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Sunday, December 10, 2017

Are You A Banker Working or Retired? If Yes, It is For You

Will you also retire someday from bank?  

If yes please read following letters written for your better future.

If you are a trade union leader and think that you are well wisher of all bank employees , then you too should keep in mind that you and all bank staff will have to retire on a day and they all have to become pensioner sooner or later. As such following letters are in the interest of all bank employees, working as well as retired. You should also keep in mind the interest of retired as well as working staff honestly and judiciously.

If you are in bank board or CEO or ED of a bank or hold a key post in a bank or you are associated with Indian Bank Association (IBA) authorised to arrive at a negotiated settlement with United Front of Bank Unions , you should also keep in mind that your days of retirement are very near and knocking your door to drag you out of bank and send you to your home for rest. And hence it is your duty to keep in mind  the interest of working as well as that of retired bank staff honestly and judiciously. 

And hence following circulars are for you also. I thank all who are devotedly working their best for the benefit of all retired bankers. God bless you all.

Please circulate this link to all your colleagues working or retired , so that everyone can make additional efforts  to make the effort a grand success.

Link to all Letters


A.Ramesh Babu                                      K.V.Acharya
Joint Convener         Joint Convener,
Flat No 1103, Block 3B,         J-208 Vijay Rattan Vihar,
S.M.R. Vinay Fountainhead,         Sector 15, Part II,
Culvary Temple Road,         Gurugram -122001
Hyderabad 500 049         Mobile: 09868220338
Mobile: 09849381995                                                                E-mail: acharyavedavyasa46@gmail.com
E-mail: babu2609@gmail.com  
__________________________________________________________________________________
                                                Dated: 08.12.2017
To
Com.  D.T. Franco Rajendra Dev,
General Secretary,
All India Bank officers’ Confederation,
C/o SBI Officers’ Association (Chennai Circle)
84, Rajaji Salai,
Chennai- 600 001


Dear Com. Franco,


Issues Relating to Pensioners and Retirees
Negotiation with IBA


We wish to invite your attention to the Record Note dated 25.05.2015 signed by IBA with the representatives of UFBU.  We mention the issues contained in the said Record Note for your ready reference:


  1. LFC and Hospitalisation reimbursement should be extended to Retired Bank Employees/Officers.
  2. Revision in the rates of Family Pension on the same lines of the Central Government/RBI Scheme.
  3. Extending Dearness Relief at 100% Compensation to all Pre-November 2002 Pensioners as in the case of post November 2002 Retirees.
  4. Upgrading the Basic Pension of all the Pensioners at the common and uniformed index of 4440 points.
  5. Updation of Pension for all the existing Pensioners and Family pensioners.
  6. Periodical updation/improvement in Pension along with Wage Revision of in-service Employees on the lines of Central Government.
  7. Uniform percentage of allocation from Welfare Fund towards Schemes pertaining to Retirees.


It may be appreciated that there was categorical and solemn assurance by IBA on the issue of revision of Family Pension rates and 100% Dearness Relief to pre November 2002 Pensioners.  Similarlily the issue of upgrading the Basic Pension of all the Pensioners at the common and uniformed index at 4440 points was to be examined by IBA with regard to its cost implication and sustainability of Member Banks.  


The views of IBA on all the above issues notwithstanding, the very existence of Record Note stands a mute testimony to the fact that all these issues are negotiable with IBA by UFBU. In this backdrop, the contention of IBA that issues like 100% DA and updation are sub-judice due to litigation is illegitimate and unacceptable as the parties to the dispute in the Court do not include any of the constituents of UFBU.  Moreover none of the Courts in the country has issued any order restraining IBA from resolving these issues outside the Court by mutual discussion with UFBU. We therefore reiterate our firm belief that IBA is duty bound to settle all the pending issues pertaining to Retirees.  It is pertinent to mention that every serving employee/officer is bound to retire and post superannuation benefits do form part of their service conditions.  Hence it is wrong on the part of IBA to show their oblivion and escapist attitude at this juncture.  


