Pension issue in SBI may get accelerated: (Part 1)


There has been a massive campaign launched through this blog to elicit necessary awareness on the part of the people concerned and it appears now that there is a considerable response to the issue. It forms a good news that the retirees from the other banks too are joining the move in an emphatic manner. Shri G.Ramchandran, a retiree from Canara Bank as a senior manager, has joined the fray throwing whatever weight he has at his command to secure justice to the pensioners. He has addressed two letters to –

  1. The Finance Secretary, Shri D.K. Mittal, Government of India, New Delhi, on 18/01/2013,and
  2. Some of the Members of Parliament like Arun Jaitley of BJP and D. Raja of CPI in the form of a memorandum.

The issues highlighted are –

  • Removal of anomalies.
  • Updation of Pension.
  • Full DA to the pensioners.

The letters are lengthy ones, hence they are reproduced for the information of the readers one by one –the text of the first one addressed to the Finance Secretary is quoted below as Part 1 and the second one addressed to the M.Ps. will follow in the next post as Part 2.     ….To be continued:

Tex of the letter to the Finance Secretary by G. Ramchandran:

"

I wish to bring the following for your kind information, fervently hoping that needful will be done from your end:

One may be surprised by the fact, that a senior bank executive retired 10 years ago, is getting less pension, than what an award staff who retired recently draws. This is mainly due to two reasons, one being, that there is no updation of pension wtih every settlement and the other being, that those who retired before 2002 are subjected to a tapered DA formula. As of now the basic pension of a retiree remains the same as the bank employees’ pension rules do not permit revision. However the DA undergoes change every six month, with the increase/decrease of CPI. Unfortunately, those who retired before 2002 are not paid full DA, with a formula by which the basic is split into four parts and DA is paid accordingly. For your information I furnish below various categories of the DA and the percentage on which the same is presently paid:

A. THOSE WHO RETIRED ON OR AFTER 01 01 09 1986, BUT BEFORE 01 11 1992/10 07 1993 :

Upto basic pension Rs.1250/ : 688.09%

Rs.1251 to Rs.2000 : Rs.8601.12 plus 564.85% in excess of Rs.1250/-

Rs.2001 to Rs.2130 : Rs.12837.49 plus 338.91% in excess of Rs.2000/-

above Rs.2130 : Rs.13278.07 plus 174.59% in excess of Rs.2130/-

B. THOSE WHO RETIRED BETWEEN 01 11 1992 /01 07 1993 AND 01 04 1998:

Upto basic pension Rs.2400: 311.50%

Rs.2401 to Rs.3850 : Rs.7476 plus 258.10 % in excess of Rs.2400/.

Rs.3851 to Rs.4100 : Rs.11218.45 plus 151.30% in excess of Rs.3850/-

above Rs.4100 : Rs.11596.70 plus 80.10% in excess of rs.4100/-.

C.THOSE WHO RETIRED ON OR AFTER 01 04 1998, BUT BEFORE 01 11 2002:

Upto basic pension Rs.3550: 181.44%

Rs.3551 to Rs.5650 : Rs 6441.12 plus 151.20% in escess of Rs.3550/-.

Rs. 5651 to Rs.6010 : Rs.9616.32 plus 90.72% in excess of Rs.5650/-

above Rs.6010 : Rs. 9942.91 plus 45.36% in excess of Rs.6010./-

After 01 11 2002, the DA is paid to retirees in a single slab. As a result of the truncated formula the pensioners are not fully compensated for the price rise and the pensioners in the higher slabs are the major losers. The loss per month in the higher scale is almost Rs.3500/ pm at present.

This anomaly was brought to the knowledge of the bank managements/IBA and as there was no response, finally a batch of writ petitions were filed in Madras High Court (WP 50000/2006, 50001/2006,

50002/2006, 3198/2007, 9952/2007, 14983/2007 and 6632/2007). On 14-12-2012, the High Court was pleased to pass an order in favour of the petitioners. The verdict was a foregone conculsion as there was

—-2—

no justification in truncating the DA and the intention of compensating the pensioners, for the price rise has been defeated by the formula. Now that the case has been decided in favour of the retirees, I request you to kindly intervene and ensure that the Banks honour the verdict in letter and spirit.

