An Appeal For Equality and Justice

GOVERNMENT SHOULD RENDER
      DUE JUSTICE TO ALL INDIA
              BANK RETIREES

               -C N Venugopalan
                 (AIBRWA NEWS)
               Express News Service

KOCHI: Although government is to bear the salary in Public Sector Banks (PSBs) on account of government ownership and nationalisation, since such expenses are set off against the income of banks, government has no expenditure on it.Banks are permitted to declare a dividend and to retain surplus profits as reserves only after making due provision for salary and superannuation benefits in terms of section 10.7 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970/1980.  But when the government is taking the dividends without paying adequate salary and pension in banks and apply the same for paying higher salary and pension to other government employees, the bank employees get exploited.

When banks had a higher pay than the government pay during 1970s, the salary in banks was regulated by implementing Pillai Committee Recommendations to regulate pay in banks to bring about parity.  Afterwards, government pay became higher by R 30,000 to R40,000 a month than bank pay, ignoring the parity .

Eligible pay was denied to those who work for six days a week and for extended hours each day. Notwithstanding the fact that pension scheme in bank was exactly on all fours with the central civil pension as per pension rules, as pension is never revised with revision of pay, bank pensioners are much forced to the walls. 

When Pension Scheme was commissioned in banks, there was a penal clause providing for forfeiture of past service in case of participation in any strike which prevented employees from joining it.  Later, Pension Regulations was amended in 1998 by deleting the rigorous clause, banks did not allow a fresh chance of option to employees, contrary to government direction to give effect to the amendment.  The amendment got confined to mere amendment with no purpose.

After a long gap, Indian Banks’ Association and Bank Unions agreed to give a fresh option for pension in April, 2010.  But when rules mandates payment of pension from the date of retirement, the testament of April 27, 2010 provided for its payment from November 27, 2009 to those who retired prior to its date. 

HUThis apart, option and pension was allowed subject to  a contribution to the tune of 2.8 times revised pay for November, 2007 in case of employees on rolls and 56 percent of CPF paid on retirement in addition to refund of CPF in the case of retired employees to the Pension Funds of Banks.

Notwithstanding the fact that pension, the benefit in lieu of CPF would flow from the date of retirement when  the CPF and 56 percent of it, presumably by way of interest,  is paid back, it was denied for varying periods to  November 27, 2009 to employees retired on various dates.

The amounts which were collected from employees and retired employees are that which banks were to contribute to Pension Funds as per rules, in case of deficiency.  Regulations do not warrant a contribution by the employee other than his initial transfer of CPF for joining the Pension Scheme.

It was in derogation of the Pension Rules laid down by the Indian Parliament that the Government permitted PSBs to implement the agreement dated 27.04.2010 in banks.  For amending a regulation, it is essential that the amendment shall be laid in both the Houses of the Parliament for a period of 30 days, as soon as it is framed.

It is on the basis of the agreement which is not so far laid in the Houses of the Parliament in spite of the passage of seven years that PSBs levied the unlawful contributions and denied pension till November 27,2009 to retired employees. The government is bound to roll back the agreement ofApril 27, 2010 as it has no powers to implement it in conflict with the rules in force.   It is the responsibility of the government to render justice to the retired bankers who sacrificed their entire life span for nation building by translating all its financial policies into a reality.

The author is the former Director ( Govt. of India Nominee), State Bank of Travancore
(The views expressed by the author are his own.)