Following are two messages received on Whatsapp. I post here for sharing this information to other bankers. Please read and comment.
WHY WE SHOULD DISCARD UFBU*
*WHY WE SHOULD NOT DEPEND ON IBA*
*WHY WE SHOULD DEMAND BANKERS RETIREES COMMISSION*
I have tried to find the answer to all these questions. I explain here below some reasons and irregularities in different BPS detrimental to retirees intetest. If I am wrong somewhere, please correct me. I shall be happy to correct me.
*BRIEF HISTORY OF BPS to UNDERSTAND THE FACTS*
*7th BPS* was signed for the period 01.11.1997 to 31.10.2002 (signed on 11.03.1999) for workmen and wef. 1.04.1998 to 31.10.2002 for officers.
(a) The DA upto 1684 points was merged with the Basic Pay
(b) But for the purpose of payment of pension, DA was merged upto 1616 point which was added to the basic pay grades of 6th BPS which resulted in lower basic pay for the purpose of pension calculation. It resulted to reduction in basic pay of the pension of the employees retired from 01.11.1997 from 50% to 41% due to above illegal settlement.
All the employees who retired during 01.11.1997/1.4.1998 were paid the revised pension but they were denied the arrears of revised pension. They were forced to give undertaking that revised pension will be paid if they agree not to claim the arrears of pension and revised commutation.
*The 8th BPS* for the period 01.11.2002 to 31.10.2007 (signed on 02.06.2005) .
The employees who retired between the period from 1.11.2002 to 30.4.2005 were not paid the arrears whose pension was fixed on the provision of 7th BPS which resulted to further reduction of the pension from 41 % to 30 %.
*7th 8th & 9th BPS*
UFBU agreed to share the incremental cost of pension:
7th BPS : Total 16.5% ( 8.25% from employees + 8.25% from Management)
8th BPS : Total 18.5% ( 9.25% from employees + 9.25% from Management)
9thBPS : Total 26% ( 13% from employees + 13% From Management )
DO YOU KNOW THAT THIS INCREMENTAL COST WAS RECOVERED FROM THE EMPLOYEES AND SAME AMOUNT FROM THE MANAGEMENT SHARE HAS NOT BEEN DEPOSITED IN THE PENSION FUND TRUST.
In fact, the Pension Fund Trust is a mystery. The employees unions/ retirees unions are keeping silence on this issue. It is a matter of doubt whether the banks are following the provision of regulation No. 11 of the Pension Regulation 1995 or not. The banks are, perhaps, manipulating the Acturial reports. It is a matter of investigation.
*10th BPS* ( 1.11.2012 to 31.10.2017 , signed on 25.02.2015)
)
In the 10th settlement signed with IBA, UFBU has agreed that DA upto 4440 index points i.e.60.15% will be merged and Basic plus 60.15% plus 2% amounting toRs.597 cr. will be used to construct the scale, meaning thereby 102% of Basic plus 60.15% DA will be new basic.( 102% of old Basic + 60.15% of DA )
The remaining 13% is utilized as grade pay / special pay/allowance. This allowance attracts the dearness allowance during the employment and the grade pay /special pay i.e. near about 13% is not added in basic pay for the purpose of computation of superannuation benefits and basic pension which is a substantial recurring loss to the pensioner.
GREAT LOSS OF 13% TO THE PENSIONER WHO RETIRED ON OR AFTER 01-11-2012 .
ANOTHER MAJOR LOSS TO THE PENSIONERS WAS THAT THE SHARE OF WELFARE FUND WAS SNATCHED AND A HEALTH INSURANCE SCHEME WAS INTRODUCED IN 2015 ACCORDING TO WHICH THE PREMIUM OF THE EMPLOYEES IS BORNE BY THE BANKS WHEREAS PREMIUM IS PAID BY THE RETIREES. During the last seven years it has become very costly and unbearable premium is decided after an agreement between IBA and UFBU. Many retirees have already opted out of the domiciliary reimbursement as well as the basic scheme.
Significantly, a clause has been incorporated in BPS that the retirees have no contractual agreement with the banks. It is confusing and controversial clause.
