WHY THE INORDINATE DELAY? FIGURES SPEAK THEMSELVES..
As per Regulation 5 (3) of BPR 1995 “the bank shall be a contributor to the fund and shall ensure that sufficient sums are placed in it to enable the trustees to make the due payments to the beneficiaries under the scheme”.
CONVERSION OF PENSION CORPUS HAVE BEEN INDLUGED BY MANY BANKS IN GROSS VIOLATION OF THE STIPULATED REGULATIONS :
( For instance, as per the - covered under old pension scheme, investment of corpus funds invariably need to be made in the securities approved by the Government alone. However many banks either diverted to private investments or window dressing their Balance Sheets resulting HEAVY EROSION IN THE PENSION CORPUS).
BESIDES FUNDS WERE ALSO CONVERTED / DIVERTED TO PAY ENHANCED PENSION TO THE EARSTWHILE CMDs/ EDs VERY MUCH AGAINST THE PENSION REGULATIONS IN FORCE.
THIS IS BESDES WINDOW DRESSING THE BALANCE SHEETS FOR PRIVISIONING & WRITE OFF BAD DEBTS.
(The provident fund balances (Bank contributions) of the employees, who opted for pension scheme in the year 1995 and subsequent years, along with accrued interest be transferred to Pension Trust Fund. Banks are supposed to contribute their respective share (@10% of basic) to the fund every month till the employee attains superannuation or voluntary exit from the bank service.)
Regulation 11 of BPR 1995 mandates “The bank shall cause an investigation to be made by an Actuary into the financial condition of the fund every financial year and make such additional annual contribution to the fund as may be required to secure payment of the benefits under these Regulations”. The Actuary is expected to make estimations duly taking the important factors such as Discount Rate, Pension Escalation Rate, Attrition Rate and expected rate of return on planned assets, into consideration.
As per section 10.7 of Banking Companies Act, Banks are permitted to declare a dividend and to retain surplus profits as reserves only after making due provision for salary and superannuation benefits. Hence, banks are mandated to publish disclosures in terms of AS-15 guidelines issued by the Institute of Chartered Accountants of India (ICAI).
TILL RECENTLY MANY BANKS HAVE FAILED TO FOLLOW THE STIPULATED GUIDELINES FOR THE REASIONS STATED SUPRA.
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PENSION FUND POSITION
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₹ In Crores 2022 & (2017)
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Pension Fund
₹334610 (₹232331)
Income on invest.
₹ 21208 (₹ 15330)
Bank contribution
₹ 33740 (₹ 10787)
Acturial loss (net)
₹ 118 (₹ 16667)
Pension disbursed
₹ 30480 (₹ 15583)
The Pension corpus fund stood at ₹3.35 Lakh Crores as on 31 03 2022 with an average growth of 8.8% despite the increase increase in pension disbursements over the years.
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Table # 2 Interest income, Bank contributions & disbursements
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YEAR 2022 & ( 2018 )
( ₹ In Crores)
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a. Int.Income
₹ 16924 (₹ 21208)
b .Bk.Contributions
₹ 7285 (₹ 33740)
c. Pension paid
₹18417 (₹30480)
Surplus (a+b-c)
₹ 5792 (₹24468)
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Table#3 Bank wise Pension Fund details as on 31 03 2022 (₹ in Crores)
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Details SBI PSBs .
₹in Crores
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Pension Fund
₹119131 ₹215499
Pensions paid
₹ 10190 ₹ 20290
Income invst.
₹ 7345 ₹ 13863
Banks contributed
₹ 15967 ₹17773
Acturial gain/loss
₹437(-) ₹555 (+)
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SBI along with a few PSBs are still need to Clean their Balance Sheets & improvise acturial evaluation on qualitative lines commensurating with the impending commitment on their part in terms of BEP regulation#11
IN THIS PROCESS OF MANAGENTS HAVE BEEN STILL BUYING TIME FOR OVER THREE LONG DECADES....
MANY PRECIOUS LIVES OF THE LAMENTING BANK RETIREES EVOPERATED IN THE AIR.. AND THEIR CURSES WILL CERTAINLY HAUNT ALL THOSE RESPONSIBLE.
https://drive.google.com/file/d/1uk7hsMRLz3I0g9vsQm3mzSTkiZ1Tk9ur/view?usp=drivesdk
IBA-UFBU NEXUS STILL MAKING MOCKERY