Pension issues in SBI–Background clippings: {Part 1}



Readers are well aware of the massive damage caused to me as a result of unscrupulous elements hacking my blog tapovan976.org and with this was  also lost the hard labour put in by KR Saini, a great veteran on pensioners cause, by way of several of his comments on anomalies in pension issues with a historical perspective in the background. He has since been able to reconstruct some of the comments so damaged and lost by working hard for the purpose with a view to render necessary clarifications on pension issues. One such clarificatory note is reproduced below. This shall help us if the retiree pensioners and the other readers make it possible  to let us know their reaction as to how they find these clarifications useful and depending on their replies in the matter we may be able to decide to accelerate release of more such elucidations in days to come.

18/05/2014:

IN TERMS OF RULE 23(1) OF THE STATE BANK OF INDIA EMPLOYEES’ PENSION FUND RULES,THE PENSION PAYABLE SHALL BE THE AMOUNT CALCULATED AT THE RATE OF ONE-SIXTIETH PART OF EVERY YEAR’S PENSIONABLE SERVICE OF THE AVERAGE MONTHLY SUBSTANTIVE SALARY DRAWN DURING THE LAST TWELVE MONTHS’ PENSIONABLE SERVICE.
DESPITE THIS RULE 23(1) OF S.B.I EMPLOYEES PENSION FUND RULES AND THIS FORMULA IS STATUTORY IN NATURE FROM 1.1.1986,HOWEVER,THIS FORMULA IS DIFFERENT FOR THE 7TH BIPARTITE RETIREES..IN S.B.I PENSION IS TO BE CALCULATED ON THE AVERAGE MONTHLY SUBSTANTIVE SALARY DRAWN DURING THE LAST 12 MONTHS PENSIONABLE SERVICE AND THIS HOLDS TRUE FOR ALL THE PENSIONERS OF S.B.I EXCEPT FOR THE 7TH BIPARTITE RETIREES WHERE FOR THE PURPOSE OF CALCULATION OF PENSION,PAY SCALES AS PER 6TH BIPARTITE SETTLEMENT ARE TAKEN INTO ACCOUNT,BUT THEY WERE DRAWING SALARY IN THE PAY SCALES OF 7TH BIPARTITE SETTLEMENT AT THE TIME OF THEIR RETIREMENT(S)..AS A RESULT OF THIS MAXIMUM BASIC PENSION OF 7TH BIPARTITE IS 24.97% OF THE PAY AT THE TIME OF THEIR RETIREMENT(S).(DEPUTY MANAGING DIRECTOR WHO RETIRED IN THE 7TH BIPARTITE SETTLEMENT WAS DRAWING AVERAGE PAY OF RS 23700/ BUT DRAWING BASIC PENSION ON THE 6TH BIPARTITE SCALES .I.E BASIC PENSION IS AT THE RATE OF 40% OF RS 14800/ COMES TO RS 5920/.IT COMES TO 24.97% OF RS 23700/.)
K.R BSAINI

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Author: neelkanth

Certainly not a celebrity but do have inquisitiveness to know things, realise them and live them to the extent possible. My interest in History, Art of Living and behavioural science is an element that inspires me.Am a poet,an author,a consultant, an advisor on computers and behavioural science.Served as Director in Central Board of State Bank of India.Remained associated with trade union activities and industrial relations as President,All India State Bank of India Staff Federation.Led a delegation on computers to several countries abroad number of times as from State Bank of India/ Banking Industry. Was twice accorded with NATIONAL AWARD FOR EXCELLENCE by All India Freelance Journalists Association, Chennai (India). My email address is: neelkanthshahi@gmail.com

20 thoughts on “Pension issues in SBI–Background clippings: {Part 1}”