*11th BPS* (1.11.2017 to 31.10.2022 signed on 11.11.2020)
The DA upto 6352 points were merged in the basic pay. The increase of 15 % in pay slip was agreed. The component of special allowance was increased to 16.40 percent which is not accounted for superannuation benefits e.g. pension including contribution to NPS, PF gratuity etc.
In Banking when GM becomes ED, he is no longer a bank employees but a Govt. nominee on the Board. He is not governed by Bank Employees Pension Regulation. In fact he has to resign but his resignation is treated as retirement and his retirement dues are paid. He is entitled to gratuity/ pension/ leave encashment PF and other retirement benefits. GM becoming ED is entitled for pension on his resignation but normal employees resigning after -20- years is denied the pension. So ED gets salary fixed by Govt. plus monthly pension.
Now EDs/ CMDs are getting 2 pensions, one pension from parent Bank from where he was GM and 2nd pension as Chairman/ Executive Director from the Bank he retired as CMD/ED.
So, our pension fund is paying pension to EDs/CMDs for which they have never contributed.
Friends,
The selected union leaders were not empowered to negotiate for curtailment of benefits according to their union constitutions which provide only for improvements. They have no right or mandate for negotiating the retirees’ issues as the retirees cease to be the members of these employees unions after retirement.
For these several illegal and unjustified provisions incorporated in the 7th to 11th BPS, IBA is equally responsible for allowing these leaders for violating the very purpose of the bipartite settlement detrimental to the retirees’ interest.
Obviously, the retirees cannot trust these unions after suffering recurring losses during the last 25 years for non updation of pension with the BPS.
Unfortunately , the retirees unions to which we joined after retirement appears to have joined hands with AIBEA or AIBOC. They are depending on them and did nothing for the welfare of retirees except taking membership and donations.
It is also a fact that we , in our old age, are not in a position to arrange dharnas or rallies. Employees unions still trying their best to maintain their Supermacy and manage IBA in their favour.
Under the circumstances, I feel better to deliberate for a demand of separate Bank Retirees Commission which can be the only solution to our problems.
Regards*WHY WE SHOULD DISCARD UFBU*
*WHY WE SHOULD NOT DEPEND ON IBA*
*WHY WE SHOULD DEMAND BANKERS RETIREES COMMISSION*
I have tried to find the answer to all these questions. I explain here below some reasons and irregularities in different BPS detrimental to retirees intetest. If I am wrong somewhere, please correct me. I shall be happy to correct me.
*BRIEF HISTORY OF BPS to UNDERSTAND THE FACTS*
*7th BPS* was signed for the period 01.11.1997 to 31.10.2002 (signed on 11.03.1999) for workmen and wef. 1.04.1998 to 31.10.2002 for officers.
(a) The DA upto 1684 points was merged with the Basic Pay
(b) But for the purpose of payment of pension, DA was merged upto 1616 point which was added to the basic pay grades of 6th BPS which resulted in lower basic pay for the purpose of pension calculation. It resulted to reduction in basic pay of the pension of the employees retired from 01.11.1997 from 50% to 41% due to above illegal settlement.
All the employees who retired during 01.11.1997/1.4.1998 were paid the revised pension but they were denied the arrears of revised pension. They were forced to give undertaking that revised pension will be paid if they agree not to claim the arrears of pension and revised commutation.
*The 8th BPS* for the period 01.11.2002 to 31.10.2007 (signed on 02.06.2005) .
The employees who retired between the period from 1.11.2002 to 30.4.2005 were not paid the arrears whose pension was fixed on the provision of 7th BPS which resulted to further reduction of the pension from 41 % to 30 %.
*7th 8th & 9th BPS*
UFBU agreed to share the incremental cost of pension:
7th BPS : Total 16.5% ( 8.25% from employees + 8.25% from Management)
8th BPS : Total 18.5% ( 9.25% from employees + 9.25% from Management)
9thBPS : Total 26% ( 13% from employees + 13% From Management )
DO YOU KNOW THAT THIS INCREMENTAL COST WAS RECOVERED FROM THE EMPLOYEES AND SAME AMOUNT FROM THE MANAGEMENT SHARE HAS NOT BEEN DEPOSITED IN THE PENSION FUND TRUST.