As is well known, IBA has not provided any official platform or mechanism to the Organisations of Retirees to discuss and settle the issues pertaining to Retirees.  Under these circumstances the UFBU is the sole body to negotiate with IBA for resolution of all the issues pertaining to the Retirees.  We therefore earnestly request all the constituents of UFBU to reiterate their locus standi and endeavour to resolve all the pending issues of Pensioners and Retirees.


We also wish to inform you that all the above issues have also been taken up by us with the Government of India (DFS) and IBA separately and the same are being pursued by us on a regular basis.  With the vibrant leadership of UFBU, we are very confident that IBA will come around and resolve the issues.


Kindly do the needful at your end.


Yours Comradely,
                        
A.Ramesh Babu                                     K.V.Acharya
                                Joint Conveners

                                                                                                                                                 
                                                                                                            Dated: 5.12.2017
Shri Shiv Pratap Shukla Ji,
Minister of State for Finance Minister,
Government of India,
Ministry of Finance,
North Block, New Delhi 110001


Respected Sir,


Sub: Most important and urgent issues of Bank Pensioners.


Sir, we the constituents of CBPRO consisting of five major National Organisations of Bank Pensioners and Retirees namely Federation of SBI Pensioners’ Associations, AIBPARC, RBONC, AIRBEA and FORBE, having more than 4 lacs membership, wish to submit this memorandum on behalf of the Pensioners and Retirees of the Banking Industry requesting your Good-selves to direct the concerned authorities to resolve the following issues on high priority basis. Bank Retirees are eagerly and anxiously waiting for justice and comfort.  We have immense faith and confidence in Your Good-selves. The long pending issues are mentioned hereunder:


1. UNIFORM DEARNESS RELIEF FORMULA - In the year 2005 when the wage settlement was concluded effective from November 1st 2002 the DA formula was amended from Tapered DA formula to 100% DA neutralization formula effective from 01 May, 2005 in line with the DA formula already in existence for Both serving Government and RBI Employees and officers and also Retired Government and RBI Employees.   But unfortunately the benefit of this amended DA formula is not extended to those Bank Pensioners and Retirees who retired before 01.11.2002.   It is also a fact that the benefit of 100% DA Formula is given to all Government Retirees, RBI Retirees and other Public Sector Undertakings where the Pension Scheme is available irrespective of their Date of Retirement.  Moreover the number of such deprived old Retirees is dwindling very fast as many of them are in the age group of 80 and above.
2. FAMILY PENSION - While for Government Retirees and RBI Retirees the Family Pension is improved to 30% of the Pay, the Spouses of Bank Retirees (mostly women) are subjected to 15% Family Pension that too with ceiling.  Because of this the Family Pension ranges between as low as Rs. 4,000.00 only including DA to the spouses of junior  Employees and maximum of Rs 14,000.00 even to the spouses of Retired General Managers and Chairmen of Banks. This is causing agony to the spouses of deceased Retirees and needs immediate upward revision to 30% as available to others.
3. PENSION UPDATION (Pension Revision) - As per Bank Pension Regulations there is a    clear provision regarding Updation.  The Regulation states Basic Pension and Additional Pension shall be updated, wherever applicable, as per the formula given. This Regulation was implemented only once i.e. to those who retired between 1st January, 1986 to 31st October, 1987 and even for them it was never updated subsequently whenever the wage revision had taken place.  This has put even the senior most Executives of the Grade of General Manager who retired in 1990 getting Pension as low as Rs. 20,000.00 including Dearness Allowance which is lower than the Pension given to a senior clerk retiring today.  Hence we appeal to Your Good-selves to help implementing the provisions of the Pension Regulations in respect of Pension Updation.
The Bank Employees Pension Scheme is exactly on the model of Government Employees Pension Scheme.  Bank Employees Pension Regulation has very clearly stated that “In case of doubt, in the matter of application of these Regulations, regard may be had to the corresponding provisions of Central Government Employees Pension Rules with such exceptions and modifications as the Bank, with the previous sanction of Central Government, may from time to time determine. The Pension Scheme in Banks is also a Defined Benefit Pension Scheme and hence Pension is a Deferred Wage.


