Perumal Maruthu 10 hrs Updation.......(Part II) (Courtesy: Two Roses) 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. 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% ofthe 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(Pl see the Table) 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 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.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%.
Posted on: Fri, 22 Aug 2014 03:51:56 +0000
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