MY DEAR FRIENDS, MY APPREHENSIONS AS TO THE TRANSPARENCY OF THE PENSION CORPUS BY THE BANKS IS MANIFESTED BEYOND DOUBT...... I APPEND HERE BELOW THE RELEVANT EXTRACT OF THE CHARTER OF DEMANDS SUBMITTED BY "AIBRF" WHICH SPEAKS BY ITSELF..... THEREFORE, FRIENDS, LET US NOT REST .... LEST WE WILL AGAIN "MIS THE BUS" REACH OUT YOUR DEAR COLLEAGUES WHO ARE YET TO SIGN AND JOIN THE MISSION IN OUR COLLECTIVE COMMISSION....... https://www.change.org/p/hon-ble-prime-minister-of-india-sri-narendra-modi-plight-of-the-bank-retirees-urgency-to-constitute-banking-pay-commission QUOTE: ALL INDIA BANK RETIREES FEDERATION MANAGEMENT OF PENSION FUNDS (a) In public sector banks, pension funds have been created as per provisions of pension regulations. Combined corpus in pension funds in all banks put together runs in to more than one lakh crores These pension funds are managed and administered by trusts created in each bank. (b) One of the critical factors for smooth running of pension scheme in banks is efficient management of pension funds involving huge outlay. (c) AIBRF has noticed following area of concern in management of the pension funds. ALL INDIA BANK RETIREES’ FEDERATION (REGD.) (i) In many banks, it is seen that trusts set up for management of pension funds are not registered under any law which reduces their accountability. (ii) Each pension fund trust has its own investment policy for deployment of funds. Accordingly, each bank takes investment decisions for deployment of pension funds. Under this situation benefits of bulk investment are normally lost affecting yield adversely. It may be seen that yield varies from 100 basis points to 150 basis points from one bank to another. On combined fund of more than 1 lakh crores, 100 basis points reduction in yield reduces income by about Rs. 1000 crores. No pension trust has full time professional fund managers. (III) It is seen that In many banks, there is tendency to invest large amount of pension funds in its own term deposit schemes that too for short duration term deposits to suit bank management priorities It also affects yield adversely. This is happening because of absence of uniform investment policy at the industry level. (Iv) It is reported that many banks have not yet fully contributed required additional funds for implementing Special VRS 2000 which provided pension benefits from date of retirement to VRS optees. (V) One more pension option was given to serving employees and retirees in 2010. As per the settlement banks had to contribute additional amount to pension funds to meet pension liability for new members. However, RBI permitted to amortize additional liability and pay the amount in 5 installments. There are reports that many banks have failed to meet the liability as per the scheme possibly because of their poor performance during this period. This has put unwarranted strain on pension funds. (vi) It is seen from audited accounts of some banks that they are transferring amounts from pension funds to the bank’s profit and loss account in the name of excess provisions possibly to augment their profitability. This is very serious matter. ALL INDIA BANK RETIREES’ FEDERATION (REGD.) (vii) It is seen that Quality of annual actuary reports to determine pension liability in many case is not up to the mark and in objective manner and rather influenced by management stand. Further banks also do not provide full amount toward pension funds as per the actuary report in many cases. In view of the above , AIBRF demands (a) CAG audit should be carried out of pension trusts of public sector banks. Necessary action should be taken based on CAG report to streamline functioning of pension funds. (b) There should be uniform investment policy at industry level to invest pension funds. (c) Professional fund manager should be appointed at the industry level for investment of pension funds above certain limits. (d) Retiree representatives should be appointed in pension trust. (e) Banks should be asked to register pension funds under appropriate law in variably in all cases. UNQUOTE: