BackGround by ABS :

We give below the letter sent by General Secretary of Forum of Retired Bank Employees to all the leaders of UFBU, reminding about the pending issues relating to retired bankers.   In the forthcoming meetings of 16th and 17th 2015, the issues relating to retired bankers are also likely to be discussed.    The letter gives additional details to what we have already placed on our website.  

The UFBU leaders now need to be prepared to take up these issues strongly as IBA is already on a very weak wicket on most of these issues and they are purely not agreeing because of their ego.   We have noticed that in last 5 years, on number of occasions the Courts have slapped IBA with judgements which expose the wrong stand taken by IBA on such issues.   Under Court orders and because of threat of Court action, some banks were forced to release pension to bankers who were denied as IBA has taken a contrary view.  

We are of the view that this is the time when IBA and UFBU can wriggle respectfully out of the mess already created for pensioners as if they fail to raise to the occasion, soon Courts will intervene and they (IBA and UFBU)  may have to lick their own spit in the years to come.  The following is the text sent to all UFBU leaders :-

TEXT of Letter Sent by FRBE to all units of UFBU :

"No. FORUM/Pen Left-overs/2015-16/                            13.03.2015

 To,

The General Secretary,

All Constituents of UFBU,

Camp: Mumbai

Dear Sir,

Ref: Pension to Left-Over’s in Banking Industry.

On 27.04.2010 vide an agreement, second option for pension was extended to the following categories of employees who:-

1)   Were in service of Bank prior to 29^th Sept 1995 / 26^th March 1996 and continue in the service of the Bank as on the date of this settlement;

2)   Were in service of Bank prior to 29^th Sept 1995 / 26^th March 1996 and retired after that date and prior to the date of this settlement;

3)   Were in service of Bank prior to 29^th Sept 1995 / 26^th March 1996 and died in service OR retired after that date and died will be eligible for Family Pension;

4)   The Employees who ceased to be in service on or after 29^th Sept 1995 / 26^th March 1996 on Account of SVRS.

The option applications of other categories i.e.  Normal VRS under Regulation 19(1) of OSR 1979 / 1982, CRS (Compulsorily Retired Employees), Resignees, Dismissed employees were declined on the ground of not eligible as per the settlement.

On the contrary by enlarging the scope of the settlement, the PF optee General Managers were extended the benefit of second option though the word Deemed to have retired was not incorporated in OSR 1979 / 82 and also this category was explicitly not covered in the settlement.

Further in 2012, IBA advised vide its letter No. CIR/HR&IR/2012-13/G2/6213 dated 9.11.2012 by enlarging the scope of the agreement; IBA unilaterally allowed pension option to those officer employees retired under Regulation 19(1) of OSR 1979/1982, benefitting 5500 employees.  This has led to anomaly of depriving pension to award staff where bank failed to formulate VRS scheme and also for officers in 6 public sector banks where the scheme under Regulation 19(1) was not framed despite directives of the Government of India. (Kindly refer IBA’s letter No. HR&IR/KU/G2/6406 dated 06.08.2012.)

Above facts led to denial of pension option to following categories.

1)   Resigned employees despite completing qualifying service.

2)   Voluntarily retired officers of private sector banks.

3)   Compulsorily Retired Employees (despite decision of Hon. Supreme Court)

4)   Exit optees of Associate Banks of State Bank of India.

5)   Those who could not exercise option earlier or refund PF amount received within stipulated period for the circumstances beyond their control.

6)   Those who exited from the services of the banks by resignation during the period from 27.04.2010 i.e. from the date of agreement to the date of issue of circular by individual banks in August 2010 or thereafter.

Reference is also invited to the actuarial valuation report of the commonly agreed actuaries who have assessed the pension liability of retired employees as on 31.03.2008 is as under.

Total number of retired employees                         63829

Of which not entitled for pension                             8179

No of retirees entitled for pension                          55650

Incomplete data of retirees                                      8519

No of retirees valued actuarially                             47131

Of which employee pensioners                               38252

Family pensioners                                                    8879

It is also understood that about 50% of family pensioners for which liability was assessed did not opt for pension as the scheme was not attractive for them.