The Pension Fund of all Banks together is more than Rs. Two Lakh Crores as on date. The payment of Pension and any improvement thereafter, as per the Regulations, is also paid out of the Pension Fund only.   Any Provision, if to be made under AS (15) Revised should be viewed only as a provision and not a real drain on the profits of the Banks as the Pension Corpus is enormous and the present Pension Scheme is a close ended Scheme and the Retirees eligible for this Defined Benefit Pension Scheme are a vanishing population in a matter of about 15 years.


4.MEDICAL INSURANCE SCHEME – At the instance of the Finance Ministry the IBA introduced  Group Medical Insurance Scheme both for Serving Employees and Retired Bank Employees. But while implementing the scheme the Banks created discrimination with regard to payment of insurance premium by bearing the cost in case of serving employees and forcing the retired employees to pay the premium by themselves.
It is noteworthy that in the case of Retired Employees the coverage of insurance is restricted only to the Retiree and spouse and in a quite a good number of cases it would be available for only one due to the death of the other. But collecting the same premium amount from Retirees as in case of serving employees without going into the rationale of number of claimants is not only harsh and illogical but also humiliating. Hence our request is to extend the Medical Insurance Scheme to the Retirees on the same lines as available to Serving Employees without collecting the premium cost from the Retirees.
5. Pension to left out Compulsorily Retired Officers: The Hon’ble Supreme Court in case of Compulsorily Retired Officers of Andhra bank has allowed second option of Pension. Since the Hon’ble Supreme Court has its jurisdiction all over the country, the Compulsorily Retired Officers in other banks should also be extended similar benefit as a good gesture. The number of such deprived officers is hardly 1200 in the entire banking industry.
6. Pension for Employees resigned after putting pensionable service: Hon’ble Supreme of India has already given the verdict in respect of writ petitions filed by Vijaya Bank Employees and upheld the judgment of  Hon’ble High Court of Karnataka giving relief to all petitioners. But it is unfortunate that very unreasonably India Banks Association ( IBA) directed the member banks not to extend the relief of the Judgment to other similarly placed employees stating that whoever wants  relief should approach the courts. This is not only against the Senior Citizen Litigation Policy a pronounced by the Central Government but also against all legal ethics and also amounts to disregarding the Highest body of judiciary. The number of such Resignees is very small and denying the relief to them is both unfair and unjust.
We want to fervently make an appeal to Your Good-selves to consider the above requests of the Bank Retirees on humanitarian grounds as many of the Retirees are in their advanced age and in the evening of their life.  This will immensely make Bank Retirees feel obliged and also accord a sense of pride to them for the very valuable services they rendered to the Nation, making banking a very valuable Vehicle of progress and Economic Development of the Nation.  We are very hopeful of your kind and sympathetic consideration.


Thanking you


Yours sincerely,
                  
A.Ramesh Babu                          K.V.Acharya
                        
                       Joint Conveners                                             



    Dated 03.11.2017
Shri Jatinder Bir Singh, IAS
Chairman, IBA
Chairman & Managing Director
Punjab & Sind Bank
Rajendra Place
Pusa Road
New Delhi 110 008


Respected Sir,


Pending issues of Bank Pensioners & Retirees


We wish to introduce ourselves as a Coordinating Body of Major Organisations of Retired Bank Employees and Officers including that of State Bank of India, representing more than 400,000 members.  We have taken up the following issues with the Government and IBA and request your Good Self to help us by resolving these issues at the earliest. We believe that with your rich and vast administrative experience and also the experience in the banking industry, you will empathise with the cause and grievances of senior bank men by taking proactive steps in this regard.


1.Updation of Pension: Pension scheme in the Banks was finalised in the year 1993, for which the Pension Regulations were formulated in September 1995. Pension Regulation 35(1) dealt with Updation of Basic & Additional Pension in respect of employees who retired between the 1st Day of January 1986 but before the 31st Day of October 1987, as per formula given in appendix 1. The provision of updation of basic and additional Pension - Regulation 35(1) was therefore implemented at the time of introduction of Pension scheme in the Banks.


The Govt. of India amended Regulation 354(1) vide notification in Government Gazette (No.9) dated 1st March 2003  as under :“Basic pension and additional pension, wherever applicable, shall be updated as per the formulae given in appendix-1”.


