Saturday, May 30, 2015

New Pension Scheme!

Few days back I have posted an article about Contributory P.F scheme and Pension Fund.
Some comrades asked me why not you write about NPS scheme?
When you join the scheme through your Bank, you might be provided with details of the scheme.  Also there is a detailed FAQ in Pension portal website.
I give below the link for reference and understanding.
As per my calculation if an employee (clerk) on joining the Bank  contribute 3370(1685+1685) per month the return at the rate of  8% is 76.84 lacs ( By recurring deposit calculation method)
This monthly subscription will vary every 3 month due to increase in D.A, by every year  as he will be getting one increment per year, and by every 5 year as there will be a wage revision. Therefore the total return will be much much higher.
Therefore benefit wise it is not a bad scheme.
Then why we oppose this scheme?

Thursday, May 28, 2015

AIBEA Claims......

Considering the financial benefits and other improvements
under the Settlement,
it is one of the best settlements achieved by AIBEA so far.
(Comment: Employees thought that it is achieved by UFBU.
From the words of AIBEA, it is explicit that, all the blunder is done by AIBEA only)
Our Unions should take up the matter with the respective Head office/Central office of the Banks for expeditious implementation of the Settlement, payment of the revised emoluments and also disbursement of the arrears to the employees.

Wednesday, May 27, 2015

Pension fund and 2% load!

Pension fund and 2% load !

Let me explain about P.F. Fund and Pension Fund from my understanding.
P.F is deducted at the rate of 10% of Basic Pay from Employee.
An equal amount is contributed by bank to the P.F. account of employee 
These amounts are credited to the P.F. trust account of the individual banks.
Representatives of recognised unions will find place in the Board of trustees.
They have access to the Income/Expenditure account and balance sheet of the trust.
The amounts deposited in the account are invested in various financial instruments like 
Govt., Bond etc., Income generated will be utilized for giving interest to employees account.
At the time of retirement the amount (both employee contribution and Bank contribution) 
standing in the concerned employee will be given to the employee

This is the procedure of Contributory P.F. system.

In case of Pension Fund what is happening?
In 1995 Pension was introduced in Banking sector.
At that time, amount lying in P.F. trust (belonging to Pension opted employees) 
is transferred to Pension fund of the individual Banks.
Thereafter 10% contributions from employees were credited to P.F. Trust account.
10% Contribution by Bank was/ should be credited to Pension Fund.
The amount thus accrued in Pension Fund is invested and income generated also 
credited to Pension Fund .
Out of this fund only, Pension to all retired employees who opted for Pension scheme,
Commutation amount and family pension for the diseased employees, are disbursed every month .

Now my doubts are
1. Whether union representatives are members of any governing board of Pension Fund?

Tuesday, May 26, 2015

Make soup, by cutting the tail of dog, and give it to dog itself!

 IBA/UFBU’s New suggestion for avoiding reduction in Pension!
 Following is the provision added in 10th B.P.S. document:

“Employees in service of the Banks as on 1st November 2012 and who have
Retired thereafter but before 25th May 2015 and who had opted for
Commutation of pension will have an option not to claim incremental
Commutation on revised basic pension.”

What is the effect?

* When we expect a +plus in our pension, settlement gives us -negative pension
*To make the difference 0 instead of -negative, unions suggest that
  Employee should loose Rs.350217 (Commutation arrears for sample case) and make the difference 0.
* i.e Bank will not give even extra Rs.1, but we have to make it correct with our own money
* to save a pension of Rs.2298 p.m loose Rs.350217. i.e for 152 months (12.66 Years) value
    ( If interest factor is taken into account it will be much longer )

Monday, May 25, 2015

Saturday Holiday becoming a reality!!

Following a pact between public sector bank (PSB) employees and officers 
with the management,
all branches in the country will remain closed on all second and fourth 
Saturday from July. 
T M Bhasin, chairman of the Indian Banks' Association, said the Reserve Bank of India 
had approved the proposal and a notification would be issued on the change under the 
Negotiable Instruments Act. 
It will take three or four weeks for the process to get completed. 
PSB branches will work full-time on the first and third Saturday of each month, 
said Bhasin, also chairman and managing director, Indian Bank.

Last minute change!

