I am reproducing a mail received in bankpensioner website about pension funds which is very crystal clear that the pension funds are sufficient  to cover pension updation to bank retirees.

1.   Working of position of Pension fund with above facts and assumption is shown in Table A.

2.   Working of position of Pension fund with updation with average rise of 22% in the year 2020 and further 15% rise after every 5 years is shown in Table B.

3.   Average 22% rise means (i) 15% rise to retirees before the year 2020, (ii)17.50% rise to retirees before the year 2015, (iii)21% rise to retirees before the year 2010, (iv)24.50% rise to retirees before the year 2005, and (v)28% rise to retirees before the year 2000.  

Conclusion:-

1.   From Table A, it is clear that with normal rise of DA, huge surplus of Rs.1,95,022 crores in pension fund will be available with the Banks in the year 2033. This surplus is many times more than the funds required for payment of pension to the pensioners surviving after the year 2033.  

2.   From Table B, it is clear that even periodic updation as above is granted, present funds are sufficient upto the end of year 2033, when most of the Pensioners have said good bye to this world. The surplus funds available of the balance of pensioners died before the year 2033, will be available for disbursement of pension to the pensioners surviving after the year 2033.

Thus, the contention of IBA that Pension funds are not sufficient for up-gradation, is false. On the contrary, Banks would not be required to contribute anything in present as well as in subsequent BPS for upgradation of Pension. If the Banks contribute something, more liberal upgradation may be possible.

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