A perusal of original Regulation 35(1) vis a vis amended Regulation 35(1) would show that the restricted application of Updation of Pension in respect of those who retired between 01.01.1986 and 31.10.1987 has been extended to cover all retirees wherever applicable.  But the Banks have been denying the benefit of updation to the eligible pensioners who retired after 1.11.1987 for unjustifiable reasons. This has resulted in creating a huge difference as some retired General Managers are drawing lesser pension than that of a senior clerical staff retired recently.
2. Uniform 30% Family Pension without ceiling: Family Pension in Banks is payable at 30%, 20% and 15% of last drawn pay of the deceased Employee/Pensioner with  lower percentage being assigned to higher pay. It in effect meant that Family Pensioners of those who retired as officers would get the lowest 15% of last drawn pay that too with a specified ceiling on the amount of Basic Pension which effectively translated into a mere 7% to 10% of last drawn pay. Such as meagre amount like Rs.4000/- is to make the mockery of the concept of Family Pension which is nowhere near the minimum amount determined by the Govt. for sustenance. This distortion was corrected by the Govt. and RBI by fixing Family Pension uniformly at 30% of pay. Regulation 56 of the Banks Pension Regulations provides for the similar treatment to Bank Family
Pensioners and it calls for a favourable consideration to rationalise family pension rate.

3. Uniform 100% DA Neutralization: After the introduction of 100% DA neutralization in lieu of tapering DA by the Central Govt. during the revision under 5th Pay Commission (1996), Banks too introduced uniform 100% DA neutralization from 2005 but made it applicable to only those who retired on or after 01.11.2002 despite there being no mention in the bipartite settlement about such artificial and unconstitutional classification based on the date of retirement.


4. Medical Insurance: After prolonged representations, the Government vide F.NO. 14/7/92-IR (Vol-II) Dated 24th February 2012 advised IBA to formulate a uniform Medical Insurance Scheme for both serving and retired employees. The IBA in the last (10th) Bipartite Settlement introduced Medical Insurance Schemes for both serving and retired employees but created discrimination with regard to payment of insurance premium by bearing it in case of serving employees and forcing the retired employees to pay the premium through their nose. This discriminatory treatment has robbed the retired employees of Banking Industry by as large a sum as Rs.40,804/- for the renewal of their medical insurance due on 01.11.2017. It is in contrast to free Medical Facilities extended to senior level bankers viz., CMD/MD/CEO/EDs  after retirement and hence our demand for similar medical facilities to  rest of the retired Bank Employees.


It is intriguing that the premium for a cover of Rs. 4 lacs was Rs. 7500/- in 2015 with OPD facility, it was enhanced to Rs. 20010/- in 2016 and this year it has been enhanced to Rs.36998/-. With the facility of super top up policy of Rs.5.00 lacs, the total premium comes to Rs.40804/-. We are at a loss to understand as to who negotiates the premium for such a large group of bank retirees or the insurance company is allowed full freedom to exploit the retirees. The penetrating pricing in 2015 and arbitrary steep rise in subsequent years is nothing but exploiting a helpless community of bank retirees. Hence the request for the premium to be borne by the banks in case of retirees too in terms of Government communication which was devoid of any advice about the premium to be paid by the retirees.


5. Pension to left out Compulsorily Retired Officers: The Hon’ble Supreme Court in case of compulsorily retired officers of Andhra Bank has allowed second pension option. Since the Hon’ble Supreme Court has its jurisdiction all over the country, the compulsorily retired officers in other banks should also be extended similar benefit as a good gesture. We request that the Government/IBA as good employer should accept our request as it has been upheld by the highest court in case of similarly placed officers especially when the number of such deprived officers is hardly 1,200 only for the entire banking industry.


6. Pension for Resignees: IBA advised the bank to extend second option to the petitioners only in case of Vijaya Bank instead of giving benefits to similarly placed resignees who have put in more than 20 years service in other banks. We feel that the other helpless resignees should be compelled to litigate on the legality of an issue which is already settled by the Hon’ble Supreme Court. There are about 4000 resignees in the entire banking industry and the cost implications are insignificant.


