BANK RETIREES ARE ANXIOUS ABOUT UPDATION OF PENSION AND ARE

ALSO JUSTIFIABLY DEMANDING 100% DA ON THEIR FULL PENSION.

Three prime issues that are being seriously and anxiously expected by the bank
retirees - be it a subordinate staff or a clerk or an officer not excluding even top
Executive retirees are 1. Updation of Pension 2. 100% Neutralisation of DA on full
Pension and last but not the least 3. Uniform Medical Aid/Hospitatlisation Scheme
covering the retirees from all banks either through hassle-free insurance scheme
or 100% reimbursement under the hospitalisation scheme of the Banks without
any ceiling.

BANK RETIREES ARE ANXIOUS ABOUT UPDATION OF PENSION AND ARE

ALSO JUSTIFIABLY DEMANDING 100% DA ON THEIR FULL PENSION.

The retirees are looking to the in-service unions at Bank level, UFBU at the
industry level or for that matter the Bank Retirees’ Federation for resolution of
these issues of great importance to them.
With regard to payment of 100% DA on Pension sans any tapering, there is
absolutely justification in the demands of the retirees, since the in-service
employees who were having different DA slabs operating on the Pay {Basic Pay +
Special Pay + PQP or Educational Qualification Allowance + FPP} upto 30.04.2005
have been receiving 100% DA with only one slab operating for their full Pay with
effect from 01.05.2005. Hence the retirees after 01.01.1986 and who while being
in service were being governed by the various slab rates of DA compensation from
100% to 25% should be extended the benefit of one slab of 100% DA
compensation on the entire pension from the same date.
Similarly, with regard to Updation of Pension, the Pension Settlement signed
between the IBA and the Unions which were party to the historic pension
settlement entered into on 29th October 1993 had made a mention about the
updation of pension as and when the wage revisions take place in future.
Individual Bank’s Pension Regulations dated 29th September 1995 introduced an
updation formula for the retirees after 01.01.1986 fitting them into the Pay
Structure which came into existence from 01.11.1987 and accordingly the eligible
retirees prior to 01.11.1987 had their Basic Pension updated on the formula of
50% of the Pay upto the Pre-revised scale of pay of Rs.1000/-, 45% for the next
Rs.500/- of the Basic Pay; 40% of the Basic Pay beyond Rs.1500/- and adding DA
upto 600 points to arrive at new Basic Pay. 50% of it was Basic Pension. The V Pay
Commission recommendations as well as its implementation has given an
unambiguous updation formula which is in force even now. It is clear that any
retiree prior to the period of the V Pay Commission i.e. 01.01.1996 will have
his/her pay taken on notional basis to that of the V CPC assuming that the
concerned officer had remained in service during the period and the pension will
be worked out to 40% of the Pay. If he was a retiree during the V CPC period, then
it would be 50%. This has ensured an anomalous-free updation formula till date.
When the pension settlement was signed in the banking industry or when the
Pension Regulations have been adopted by respective Bank Board, it is with the
clear dictum that bank pension rules is modelled on central government pension
rules, called as CCS Rules and that of the RBI Pension Regulations. Hence there is
an absolute need for updation of pension. The loss to the pensioners is very huge
and there is no justification what so ever as to why the updation is denied to
them.
If we look to the sufferings of the retirees who are refusing to go for even check
up, much less getting hospitalised, it is surely because of the commercialisation
that rules the roost when it comes to exorbitant charges that are being levied
even by mediocre hospitals/nursing homes or pathology units. It is for this sheer
reason that introduction of uniform medical aid/hospitalisation scheme for the
retirees from all banks brooks no delay.

A WORKING ON THE 100% DA FOR ALL RETIREES PRIOR

TO 01.11.2002 AND UPDATION OF PENSION FOR ALL
RETIREES UPTO 31.10.2007 RETIREES DURING THE
PERIOD 01.11.1987 TO 31.10.1992
Basic Pension Pension If 100% 50% 40%
Pay + DA DA is Updation Updation
paid Pension Pension
+ DA + DA
1670 835 6581 6581 10680 8544
3220 1610 12244 12688 19148 14773
4520 2260 15765 17359 24594 19675
5050 2525 16493 19394 27572 22058
5650 2825 17316 21698 32508 26007
7000 3500 19170 26883 44252 35402
RETIREES DURING THE PERIOD 01.11.1992 TO 31.10.1997
6420 3210 12777 13209 19148 15318
9200 4600 16597 18929 25274 20220
10450 5225 17723 21501 30806 24645
12650 6325 19704 26027 39827 31861
14000 7000 20920 28805 44252 35402
RETIREES DURING THE PERIOD 01.11.1997 TO 31.10.2002
5850 2925 8232 8232 11361 11361
10880 5440 14739 15310 19828 15863
14240 7120 17566 20038 25275 20220
15760 7880 18671 22177 28338 22671
17280 8640 19776 24316 33444 26755
21300 10650 22698 29973 44252 35402
Basic Pension Pension If 100% 50% 40%
Pay + DA DA is Updation Updation
paid Pension Pension
+ DA + DA
RETIREES AFTER 01.11.2002
9180 4590 9588 9588 11701 9361
16570 8285 17307 17307 20509 16407
21040 10520 21976 21976 25275 20220
23520 11760 24567 24567 28338 22671
25380 12690 26509 26509 32508 26006
27300 13650 28515 28515 36763 29410
28660 14330 29935 29935 38806 31044
30020 15010 31356 31356 40933 32746
31600 15800 33006 33006 43146 34516
32600 16300 34051 34051 44252 35402

The above table is prepared on an illustrative basis and hence not exhaustive. We
have in fact made working for all the 36 possible stages on which retirement
normally takes place in all cadres from subordinate staff to General Manager
cadre and based on the August 2012 month DA paid to the bank retirees, after
one completes the minimum full qualifying service of 33 years in order to get full
basic pension of 50% of last drawn basic pay. Only the basic pay has been taken
into account and the FPP, PQP, SPECIAL PAY & Educational allowances drawn by
the retiree at the time of retirement have not been reckoned. The columns above
are: Basic pay drawn at the time of retirement, basic pension at 50%, the present
basic pension + DA drawn, if 100% DA is conceded, what would be the amount of
basic pension + DA @ 100%, updation of basic pension at 50% of the IX
Bipartite/joint note effective from 01.11.2007 for all retirees upto that period and
the assumption that if the updation is done for past retirees at 40% of the basic
pay of 01.11.2007 on the lines of the central government CCS Rules governing
Pension.
The working has been done taking into account approximately 1,23,500 retirees
upto 31.10.2007 from the inception of pension implementation i.e. all those who
have retired after 01.01.1986.
Based on the working for the entire number of retirees who have to get the
advantage of 100% DA, updation of pension till 31.10.2007, costing exercise has
been undertaken. It is found that if 100% DA is to be paid to all retirees upto
31.10.2002 for the entire basic pension instead of the present system of DA
compensation which is based on four slabs of 100% for a small part of pay for
officers, 82.5% for a part, 50% for another small part and for a major part at 25%
compensation of DA [Since all retirees after 1.11.2002 are being paid 100% DA on
full basic pension with single slab of DA @ 0.18% for all from sub staff to General 4
Manager] then the annual costing of implementation of 100% for all past retirees
comes to Rs.291 crores.
In respect of updation of pension at 40% updation, on the lines of central
government pension rules for retirees prior to the date of the present pay
commission period, upto the retirees of the period i.e. 31.10.2002 and 50%
updation for the retirees after 01.11.2002 [since for them 100% DA has already
been implemented and the 40% updation for them would be adverse] the annual
costing comes to Rs.431 crores.
If pension updation is done at 50% of the notional pay taking all retirees basic pay
to the equivalent stage in the present scale of pay effective from 01.11.2007, then
the annual cost of pension updation for the 1,23,500 retirees comes to about
Rs.1082 crores.
Calculations have been done on exact basis though the number of retirees from
sub staff cadre to the General Manager cadre in respect of all the retirees from
01.01.1986 may vary based on certain number in each stage of retiral level. It can
very confidently be said that the cost mentioned cannot be more than the above
working and hence cannot go beyond this amount. In fact, cost would be less only.
For information of all concerned, it is stated that the total establishment expenses
in the banking industry as of 31.03.2012 for the entire in-service employees and
officers - numbering about 8,00,000 - as has been furnished to the Negotiating
Unions for the X Bipartite Settlement/Officers wage revision - has been given as
Rs.56292 crores. Under this circumstance, conceding the 100% to the entire
about 1,23,500 retirees comes to just Rs.291crores which would be just a meager
0.55% of the total establishment expenses.
Similarly for 40% updation of pension upto 31.10.2002 and 50% for retirees
during 1.11.2002 to 31.10.2007, it comes to Rs.431 crores i.e. 0.76% of the
establishment expenses as of 31.03.2012.
For 50% updation of pension which is our demand as well as that of the Bank
Retirees’ Federation, if conceded for all the retirees upto 31.10.2007, then the
annual costing which is estimated at Rs.1082 crores is just 1.92%.
Source: AIBOA House Magazine - Two Roses - May 2013