In fact, the Pension Fund Trust is a mystery. The employees unions/ retirees unions are keeping silence on this issue. It is a matter of doubt whether the banks are following the provision of regulation No. 11 of the Pension Regulation 1995 or not. The banks are, perhaps, manipulating the Acturial reports. It is a matter of investigation.
*10th BPS* ( 1.11.2012 to 31.10.2017 , signed on 25.02.2015)
)
In the 10th settlement signed with IBA, UFBU has agreed that DA upto 4440 index points i.e.60.15% will be merged and Basic plus 60.15% plus 2% amounting toRs.597 cr. will be used to construct the scale, meaning thereby 102% of Basic plus 60.15% DA will be new basic.( 102% of old Basic + 60.15% of DA )
The remaining 13% is utilized as grade pay / special pay/allowance. This allowance attracts the dearness allowance during the employment and the grade pay /special pay i.e. near about 13% is not added in basic pay for the purpose of computation of superannuation benefits and basic pension which is a substantial recurring loss to the pensioner.
GREAT LOSS OF 13% TO THE PENSIONER WHO RETIRED ON OR AFTER 01-11-2012 .
ANOTHER MAJOR LOSS TO THE PENSIONERS WAS THAT THE SHARE OF WELFARE FUND WAS SNATCHED AND A HEALTH INSURANCE SCHEME WAS INTRODUCED IN 2015 ACCORDING TO WHICH THE PREMIUM OF THE EMPLOYEES IS BORNE BY THE BANKS WHEREAS PREMIUM IS PAID BY THE RETIREES. During the last seven years it has become very costly and unbearable premium is decided after an agreement between IBA and UFBU. Many retirees have already opted out of the domiciliary reimbursement as well as the basic scheme.
Significantly, a clause has been incorporated in BPS that the retirees have no contractual agreement with the banks. It is confusing and controversial clause.
*11th BPS* (1.11.2017 to 31.10.2022 signed on 11.11.2020)
The DA upto 6352 points were merged in the basic pay. The increase of 15 % in pay slip was agreed. The component of special allowance was increased to 16.40 percent which is not accounted for superannuation benefits e.g. pension including contribution to NPS, PF gratuity etc.
In Banking when GM becomes ED, he is no longer a bank employees but a Govt. nominee on the Board. He is not governed by Bank Employees Pension Regulation. In fact he has to resign but his resignation is treated as retirement and his retirement dues are paid. He is entitled to gratuity/ pension/ leave encashment PF and other retirement benefits. GM becoming ED is entitled for pension on his resignation but normal employees resigning after -20- years is denied the pension. So ED gets salary fixed by Govt. plus monthly pension.
Now EDs/ CMDs are getting 2 pensions, one pension from parent Bank from where he was GM and 2nd pension as Chairman/ Executive Director from the Bank he retired as CMD/ED.
So, our pension fund is paying pension to EDs/CMDs for which they have never contributed.
Friends,
The selected union leaders were not empowered to negotiate for curtailment of benefits according to their union constitutions which provide only for improvements. They have no right or mandate for negotiating the retirees’ issues as the retirees cease to be the members of these employees unions after retirement.
For these several illegal and unjustified provisions incorporated in the 7th to 11th BPS, IBA is equally responsible for allowing these leaders for violating the very purpose of the bipartite settlement detrimental to the retirees’ interest.
Obviously, the retirees cannot trust these unions after suffering recurring losses during the last 25 years for non updation of pension with the BPS.
Unfortunately , the retirees unions to which we joined after retirement appears to have joined hands with AIBEA or AIBOC. They are depending on them and did nothing for the welfare of retirees except taking membership and donations.
It is also a fact that we , in our old age, are not in a position to arrange dharnas or rallies. Employees unions still trying their best to maintain their Supermacy and manage IBA in their favour.
Under the circumstances, I feel better to deliberate for a demand of separate Bank Retirees Commission which can be the only solution to our problems.
Regards.
Ramesh Bhateza
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History of Curtailed Benefits of Pension by IBA & UNIONS by Bipartite Settlements.
