The Finance Minister must walk the talk on this critical issue

The Finance Minister must walk the talk on this critical issue

When the Special Leave to Appeal (C) No(s). 5561/2016 was taken up by the Supreme Court on January 20, bank retirees were hopeful of getting some favourable orders for their pension updation, which is lingering for three decades. But to their disappointment, the case was directed to be listed after three months as the counsel appearing for the respondent(s) including Indian Banks' Association, submitted that the Committee considering the representation/claim of the petitioners and similarly placed persons is yet to be reconstituted.

Until 1993, the bank employees were having contributory provident fund scheme without any pension scheme. On October 29, 1993, an industry-level settlement was arrived at between Indian Banks Association and Bank Employees unions and this paved the way for introduction of pension scheme in lieu of Contributory Provident Fund as in RBI.A similar joint note was signed with federation representing officers also. Para 12 of the said settlement provided for formation of a small committee consisting of representatives of IBA and unions to work out details on similar lines as RBI pension regulation and Central Civil Services Pension Rules applicable to Central Government employees.

The said Small committee said in 1994: "Formula for updating pension should be on the lines of the same given in the Reserve Bank pension scheme. Any change therein should be introduced only after mutual agreement."

However, though Reserve Bank of India has permitted updation of pension for their employees, the bank pensioners are drawing their pension without any revision for the past three decades.

When the matter was represented to the Finance Minister Nirmala Sitharaman, she has expressed her concern in an interview in October 2020 and again in a talk the following month:  "I want bank employees to be given their due. A lot of pensioners are waiting for very long time. Yesterday, I had meeting with Rajkiran Rai of IBA. I spoke to him, too. We need bank employees to be attended to, particularly their families and the pension of retired employees"

Though it was informed a committee has been formed by Indian Banks Association, nothing has happened on the ground. When Government employees'pension is paid out of every year's tax receipt - it is a tax on people. Bank retirees' pension is paid out of profit generated by banks. Adequate provision has already been made to pay upto the last pensioner as per existing pension rules. If pension updation is conceded, only additional amount has to be appropriated out of profits. It is not necessary that provision has to be made at one go as the RBI may permit to amortize the expenditure over a period of five or more years.

Without any updation of pension, the bank pensioners in their 70s, 80s and 90s are having a miserable life. The retirees are paying three months of their pension just to have medical insurance as the banks are simply arranging group insurance but leaving the premium payment to individuals.

The past retirees are drawing a pittance as pension. Persons retired as general managers in the past are drawing lesser pension than a clerk who is retiring now on account of non-revision of pension.

Above all, the Indian Banks Association has not recognized any of the Retirees' Association and there is no body to represent the retirees with the banks. Employees' unions represent only working staff and they have their own issues to discuss and settle.

Even after one and half years, the Finance Minister's concern has not been addressed by the banks. Senior retired bankers expect her to walk the talk.

(The writer is a retired banker. The views expressed are personal.)