Sunday, July 26, 2020

Loading on Basic Pay

Regarding loading on Basic Pay after merging D.A with old Basic Pay:

Up to 9th BPS around 10 to 13% increase/load was given after merger of old Basic Pay and D.A.

It was changed in the 10th BPS  to 2% only at the last minute of signing the settlement.
Effect of this is to curtail post retirement benefit. i.e. Pension for life time, computation, Gratuity for seniors and NPS corpus fund of new employees.

This method of reducing retirement benefit is not implemented in any of the salary class employees viz.Central Govt., State Government , LIC, GIC , BSNL etc.,

Only Bank employees are cheated/betrayed in this aspect.
O.k.a blunder done by UFBU in 10th BPS.
There was a demand raised in Charter of Demand for 11th BPS, reverse the Special Allowance of 7.75% and add to Basic Pay.
What is the result?
The mistake is not corrected, rather the same blunder is continued in 11th BPS also.

What will the loss to employees?
Those employees who retired in 10 th BPS lost 7.75% of retirement benefit in Pension for life time, computation and Gratuity.
Those who are retiring in 11th BPS will lose 7.75+7.25=15% in retirement benefit.
If we calculate the loss in rupee terms it will mind blowing.
Please note that Employees under NPS also affected in the same way but through accumulation of NPS corpus,
as monthly contribution to NPS fund by employer will be less by 15%.
(I have posted many charts about the loss at the time of 10th BPS. available in my blog)

There is reduction of Pension in every settlement and also there would not be any updating of Pension on subsequent wage settlements.
Why Bank employees alone face this pathetic situation?

Will UFBU answer?


Anonymous said...

Ufbu leaders got heavy bribes

Anonymous said...

Ufbu leaders got heavy bribes

Bob said...

We retirees are cheated, there are retirees in union,yet they r doing this mistake. Instead of favouring pensioners,they r troubling us which is not fair.

Sarathy sp said...

Whether Hon’ble madras high court, Madurai bench order has an impact on the settlement? Whether Hon’ble Supreme Court riling in Bank of baro da case to include special allowance with basic pay was respected? What’s the answer that IBA & UFBU are going to say to Hon’ble supreme court’s observation that there can’t be two methods of calculation - one for salary & one for pension?
This is a fit case to fight @ Hon’ble Supreme Court by bankers (befi) to seek a stay in implementing the settlement without solving the two issues as these were included in negotiations

Unknown said...

Always concerned about pension . Why don't you talk about salary rather said...

UBFU will not answer. They have done knowingly to deprive the retiring benefits. The very same unions who were pioneer in getting a DA formula, which had been fought and got by others like, RBI, insurance, and finally by Central and state governments and PSUS, have set an example of how deny the legitimate super annuation benefits to employees at large. The net effect is pension stands frozen at the level of 2007 and next two revisions 2012 and 2017 not only no rise but lesser terminal benefits to some sections despite commutation increase. History will never forgive them. Now only hope is supreme court for inclusion of special allowance for arriving at terminal benefits. People who loudly proclaimed that they will not sign without achieving pension updation have actually signed for the second time for pension down-dation.

Unknown said...

There is still time for the UFBU to understand the gravity of not merging Special Allowance.

There is still time to decide on date for DA merger as in charter of demand.

Please for God sake, work on these issuesbefore signing the settlement.

Anonymous said...

It is primarily inept mentality and utter lack of human consideration of UFBU office bearers. All settlement benefits they want it to restrict for current employees alone. No foresight thinking with human heart for retirees. They forget that current employees who pay levy to them are going to be ditched for retirement benefits life long.

mymium said...

Please take care. Do not sign without merging the Special Allowance of 10th Bipartite and loading more on BP in the 11th.

Logical guy said...

My only question to all very simple.....How dare UFBU and IBA insult court order ? Is it not contempt of court ? If that is so any agreement which leads to contempt of court is automatically INVALID AB INITIO in the eyes of law.

Working bankers said...

Only solution is suit file against UFBU and IBA for cheating with serving bankers and for. Stay against MOU which is not acceptable by any bankers, stop union subscription immediately.