Dear Friends ,
.
The pension issue of retired officers are gaining momentum as it appears from last few postings by knowledgeable persons in social media. to expose the inner story and many of us may not be knowing during our active service for unclear thought with hidden agenda of trade union leaders participated in bipartite negotiation with IBA .
Clause no. 35(1) of pension scheme 1995 of public sector banks mentions provision for updating of pensions and additional pensions, but related appendix I contains only the
pension fixation for retired staff and officers in the year 1986.No mention about updating the pension in bi-partite thereafter. In the last one being for the year 2012 there is mention of pension in clause no.8 of joint note dated 25 th May 2015. But no where there is mention about revision or updating of pension and this ultra vires the provision in Pension regulation 1995.The issue might have been in cold storage. But if you consider the recommendation of 7 th pay commission issued in letter dated 12 th May 2017 from
Department of pension and pension welfare, Govt.of India the amount of pension of retired govt. employees is updated/revised.The pension amount prior to 1st January 2016 is multiplied by a factor of 2.57 to fix up pension after implementation of the 7 th pay commission recommendation this year. But in banking sector such exercise is not done.
Thank you all
Dr. Indrajit Sanyal
Ex executive of Bank of India
Letter sent to Law Secretary by one member Mr C. N. Venugopalan
Sent: Thursday, 26 October 2017 7:32 PM
Subject: LETTER TO LAW SECRETARY
Subject: LETTER TO LAW SECRETARY
C N VENUGOPALAN Former Director (GOI Nominee) State Bank of Travancore & Ex Manager Union Bank of India
“Nandanam” Kesari Junction, North Paravur, Kerala -683 513 Mob: 9447747994 E – Mail: ceeyenvee@gmail.com
No.171027
The Secretary,
Ministry of Law & Justice,
Government of India,
4th Floor, Shastri Bhawan,
Dr. R P Road, New Delhi- 110 001
Dear Sir,
Derogation of Bank (Employees’) Pension Regulations, 1995
I write to inform that Ministry of Finance issued its administrative instructions vide letter DONo.14/1/1/2007-IR dated 10.08.2010 according sanction for implementation of a Joint Note dated 27.04.2010 which was in the nature of amending the Bank (Employees’) Pension Regulations, 1995 (Pension Regulations), a subordinate legislation framed pursuant to Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970/1980 (the Act), pending amendments to the Pension Regulations.
1. In terms of section 19.1 of the Act, any amendment to a regulation could be made only through notification in the gazette.
2. In terms of section 19.4 of the Act, any amendment to a regulation, as soon as may be after it is made under the Act or any scheme thereunder, shall be laid in both the Houses of the Parliament for a period of thirty days and will have effect only if approved by both the Houses.
3. Sections 19.1 & 4 of the Act prohibit any amendment that prejudice what is done earlier under a regulation.
4. The Joint Note has not so far been notified in the gazette, not laid in the Houses in spite of the lapse of a period of seven years though it was to be laid immediately after making the regulation and its conclusions are in the nature of circumventing the Pension Regulations.
5. Whereas regulation 52.1 of Pension Regulations lays down that a pension shall become payable from the day following the date on which an employee retires, conclusion 8 of the Joint Note prescribed that in the case of employees who retired prior to its date, pension shall be paid from 27.11.2009 to all the retired, irrespective of the date of retirement.
6. Whereas regulation 5.2 and 11 of Pension Regulations fix the banks as contributor to Pension Fund, the Joint Note provided for a levy of 2.8 times pay for November, 2007 for employees on rolls and 56 percent of CPF paid on retirement for retired employees opting pension under it to Pension Funds.
7. Regulation 3 lays down that option for pension shall be exercised within 120 days of the notification of the of Pension Regulations. The last date expired on 26.01.21996. No one could be admitted to the benefits of Pension Funds created pursuant to the Regulations after 26.01.1996, the regulation 3 remaining the same. Hence pension paid on the basis of the Joint Note from 27.11.2009 to retired employees is thus unauthorized by the Pension Regulations.
8. Regulation 5.2 lay down that the Pension Fund has the sole purpose of payment of pension/family pension in accordance with the Regulations. It has no provision for payment of pension in accordance with the Joint Note to those who were taken into the Pension Scheme after 26.01.1996 and whatever pension paid out of Pension Funds has to be from the date following the date of retirement.
It is learnt that in the case of RBI Pension Regulations, Law Ministry had advised Ministry of Finance that the regulations are statutory having been framed pursuant to the RBI Act and that any administrative instructions/orders circumventing them is unsustainable and the regulations have precedence over administrative instructions / orders in 2009.
I earnestly request you to kindly advise the Ministry of Finance on the irregularities that have taken place in the administration of the Pension Regulations for regularizing the matter, under intimation to me, at the earliest.
Thanking You,
Yours faithfully,
C N VENUGOPALAN
Secretary, Legislative Department, Ministry of Law & Justice. For kind information. It is submitted that the Joint Note cannot be tabled in the Houses as its conclusions prejudice relative regulations (sect.19.1 & 19.4) and the time frame for tabling it expired long ago section 19.4).
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