Last minute change made in the final draft of the Settlement:
"Employees in service of the Banks as on 1st November 2012 and who have
Retired thereafter but before 25th May 2015 and who had opted for
Commutation of pension will have an option not to claim incremental
Commutation on revised basic pension."
At last ,after receiving too many condemns received from comrades, UFBU decided to take a "face saving" exercise..
unfortunately , it backfires , instead of saving the face,
it is receiving a nice punch on its nose.
I will discuss it with charts, tomorrow, as today all the employees will be busy in arriving at their new salary and arrears.
one more request comrades!
All details about salary is now available with you now.
You yourselves can compute your new salary etc.
Hence avoid asking What is my new basic pay , what is amy arrears etc.,
Calculating for all comrades is humanly not possible.
Avoid using me as calculator.
But, you may ask whatever doubt you have in understanding./ interpreting the settlement .
I will reply as per my understanding.
This time AIBEA has released only what is new salary and what is the increase for May 2015 .
As per their chart even the senior most could not get 15% increase in salary.
Moreover,it does not issue chart comparing old and salary as on 01.11.2012,
because as per calculation it comes 13.80% only.

Apart from information already posted please add the following.
Encashment of LFC :

Eligible for 100%  instead of 75% earlier.
Not necessary to avail any leave.

Sunday, May 24, 2015


One angry comrade comment like this with reference to the past happenings:
Initially, bi-partite once in 4 years. Converted to once in 5 years for the benefit of employees!!!
Those . who want full pension and
don't want commutation,
get lost. 10th B.P.S
Those who are PF optees no benefit, only 10% PF because you are arrogant and not opted for pension! Then suffer.
One more option for pension? You missed the bus! Hence pay penalty at 2.8 times. 9th B.P.S
Family pension, pathetic. Only we can pity you.
New pension scheme? That is for the new comers only. We don't care for the younger generation. Hence, we accepted and signed it in 9th BP.

Horse and donkey!

To understand this wait for tomorrow!

10th B.P.S. details-3

10th B.P.S. details-2

10th B.P.S. details-1

Dear Comrades!

Dear Comrades!
Some of may think that I am talking too much about reduction of Pension.
I wish to remind you that this issue is not going affect employees retired
between 01.11.2012 to 30.05.2015 only.
Those who are going to retire hereafter also will be affected.
Those who already retired will repay excess pension paid.
Those who are going to retire will be given less pension at the time of
disbursement itself. That is all.
 Employees under NPS will also be affected, as contribution to NPS
will be of 2% Increase instead of 15% increase.
As these section of employees left with more number of service,
they will be the worst sufferer.
That is why I am talking about this.
Another question
“Why you have not revealed this at the time of M.O.U .dt 23.02.2015”
I wish to remind you what I said at that time (20.03.2015) :
(Read Grade Pay as “Spl.Allow.” as named now.)
“I am receiving too many queries about introduction of Grade Pay.
It is mentioned in the joint circular by award staff unions.
My view on Grade Pay is:
I do not support grade pay. The load should be on basic pay only.
Grade pay concept will spoil all future benefits.
Grade pay in central govt., was introduced to neutralise
the clubbing of two or more scale of pay.
In banks there is only one pay scale for clerks and Sub staff as well.
If scale 1,2 and 3 of officers are merged , then grade pay may be necessary.
However let us wait for final outcome.
Till such time let us express our concerns to give pressure to unions
to take right decisions.”
This post is still available in my Blog/FB.
Some comrades comment “all along the negations you supported the unions, but now
you find fault with them.”
My reply is when the war is between unions and Govt.,/IBA I stood by unions as a true union member. Now the war is between comrades and unions, I stand by my comrades.
Who is responsible for this set back of lesser % of wage revisions and back stabbing within the settlement?
In my view the reasons are
1. Attitude of Govt.,/IBA
2. Big brother attitude of “Big Brother Union”

Double Blow!

Saturday, May 23, 2015

Pension erosion-2 !!

On reading my earlier post about decrease of Pension,
some intelligent comrades said:

Arrears of Computed portion that will be given is huge , and that will compensate

this loss/decrease in pension.

