"Threat is always dangerous than Execution " A sound philosophy in war climate - Let's hit the enemies with their own shoes.
MY DEAR FRIENDS
YOUR KIND REFERENCE IS INVITED TO MY EARLIER POST
UNDER THE CAPTION -
PETITION UPDATE:
MIS APPLICATION OF PENSION CORPUS FUNDS AT THE BEHEST OF DFS/ MOF/ GOI
In this regard, Our Learned friend Com. CN VENUGOPALAN has already taken up the following twin issues and is beng vigourusly followed up:
" [i] Whole time directors of the Bank are paid pensionary benifits as per instructions received form DFS
AND
[ii] Regarding Updation of Pension, we are yet to receive any information / instruction from DFS/ IBA and the same shall be implemented once communicated to us. "
In addition to the above, I am very happy to share with you all that another vallient Fighter viz. Com.R K VERMA followed the path along with Com. C N Venugopalan who has also given a NOTICE to the DFS/MOF as also to the Management Union Bank of India on the following issue- viz:
"PAYMENT OF PENSION TO WHOLE-TIME DIRECTORS IN BREACH OF TRUST AND BREACH OF PENSION REGULATIONS."
ON THE PREVIOUS DAY, COM. DOODH NADH HAD GIVEN NOTICE TO THE PUNJAB NATIONAL BANK MANAGEMENT ON THE VERY SAME LINES WHICH I HAVE ALREADY REPORTED.
NOW IT'S COM. RAJ KUMAR VERMA'S TURN TO FOLLOW THEIR SUIT.
MY HEARTY CONGRATULATIONS TO ALL THESE INDUVIDUAL ACTIVISITS FOR THEIR COURRAGE & CONVICTION.
CONTENTS ARE SELF-EXPLICIT
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No.221115 15th November, 2022
To
The Secretary [Financial Sector],
Government of India, Department of Financial Services,
Jeevan Deep Building, Parliament Street, New Delhi – 110 001
Dear Sir,
IMPERMISSIBLE AMENDMENTS CARRIED OUT TO UNION BANK OF INDIA [EMPLOYEES’] PENSION REGULATIONS, 1995
I retired from Union Bank of India and I am a subject of the Union Bank of India [Employees Pension Regulations, 1995 [Pension Regulations]. The Pension Regulations are framed by the Bank in exercise of powers conferred by the Banking Companies [Acquisition & Transfer of Undertakings] Act, 1970 [the Act]. In terms of section 19 [1] of the Act, the regulations are made by the Bank with your previous sanction only. The Act confers on the Board of the Bank, only powers to make regulations that are NOT INCONSISTENT with the Pension Scheme. It is noticed that while sanctioning amendments to the Pension Regulations, 1995 through the Union Bank of India [Employees]Pension [Amendment] Regulations, 2017 [Pension Amendment Regulations], regulations inconsistent with the Pension Scheme, which are prohibited in law, are sanctioned by you and notified in the Gazette of India dated 06.11.2017, after its adoption by the Board of the Bank, with a false averment that the Board of the Bank makes the regulations in exercise of powers conferred by the Act.
The amendments carried out, which are prohibited by the Act contained in the Pension Amendments Regulations, inter alia include the following which affect me directly and indirectly:—
Clause 3 of the notification amending regulation 3
The amendment brought through clause 3 was as below:—
As per regulation 3 [4], Pension Regulations were applicable to all employees who joined service of the Bank on or after the notified date. When the new proviso was substituted in the place of the pre-existing proviso, employees who joined service of the Bank after 31.03.2010 got excluded from the Pension Scheme.
The amendment has the effect of the Pension Fund contribution to be made by the Bank in respect of employees who joined service after 31.03.2010 getting siphoned to the New Pension Scheme operated by the PFRDA instead of coming to the Pension Fund, in the first place. Secondly, the Pension Fund which is created by the CPF of employees and CPF refunded by the employees who retired on or after 01.01.1986 who were taken into the Pension Scheme which is held by the Bank in trust exclusively for payment of pension or family pension lapsing to the Bank when employees who joined service till 31.03.2010 and their families pass away. The amendment is, in other words not only inconsistent with the Pension Scheme, but goes to scrap the Pension Scheme governed by the Pension Regulations altogether. The amendment is one prohibited by section 19 [1] of the Act.
[ It may also be noted that when sub regulation 4 of regulation 3 was substituted by sub regulation 4 [a], regulation 3 became devoid of sub regulation 4 ]
[ The notification had no clause 3 [a] as clause 3 was followed by clause 3 [b].
