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Monday, May 7, 2018

Supreme Court Order on Pension

4) Pension a right not subsidy. SC tells UOI

*Pension is a right, not subsidy. How can you link Aadhaar to it, asks SC*

The Supreme Court questioned the Centre about its decision to link Aadhaar with pensions, reasoning that it is not a subsidy but an entitlement of a person for years of service he or she has rendered to the government in the discharge of official duties.

Referring to the argument of petitioners that many pensioners have been denied their only subsistence in old age due to technical and physical reasons, the bench asked whether the Centre was going to deny pension, a rightful entitlement, just for want of Aadhaar. Venugopal said Aadhaar has been instrumental in eliminating many bogus pensioners drawing post-retirement benefits for years.

Justice A K Sikri said: “Pension is an entitlement and not a benefit under the social welfare schemes. How is it included under Section 7 of the Aadhaar Act, 2016? Pension is a return for services rendered. There are many pensioners who live with their children who are settled abroad. Can such category of pensioners be told that they would not be granted pension unless they have an Aadhaar card?”

Justice Chandrachud said, “There is another category of persons who suffer from Alzheimer’s disease and may have serious dementia. There are those old persons whose biometrics do not match with the Aadhaar data. Where do they go? Pension is a rightful entitlement and not a bounty given by the state”.

5)Ref:2018/027 The Office Bearers/ Central Committee Members/State Body Chiefs A.I.B.R.F

Dear Comrades,

Re: IBA circular on implementation of SupremeCourt Judgement on 1616-1684 issue

With further reference of our circular No.25 dated 16.03.2018 in particular Para 8 thereof, We are glad to inform that IBA has since issued circular no. 4786 dated 03.04.2018 advising member banks including private sector banks to implement Supreme Court judgement inm the matter of fixing basic pension on 1684 index instead of as fixed on 1616 under the 7th wage settlement and

pay the arrear to those retired after 01.04.1998 till the anomaly was removed under 8th settlement signed on 02.06.2005 from the date of retirement instead of from 01.05.2005 as provided in the settlement dated 02.06.2005. with interest @ 9 per cent p.a. for the delayed period. These arrears have to be paid within from the date of order i.e. by 13.06.2018. Copy of the IBA circular is enclosed.

2. Effect of the above IBA circular will be as under:

(a) All those retired after 01.04.1998 till 02.06.2005 will be eligible to receive arrears on re-fixation of basic pension on index of 1684 from the date of retirement.

(b) Approximate number of retirees who will get monetary benefit is about 1.20 lakhs due to high number of VRS optees during this period.

(c) Amount of arrear per retiree on an average will be Rs. 40000 to Rs. 1,50,000 depending upon the period involved and grate from which one retired.

(d) Family pensioners/ Legal heirs of the pensioners will also be eligible to receive the arrears.

(e) Advise by IBA to private banks in this regard is positive development

(f) It may be mentioned that this is one time payment. Improved pension on index of 1684 is being already paid w.e.f. 01.05.2005.

3. It is historical victory for the bank retirees and the justice could be secured after long legal battle. We congratulate the bank retiree community and especially to the petitioners who fought long legal battle. AIBRF has been taking up this issue with IBA/ Government for last several years. AIBRF significant contribution in this regard is that we could persuade IBA to extend the benefit to all similarly affected retirees instead of restricting the benefit coming out due to the court order to the petitioners only. This positive reversal in the approach of IBA has come due to the long struggle for last 2 years launched by the retirees under the banner of AIBRF.

4. We convey our thanks to the Finance Minister, DFS officials, bank managements IBA and its managing committee for showing very positive gesture towards bank retirees in extending benefits to all eligible retirees.

5. You will find that in last 60 days three big violations in implementation of the wage settlement have been resolved with benefit to all eligible retirees. We expect the retirees to get monetary benefit of more than 1000 crores because of these three corrections . It is much needed relief to the bank retirees who could not get any monetary benefit in the last wage settlement but continued to support the struggle with all zeal and enthusiasm. We are confident that our cadre will extend the same support to our organisation for achieving other pending demands.

6. Our affiliates are requested to take all necessary steps to ensure that the benefits under the 3 circulars of IBA namely notional service benefit to specialist officers, pension option to the compulsorily retired employees and arrears for 1684 reach to one and all eligible retirees particularly to the families of the deceased retirees without fail.

7. On this occasion, we appeal to collect suitable levy from the members who have received benefits and remit @ Rs. 10/- per member for the total membership as on 31.12.2017 to AIBRF by 31.07.2018. as per the decision taken by office bearers’ meeting held at Vijayawad

Yours Sincerely,

( S.C.JAIN)

GENERAL SECRETARY

👆 For Information.


