Circular on Pension Updating for retired and existing bank employee

ALL INDIA UNION BANK RETIREES FEDERATION
(Affiliated to All India Bank Retirees Federation)
A/12, Girdhar Apt., Kastur Park, Shimpoli Road, Borivali (W), Mumbai 400 092
  Chairman     President                                   General Secretary
      D. A. Masdekar                                 B. G. Raithatha                                       R. K. Powar
        9970899393                                      9427207021                                          7710030963
damasdekar@gmail.com                   ubiretirees@gmail.com                        rkpowar@gmail.com

No. AIUBRF/163/2019  9th March 2019

To: All Office-bearers/CC members
& State Units of AIUBRF

Dear Friends,

Re:   Revision / Updation of Pension
Ref: Central government clears Revision / Updation of Pension to RBIs Retired employees

Members are aware that most Public Sector Bank employees are covered under Bank Employees Pension Regulations pronounced in 1995.

The Pension scheme came into being after protracted discussions and negotiations on improvements in service conditions of the employees held in 1990, during which the Indian Banks Association consented to introduce pension scheme in public sector banks.  The Pension Scheme was agreed with the Unions as a second retirement benefit in lieu of employers contribution to contributory provident fund.

It took almost three years for the employees/officers unions/associations to formulate the Scheme, though said to be the same as per Central Civil Services (CCS) and that of the RBI Pension Regulations. The Unions / Associations signed the historic settlement on Pension Scheme with IBA on 29th October 1993.

Individual Banks Pension Regulations were enacted in September 1995  in which an updation formula was introduced for the retired employees after 01/01/1986 fitting them into the Pay Structure which came into existence from 01/11/1987, and accordingly the eligible retired employees prior to 01/11/1987 had their Basic Pension updated. As the updation of pension was already introduced to the retired bank employees earlier, there is no justification whatsoever for the IBA or the government to deny updation thereafter to the retired public sector bank employees.

It is very important to note that while retired employees of RBI used to receive the Pension in line with central government employees, the Scheme was withdrawn by the Government in 2008. The Unions of retired employees of RBI had filed a plaint in Honble Bombay HC for Updation of pension; but the central government negated their demand on the grounds of huge expenses and contagious effect spreading to retired employees of public sector banks in future.

It should be understood that the benefit of pension revision / updating flows from the Rules to all who were eligible for pension and who survive; subsequent enhancement in pension needs to be effected following wage revision in salary.

It should also be noted that the terminal benefit load of central government pensions and periodical updation as recommended by the Pay Commission are borne by the exchequer, whereas RBI pension payment come from its Pension Corpus Fund, which has now been considered to be sufficient to absorb additional cost on account of revision of pension as cleared by the central government on 05/03/2019.

All the public sector banks have also formed Pension Fund Trust at their Head Offices and the total pension fund in PSBs stood at Rs. 2,49,121.97 crores as of 31/03/2018. Presently this figure would have exceeded Rs. 2,65,000/- crores.  We state that the voluminous balance of the pension fund is adequate to cover the upward revision of pension of the pensioners of public sector banks. The contention of the government and IBA that there are no funds to meet the rightful demands of the retired employees of public sector banks for revision / updation of pension is unjustified propaganda.

At this stage, it is very imperative to update you all with the financial position of the Pension Fund of Union Bank as of 31/03/2018 with comparative figures of March 2017 as under:
(Rs. In crores)
Item under Liability
2017
2018
Item under Assets
2017
2018
Item Under PL
2017
2018

Pension Fund
9679
11119
Investment
10714
11876
Interest earned
1369
936

Surplus
1353
933
Cash & Bank Bal
218
176
Exp
16
03


From the above table, it can be seen that our Bank made contribution of Rs. 742.38 crore to Pension Fund as per the actuaries calculations and as certified by the auditors. The Total Pension Paid in the year amounts to Rs. 659.09 crore. The Bank made surplus of Income over Expenditure to the tune of Rs. 933 crore.  The pension fund earns surplus that is equivalent to 142% of the pension paid during the year.  The total pensioners in our bank are 22094 within which the family pensioners number is 3936.  Thus it can be construed that our Bank can also absorb cost of revision / updation of pension.

The revision / updation of pension is the most important demand of the bank retired employees because there was no improvement in the Pension Rules over the last 25 years which has resulted in a situation where the retired employees of 2002 are getting very meagre pension amounts, as compared to the employees in the same scale of pay who retired in 2012. Thus senior retired employees who retired in earlier years are drawing fewer pensions compared to similar ranked retired employees of 2017.

It is being construed that the Pension is a welfare concept and not an earned right. The reality is Bank pensioners are struggling to meet their medical bills, and are treated negligibly in society as they attempt to live a dignified life. Therefore, the time has ripped to rise in one voice as retired bank employees to demand and secure the revision / updating of Pension, as has been permitted by the government for the Reserve Bank of India retired employees.

In the 5th National Conference of ALL INDIA BANK RETIREES FEDERATION (AIBRF), our Apex body, held at Delhi during 1  3 March 2019, Shri Sunil Mehta, the Chairman of Indian Banks Association and the Inaugurator of the Conference assured that IBA would consider retirees issues during the on-going wage negotiations. Shri. C. H. Venkakatachalam, General Secretary of AIBEA and other UFBU leaders who spoke, also expressed unqualified support to the pending issues of the retirees, stating that they were part of UFBU Charter of Demands.