I want to remind them whenever there is wage revision, basic pay will increase
consequently computation amount will also increase. It is quiet natural.
It happened in earlier occasions also. But pension did not decreased in those occasions.

(i.e 7th to 8th and 8th to 9th settlements)
If at all there was any decrease it is in few hundreds,  that too would have been adjusted 
within six months or so by D.A. raise.
But, now in 10th B.P.S. pension is reduced around Rs.2200 and even after 30 months it is 
not adjusted against D.A. raise.
This the specialty of this settlement.

Further, to wake up those pretend to sleep, I give below a chart 
Where an employee opt to draw full pension without commutation.

When it is said wage revision is at 15%  what is the increase in pension?
It is only 2.72% without commutation.

Can anybody Justify it?


Friday, May 22, 2015


*8th increment is effective from 01.05.2015.
i.e. all the retirees from 01.11.2012 to 30.04.2015 will not be getting this increment
even though they are eligible.
All other Pay slip component will be effective from 01.11.2012

* No news about increase passing powers of SWO/HC/Spl.Asst.

*  With effect from 01.011.2012, workmen employees shall be paid
Special Allowance at 7.75% and applicable D.A thereon.
  Note: The special Allowance and D.A thereon will not be reckoned
for Superannuation viz., pension including contribution to NPS,PF, Gratuity.

Pension anomaly!

For the attention of senior comrades!
Pension erosion!! Is it fair?

Wednesday, May 20, 2015

Officers Wage revision High lights!

Officer Basic Pay chart:

Officers Wage revision  

High lights 

Basic Pay 23700 to 85000.

Dearness Allowance @0.10% per slab - as on date DA is  33.70%

How much Increase? (As on November 2012)

Reposted after corrections.

Full particulars of 19.05.2015 talks

Today, (19.05.2015) the distribution chart has been signed between IBA and our Unions covering the allocation to various heads.   Pay scales and Allowances are as under:

A.  Pay Scales: from 1-11-2012

Clerk:   11765 – 655/3 –815/3 –980/3 –1145/7 –2120 –1310/1– 31540 – 1310 x 8 = 42,020

Substaff :   9560 – 325/4 – 410 /5 – 490/4 – 570/3 – 655/3 – 18545 – 655 x 8 = 23785

Tuesday, May 19, 2015

10th B.P.S. finalized!

Todays meeting out come:

:: Scale of pay finalized::
   Clerks: 11765 to 31540
  Substaff: 9560 to 18545
   (20 stages)

::plus 8 STAGNATION increments.
5 once in 3 years and
3 once in 2 yrs -

 ::8th stag. Inc. w.e.f.1.5.2015

 :: DA - 0.10% per slab

Sunday, May 17, 2015

Discussion with IBA on medi claim and items
held yesterday not concluded.
Next talks on 19th.
BEFI Office Bearers meeting on 20th.
(In the mean time a news is spreading that
SBI is getting ready for giving arrears and
new salary in June.
Any SBI employee may please confirm this news.)
Or as usual it is also a fake creation?

Saturday, May 16, 2015

Sub-Group meeting between UFBU and IBA
on Medical Insurance will be held tomorrow.
i.e on 16th May at 2.30 P/M/ at Mumbai
=BEFI news
No news about finalisation of Pay structure and
date. of signing of final settlement.

Saturday, May 9, 2015

The government is pushing its programmes through the banks!

Business Standard
Banks must follow rules for insurance policy: unions
IANS  |  Chennai  
May 8, 2015 Last Updated at 16:18 IST
Unions in the banking sector have cautioned their members to follow procedures while enrolling members under the government insurance schemes to be launched on May 9, said union officials.
Officials at some branches of nationalised banks told IANS that they were being pressured by the management to enrol account holders under the insurance schemes prior to its launch so as to show impressive numbers to the powers that be.
"Our top management has directed lower level officials to enrol customers under the insurance scheme by any means. So employees are filling up the forms in the names of customers," an official of a nationalised bank told IANS preferring anonymity for himself and his bank.
He said it is not known how the bank would proceed further on the issue.
"Whether the bank would debit the customer account's Rs.12 (for personal accident policy) and reverse the same if he objects to the debit is not known," he said.
The scheme clearly stipulates that express consent of the account holder is a must before enrolling him/her under the policy.