7. Reckoning of Special Allowance component for Pension:  A Special Allowance was introduced as a part of pay in the last Bi=Partite settlement. This allowance was attracting Dearness Allowance but was excluded for the purpose of computing pension and calculating gratuity. It is important to note that in the case of LIC of India, the similar special allowance is treated at par with the grade pay of government employees and the same is also reckoned for terminal benefits including Pension & Gratuity.


In view of these facts that special allowance components of Bank Employees & Officers should also be treated as a part of pay for the purpose computing pension and calculating gratuity.


We shall be grateful to you for early resolution of these long pending issues of the Pensioners/Retirees.


With respectful regards,


                                 Yours faithfully,
                                    
                      
   A.Ramesh Babu                                           K.V. Acharya
                                    Joint Convener
Date:4.12.2017
Shri Santosh Kumar Gangwar Ji,
Hon’ble Minister for Labour,
Government of India,
Shram Shakti Bhawan,
New Delhi.


Respected Sir,


Raising Employees Gratuity Limit for Public & Private Sector Employees


The amount of Gratuity Limit for Government employees was enhanced from Rs 10.00 lacs to Rs 20.00 lacs on the recommendation of VIIth Central Pay Commission with effect from 01.01.2016. This decision was regarded as the most progressive one as it was in tune with the present inflationary conditions and afforded a fair and reasonable compensation by way of retirement benefit to Government employees. It leads to a natural expectation from the employees working in Public Sector, Private  Sector and other Organised Sectors to have the gratuity limit enhanced in their cases too. Such an expectation was a normal corollary as the employees of these sectors formed part of same eco- system and are equally affected by inflationary pressure.


The amendment to The Payment of Gratuity Act would need the approval of Parliament and hence a time consuming exercise. We have therefore requested the Hon’ble Prime Minister of India vide our letter dated 27.11.2017 to Promulgate an Ordinance announcing the Government’s decision to extend the enhancement in the Gratuity ceiling from Rs 10.00 lacs to Rs 20.00 lacs from the same date i.e. 01.01.2016 so as to help the retirees in Public & Private Sector get benefit of enhanced Gratuity.


We are enclosing a copy of our letter dated 27.11.2017 addressed to Hon’ble Prime Minister and earnestly request your good self to initiate necessary steps to facilitate Promulgation of a suitable  Ordinance in this regard and oblige.


With Regards,


Yours Faithfully,
K.V. Acharya,
Joint Convener.


Encl:1

To,                                                                                                          Date: 27.11.2017
Shri Narendra Modiji,
Hon’ble Prime Minister of India,
PM Office,
North Block,
New Delhi.

Respected Pradhan Mantriji,

         Raising Employees Gratuity limit to Public Sector & Private Sector Employees

We heartily welcome Your Government's decision in accepting the recommendation of the Seventh Pay Commission to enhance the limit of Gratuity payable to Central Government Employees from Rs 10.00 lacs to Rs 20.00 lacs effective from 1.1.2016. This is one of the most progressive decisions taken by Your Government keeping in line with the present inflationary conditions  and Market Forces so that the Employees are duly compensated and  their salary income and retirement benefits do not get eroded. 

There is a natural expectation from the Employees of other Sectors that this gesture of the Government will be extended to all the Employees of other Public Sector undertakings, Public Sector Banks and Private Sector Organisations who are an integral component of the same eco system. We are certain that the Government equally values the services and contributions of the Employees of the other Public Sector Undertakings and Private Sector as much as the Government values the services and contributions of Central Government Employees. The grounds for enhancing the Gratuity limit to the Central Government Employees are also equally applicable to Public Sector & Private Sector Employees.

It is heartening to know that your Cabinet has already given its approval to enhance the Gratuity limit to the same extent to the employees of other Sectors also. Every passing day has been causing anxiety to all of us as to when it will be passed by the Parliament. It is learnt that the Parliament will be in session from the middle of December, 2017 and in the same session the amendment to the Gratuity bill is likely to be tabled.. 