*Article of Shri.J.N. Shukla, the Convener of Forum of Bank Pensioners Activists Prayagraj*
_UFBU, STRAIGHT IN THE DOCK, BIGGER THE UNION GREATER THE CRIME_
*TRADE UNION IN BANKING ELOPED..*
*_CALL FOR DHARMYUDHYA TO REDEEM LOST GLORY OF BANKING TRADE UNION_*
👇
Needless to say, at least to the Union Leaders, that the foundation stone of the Pension Policy of Public Sector Banks is the Pension Policy of the Reserve Bank. As per the Agreement dated 29.10.1993 entered into under the I. D. Act, all the terms and conditions will be the same as that of the Reserve Bank. It is also a fact that the Pension Policy in RBI was decided in 1990, NABARD in 1992 and other banks in 1993, but all came into force w.e.f . 1.1.1986. .That is, the Agreements may have been done on different dates, but their modalities and implementation were same from 1.1.1986.
The biggest question, how the above system messed up? It is undeniable, it messed up with the consent of all the Unions affiliated to UFBU. The purpose of the scale of 1616/1684 in the 7th Agreement was to cut the pension. It happened unanimously. This was corrected in the 8th Agreement from May, 2095 that also excluded those affected between April 1998 and April 2005. This too was unanimous. In 2010, the 2nd option of Pension was implemented from Dept.2009, denying natural justice and bypassing the norms set in the Pension Regulations, 1995, charging arbitrary compensation. This too was unanimous. In the 10th Agreement in 5/2015, which came into effect from 11/2012, Pension was again cut, by deducting 7.75% to 11.5% of basic pay, calling that Special Allowance and disqualifying the same for pension eligibility. This too was unanimous. This was strongly opposed and assurances were given that it would be rectified in the next settlement. In the COD letter of the next settlement, there was a demand to merge SA in the basic salary, but at the last minute the Unions clashed with each other in the insistence of increasing it to 20%. Where there was a demand to merge it in the basic pay, instead of which it was increased to 16.40%. This too was unanimous.
So the disturbances that happened were all done with the consent of the Unions and all this happened as a conspiracy to neutralize the resultant pensionary gains from new wage increases. All the blame is on the Unions.
It is amazing to have so many exploits, the bank officers and employees are very cool. The neck is bowed, the waist is bent, the victims of fatig are seen in their youth. The negotiations lasted for 42 months and agreement reached on 11.11.2020 after lapse of 36 months of the effect time, i.e. 1.11.2017. What a wonderful track record of bilateral Agreement, nothing can be said about bank Unions, past and future! .Grand transformation from trend setter, Vanguard to Lagarde! Hats off!!
Bank men, working and retired, must see, why and how did the above results happen? What was such a compulsion? There was no emergency in the country and neither fundamental or trade union rights were revoked that the unions were compelled to do nothing on dotted lines? It was also seen that celebrations were held on these blunders. Take a look at the recent example celebrating the end of delimitation of family pension. Now it is visible that the Family Pension received has also reduced. What is the opinion on this?
Looking back, the Unions of the Reserve Bank started advocating for pension revision from the year 2000 and they got revision from 2002. It is a different matter that the U.P.A. government canceled this revision in August 2008 and the matter went to the Bombay High Court, won the revision and the banks went to the Supreme Court, finally the revision was fixed on 5.3.2019 till 31.10.2012. The Unions there took up the matter very seriously and worked till the crucial stage. Here the question arises that what did the great warriors of U.F.B.U.? They just engaged in dismantling the existing Pension Regulations, 1995. What could be more degrading behavior than this?
Pension reform has never been on the agenda of UFBU Unions. On 25.5.2015, the Unions, defying all the norms, signed a document of IBA denying the pensioners any contractual relationship with their own banks. The fire that was smoldering among the pensioners, the smoke was rising, it got burnt. .An army of Activists stood up against it. The smoldering of the fire, the rising of the smoke and the flame has now turned into a fire, in which the Unions are sure to be scorched.
With so many crimes there is no justification left for the Unions to continue. Bank men will have to play the role of Krishna and Arjuna to restore the Trade Union Religion, as the Unions have become Kauravas under Duryodhana, the leader of the big union. For the establishment of Union Religion in banking, the Kauravas assassination is necessary. Bank men need to work with determination.
Greetings,
(J. N. Shukla)
National Convenor
07.11.2021
9559748834
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Shri Anuragji
*This Article is posted for your kind study*
.
With Regards
S.K.Mishra from Bhopal
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