Saturday, June 13, 2015

AIBOC union writes letter to IBA on pensioners’ issues and on Record Note !!

AIBOC union writes letter to IBA on pensioners’ issues and on Record Note !!


Ref: IBA/2015/68                             Dated: 12/06/2015

Indian Banks’ Association,
6th Floor, Centre 1 Building,
World trade Centre Complex, Cuff Parade,
Mumbai – 400005.


We invite reference to the Record Note dated 25.05.2015 jointly signed by the representatives of IBA and all the 9 Unions/ Associations of Bank Employees/ Officers on the issues pertaining to Bank Retirees along with Joint Note on Salary Revision.

2. While the above Record Note incorporates some of the demands of Retirees referred to in the Charter of Demands and discussed by officers organization with IBA during the process of discussion and IBA’s response there to, we would like to put the records straight by furnishing in brief our view point as under on IBA’s response:

* On “Contractual relationship between pensioners and Bank”

At the outset we do not accept that no contractual relationship exists between Banks & Retirees and that their demands can be examined only as a “Welfare Measure”.  We maintain that payment of Pension cannot be construed as a mere Welfare Measure. As a matter of fact, there are several court judgments upholding that pension is a deferred portion of the compensation for the service rendered. In landmark “Narkara Case”, the Hon. Supreme Court has held that “Pension is a statutory, inalienable, equally enforceable right that has been earned by the sweat of brow. As such it should be fixed, revised and modified/ changed in the ways not entirely dissimilar to the salaries granted to serving employees.”

Besides, the Pension Regulations have been framed under section 19(1) of Banking Companies (Acquisition & transfer of undertakings) Act 1970/1980 and as such the relationship between Banks & Retirees is a statutory one.

Officers’ Service Regulations/ Bi-partite Settlement provisions for workmen, inter- alia, provide for post- retirement benefits including Pension/ PF/ Gratuity etc. These are in the nature of statutory obligations on the part of Banks. In these circumstances, how can it be inferred that there is no contractual relationship between Banks & Retirees/ Pensioners? Moreover in case of officers, Officers’ Service Regulations/ Disciplinary Rules providing for disciplinary proceedings after retirement will lose the test of validity before law in the absence of contractual relationship.

Like wise in the absence of any contractual relations with Pensioners, clause 48 of the Pension Regulations 1995 i.e. right to proceed against retired employees will also not have any sanctity.

*On “Comparison between Bank Pensioners and Central Gov., Pensioners”

As regards comparison with Central Government Pension Scheme, we specifically bring to your notice that Pension Regulations under the head Residuary Provisions, specifically stipulates that “in the matter of application of these Regulations regard may be had to the corresponding provisions of Central Civil Services Rules 1972 or Central Civil Services (Commutation of Pension) Rules 1981 applicable for Government Employees with such modifications as the Bank with previous sanction of Central Government, may from time to time determine”. It is clearly understood that Bank Employees Pension Scheme has been drawn primarily on the basis of Pension Scheme applicable to Central Government Employees/ RBI Employees. Hence comparison with the Central Government Employees pension Scheme is not out of Place.

3. Referring to IBA’s response to the demands referred to in the Record Note, we have to state as under:

* About “Pension Fund”

While on several aspects of pension improvement, IBA has been repeatedly forwarding the plea of cost burden but at no point of time during negotiations, authentic data has been presented in support of its contention. On the contrary, authentic pension fund data categorically reveals that as on 31.03.2014, the corpus of Pension Fund stood at about Rs. 1,14,000/- crores. More importantly Pension Funds of Banks are in surplus consecutively over the years and such surplus is growing year by year despite the fact that Banks have failed to provide for the required sum in pension funds as agreed in Bipartite Settlements. Under these circumstances, demands of retirees for improvement in Family Pension in line with RBI, 100% DA neutralization to pre Nov 2002 retirees as also updation of Pension, cannot be delayed/ denied.

*On “ Updation of Pension”

We may point out that Bank Employees Pension Regulations specifically provide for updation of Pension. We invite reference to  Regulation 35 (1) thereof which reads as under;
“Basic Pension and additional pension wherever applicable shall be updated as per formula  given in Appendix I” As a matter of fact, such updation has already been given effect earlier for the pensioners retired prior to 01.11.1987, who were positioned on par with retirees under 01.11.1987 Wage Settlement. In view of the above, updation of Pension has a statutory basis and it becomes a statutory obligation.