Unfortunately in the past such enhancements in the Gratuity ceiling were made effective only prospectively from the date of passing of the Bill in the Parliament. In the process lakhs of Employees who retired in between the date of enhancement of Gratuity ceiling to the Central Government Employees and the date of passing of the Bill in the Parliament were deprived of the due increase in the limit for no fault of theirs.  And such delay used to be invariably one year to two years. However having witnessed the increased levels of efficiency of the Government under Your stewardship had raised the hopes of the working class to get enhanced Gratuity without much loss of time. But they have all been waiting for almost two years now. This amounted to grave injustice to the Employees of other Sectors and also amounts to discrimination. There is an urgency to set right the anomalous situation and hence an earnest request to You Sir.

We are confident that your Government is keen to ensure full justice to the Employees of other Sectors also and We are certain that the enhancement in the limit of gratuity will be effective from the same date as given to Central Government Employees.  

With a view to remove the anxiety of all those Employees belonging to other Sectors who have retired after 1.1.2016,  we would like to make a fervent appeal to your Good Self to Promulgate an Ordinance announcing the Governments decision of extending the enhancement in the Gratuity ceiling to Rs 20.00 lacs from the same date of 1.1.2016 as applicable to Central Government Employees. Since this is a very progressive Employee beneficial step from the Government, not only the entire Parliament will approve the Ordinance but the employees in general will applaud and appreciate the bold initiative taken by Your Government.

We being the largest Coordination Body of Bank Pensioners & Retirees Organisations consisting of Federation of SBI Pensioners Associations, AIBPARC, RBONC, AIRBEA and FORBE, having more than 4.00 lacs membership,  fervently appeal to your Good Self to consider our request  and
Promulgate the Ordinance enhancing the gratuity ceiling to Rs 20.00 lacs with effect from 1.1.2016. This gesture of Goodwill shall help motivate the entire working class in the organised sector to rededicate themselves to the growth of our beloved Nation.


Thanking you,

Yours Sincerely.
       

A Ramesh Babu            K V Acharya

                    Joint Convenor



                                                                                                                                            Dated 03.11.2017
Shri Jatinder Bir Singh, IAS
Chairman, IBA
Chairman & Managing Director
Punjab & Sind Bank
Rajendra Place
Pusa Road
New Delhi 110 008


Respected Sir,


Pending issues of Bank Pensioners & Retirees


We wish to introduce ourselves as a Coordinating Body of Major Organisations of Retired Bank Employees and Officers including that of State Bank of India, representing more than 400,000 members.  We have taken up the following issues with the Government and IBA and request your Good Self to help us by resolving these issues at the earliest. We believe that with your rich and vast administrative experience and also the experience in the banking industry, you will empathise with the cause and grievances of senior bank men by taking proactive steps in this regard.


1.Updation of Pension: Pension scheme in the Banks was finalised in the year 1993, for which the Pension Regulations were formulated in September 1995. Pension Regulation 35(1) dealt with Updation of Basic & Additional Pension in respect of employees who retired between the 1st Day of January 1986 but before the 31st Day of October 1987, as per formula given in appendix 1. The provision of updation of basic and additional Pension - Regulation 35(1) was therefore implemented at the time of introduction of Pension scheme in the Banks.


The Govt. of India amended Regulation 354(1) vide notification in Government Gazette (No.9) dated 1st March 2003  as under :


“Basic pension and additional pension, wherever applicable, shall be updated as per the formulae given in appendix-1”.


A perusal of original Regulation 35(1) vis a vis amended Regulation 35(1) would show that the restricted application of Updation of Pension in respect of those who retired between 01.01.1986 and 31.10.1987 has been extended to cover all retirees wherever applicable.  But the Banks have been denying the benefit of updation to the eligible pensioners who retired after 1.11.1987 for unjustifiable reasons. This has resulted in creating a huge difference as some retired General Managers are drawing lesser pension than that of a senior clerical staff retired recently.

