be regarded as an act of crime under IPC and the abetters n committers can be prosecuted.

But, how to find out such deviations?

Bala

On Thu 18 Feb, 2021, 16:09 Kalyanasundaram Subramaniam, <1952...@gmail.com> wrote:

Banks are maintaining pension corpus fund and this was originally started with the funds transferred from PF Account of employees who opted for pension.

The funds get monthly addition out of recovery and investment return. The funds get debited for the pension paid every month.

At the end of every year, based on actuary valuation, enough balance is maintained. Actuary estimation of balance to be kept depends on various factors like mortality rate, rate of return in future, future expected increase in salary structure etc. If the corpus fund is less than the estimation, then Bank has to transfer funds from P&L Account. If the corpus fund is having surplus, the bank may take it back to P&L account. When the banks accounts are audited, the auditors have to certify that pension fund is properly maintained and covers future liability.

What is illegal in this? Where is the question of siphoning off pension fund here? Let us not make sweeping remarks.

Regards.

S Kalyanasundaram

On Thursday, February 18, 2021 at 9:53:37 AM UTC+5:30 Debasish Mukherjee wrote:

It has been clearly proved that the PSU Banks pension corpus has been siphoned off and illegally diverted towards writing off of NPA A/Cs with the consent from Finance ministry and PMO and the UFBU even the leaders of retiree Association leaders also agreed to this illegal acts against gratifications to the leaders by the Banks to keep their voice shut. Now the Finance ministry as also the UFBU and retiree Association leaders are in a very embarrassing position which compelled the F.M. and MOS, Finance to issue false and fabricated statements on updation stating pension regulation did not have provision of updation and Bank pensioners pension is disbursed from revenue earnings of the Banks as also other fabricated versions. At the same time all the UFBU constituents and leaders of the retiree Associations are maintaining silence as because they have no face to meet the retirees and came to know for certain that the retirees will have to continue without updation and suffer since pension corpus with the Banks have become nil.

Debasish Mukherjee,

mumb...@rediffmail.com Sent from RediffmailNG on Android

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[Kalyanasundaram Subramaniam]

If you have proof/evidence of misappropriation/siphoning of funds, then the right course open is to inform RBI,, Finance Ministry, CVC and SEBI. As Regulator RBI will act. As owner Finance Ministry will act. As part of GoI on vigilance role, CVC will act. As any manipulation is detrimental to the investors, SEBI will also act. You have another avenue to file a criminal case. 

But if you do not have any proof/evidence, there is no point in accusing all concerned and discussing it here.  If you strongly believe that something is wrong but you do not have any evidence, please gather  enough proof and then proceed. This can be the logical solution. 

Regarding signed agreement but not carried out the full contents in the Pension Regulation is a different matter. What is the course open here? The signatories can file a case that pension regulation should be altered correspondingly. For this they should be willing. Then when this case will be over? We can go on shout that pension regulation has been changed by the Banks (as directed by the Government). What is the use? This will not solve our problem. 

Our problem will be solved, the moment the Banks and Government are convinced that we deserve pension updation. I think this is possible now as RBI and NABARD are allowing pension revision and as FM is positive on this. Actuary calculation, working out funds required, modalities etc. can always be discussed and thrashed out. Who can help us in this? One is government (the big boss). Another one is established unions - They only have the right to negotiate today as per settled system. Retirees association can try to persuade these two mighty (GOI and UFBU). 

As far as legal course is concerned, it will be very time consuming. Many of us may not survive when the verdict comes. We do not know how far we will be successful in getting a favourable verdict. 

Regards.

S Kalyanasundaram 

[Kalyanasundaram Subramaniam]

We are governed by Pension Regulation only as adopted by our banks. 

The said regulation provides for maintenance of required corpus  fund as per actuary estimation. There cannot be any shortfall on this. There need not be excess also on this. 

As it has been discussed number of times, how much balance has to be maintained in the Pension fund is as estimated by the actuary and it is based on various parameters like present pensioners, future pensioners, expected family pensioners, rate of return, future likely accumulation, future wage revision, inflation, mortality rate etc. etc. This is a very complicated exercise done by actuary. 

If you say that there cannot be any debit in the Pension account for other than pension payment, please cite relevant rule/regulation/Act. If shortfall has to be provided by the banks, why excess cannot be written back?

How we are concerned with how much balance is maintained by banks in the pension fund? We should be paid pension as per agreed terms and how the banks maintain corpus fund for this is their problem, not ours. 

Regards.

S Kalyanasundaram 

[saradindu basu]

Dear Shri Kalyanasundaram, 

                                                 I also feel that we should get our pension regularly without any interruption irrespective of the health our pension fund. I feel that linking health of pension fund to payment of our pension and revision is not at all desirable. Rather it may harm retired Bankers' community in the long run. Maintaining good health of pension fund should neither be our concern or job. What to talk of pension fund, individual Bank's total health can be destroyed by a few fraudsters or wilful defaulters. Apart from it, we know about happening of global financial meltdowns which mainly affected Banks across the globe.

--Saradindu Basu.

---

From: bankpe...@googlegroups.com <bankpe...@googlegroups.com> on behalf of Kalyanasundaram Subramaniam <1952...@gmail.com>
Sent: Saturday, February 20, 2021 1:37 PM
To: bankpensioner <bankpe...@googlegroups.com>
Subject: Re: Fw: bankpensioner PSU BANKS MISUSED PENSION CORPUS IN WRITING OFF NPAs.

 

To view this discussion on the web visit https://groups.google.com/d/msgid/bankpensioner/ab9ca40f-68b2-4910-8096-3fd25ded5a78n%40googlegroups.com.

[saradindu basu]

Dear Shri Kalyanasundaram, 

                                                 I also feel that we should get our pension regularly without any interruption irrespective of the health our pension fund. I feel that linking health of pension fund to payment of our pension and revision is not at all desirable. Rather it may harm retired Bankers' community in the long run. Maintaining good health of pension fund should neither be our concern or job. What to talk of pension fund, individual Bank's total health can be destroyed by a few fraudsters or wilful defaulters. Apart from it, we know about happening of global financial meltdowns which mainly affected Banks across the globe.

--Saradindu Basu.

---

From: saradindu basu <saradin...@hotmail.com>
Sent: Monday, February 22, 2021 11:53 AM

[Ramarao Velagapudi]

absolutely right. That is the only way we, retired bank officers can responsibly post our opinions, not on hearsay.

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