*On “D.A. neutralization”

In the matter of 100% DA neutralization for retirees prior to 01.11.2002 for which IBA was positive during discussion, there have been several speaking judgments and favourable court orders. Though the matter is still sub- judice, IBA should settle the matter positively so that the expensive litigation can be put to rest once and for all. But waiting for conclusion of court proceedings will only add to the delay denying justice to pensioners who are above the age of 72-75 years and are anxiously waiting for the justice.

*On “Pension to left overs”

The issue of Pension to left overs also a vital one. The category of those retired compulsorily and the resignees have been denied benefits due to strict interpretation of instructions from the Government in June, 2012.  Existing Pension Regulations categorically provide for pension to those compulsorily retired from service. Denial of pension option to them is violative of the very existing Pension Regulations itself. Denial of Pension option to Resignees has also been tested through litigation and several judgments including the one in Vijaya Bank Case, is a clear pointer that they cannot be denied pension after the stipulated period. In fact consequent upon such court verdict, several resignees have already been conceded the benefit of pension option. It is also pertinent to note that the number of those retired compulsorily as also those resigned from Banks (after putting in requisite pensionable service) is very small and the cost cannot stand in the way of extending benefits to them.

Apart from the above, there are still several issues of pension, which need to be discussed and sorted out.

We, therefore, request you to take a positive view and hold discussion on all the issues of retirees on the basis of authentic facts, data and figures. On our part, we are also willing to exchange facts and figures so that a meaningful dialogue can take place with a view to resolving these issues.

We look forward to your early response.

                           Thanking you,

Yours faithfully,


Anonymous said...

The letter from AIBOC to IBA on the pension issue is a mere eye wash. The note where the IBA has termed non existance of contractual relationship indicating the pension payment as mere charity was signed by all the representatives of UFBU. Having signed the above without any application of mind, unable to criticism from all the quarters AIBOC has written the above letter pretending to uphold the welfare of the existing employees and the pensioners as well. Having experienced the double standard of the UFBU no sane person will be prepared to believe the above letter. In short, the UFBU do not have any say in the matter of 10th BPS. Instead of arriving at such as settlement, bank employees would have been more happy and benefited had the IBA announced the wage revision on 01.11.2012 itself by way of notification as the present BPS signed by the UFBU was on the dotted lines as dictated by IBA.

Anonymous said...

Hitherto I was thinking that they are taking only pakoras and tea during the meetings. After seeing the U turn of AIBOC, after signing the Record Note in 25th May, I have my own doubt whether they are served something else during the meeting.

Unknown said...

Good. At least one Ufbu member has come out in support of pensioners.

Unknown said...

Was AIBOC unaware of all these facts while signing of the record note.
when the climax is over,there is no use of crying over the split milk.
It will now take a very long time to settle the retirees issues. without any fixed time frame any suggestion of talks is again be fooling the old innocent

mohanlal52 said...

Did AIBOC sign the record note for retirees?

Anyway, thanks for raising the issue of retirees, notwithstanding that the Retirees after 01-11-2012 and the serving officials/ employees who will retire in due course, have been cheated by not providing for pension on Special Allowance.

What do you think will be the increase in pension for those retiring after 01-11-2012? Any where between 2%-4%?

Thanks for not agreeing to pension reduction!

Anonymous said...

Crocodile tears by cheaters .

Anonymous said...

How come there is no mention of reduction in pension? In the history of world this is the first time unions have agreed to reduce pension.
This letter is nothing but an eyewash to win sympathy of retirees.

Unknown said...

Union must be talk for reduction in pension in this settlement and raise the issue of special pay to be include for calculation of pension and commutation.If they not talk for it, a chance of exit with compensation must be given to present employees, whether they willingly with bank or want to exit in these circumstances like after computerisation in 2000(VRS)in general & adoption CBS in 2005(EXIT)bank wise.Pension option accepted by employees to give up their PF as well as 2.8% compensation/fee/own/black in whatever name. Therefore pension is not an obligation, it is a right of any employee and must be negotiated with weightage equal to wage revision.

Anonymous said...

Letter by AIBOC toIBA after signing of Joint Note is a eyewash. IF NOT EYEWASH then AIBOC should reopen the negotiation or file case against IBA for misguiding the unions.OR AIBOC should admit that they were brainless at the time of signing or they were not mentelly active at that time or they were forced to sign on dotted lines or who and what forced them to sign and why. What was the need to act in haste without understanding the meaning? If not then what is the motive behind issuing this letter

Unknown said...