I wish to submit the following points in my favour:

1. The court has rightly pointed out that there is no justification in introducing the DA formula which results in not-neutralising the price rise fully.

2. While those who retired after 2002 are getting full DA, deprivation of the same to a section of retirees is not acceptable.

3. The retirees are mostly in the age group of above 65 years, and dragging them to courts for issues, which can be solved at the lower level is adding insult to injury.

4. The retirees of Rserve Bank of India are getting the benefit from 2005 onwards and there should be parity.

5. The truncated formula creates different classes of pensioners in Banking Industry.

From the records it can be observed that most of the court decisions have gone in favour of the retirees/petitioners, the important one, being recent 5 year weightage case. I am sure that the verdict also will be in favour of the retirees, even if challenged in the higher court, as explicitly there is injustice done to the retirees, which remains to be rectified. I am sure you will apreciate that the poor pensioners are put into loss for over 10 years, for no fault of them and they continue to suffer the loss. The restoration of full DA will improve their financial standing to some extent and save from the impending price increase every six month.

I request you to kindly look into the matter and advise the Banks not to go for appeal and arrange to pay the full DA forthwith, along with arrears. It may also be noted that, while the Banks have the affordability for going to appeal, the poor pensioners are forced to spend from their packets to present their points, to get justice. That too at this ripe age! And the time taken to get a decision is so long that, many of us may not survive to get the benefits.

Further the Supreme Court has several times advised the litigants not to go for appeal,only for the sake of appeal,where they are in shaky grounds and when there is no chance of winning a favourable verdict. This is a fit case where the appeal is not going to succeed in the light of the above points. By not going to appeal, the banks/IBA/ Govt. will send a message that they care for the senior citizens of the country and they recognise their past services to the institution. The National Litigation Policy should be practised at the highest level to spread the message that the same has relevance in our country.

I regret for taking your valuable time, but do hope that you will pay your personal attention and ensure that the reitrees of pre 2002 are no more put to hardship. Your positive action will be highly appreciated by the pensioners of the banks and going for appeal will not only delay the process but result in wastage of exchequer and hard earned savings of the retirees.

  • Next date on Pension issue in New Delhi High Court, as advised by K.R.Saini, is fixed as 07/02/2013
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9 thoughts on “Pension issue in SBI may get accelerated: (Part 1)”

  1. the letter should be addressed to the chairperson of U.P.A.smt Sonia Gandhi or Sh Rahul Gandhi and, M.P S of the ruling party otherwise it will go in dustbin, as govt is not ready to listen to the opposite parties M.P,s and have always negative views of the issue raised by the M.P.s of the opposite parties . a well drafted letter , thanks for the hard labour .

    Raj Kumar Negi

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  2. SIR, IT IS WELCOME MOVE/NEWS THAT THE RETIREES OF OTHER BANKS HAVE ALSO STARTED TO THROW THEIR WEIGHT BEHIND THE PENSION ISSUE AND HAVE COME OUT OPENLY IN SUPPORT OF THE ISSUE, TO SECURE JUSTICE TO THE PENSIONERS. THE LETTER ADDRESSED TO THE FINANCE SECRETARY, GOVERNMENT OF INDIA BY SHRI G.RAMCHANDRAN, IS VERY WELL DRAFTED, VERY ELABORATE ONE CONTAINING ALL THE FACTS OF THE CASE IN DETAIL. SIR, I THINK YOUR SELFLESS SUSTAINED CAMPAIGN AND FIGHT FOR PENSIONERS THROUGH YOUR BLOG HAS STARTED BEARING FRUITS AND WILL END UP IN VICTORY. I REALLY COMPLIMENT YOU FOR YOUR UNTIRING EFFORTS.

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  3. Sir. I am in knowledge of so many cases where the justice have been negated to extremely genuine persons. When such types of negation of justice came to your knowledge you endeavored hard to fight with the injustice done. This happened in creating the miracles which are the golden heritage of banking trade union movement. Despite the growing age factor and paucity of resources at all level we understand that you have taken it as a challenge. Sir the history is going to repeat itself again and your mission- old pensioners shall be solved positively. As a staunch followers of yours we are firmly with you without any deviation sir. May God give you very good health so that you may strive hard as usual. My sincere thanks to Sri G. Ramchandran for joining the movement and also to Sri D. Raja renowned for fighting for wage earners in an outside the Parliament of India

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