Myself, as a resident and a Proud Voter in the Parliamentary Constituency you represent, like to encroach upon your valuable time by narrating in brief the pathetic plight of the Bank Pensioners. I appeal to you to kindly go through the same and if you are convinced with the rationale of my argument, you may kindly take up the issue with MOF, GOI for redressal of our grievances.
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For Pensioners of Public Sector Banks other than State Bank of India and several other Private Sector Banks which had been parties to the 1993 Pension Settlement, Bank Employees Pension Regulations (1995) is a Defined Benefit Pension Scheme. It is given to Bank Pensioners as Second Benefit only asking us to surrender our CPF as in the case of Government and RBI Pensioners. The payment of Pension is done as per rules laid down in the Said Statutory Bank Employees Pension Regulations making it a Statutory Obligation of the Banks to make payment of Pension as per the provisions of the Pension Regulations. In State Bank of India, Payment of Pension to retirees is in vogue as a Defined Benefit Pension Scheme since day one of its emergence from the womb of Imperial Bank of India i.e. from the year 1955. The Pension Rules in SBI was converted to 'Pension Regulation' through a Secondary legislation in the Parliament in the year 2014, making it a statutory obligation of the Bank to pay pension to its retirees. The Pension Regulations also provide for Statutory Contributions by the Banks to the Pension Fund of any Shortfall shown as per Annual Actuarial Estimation to ensure payment of Pension as per Pension Regulations. Such Statutory Contributions to the Pension Fund are charged to the Revenue account (Profit and Loss Account) of the Banks.
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You will be surprised to know that the original Basic Pension of the Bank Pensioner which is determined on the date of his retirement remains frozen and is never upwardly revised at the time of each Periodical Wage Settlement done in Banks at an interval of 5 years. For a Pensioner of the Central Government, the Pension is upwardly revised at the time of implementation of each Pay Commission. Further, improvement in Commutation Rules and Up-gradation of Pension Amount is also done to Government Pensioners but it is denied to the Bank Pensioners. The Pension Updation has been allowed in the Reserve Bank of India and NABARD by Government of India with effect from 1st March, 2019. Still, it is being consistently denied in the Banking Industry in a surreptitious way and on a clumsy pretext which has no material base.
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There is a clearly spelt out provision in Regulation 35(1) -- Appendix 1 of BEPR (1995) with its amendment done in the 2003 (duly notified in the Government Gazette) that "Basic Pension and Additional Pension, wherever applicable, shall be updated as per formulae (formulas) given in Appendix 1". In spite of such clear --cut codification in the statute, an inhuman and grossly discriminatory treatment is being meted out to the senior and the super senior citizens of the Banking Industry. The Hon'ble Supreme Court has held that Pension is a Deferred Wage and Wage Revision and Pension Revision are inseparable. At different points of time, the Hon'ble members of the Parliament have raised questions in this regard which have sometimes been marked as starred and un- starred questions. In reply to such questions (presumably prepared by the officials of DFS,MOF,GOI in consultation with the officials of IBA) , it has often been told in the Parliament that no such provision for Pension Updation exists in BEPR (1995). The Pensioners' organizations immediately sent letters to the Hon'ble Minister of Finance, MOS (Finance), the Secretary, Ministry of Finance and other authorities pointing out that it is a travesty of truth but no remedial action followed.
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Special Allowance as introduced during 10th Bipartite wage settlement not being reckoned for the purpose of calculation of superannuation benefit for Retirees after 1st November, 2012 onwards:
The Special Allowance which is universally, 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.
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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 recognized 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.
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Disparity in payment of Dearness Relief:
The Pensioners of the Banking Industry are a homogenous 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.
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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, its goes without saying and imperative to set up a Grievances Redressal Mechanism at the level of IBA where the Representatives of Apex Level Pensioners and Retirees Organizations will be called for discussion on their grievances.
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Very few of our Colleagues numbering less than 900 had unfortunately missed the Option of Pension. We earnestly request the Authorities to give them one last opportunity to opt for Pension with sympathy.
We thankfully remember the concern and care shown and the solemn assurance given by Smt. Nirmala Sitharamanji while addressing the 73rd Annual General Body Meeting of IBA that the Former Bank Employees grievances should be looked into and called upon the CEOs of Banks to treat the Pensioners and Retirees as members of the same family. Unfortunately, the Indian Banks' Association instead of responding to her call objectively are busy in negating her well -- intended Pronouncements about the issues of Bank Pensioners and Retirees.
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In regard to the Pension Corpus, it is robust and ever-increasing.
I shall consider it to be great favour if you kindly take up the above noted issues with MOF, GOI for redressal of our grievances and also kindly raise the issues in the Parliament giving Voice to the Bank Pensioners and Retirees who contributed immensely to the Transformation of Indian Banking Industry, Contributing to the Exceptional Growth Story of our Beloved Nation which has no Parallel in the World.