Many letters that have been written on the topics of Xth BPS to the PM, the PMO, the FM and alos to the MInistry of HRs are simply been sent to IBA where what kind of justice we all got is in recent history's records. Those who are in service and those who have retired got too deeply hurted by the allocations. Mere 2% of just 15 % for fixation of New Pay Scales itself clearly indicated the stance towrds banking industry. The poor percentages for HRA for bankers and the 30%, 20%, 10% for Central Govt. Employees evidenced the biased and discriminatory approach of the elected NDA. Afterall, AIBOC is part and parcel of UFBU. IF transfers for THEM are not proposed, THEY agree for the LOWEST. THEY benefit the Governance, but not the members. The officers who are transferable ultimately suffered. This is the reality shown by our UFBU. In India, there are several Business Schools, IIMs. Some of our colleagues' siblings too did in IIMs. Let is request them to study the Xth BPS fiasco and to give their learned observations and recommendations. Being effected parties and members can we sue them ? Can we plead in honourable Supreme Court for betterment in all aspects of Xth BPS on par with Central Govt. Employees/ PSUs whose salaries and allowances are met through adequate budgting by the Central Govt.? Already we all suffered because of Xth BPS. Topic is being diverted with spot light on " When the arrers will be paid ?, will the June, 2015 salary get the new basic pay ?, will the 2nd Saturday of July,2015 starts the 2 & 4 SATURDAY holiday policy ? " etc., etc. So, let us not get diverted. It is not the problem of Retired Officers and Employees of PSBs. It is our problem too. Allbankingsolutions, we bankers, shri Ramachandran sir and myself, since several months, are on this subject. Let us made collective effort for our betterment. Our family members deserve the best as we are rendering the best of our services in PSBs. If AIBOC is really feeling for retired Officers in PSBs, let it file suit in Supreme Court. One Rank One Pension should be demanded for PSBOs and PSBEs too. As the present charges of various banking services have not been upwardly amended since very long time, and as the government is not taking firm decision with regard to the effective recovery of lakhs of crores of rupees worth NPAs of PSBs, let the government, RBI improve the INCREASED INCOME GENERATING OPPORTUNITIES of all PSBs such as every ATM transaction must be charged with Rs.5/-. RTGS/NEFT charges must be increased by 100%, Locker Charges be increased, Processing charges be increased, Credit Card Operations must be charges adequately. A section of the UFBU only got benefited. But, not the Officers.

Anonymous said...

This letter is a open acknowledgement that the 10th bps was decided atleast a year back, and all the talks were just brainstorming session by UFBU leadership about how to convince their comarades in the absence of any real monetary benefit. How much this govt bribed the leaders, are at what price or perquisities the leaders sold themselves.

There is another side to this settlement, that the present retires are 90% non VRS _no where to go lot_incompetent etc., of the iba cum govt presentation were taken by the leaders, else how a trade union would sign under the sentences containing "there is no relation between employee _employer relation", may be this is true in case of NPS. Why not a single question was not answeres of the pensioners. What about the banks liability of custodian of pension funds even if there is no employee employer eelationship. Is that not tantamount to fraud if the pensions funds not replinished and funds mismanaged. When every ruppee is looked into leakage/seepage of income at lower level, such a huge fund position and its financial position termed out to be a bigger top defence secret. Unions shamelessly accept this and the silence of the leaders show, there hands in coalition with employee directors. When ever there is change of top power, the balance sheet of banks move erratically up or down. The unions which cry fould of huge corporate defaults, why kept silent to these moves. As directors and EDs , why unions accepted the cook work of balance sheet, that is the same reason why unions are silent including CHV. They were eithef fooled or bought by successive govt in their allotment of chairman game . This is more political rather corporate issue. But, never in the political history, corporate issue dominates in the political power game and a biggest union leaders turned out to be mere puppets in their political master games. Unions lost their own game, rules devised by themselves, they themselves being refree and played by themselves and declared by themselves as defeated.

There is greater implications to these, that corporate culture and legacy of doing business will be killed for future political gains, unless the unions do not practice transparancy henceforth. By doing so, they subject themselves to clear stance which canr be molasted by ill conceived corp techniques of political power.

Unknown said...

Normally, it is said that SARDARS keep their promises. But AIBOC General Secretary is an exception. He signed the 10th BPS with closed eyes, may be due to overload and after a gap of about three weeks wisdom dawned on him that he was sleeping while inking the 10th BPS and his forgotten promise came to his mind after seeing so many noises form the retired bankers and the letter written by Shri Ramachandran, ex general manager of Bank of Baroda to the Finance Ministry. Mr.General Secretary, why this eye was and crocodile tears. Accept you are selfish and surrounded by many more like yours. It is a pity that the days of Prabhat Kar, Chitnis etc will not come back since the present office bearers of all the Bank Unions and Association have sold themselves to the IBA. Shame on people like you who call themselves as champions of the trade union movement. You all are a black mark on the trade union movement.

Anonymous said...