Can the government say that the Joint Note dated 27 04 2010 of IBA and Bank Unions has overriding character to circumvent the Gazette Notification?
If ht answer is "NO' , the envisaged recovery of 2.8 times Basic Pay, 56 percent over and above CPF etc will have to be scrapped. Pension will have to be granted from date of retirement and not from 27 09 2009. Commutation will have to be based on age on next day of retirement and not on age on the date of option
C N Venugopalan
Ex-Manager Union Bank of India
“Nandanam”Kesari JunctionN ParavoorKerala 683 513
Phone: 0484 2447994 Cell:9447747994 e-mail:ceeyenvee@gmail.com
No.100905 5th September, 2010
The Honourable Minister for Finance,
Government of India,
Ministry of Finance,
Parliament Street,
New Delhi 110 001
Through: Banking Division, Department of Economic Affairs
Most Respected Sir,
Joint Note dated 27th April, 2010 on Pension signed by IBA and Bank Unions
I invite your kind attention to my letter No. 100815 dated 15th August, 2010 pointing out the anomalies in the captioned joint note pertaining to items such as recovery of 156 percent of CPF and interest paid at the time of retirement from the retired, 2.8 times November 2007 pay from the working, pension payment from 27 November 2009 instead of paying it from the date of retirement, reckoning the age factor as on the date of fresh option instead of that at the time of retirement for commutation of pension etc. Since I am yet to hear anything in reply, I think the matter is still under examination. Since IBA has taken approval for the joint note that ultimately will cause shame to the Government, I feel it worthwhile to once again explain why it is thoroughly brittle under any judicial process and becomes not at all maintainable: Contributory Pension has been introduced in Banks with effect from 1st April, 2010 and this makes it very vivid and underlines that the Pension Scheme in force till this date is non-contributory. The recovery of 56 percent (over and above CPF paid on retirement) from the retired, 2.8 times November, 2010 pay of present work force etc. towards cost of pension are unwarranted recoveries that become absolutely illegal. The Government had published notification dated 13th July 2002 in the Gazette of India amending Regulation No. 28 of the Pension Regulations of banks which states that “Superannuation Pension shall be granted to an employee who has retired on his attaining the age of superannuation specified in the Service Regulations or Settlements. Provided that with effect from the 1st day of September, 2000, pension shall also be granted to an employee who opts to retire before attaining the age of superannuation but after rendering service for a minimum period of 15 years in terms of any scheme that may be framed for such purpose by the Board with the approval of the government”. In terms of item No.2 above an employee who retired voluntarily through any scheme (normal Voluntary Retirement as spelt out in the Service Regulations and Pension Regulations which is approved by the Bank and Government as also the Special VRS) are invariably entitled to Pension from the very next day of retirement. The understanding in the joint note that pension shall be payable from 27th November, 2010 and commutation based on the age at the time of fresh option instead of age at the time of retirement etc. can be valid only if IBA and Bank Unions have powers exceeding that of the Government. Moreover, the retired employees have not authorized the Unions to agree on their behalf to forgo their subsisting right to pension any way. Pension is an income that has been extended immunity from attachments even by Courts and the attempt of IBA to snatch away the pension payable to those who are on the verge of extinction is a low profile act. The effective date of pension payment and age factor for commutation has to be the same invariably as in the case of existing pensioners for the sake of legal nitty-gritty. Whereas the joint note is common for all member banks, some public sector banks have offered option in terms of it to all those who retired voluntarily whereas some others have extended it only those to who retired under Special Voluntary Retirement Scheme. Again, in respect of envisaged recovery of costs, some banks have permitted set off against commutation and arrears of Pension whereas bank like Canara Bank has stipulated that options shall be entertained only after the employee or family pensioner remits the entire 156 percent. These do not at all speak well on the implement part of the joint note. Employees who retired under normal VRS are denied access to the scheme. The retired who are in utter financial distress and the widows of those who died already are finding it difficult to raise the amount of pay back. In the case of the latter, commutation of pension, which they would have got at the time of retirement will not be available and they are subjected to gross injustice for ever. Public Sector Banks inflicting cruelty on the senior citizens, now in distress, who worked to make them what they are and women is a shame to the great nation and to its Government and hence IBA and banks may kindly be advised to be rational in their approach on fresh Pension Option. In our democratic country that granted 300 percent pay hike (and relative pension eligibility too) to the Members of the Parliament who work for a term of five years, the bank employee who toiled for banks for a full terms should not starve at least. I earnestly request you to screen my observations and to advise IBA to refrain from unwarranted recoveries and to grant pension and commutation as per gazette terms as this alone meets with righteousness. I am marking a copy of this letter to the Chairman, IBA with a request to please review the entire matter and to make necessary amends in conformity with legal requirements. In case of any difference of opinion, he may appraise his views to MOF under a copy to me too for my information
Thanking You,
Yours truly,
C N Venugopalan
cc.to: Chairman, IBA – With a request to please comply with my request at the earliest
No comments:
Post a Comment