  1. IN RESPONSE TO SHRI VENKAT THE SALARY OF SCALE 4 AT THE TIME OF RETIREMENT WAS RS 16880/ IN THE 7TH BIPARTITE SETTLEMENT BUT THEY ARE DRAWING PENSION ON THE BASIS OF SCALE 4 SALARY OF 6TH BIPARTITE SETTLEMENT THAT IS RS 11000/AND THEY ARE DRAWING PENSION @ 40% OF RS 11000/ THAT COMES TO RS 4400/PER MONTH.WHICH IS EQUAL TO 26.06% OF RS16880/ K.R SAINI

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  2. NOW I AM GOING TO WRITE A BRIEF HISTORY OF 7TH BIPARTITE RETIREES.TO UNDERSTAND THIS PENSION ISSUE ,I HAVE TO MENTION THAT IN STATE BANK OF INDIA THERE IS NO DIRECT RELATION BETWEEN WAGE REVISION AND REVISION OF PENSION.WHENEVER WAGE REVISION TAKES PLACE AFTER BIPARTITE SETTLEMENT,THE REVISION OF PENSION DOES NOT TAKES PLACE AUTOMATICALLY/IMMEDIATELY.AS PER 7TH BIPARTITE SETTLEMENT,THE NEW PAY SCALES WERE GRANTED TO THE EMPLOYEES. AND ARREARS DUE TO REVISION OF SCALES FROM 1.11.1997(AWARD STAFF) AND FROM 1.04.1998(SUPERVISING STAFF) WERE PAID IN APRIL 2000.BUT PENSION WAS NOT REVISED IN 2000 IN APRIL..THE EXECUTIVE COMMITTEE OF THE CENTRAL BOARD HAD APPROVED THE CONTINUATION OF PENSION AS PER THE RULES WHICH WAS EXISTED AT THAT TIME.THAT TIME THE PENSION V RULE WAS 50% MAXIMUM 4250/PER MONTH.THAT IS FOR 6TH BIPARTITE RETIREES W.E.F 1.11..1993K.R.SAINI

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  3. NOW I HAVE TO MENTION THE PENSION SETTLEMENT OF OTHER BANKS IN CASE OF 7TH BIPARTITE RETIREES.IN THEIR CASE FOR THE PURPOSE OF PENSION SHALL BE THE AGGREGATE THE PAY DRAWN BY THE MEMBER IN TERMS OF 6TH BIPARTITE SETTLEMENT DATED 14TH FEBRUARY, 1995 AND THE DEARNESS ALLOWANCE THEREON CALCULATED UP TO 1616 POINTS IN THE ALL INDIA AVERAGE CONSUMER PRICE INDEX FOR INDUSTRIAL WORKERS IN THE SERIES 1960= 100.THIS SHALL BE SUBJECT TO THE NECESSARY AMENDMENTS TO BE MADE RELEVANT PROVISIONS OF BANK(EMPLOYEES) PENSION REGULATIONS 1995.THESE REGULATIONS FOR OTHER BANKS.THE DEFINATION OF PAY WAS CHANGED IN THE 8TH BIPARTITE SETTLEMENT AND 7TH BIPARTITE RETIREES OF OTHER BANKS ARE NOW DRAWING PENSION ON THE BASIS OF THEIR PAY SCALES OF 7TH BIPARTITE SETTLEMENT W.E.F 1.05.2005.BUT IN S.B.I ALL THE 7TH BIPARTITE RETIREES ARE STILL DRAWING THEIR PENSION ON THE BASIS OF 6TH BIPARTITE SCALES. K.R SAINI

