PENSION AS A THIRD BENEFIT.

PENSION AS A THIRD BENEFIT.

THE DETAILS AS PER SRI C N PRASAD:

"......I fully agree with you that everyone including AIBEA wanted Pension as a third benefit.  

Two reasons made AIBEA persuaded by Com.R J Sridharan, change its demand for Pension as the second benefit.  

One for a tactical reason and the other is a beneficial one.  

Bank and RBI employees were demanding pension.  

After the introduction of Pension as a second benefit, 

AIBEA also felt that it is easier to demand and secure Pension on the lines of RBI.  

Another reason is that in State Bank of India, there was a ceiling on pension, where pension as a third benefit was being paid.  It was maximum of Rs.2,400/- then.  Pension of a Scale II Officer and Chairman, State Bank of India was the same. 

But, pension as a second benefit had no such ceiling.  

On account of these reasons, pension as a second benefit was chosen.

But, Unions and Associations, who are lead by employees/officers of the State Bank of India wanted pension as a third benefit.  

It was also a tactical move on their part to protect the interest of employees/officers of the State Bank of India.  

If we were to get a pension as a third benefit, they could have got pension what we are getting now.  Unfortunately, we did not understand the game.  We have caused irreparable damage.   

We continue to blame AIBEA for our problems, not willing to give credit to the introduction of pension scheme in the Bank.

I have also read some emails regarding interest rate at 14% and this as a reason for many opting for PF.  

That is incorrect understanding and ill-advised.  

At the same time, LIC employees also got a pension option.  

Same interest rates were also applicable to them.  Still, the vast majority opted for pension, unlike Banks.  Because there was no misguidance and they understood better.  

They understood that interest rate is high means, inflation is high.  If inflation is high means DA increases more.  If DA increases more, the pension also increases more.  With an increase in DA, salary increases more and with every Bipartite DA is added to Basic Pay, resulting in more pension and more Commutation.  Even though interest was at 14%, inflation was in excess of 12%.  All these facts were explained by AIBEA.  

Unfortunately, many did not accept AIBEA's line of thinking resulting in majority opted for PF.  

But, we continue to blame AIBEA with choicest words for our ills. 

In the last 25 years, our pension is not updated.  But, more beneficial pension option was extended.

Those who do not respect History, they are disdained.

Prasad C N..."