Clause 3 [b] of the notification
Through clause 3 [b] of the notification, new sub regulations [11] to [14] were inserted in regulation 3 which are:—
This was not legitimate making of a regulation. The Bank had levied to the Pension Fund a contribution of 2.8 times revised pay for November, 2007 from serving employees in addition to the surrender of their CPF and 56 percent of the CPF paid on retirement in addition to the refund of the CPF from retired employees for granting them an option for pension on the basis of a Settlement/Joint Note dated 27.04.2010 between Indian Banks’ Association and the unions of employees/association of officers in the industry. This amendment was made solely to legalise the illegal contribution. The amendment was inconsistent with the Pension Scheme as the Bank can receive to the Pension Fund only the CPF from employees and CPF and 6 percent simple interest till date of refund of the CPF or till 01.04.1995 only from retired employees in terms of sub regulations 3[1] to 3[10], the Bank is the sole contributor to the Pension Fund in terms of regulation 5 [3], the Pension Fund can receive only the components listed in regulation 7 which excludes a contribution by the employee or retired employee other than these components and in terms of regulation 11, the Bank has to conduct an Actuarial valuation of the Pension Fund every March and make additional contributions as is found necessary. In other words, the amendment was in infringement of regulations 3, 5[3], 7 and 11 of the Pension Regulations and hence impermissible to be carried out as an amendment to the Pension Regulations vide section 19[1] of the Act.
Clause 8 of the notification
As per clause 8 of the notification, regulation 52 of the Pension Regulations was amended as infra:—
Through clause 8 [b] it was notified that in case of employees who joined Pension Scheme on or after 27th April, 2010 pension shall be payable from 27.11.2009 only by inserting the proviso above in sub regulation 3. The amendment was inconsistent with the new proviso in sub regulation [1] of regulation 52 as also the pre-existing proviso in it and is hence impermissible as an amendment to the Pension Regulations.
The above apart, the new proviso relates to date of commencement of pension to a section of employees who joined Pension Scheme on or after 27.04.2010 and the pre-existing proviso viz. [3 Pension including family pension shall be payable for the day on which its recipient dies] relates to the date of cessation of pension to all employees. Since it is preposterous to combine the proviso relating to the date of cessation of pension and the date of commencement of pension together, in spite of the direction in the notification to insert the new proviso in sub regulation 3, the Bank itself did not insert it in sub regulation 3 but placed the new proviso in regulation 52, beneath sub regulation 3.
Clause 8 [a] of the notification
Vide clause 8 [1], the amendment to regulation 52 was as infra:—
In terms of this amendment, all employees to whom provisions of either regulation 34 or regulation 46 is inapplicable, pension is payable from the date following the date on which they retired. Regulation 34 relates to payment of pension or family pension in respect of employees who retired or died between 01.01.1986 and regulation 46 relates to payment of Provisional Pension to employees against whom disciplinary proceedings are incomplete. Hence, in terms of this amendment as well as in terms of the pre-existing proviso in the regulation, pension is payable from the date following the date of retirement to all employees who retired either on Superannuation or through Voluntary Retirement. But the regulation 52 [1] is defied by the Bank and pension from the date of retirement is not paid to a segment of employees who are few in number.
Clause 1[2] of the notification
Clause 1[2] of the notification was as below:—
The proviso above in clause 1 [2] makes it unambiguous that clause 3, 3 [b ] and 8 [b] of the notification in furtherance of excluding employees who joined service of the Bank after 31.03.2010 from Pension Scheme, for the levy of the contribution to Pension Fund and for payment of pension from the 27th day of November, 2009 respectively can come into force only on 06.11.2017 and shows the Bank as guilty in having done these acts on the basis of the Settlement/Joint Note dated 27.04.2010 in transgression of the Pension Regulations.
To tell succinctly, the Bank should take the following Prompt Corrective Action [PCA] in the proper implementation of the Pension Regulations in force in letter and spirit and do the following :—
Repeal the amendments to Pension Regulations, 1995 vide clause 3, 3 [b] and 8[b] of the Pension Amendment Regulations, 2017, which are void in law.
Bring back to the Pension Scheme the employees who were placed in the New Pension Scheme along with the contributions so far paid in respect of them to the New Pension Scheme together with interest.
Refund the contributions raised to the Pension Fund in defiance of regulations 3, 5 [3], 7 and 11 of the Pension Regulations to those concerned together with interest.
Pay pension from the date following the date of retirement to all employees who retired either on superannuation or through Voluntary Retirement Scheme as mandated under regulation 52 [1], pre-existing and amended.
In case any of my contentions aforesaid is wrong, I may please be informed accordingly. Or else, kindly direct the Bank to take the PCA [i] to [iv] stated above for rectifying the wrongs, at the earliest.
Thanking You,
Yours faithfully,
RAJKUMAR VERMA
copy to:— Managing Director & CEO, Union Bank of India – with a request to do the needful at the earliest in the matter
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With the Divine blessings of Matha Kanaka Durga abode इन्द्रकीलाद्रि - विजयवाद Indrakeeladri- Vijayawada, let us hope to bring solace to the grief-stricken hearts of the bank retirees in general and the SUPER SENIORS IN PARTICULAR only in the sole interest of justice & fair play.
With Greetings & Regards,
|| यतो धर्मस्ततो जयः ||
I remain – Yours ,
దేవులపల్లి శ్రీనివాస మూర్తి
DEVULAPALLI SRINIVASA MURTI Hydearbad
Cell :9989318300,
15 11 2022