LETTER TO PMO dated 11 May 2010

C N Venugopalan
Ex-Manager, Union Bank of India
Nandanam
Kesari Junction,
N Paravoor,
Kerala – 683 513
Phone. 0484 2447994 Mob: 9447747994 E-Mail: ceeyenvee@gmail.com
No.20100511 11th May, 2010

The Principal Secretary,
Office of the Prime Minister,
Government of India,
New Delhi – 110 001
Kind Personal Attention: Shri. T K A Nair,


Respected Sir,


I am very much inspired by the speech of our Hon'ble Prime Minister on 8th May, 2010 addressing the Golden jubilee National Conference on Law & Governance of the Bar Association of India wherein he called upon Indian legal fraternity to become an integral part of the system of administration of justice in the country. The worthy Prime Minister stressed that justice shall not only be in the strictest legal sense and should focus, social, economic and political justice as set out in the preamble of our magnificent Constitution. The Prime Minister was seen elated to say that the Cabinet consisted of several outstanding legal luminaries making it capable of giving good governance to the country. Affordable litigation and reduction in number of suits were his aspirations.

It became obligatory on my part to bring to the attention of the Hon'ble Prime Minister an event which took place against the laudable objective with which he is functioning in line with the magnificent Constitution. While concluding the wage pact of the Bank Employees and extension of fresh Option of Pension to those bank men who could not opt when the scheme was launched initially in 1995, the Hon'ble Finance Minister, a member of the Cabinet and a legal luminary has advised the parties to the agreement viz. IBA and Bank Unions to extend the benefit of Pension to the retired employees with effect from the date 27th November, 2009 when they are in the legal and socio economic grounds entitled to Pension from the ensuing day of their retirement. The act of depriving them the benefit from the date of retirement is, in letter and spirit, against the Constitution of India. While fixing an arbitrary date which was irrelevant in the context, the action of the Hon'ble Finance Minister was vitiated by breach of the oath of office he took while swearing in, to treat people of all manners alike.

The following anomalies had crept in the wage agreement in the key industry of India:-

1. Those who are already retired and are now in financial distress have to pay back 56 percent of the CPF which banks paid to them on retirement as penalty albeit the fact that Payment of Pension is under one and the same Pension Regulations and identical people who opted earlier had not to pay such a contribution

2. The Pension for the period from their date of retirement to the date 27th November, 2009 arbitrarily fixed at the behest of the Union Finance Minister is denied to the retired which is prima facie illegal.

3. The existing bank employers in the CPF segment who have to enroll under Pension Scheme have to pay back from the arrears 2.8 times their Revised Pay for November, 2007 in addition to surrender of employers' share of CPF as entry fees when their counterparts who opted earlier had not to pay it

Pension is declared as the right of an employee which is akin to Fundamental Rights of a citizen by the Apex Court and making the employees share it is shame to the Financial Sector and to the nation. In short IBA and Banks are imposing irrational penalty to all the new entrants to Pension Scheme. In the case of those now working, Banks are taking back with the other hand a lion share of the salary arrears paid through one hand. Whereas the arrears attract Income Tax, and the recovery does not attract tax rebate, a further penalty is also imposed indirectly by way of tax. Gross discrimination is meted out to all those are to be encompassed under Pension Scheme albeit the fact that the Pension Scheme is one and the same for all. It is learnt that the decision for recovery of money to finance the alleged short fall in Pension Fund and denial of pension from the date of retirement etc have stirred bank employees creating a turmoil and turbulence throughout the nation.

Identical lots are not given uniform treatment in spite of the fact that all are doing the same work when the salary and perquisites and retirement benefits for SBI employees totally differ from that of the Public Sector Banks and SBI subsidiaries. When Government gave a pay hike of 40 percent to its employees who work for five days a week, the Bank Employees who work six days are given a hike of 17.5 only, a major portion of which too is taken back in the name of the Pension burden. The denial of Pension from the date of retirement up to the arbitrary date, recovery of 56 percent of CPF as levy from them and penalty of 2.8 times Pay from the working etc. take things to the nadir of ethics. I earnestly request you to please place the matter before the Hon'ble Prime Minister and to advise MOF to issue fresh directions to ensure that perfect justice is made available to retired bank employees including me in line with the aspirations and vision of the great Prime Minister as also to ensure that the Cabinet does not become a party to give rise to fresh Court cases coming up in relation to Pension of Bank employees.

Waiting to hear from you, I remain.

Thanks and regards,

Yours faithfully,


C N Venugopalan