AIBRF has resolved in the conference to take steps in coordination with CBPRO for improvements in family pension and revision / Updation of pension.

Friends, we firmly believe that the issues such as revision / updation of pension and improvement In Family Pension are of direct concern of the retired employees as well as to the serving employees as they move on and retire. And hence we appeal to all our retired members and colleagues to be ready for any struggle to fight for the right of revision/updation of Pension.

With regards,

 Yours comradely,

(R. K. Powar)
    General Secretary


_______________________

Views of Sri JN Shukla
TIME FOR BANK UNIONS
TO CHART A  COURSE CORRECTION

-Most Sought After Need!
----------------------------------------

I, tentatively, agree with the opinion of a very high positioned leader that there are many 'reasons' to present level of 'dissatisfaction' amongst employees. Atleast, his assertion show he admits the 'dissatisfaction', what I talked off in my write up 'Frustration is our own Creation' dated March 2 .

However, he categorized the 'reasons' as some  'self-inflicted', while others 'instigated'. There is no dispute, as satisfaction or dissatisfaction has the genesis of some 'contents' that may be self-thought of and ascertained or some from seeing, feeling, hearing something, someone & inspired thereof. In other words, dissatisfaction among bank employees has genuine contents, it doesn't matter whether that is self-inflicted or instigated.

Further, in his  opinion, 2 factors, that he held very 'important', to be borne in mind, perhap while suming up the present situation. One 'middle-class mindedness', that, according to him, 'is overtaking the class orientation base of bank employees'. The other, which seem to be hunting his mind, is 'unions are ill-matched for the consequent negative propaganda in social media'.

Social media is perceived to be dreadful threat to which Unions have no matching counter strategy.

Sometimes in past, I asserted that the Institution of Union is diluted with the emergence of 'self-styled' Unionism in every individual Bank employee, on social media platform. When the Institution of union is fragmented, disintegrated, dismantled and replaced by Unionism in every individual, it is difficult for Unions to face the emerging challenges and eventualities from their own rank & file. Here, Unions are ill-matched to negative propagandas.

So far 'middle-class mentality' is concerned, it is nothing new, as it existed across the world, what to say of our country. I found this grievance on account of 'middle-class mentality' being expressed by Tarakda on many occasions in his time. He called it 'typical'. However, with change of socio- economic orders, aspirations are bound to propel. Just we can't hush up it by terming as 'typical middle class mentality'.

A pragmatic view is necessary, as middle class has a right to get it's share in growth and surpluses. Bank employees have very genuine and legitimate right to aspire for comparative & better compensations, in view of their job profile, and this can't be viewed in such casual and callous manner. They must strive hard to secure better compensations and post retirement social security network. To be a middle class is not bane. It's most privileged class that contribute to nation building and create Wealth as well.

So far 'class orientation' is concerned, it needs to be understood in context of fact that people working in Banking sector, are different 'class' in themselves and they cant be equated with rest working fraternity. Their ideological moorings can't be tied to age old 'class' character or bases.

In Banking, AIBEA being the oldest and biggest operating Union has ideological orientation as a subject matter of individual. It never identified itself to any particular political moorings, rather moved as an apolitical entity on the strength of power it extracted from people coming from all section of society. It's first priority has been the safety of Banking Industry and second the well being of it's working fraternity. So far working class or other fraternity was concerned, it extended support & participation to movements and never shirked from its obligations. It helped AIBEA to remain in good stead.

According to him, these are the bottle necks. May it be true, but for Unions, these are not to be boggled at but to surmount.

Situations around 'middle- class' theorem have undergone tremendous change. Today, richers are not same, as they were decades ago and so is the middle-class. It calls for introspection and necessary course correction. Now, 'middle class mentality' doesn't appeal st all. It is taken as an insult.

There is huge perceptional gap between Unions & their followings. Further, the cross war among players adds fuel to fire. Some are trying to become savior by tall claims with implied purpose to make other villain. There is supremacy war by show down to others. Young bank employees & officers have no worth wisdom matching to these complexed developments. They swing in anger, anguish, disappointments, aspirations etc. Here, pragmatism fails agaist theatrical.

One is free to make tall claims, offer moon on palm. But, considerable point is whether is it possible by anyone to bring moon down on palm. As organization or its heads, a pragmatic view is panacia to all chaos. Unions have been busy in chaos so far. They must return to real agenda to catch hold management to cough up more. It will help to derive satisfaction and drive out dissention among Bank workforce. We saw Unions demanding 40% wage rise in past, but over period of time it invited wraths only. It didn't help such unions to grow. This criss-cross, dilly-dally must come to end. It will be unhelpful. If you don't like someone, best way is to say goodby, take honorable exit, maintain equi-distance. These are best ways. Best way is to perform of your choice, instead wasting your precious time & energies on such fissiparous tendencies. Most sought after need is: Bank Unions Must Chart A Course Correction to contain the brewing trouble across the workforce.

  
J. N. Shukla/Prayagraj
10/3/2019