Pension Updation for Banker

Pension Updation:

In yester years, some common replies to Central Office Inspection report by the branches are “compliance report will be sent in due course”, “details are being compiled”, “time bound action being taken to set right the irregularity”, “branch is in the process of rectifying the irregularity “branch is collecting/gathering required information and soon a final report will be sent”.

These are the usual stereotype replies that one can see right from immemorial, where there is lack of intent or action in set righting the issue.

But an effective controlling administration would not let go the branches scot free with such replies, but insist for some concrete plan and action for rectification as otherwise these irregularities would go unrectified and become persistent.

Now the analogy.

In the eighth joint Note dt 04.01.21, between IBA and Officers’ Associations the following replies by IBA, may make any one to draw such analogy.

1.  Family Pension: It is informed by IBA that the details of family pension are being compiled for onward submission to DFS.

2. Updation of Pension:

Position as on Dec 18-It was categorically expressed by IBA that a. Impact analysis is required for the load factor on individual banks. b. appointment of two actuaries should be carried out with in a defined time frame.

Position as on January 2021: IBA is actively evaluating the issue, as demanded by the associations, for which an actuary is appointed.

3. It was agreed by IBA to provide clarifications to member banks in due course.

The whole issue lacked transparency and there is nothing on the record that following basic questions were discussed or replied by IBA. When one party to settlement is of the view that cost factor is involved, it has to be substantiated by it, as how it involves, what is the cost involved with facts and figures and it requires discussion /negotiation with parties involved to take the issue further.

But prolonging the issue from the last BPS citing the same lame reason without bringing to the negotiating table, any basic data or figures and without progress shows the lack of intent on the issue by the parties concerned.

It is interesting to observe that pension Updation is listed under Non-Financial issues of officers/workmen. It would have been more apt, as seen from the progress of the issue, that it is listed under Non-issue of officers/workmen.

Some basic questions in the minds of PSB retirees:

1.What are the steps taken by IBA from Dec 2018, for analysing the load factor on individual banks on pension Updation.

2. Whether IBA gathered the required particulars from Banks and worked out the cost of Updation based on certain formulas/RBI pattern of Updation. If so, what is the cost factor arrived at by IBA and whether it is put up for discussion so that negotiating parties can have their say on the issue.

3. It is not known whether the first step of gathering details from the banks about the existing pension cost, pension fund is completed. Next step is to determine the factor for revision, working out cost of revision. Third step is to appoint actuary to analyse the impact of revision and fourth step is to find ways as how to go about it. But there is nothing on paper, about these developments.

4. It was agreed by IBA that with in a defined time frame actuary will be appointed. It is surprising that a defined time frame is required even for the simple step of appointing actuaries and not for finalizing action on the report. It took nearly two years for IBA to appoint the actuary (as seen from the position as on Jan 21). No one knows how long it will take to get the report.

If the trend continues, in the next BPS talks also, one can hear the same music that IBA, Union and associations are positively pursuing the matter of pension Updation and all parties concerned are actively evaluating the issue in right earnest to conclude pension Updation in a defined time frame.

But alas! no one knows what is the defined time frame!

Pensioners being Senior Citizens will be naturally anxious. More over time is running out and it is a burning issue for them. It is natural and quite right, as Very Senior Citizen pensioners are getting meagre pension and living in a faint hope that pension Updation will happen during their life time.

Their hopes were raised by the developments during the AGM of IBA, favourable signals from Union MOF, Updation of pension to RBI and NABARD pensioners.

Pension Updation is a statutory right of the pensioners. But GOI is of the view that it has to be emanated from the BPS/Joint note.  GOI requires a recommendation/proposal; from IBA, on behalf of member Banks, for revision of pension.

When MOF is in favour of pension Updation for PSB retirees, pensioners naturally expect that things should move fast and not in this fashion.

What is expected is that IBA should by this time work out the facts and figures, cost involved and send a proposal to Govt that pension Updation on the lines of RBI Updation can be met out of existing pension funds of banks and if not the funding requirement for implementing the proposal. It is up to the Govt to find ways and means to fund the cost, if any involved in pension Updation.

Vijayaraghavan r