Bank Pensioners Injustice

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Petitioning Prime Minister of India
Please restore Dignity of Public Sector Bank Retirees, Update their monthly pension and family pension along with 100% DA neutralization.

Unreasonable and unjustified denial of Updation of Pension, improvement in family pension and 100% DA neutralization to the Bank Retirees during the recently concluded wage revision for bank employees.

We, the senior citizens of the country, in evening of our lives, most respectfully submit to you the following facts for your favourable consideration.

01. We have served our respective banks for 35 to 40 years and have been drawing pension fixed on the Basic Pay and other eligible allowances, which were being paid at the time of our retirement. This Basic Pension was fixed at the time of our retirement from the service of the respective banks and thereafter, this amount of basic pension was never updated during the wage revisions which are taking place every 5 years in the banking industry.

02.On account of this non-updation of pension, a situation has arisen that a very senior executive in the rank of General Manager who retired 20 years back, is getting lower pension than the Clerk retired recently. This anomaly has been brought to the notice of Indian Banks’ Association (IBA) which is negotiating the wage settlement on behalf of its member banks and United Forum of Bank Organizations,(UFBU) an umbrella Organization of Unions and Associations of workmen and officers respectively.

03. However, during the recently concluded wage revision on 25.05.2015, none of the issues of the bank retirees were solved and in turn the IBA and UFBU issued a damaging Record Note of Discussion saying that there is no contractual relationship between the banks and retirees.

04. This Record Note of Discussion was discussed throughout the country. Pensioners wrote letters to various authorities in the country such Secretary, Department of Financial Services, Ministry of Finance, Government of India, New Delhi; Reserve Bank of India and others, but there is no reply from any of the authorities.

05. It is pertinent to note that one of the constituents of the UFBU and association representing majority of the officers in the banking industry, issued a circular No. 2014/61 dated 27.09.2014, in which the discussions of wage revisions were quoted in that circular, and the retirees issues were also discussed and quoted in the said circular. The issues covered in the circular of retirees were

a. pension related matters i.e. 100% DA on pension for pre-Nov 2002 retirees,

b. improvement in family pension,

c. provision for periodical updation of pension,

The circular further says, that “ after IBA informed that they are inclined to favorably consider the demand of 100 % DA on pension for pre-Nov 2002 retirees. IBA further informed that the cost aspect on improvement in family pension is being worked out and they would soon taken a decision on the same. IBA responded positively on this issue. As regards updation of pension, IBA informed that in view of the high cost involved, it would be difficult to agree to the same. On our insistence, IBA agreed that any viable and affordable proposition from the UFBU in this regard would be examined.”

When such was the discussion and negotiations on the retirees issues during the course of negotiations which spread to 31 months from November, 2012 to May 2015, the Record Note of Discussion dated 25.05.2015 signed by the IBA and 9 constituents of UFBU has shocked and surprised the retirees particularly the retirees who are in advanced age of 70 years plus, whose medical care expenses and inflation has beaten the meager monthly pension received by them. Hence the need for Updation of pension was felt as in Government of India.

06. Originally the Pension settlement was signed on 29.10.1993, the clause 12 of which provides, updation of pension among other things, but with rider that it will be as in force in Reserve Bank of India. The issue of updation of pension of RBI is before the Finance Ministry of the country. When the issues are as thus above, we do not know what transpired between IBA and UFBU after the circular date, referred para 5 above, to come to the conclusion that there is no relationship between the banks and retirees. It is pertinent to know here we have relationship with the bank for the limited purpose of terminal benefits and monthly we are paid pension as per that relationship.

07. When such was the stand of IBA and UFBU on 25.05.2015 about the issues of retirees, All India Bank Officers Confederation a constituent of UFBU and association representing majority of officers in the banking industry, issued a circular openly dissenting with Record Note of Discussion, stating that there is relationship between banks and retirees and also touched on the Nakara case.

08. Now due to this development, we have become orphans, because there is no response from Government of India and Reserve Bank of India, individual banks are not responding, as they have no instructions from IBA, UFBU though submitted our demands to IBA on 30.10.2012, now has taken this new stand. Hence there is no transparency in wage revision negotiations.

09. With regard to cost factor, the PSU banks have adequate/enough pension funds as on 31.03.2019. 

From the above it will be found that the interest earned on corpus pension fund is sufficient to service pension paid, further monthly contributions from employees are added to the corpus fund, thereby there is annual growth in the funds of the banks.

10. In this connection we draw your kind attention to the Judgement of Hon'ble Supreme Court of India dated 1st July 2015 on the subject of pension in the case titled State Of Rajasthan Vs Mahendra Nath sharma .

The Hon'ble Court, inter alia, has reiterated the following tacitly and directly.

a. Pension is property and not a bounty based upon the sweet will or grace of the Employer, DS Nakara therefore reiterated.

b. Cut-Off dates deprecated.

c. Arrears have to flow from the date of inception of anomaly.

d. Employees who are not on rolls on the date of subsequent revision of pensionary benefit(s) are also eligible for further revision of pension.

e. Government should not perpetuate litigation.

11. As the IBA, GOI, individual banks, RBI, UFBU have not taken care of our issues and there is no transparency in the wage revision negotiations, we have no recourse other than approaching you

Therefore, we pray you to kindly

1. call for the records and minutes of wage revision discussions in which our issues were discussed and finally taken the illegal stand as mentioned in Record Note of Discussion dated 25.05.2015.

2. direct the banks to investigate into the cost of updation of pension, improvement in family pension and 100% DA neutralization by Actuarials defined in Pension Regulations 1995, in a time-bound manner.

3. order the concerned banks RBI and the Finance Department of GOI, to arrive at the decision on the demands of the retirees.
Letter to
Prime Minister of India
Please restore Dignity of Public Sector Bank Retirees, Update their monthly pension and family pension along with 100% DA neutralization.