Will New Salary Structure Result in Lower Pension for Retirees between 2012 and 2017?
Our last two articles namely
have been widely read and have come under close scrutiny of unions as well as Aam Banker.
Based on the feedback, we can say there are broadly two views:-
(1) Sympathizers of unions have claimed that we have stretched our imagination and bankers must wait for 90 days to know the truth. Union leaders are much matured then us and are more trusted for years;
(2) Independent bankers have observed that our interpretation are absolutely correct as per the information released till date. There is urgent need for clarification by union leaders so that all speculations can be put to rest and in the end bankers do not feel cheated and get only peanuts.
However, no union leader is forthcoming with the desired clarification as to why only 2% increase in Basic Pay was agreed upon so as to make a sellout for the recently retired bankers and those who are going to retire by 2017.
Let me once again summaries the options which I can think can be possible at this moment :-
(a) There is only 2% increase in Basic Pay, and rest or majority of the increase is given in the form of HRA;
(b) There is only 2% increase in Basic Pay, and they introduce a new allowance on which NO Dearness Allowance will be paid and this will NOT account towards pensionary benefits;
(c) There is only 2% increase in Basic Pay, and a new allowance in the shape of Grade Pay is introduced on which DA will be paid on the lines of Basic Pay (as is the case in GoI scales), and the same will be added for the purpose of pensionary benefits.
Let us now examine the implications of the above three options :-
(i) In case of option (a), it will be disaster for the recently retired and bankers who will retire till 2017. It will also be disaster for the Officers who are availing leased accommodations. Moreover, it will compromise with the future gross salary of the serving bankers as they will be denied the DA on such an allowance;
(ii) In case of option (b), it will be disaster for the recently retired and bankers who will retire till 2017. It will be more rational for the serving bankers but they will be denied future increment pay on the allowance as DA is being denied on such allowance;
(iii) In case of option (c ), it will do some justice as in this case 15% increase will be across the board but will protect the recently retired bankers as well as serving bankers.
My purpose in writing this and previous articles has been to ensure that Aam Banker who does not have time to understand such intricacies of the agreements, is made aware and put pressure on UFBU and IBA so that the interpretation of the agreement is done in such a way that it gives justice to everybody including who are gong to retire soon.
I am attaching an Excel sheet which is prepared to show how it can negatively affect the bankers who have retired since 1st November 2012 or will retire upto 31st October 2017, if options (a) or (b) are accepted. Bankers will note that in case of option (a) or (b), the gross pension after commutation may be even less than the existing pension option, but the retirees will get higher commutation and higher leave encashment etc. Thus, they may be asked to choose whether they wish to take retirement benefits under old salary or under new salary. It will be a case of gross cheating.
Therefore, all the bankers (serving and retiring before 2017) needs to insist that UFBU must ensure that option (c ) or similar option is introduced for the bankers.
We are still waiting for more clarifications on this issue. In the meantime, let bankers themselves decide about the worth of the agreement. In case you wait till 90 days and IBA announces its interpretation and UFBU signs the same, you will not be able to even fight in Courts. Therefore, you need to discuss the same within your colleagues and participate in the last phase of the settlement which has become very critical and crucial to save the little that IBA has agreed to give.