MEMORANDUM

The Hon'ble Prime Minister of India:
The Hon'ble Home Minister of India:
The Hon'ble Finance Minister of India:

Respected Sir/ Madam,

Sub: Long Pending Crucial unresolved issues of Bank Pensioners and Retirees.

I beg to be excused for encroaching upon your valuable time over certain long pending grievances of Bank Pensioners with the fervent hope of getting redressal from the highest office held by Your Good Self. The Bank Pensioners and Retirees Organisation I belong to has drawn the attention of all the decision - making Authorities on a number of occasions but unfortunately the issues remain unresolved.

I may please be permitted to narrate in brief a few legitimate demands of the Bank Pensioners which have eluded resolution:

1. Updation of Pension - a case of Gross Discrimination shown only to Bank Pensioners:

   While the Government Pensioners' Basic Pension is Updated simultaneously with the implementation of every Pay Commission Recommendations and RBI Pensioners were granted Updation of Pension by the Government from 1st March 2019, We the unfortunate Bank Pensioners, are denied Updation despite the significant contributions made by us to uplift the trade and economy of the country for several decades including the days of turmoil of handling demonetisation and corona pandemic which are acknowledged and recognised by Your Good Self  and the Government. What is intriguing most is that the Bank Employees Pension Regulations - a Subordinate Legislation provides for Updation of Pension but inexplicably remains unimplemented for three decades without accountability. 

   * In other words, The Original Basic Pension of a Bank Retiree remains frozen from the time of Retirement upto the death of the pensioners and beyond his / her Family Pensioners. It does not undergo any upward revision at the time of each wage revision for the In-Service Employees and Officers of the Industry while the Government employees are favoured with two types of revisions – one as Updation linked with every pay commission and the other as up-gradation with getting older in age. The Bank Employees Pension, as per the Pension Settlement of 1993, is patterned on the Pension Schemes of the Government and RBI as Second Benefit only in lieu of Contributory Provident Fund.  The Bank Employees Pension Regulations, clearly state in Regulation 56 that: "In case of any doubt, in the matter of application of these Regulations, regard may be had to the corresponding provisions of Central Civil Service Rules,1972............."

   * The Bank Employees Pension is a Defined Benefit Scheme characterizing   the payment of Pension as per the provisions of Pension Regulations, which are Statutory in nature and lawfully enforceable notwithstanding the yield of the Corpus. There is a clearly spelt out provision in Regulation 35(1) - Appendix 1 with its amendment done in the year 2003 (duly notified in Government Gazette) that "Basic Pension and Additional Pension, wherever applicable, shall be updated as per formulae given in Appendix 1".

   * Whereas Updation of Pension is regularly done for Central Government pensioners simultaneously with the implementation of each Pay Commission Recommendations and whereas Government of India has already permitted RBI to implement Pension Updation for RBI Pensioners from 1st March, 2019, the same is irrationally being consistently denied by the IBA on one pretext or the other without having any sensitivity and logic to substantiate their standpoint. Because of this inhuman and grossly discriminatory treatment meted out to the Bank Pensioners, many Senior and Super Senior Citizens have left the world without getting their legitimate dues and a few lakhs are waiting to meet the same fate. Hence the necessity of this appeal to your GoodSelf.

   * The Hon'ble Supreme Court has held that Pension is a Deferred Wage and Wage Revision and Pension Revision are inseparable. It is imperative that Bank Pensioners should no longer be discriminated and they should be treated at par with Government and RBI Pensioners and we have high hopes on this Government. It is all the more incumbent on the part of Banks to implement Updation of Pension as per Pension Regulations. 

   * In view of the facts that The Hon'ble Supreme Court has ruled that Pension is a Deferred Wage and Wage Revision and Pension Revision are inseparable, that the  Pension Settlement/ Regulations are framed on the lines of Government and RBI Pensioners and that  there is a very Robust Pension Fund of more than Rs.4.27 lakh crore including SBI as on March 2024, all such factors provide a strong reason to implement Pension Updation as per the Bank Employees' Pension Regulations 1995 as granted to RBI Pensioners. 

2. Special Allowance not being reckoned for the purpose of calculation of Gratuity and computation of Pension for Retirees after 1st November, 2012 onwards:

   The Special Allowance which is uniformly, necessarily, and ordinarily paid to all the employees across the cadres is deemed Basic Pay in law and there has been specific verdict of the Apex Court that such allowances are to be computed for calculating the superannuation benefits. Several representations to all the decision-making Authorities are remaining unheard causing deprivation to a large number of Retirees in the Industry. Hence the cause of appeal arose.

3. Medical Insurance at affordable cost:

   The Retirees have given services to the Society and the Nation through the Banking Industry which is the most important vehicle of Economic Transformation. It is so acknowledged and recognised by none other than the Hon'ble Prime Minister and Finance Minister. Pensioners would therefore, reasonably expect that the Bank would bear the annual premium in full as it is also paid in the case of in-service Employees & Officers including Retired Board Level Appointees. Hence this compassionate Appeal.

4. Disparity in payment of Dearness Relief:

   The Pensioners of the Banking Industry are a homogeneous class and there cannot be an artificial division among themselves depending upon their dates of retirement. After the signing of the recent Bipartite Settlement/Joint Note on 08.03.2024, there has been a shifting of the Base year from 1960 to 2016 = 100 (CP Index). But this has been done for all those who retired from 01.11.2022 onwards whereas the old Base year has been retained for the Retirees of prior to the said date. As a result of this, again discrimination is shown in DA to the earlier Retirees subjecting them to get reduced DA and they are suffering for no fault on their part. This is also violation of Article 14 of the Constitution of the country which guarantees equality within a homogeneous group. Hence the cause of appeal arose.

5. Need for creation of a formal consultative forum for periodical exchange of views and redressal of the grievances of Bank Pensioners and Retirees at IBA level:

   The Chairman of the Parliamentary Standing Committee on Personnel and Public Grievances, Law and Justice, impressed upon the officials of MOF and IBA the requirement of Banks' looking into the grievances of the Retirees of the Banking Industry. In pursuance of the said recommendation, the Managing Committee of IBA in its meeting held on 23rd March, 2009 approved the decision of setting up grievance redressal forum at corporate level of each Bank and a circular to this effect was issued on 30th March, 2009. Under such circumstances, it goes without saying and imperative to set up a grievance redressal mechanism at the level of IBA where the Representatives of Apex Level Pensioners and Retirees Organisations will be called for discussion on their grievances.

6. Your Government believes in "Sabka Saath Sabka Vikas, Sabka Vishwas and Sabka Prayas”.  Bank Pensioners and Retirees should not be excluded and treated as an exception to this Avowed Objective. We request you to kindly look into our above submissions. 
7. While doing so we also request you to be considerate and sympathetic to those who are less than Nine Hundred in numbers and missed the OPTION for Pension AND GIVE THEM one more opportunity to opt for Pension as a very special case.

Apart from the above, we have other issues of importance which we have not mentioned here but we request the Government to sort out the same through Department of Financial Services and IBA. Hence this Appeal to Your GoodSelf. 

As a Very Responsive and Considerate Government headed by Your Good Self and Your very able Cabinet Colleagues viz., the Hon’ble Home Minister and Hon'ble Finance Minister, we are very certain that you will give Justice to us, as  Government of India in fact is the Principal Employer being the owner of the Banks and we the Pensioners and Retirees as Public Servants during our Service tenure implemented all the Policies  and Programmes of the Government. 

With kind regards,
Yours faithfully