STRAIGHT FORWARD
Government of India, Ministry of Finance, Department of Financial services vide its letter no. F.NO.11/5/2001-IR dated 26.02.2018 conveyed to RBI that “As regards update of pension, any change in the manner of calculating pension is likely to result in similar demands in Public Sector Banks and Financial Institutions, most of which are currently experiencing financial difficulties.”

 This letter along with other documents, after being notarized have been filed in Bombay high court by RBI in RBI pensioners UPDATION CASE.

The Secretary Finance is absolutely right when He stated that Banks are in great financial difficulties. Rather 2017-18 is financially worst year for Banks during the last 40 years.
BUT payment of pension and updating of pension has no bearing on the Financial MESS in the Banking Sector.

Pension is not paid from Revenue of the Bank, BUT from PENSION TRUST FUND. This fund is created out of contributions of the employees during their service in the Bank.

Bank holds these funds as trustee and not the owner. Bank has no right over this trust fund. This pension fund is healthy fund and it is more than 2lac crores. The annual interest income is more than 20,000 crores, whereas the annual payment of pension is not more than 7000 crores.

THE FINANCIAL DIFFICULTIES OF BANKS HAS NO LINK OR BEARING WITH UPDATING OF PENSION.

Rather pension fund is being misutilized by banks for purposes other than payment of pension which is a criminal breach of trust.
DFS has refused updating of pension to RBI because it will unstable the Financial position of Banks, but this is not true- a misleading statement. RBI has knowingly and intentionally filed a wrong affidavit which is contempt of Court.

Ministry of Finance, during the current budget session of Parliament enhanced the Gratuity limit fromRs.10lacs to Rs.20lacs. Just doubled.
The gratuity is to be paid by bank from its revenue. It will add to the financial difficulties of the Banks. While enhancing the gratuity limit, DFS did not think that it will adversely affect the revenue of the Banks. Where as It is direct burden on the Bank.

WHY: Because the benefit of enhanced gratuity will also go to Secretary Finance and the staff of G.O.I.

Why the logic as conveyed to RBI is not applicable in this case?

Why these double standards?

State Governments follow the Central Pay commission for salary of their employees. Many of the States are not able to pay salaries to their employees regularly. Pension is not paid for months together. Some of the States have yet not cleared the arears of 6thPay commission.

Yet 7th Pay commission has been implemented from 01.01.2016 without considering how much strain it will put on the finances of the State Governments.

Arears of 6th Pay commission has not been cleared, yet 7th Pay commission has been put on top of it. The states will never be able to clear the Back log.

WHY IT WAS NOT CONSIDERED THAT 7THPAY COMMISSION WILL CREAT FINANCIAL MESS FOR THE STATES.

WHY: Because the benefit of 7th pay commission was to go to the Secretary Finance also along with G.O.I employees. Just double standards of the Ministry.

Another fraud is being committed on the Bank Pensioners by the Ministry. Regulation 35(1) of Pension Regulations 1995 stated:
(In respect of employees who retire between the 1st day of January, 1986 but before the 31st day of October,1987, basic pension and additional pension will be updated as per the formula given in appendix-I).

This has been amended in 2002 by Gazette notification. The period of 01.01.1986 to 31.10. 1987 has been replaced by term (where ever applicable).

Now what is -where ever applicable?

On enquiry under RTI as to who have been given benefit of updating of pension under the amended Regulation. Bank reported that all those who qualified have been given this benefit of updating. Bank has no record, whose pension was updated in the last 16 years under the amended regulation.

Now what are the qualifications for updating of pension?

 The word qualification is not defined anywhere in Regulations. Yet the bank gives the definition of QUALIFICATION by quoting section 2 from annexure-I of Pension regulation 1995 which pertains to updating of pension for those who retired between 1.1.1986 to31.10.1987. This deals with additional pension on special allowances only.

THIS AMENDEMENT HAS BEEN NOTIFIED BY BANK AFTER APPROVAL OF THE MINISTRY OF FINANCE AND WETTING BY MINISTRY OF LAW.

No employee has got benefit of updating of pension under the amended regulation WHERE EVER APPLICABLE. It is 16 years since this amendment was introduced.

Why this amendment when benefit was not to be given? 
Only to fool the employees of Banks.

You are requested to circulate this information in the public and media so that every one knows the FRAUD being perpetuated on the Banking Sector employees by the Ministry of Finance.
M.S.Sidhu   Mobile : 9876101509

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