2. Uniform 30% Family Pension without ceiling: Family Pension in Banks is payable at 30%, 20% and 15% of last drawn pay of the deceased Employee/Pensioner with  lower percentage being assigned to higher pay. It in effect meant that Family Pensioners of those who retired as officers would get the lowest 15% of last drawn pay that too with a specified ceiling on the amount of Basic Pension which effectively translated into a mere 7% to 10% of last drawn pay. Such as meagre amount like Rs.4000/- is to make the mockery of the concept of Family Pension which is nowhere near the minimum amount determined by the Govt. for sustenance. This distortion was corrected by the Govt. and RBI by fixing Family Pension uniformly at 30% of pay. Regulation 56 of the Banks Pension Regulations provides for the similar treatment to Bank Family Pensioners and it calls for a favourable consideration to rationalise family pension rate.


3. Uniform 100% DA Neutralization: After the introduction of 100% DA neutralization in lieu of tapering DA by the Central Govt. during the revision under 5th Pay Commission (1996), Banks too introduced uniform 100% DA neutralization from 2005 but made it applicable to only those who retired on or after 01.11.2002 despite there being no mention in the bipartite settlement about such artificial and unconstitutional classification based on the date of retirement.


4. Medical Insurance: After prolonged representations, the Government vide F.NO. 14/7/92-IR (Vol-II) Dated 24th February 2012 advised IBA to formulate a uniform Medical Insurance Scheme for both serving and retired employees. The IBA in the last (10th) Bipartite Settlement introduced Medical Insurance Schemes for both serving and retired employees but created discrimination with regard to payment of insurance premium by bearing it in case of serving employees and forcing the retired employees to pay the premium through their nose. This discriminatory treatment has robbed the retired employees of Banking Industry by as large a sum as Rs.40,804/- for the renewal of their medical insurance due on 01.11.2017. It is in contrast to free Medical Facilities extended to senior level bankers viz., CMD/MD/CEO/EDs  after retirement and hence our demand for similar medical facilities to  rest of the retired Bank Employees.

It is intriguing that the premium for a cover of Rs. 4 lacs was Rs. 7500/- in 2015 with OPD facility, it was enhanced to Rs. 20010/- in 2016 and this year it has been enhanced to Rs.36998/-. With the facility of super top up policy of Rs.5.00 lacs, the total premium comes to Rs.40804/-. We are at a loss to understand as to who negotiates the premium for such a large group of bank retirees or the insurance company is allowed full freedom to exploit the retirees. The penetrating pricing in 2015 and arbitrary steep rise in subsequent years is nothing but exploiting a helpless community of bank retirees. Hence the request for the premium to be borne by the banks in case of retirees too in terms of Government communication which was devoid of any advice about the premium to be paid by the retirees.


5. Pension to left out Compulsorily Retired Officers: The Hon’ble Supreme Court in case of compulsorily retired officers of Andhra Bank has allowed second pension option. Since the Hon’ble Supreme Court has its jurisdiction all over the country, the compulsorily retired officers in other banks should also be extended similar benefit as a good gesture. We request that the Government/IBA as good employer should accept our request as it has been upheld by the highest court in case of similarly placed officers especially when the number of such deprived officers is hardly 1,200 only for the entire banking industry.


6. Pension for Resignees: IBA advised the bank to extend second option to the petitioners only in case of Vijaya Bank instead of giving benefits to similarly placed resignees who have put in more than 20 years service in other banks. We feel that the other helpless resignees should be compelled to


litigate on the legality of an issue which is already settled by the Hon’ble Supreme Court. There are about 4000 resignees in the entire banking industry and the cost implications are insignificant.

7. Reckoning of Special Allowance component for Pension:  A Special Allowance was introduced as a part of pay in the last Bi=Partite settlement. This allowance was attracting Dearness Allowance but was excluded for the purpose of computing pension and calculating gratuity. It is important to note that in the case of LIC of India, the similar special allowance is treated at par with the grade pay of government employees and the same is also reckoned for terminal benefits including Pension & Gratuity.


In view of these facts that special allowance components of Bank Employees & Officers should also be treated as a part of pay for the purpose computing pension and calculating gratuity.


We shall be grateful to you for early resolution of these long pending issues of the Pensioners/Retirees.


With respectful regards,


                                 Yours faithfully,
                                    
                      
   A.Ramesh Babu                                           K.V. Acharya
                                    Joint Conveners

          

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