by

Ratnakar Pathak

Comment by Rajesh Goyal :

We produce below a letter sent by Mr Pathak of Resigned Bank Employee’s Welfare Association to Mr D K Mittal on 22nd January, 2013.  This letter contains in clear terms the details of the mess created by IBA for the bankers, and made the issue very complicated.   Mr D K Mittal has since retired, we can hope  that the new Secretary Rajiv Takru may give a patience look and consider the right in an unbiased manner, which has been created by IBA over the years.    I am of view that this is a time when an attempt should be made by active group of the affected bankers, who should seek  time / appointment from the new Secretary and go in a delegation and give their representation.   It is possible that the new incumbent may view this issue in a sympathetic manner. 

We at AllBankingSolutions.com can help in arranging logistic arrangements at Delhi if some affected persons come forward through certain groups already having a good number of membership, but are stationed outside Delhi.

The letter sent by Mr Pathak is reproduced below :-

January 22, 2013

Shri D K Mittal (IAS),
Secretary,

Ministry of Financial Services, Banking Division, Jeevandeep Building, 3 rd Floor,

Sansad Marg, New Delhi 110001

Dear Sir,

Sub: Mess created by IBA in handling the Bank Employee’s Pension issue.

After the Banking Division’s insistence, the IBA has issued circular to all PSB’s to allow pension to the officer employees who have taken VRS under Regulation 19 (1) of the OSR. It seems that the IBA and the banks have acted so upon an instruction of the Banking Division. It is necessary to point out here that the IBA as well as the individual banks  have  messed  up  the  issue  of  pension  by  still  not  considering  a  group  of employees who have served for maximum years of service.

With all humility and administrative jurisdiction at your disposal, we earnestly request your good selves to examine the following issues:

1) There is no OSR based VRS schemes in 6 out of the 19 Public Sector Banks
     such as Vijaya Bank; Andhra Bank; Indian Bank etc.

2) There is no uniformity of qualifying service for seeking OSR based VRS in
     different banks: Such as some banks have schemes of VRS after 30 years of
     service but after attaining 55 years of age; some banks have VRS schemes
     after 20 years of service.

3) The VRS scheme of  30 years of service is available to employees having
     completed 30 service as an officer and employee promoted from Clerk to
     officer & having served for 36 years is not eligible for VRS under 19(1) of
     the OSR.

4)  There is no VRS scheme for Workmen employees (Award Staff) in any banks

for any service whatsoever.

5) While interpreting Clause 2 (II) (a) of the MOS dated 27.04.2010 the IBA and
    the member banks have mischievously treated GM’s on fresh appointment
    as the EDs and CMDs as ‘deemed to have retired’ under clause 2 (l) of the
    Pension Regulation even though the regulation was not applicable to them
    when they were appointed so by the Govt as they did not opt for pension in
    1995 like the resignees and the MOS also does not EXPLICITLY cover them
    for second option.

6) Deductions from salaries of resigned employees towards pension fund for 13
    years. The IBA and the UFBU, in the name of and under a veil of collective
    bargaining  settlements,  effected  deductions  from  the  wages  of  the  non-
    pension optees, at the rate of  50% of wage revision, for the period from

01.11.1997 to 27.04.2010 and the wages of non-pension optee employees were taken away, in the name of pension fund. The amount so deducted, on a cumulative basis exceeds Rs.20 lacs.

7)  Disharmony between bank level retirement rules and scheme framed at IBA
     level. The VRS scheme under the Pension Regulation of  1995, decided at
     the IBA level is available for a service of 20 years. No retirement scheme is
     framed  either  at  the  industry  level  (IBA  level)  or  at  the  bank  level  for
     voluntary retirement for non-pension optees.

8)  Objectives  of  pension  scheme.  The  object  of  the  pension  scheme  is  to
     accord  pension  to  employees  who  served  for  long  years.  The  resigned
     employees have served for long years and definitely much more than the
     CMDs.

9)  While adopting Rule 26 of CCR in the pension Regulation Act of 1995, Bank
     failed to pay attention to Rule 48-A of the Central Civil Services Rules, 1972
     provided for voluntary retirement and pension thereon after serving for 20
     years of qualifying service.

These issues have not been brought to the notice of the Banking Division and hence the Ministry is not aware of the same.

Considering all the issues involved and flagrant discriminations shown in favor of
the EDs and CMDs (RESIGNED PF OPTEE GMs) and IBA and Banks paying no attention

to the interests of the poor class IV and class III employees who served for their life
time and the trade unions obviously not having / giving any attention to this issue as
they would not be interested in poor aged senior citizens who are no more members
of the unions and unions becoming self-centered for themselves and their own current
members,  you  are  requested  to  be  kind  to  re-examine  this  issue  afresh  after
considering the above points and consider pension issue of the resigned employees
who were on the rolls as on 29.09.1995 as stated in the MOS dated 27.04.2010 and
have put in the qualifying service. This issue is of the thousands of senior citizens who
have struggled for life time but when the pension issue was to be considered the Govt
as well as the trade unions have orphaned them and as such they are struggling for
their  lively  hood.  As  responsible  Govt,  it  is  expected  the  matter  is  taken  at  the
highest  level  by  the  concerned  authorities  and  justice  should  be  given  to  the
deserving.

Yours faithfully,

For Resigned Bank Employee’s Welfare Association,

(Ratnakar Pathak)

Honorary President