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SOME POINTS FOR DISCUSSION REGARDING PENSION PAYMENT TO BANK EMPLOYEES R

ETIRED MAINLY PRIOR TO 1.11.2002.


From the beginning neither IBA nor in-service employees/officers - unions/a
ssociations have shown any consideration or attention for the retired
employees, who have opted for pension.
While concluding settlements, (specifically prior to 1.11.2002) many discrepanci
es were left unsolved. To say, that they were not having knowledge about t
hem-may be a green lie. By arbitrarily fixing a cut of date for payment
of quantum of pension, gratuity amount etc. the retired employees have to
seek court intervention to get their grievances redressed. Again in the settl
ement which came into effect w.e.f. 1.11.97; instead of allowing pension
against the last 10 months salary drawn- an arbitrary clause was inc
luded reducing the merging points from 1684 to 1616. In effect this
affected all pensioners who had retired between 1.11.1997 to 31.10.2002.
As the amount deprived was huge, again some pensioners filed suits in ma
ny High Courts in India-. For each anomaly â arbitrarily created during sett
lements-pensioners have to seek legal intervention. Unless the highest
court in India give a judgment in employees favor- IBA would never l
isten to us .In getting a favorable judgment it may take a minimum of
10 to 15 years. Considering the fact that most of the retirees are Se
nior Citizens- it suggested that IBA should be forced to institute Tribu
nal at appropriated level to redress the grievances of pensioners.
In the 8th Settlement which came into effect from 1.11.2002 -100 per c
ent neutralization of DA was given effect w.e.f 1.5.2005 those who have
retired after 1.11.2002.. This arbitrarily fixing of DA formula has
created huge differences in the quantum of pension drawn by the earl
ier retirees. For Example officers retiring/retired at the 20th Stage in
the last 3 settlements are highlighted here.
1.11.97 to 31.10.02 1.11.02 to 31.1
0.07 1.11.07 to current.
DA formula Tapering DA 100% @0.18%
100% @ 0.15%
Basic Pay 13560 19
920 28100
FPA 380 620
900
TOTAL 13940 2
0540 29000
Pension 6970
10270 14500
Commutation 2323 3423
4833
Net Basic Pen 4647 684
7 9667
DA/3924 points 7688 7560
5916 (Aug 10)
Total 12335
14407 15583
With 100% DA 14014 14407
15583
Difference 1679
NIL -NIL- ( per month)
Note: The difference would be increasing with every increase in DA slabs.
Proportionate to the higher Basic Pension again, the variance would be very high
er.
In the 9th Settlement major portion of employees who have never opte
d for pension were offered another pension option â without settling the gr
ievances of earlier retirees. Thus the discriminations against earlier
retirees ( prior to 1.11.2002) continued in this settlement also. Whether
the actuaries have taken into account the difference in the amount of
pension payable for the earlier retirees- if we win all the cases.? Wh
ile IBA has agreed for huge outlay of funds to honor the 9th settleme
nt commitments, why they are not prepared to agree the rightful dues o
f earlier retirees.
In various settlements DA has been merged with Basic pay by taking in
to account different merger points. This has also affected the basic pensi
on at the time of fixation.
It is observed that IBA has taken legal opinions prior to implementation o
f 8th wage revision. This fact has been mentioned in their own circular. One
of the legal points referred was relating to anomalies in the merger
of DA to Basic in the previous settlement. That is regarding definition of
â payâ for the purpose of pension. At the time of reference cases relating to
this point were pending in various High Courts ( for arbitrarily fixati
on of Basic Pension by merging only 1616 points instead of 1684 points
).Knowing well that IBA cannot win the case through the back door they c
onceded this point w.e.f 1.5.2005 and paid the arrears of pension fr
om that date. But as the cases were filed before that date we have t
o get arrears from the date of retirement. IBA is conspicuously silent ab
out this matter. The question here is
Whether it would be possible for us to get the legal opinions obtain
ed by IBA( in this matter) through RTI act. If we could get the same a
ll our cases can made in our favour very easily.
Whether it would be possible to get one cadre one pension for bank employe
es ?
Even Central Pay commission has opined and insisted that there should
not be any different formula for payment of DA among the existing an
d already retired employees of Central Govt. staff. A recent judgemen
t in Rajasthan High Court ( Case: LIC Vs. Govt- regarding different
rate of DA for the recently retired employees and already retired
employees) , it has been decreed that there should not be any differenti
ation in the payment of DA.
In view of the above we should get 100% neutralisation DA for tho
se who have retired prior to 1.11.2002 and opted for pension. We shou
ld also get arrears of pension- for those who had retired between 1.
11.1997 and 31.10.2002 .
Please mail your suggestions and comments to v v.venkitaramani@gmail.com
Dated 28.8.2010.