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  4. IN THE 6TH BIPARTITE SETTLEMENT WITH MERGER OF 1148 POINTS OF CPI WHICH WAS EFFECTIVE FROM 1.11.1992,THE PENSION CEILINGS WERE REVISED WITHOUT TAKING INTO ACCOUNT THE ACTUAL SALARY SCALES DRAWN BY OFFICERS THE HIGHEST SALARY OF EXECUTIVE WAS RS 14800/PER MONTH.THE CEILING FIXED MAXIMUM 4250/ WITH EFFECT FROM 1.11.1993..EVEN A JUNIOR MOST OFFICER WITH RS 9200/ AS MAXIMUM BASIC PAY WAS DRAWING A PENSION LESS THAN 50% OF BASIC PAY.THIS HAS RESULTED IN FURTHER REDUCTION IN BASIC PENSION FROM 50% TO 28.71%.WITH A CEILING OF 50% MAXIMUM RS 4250/.IN VIEW OF THE FACT THAT SENIOR EXECUTIVES WERE DRAWING MUCH LESSER PENSION,A LEGAL NOTICE WAS SERVED ON BANK/GOVERNMENT/RBI ,THEREFORE GOVERNMENT BROUGHT IN A CONCEPT OF 40% OF LAST DRAWN BASIC PAY OVER AND ABOVE RS 8500/BASIC PAY WITH MINIMUM OF RS 4250/PER MONTH WHICH CEILING IS CONTINUING TILL TODAY. K.R SAINI

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  5. I HAVE TO ADVISE THAT THE CEILING ON MAXIMUM PENSION PAYABLE UNDER THE STATE BANK OF INDIA EMPLOYEES’ PENSION FUND RULES TO THE MEMBERS,WHO RETIRED DRAWING PAY AND ALLOWANCES WITH REFERENCE TO SALARY/WAGE REVISION EFFECTIVE FROM 1.11.1992/1.7.1993 WAS REVISED TO RS 4250/W.E.F 1.11.1993.FURTHER,MODIFICATIONS WERE EFFECTED W.E.F 1.3.1999 IN OCTOBER 2000 AFTER THE IMPLEMENTATION OF 7TH BIPARTITE SETTLEMENT IN APRIL 2000 AS UNDER
    EMPLOYEES/OFFICERS HAVING PAY UP TO RS 8500/ 50% OF THE
    EMPLOYEES/OFFICERS HAVING PAY EXCEEDING RS 8500/ 40% OF THE PAY SUBJECT TO A MINIMUM OF RS 4250/.ALL PENSIONERS FOR THE 7TH BIPARTITE RETIREES BANK HAD RECOMMENDED TO GOVERNMENT FOR THE REVISION OF PENSION W.E.F 1.03.1999 ON THE FOLLOWING BASIS–
    50% OF THE PAY AND APPLICABLE ALLOWANCES UP TO MAXIMUM PAY AND ALLOWANCES PAYABLE TO OFFICERS IN JUNIOR GRADE AT THE MAXIMUM I.E AFTER SCALE MOVEMENT AND SANCTION OF STAGNATION INCREMENT,P.Q.P &F.P.P WHICH COMES TO RS 7460/ OFFICERS DRAWING PAY AND ALLOWANCES MORE THAN RS 14240/. 40% OF THE PAY AND APPLICABLE ALLOWANCES SUBJECT TO MINIMUM OF 50% OF MAXIMUM PAY AND ALLOWANCES PAYABLE TO J.M.G .OFFICERS(*AFTER SCALE MOVEMENT AND SANCTION OF STAGNATION INCREMENT,P.Q.P&.F.P.P) PLEASE NOTE THIS RECOMMENDATIONS FOR 7TH BIPARTITE RETIREES WAS W.E.F 1.03.1999 K.R SAINI

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  6. IN REPLY TO BANK’S RECOMMENDATIONS FOR REVISION OF PENSION OF 7TH BIPARTITE RETIREES WITH EFFECTIVE FROM 1.03.1999 GOVERNMENT ADVISED THE BANK”STATE BANK OF INDIA MAY WORK OUT REVISED CEILING BY MERGER OF D.A UP TO 1616 POINTS AND SUBMIT THEIR PROPOSAL TO THE GOVERNMENT ”IN TERMS OF GOVERNMENT LETTER F 1/7/2000-IR DATED 6TH FEBRUARY 2001.BANK DID NOT APPLIED THIS FORMULA, BECAUSE OF MERGER OF D.A AT 1616 POINTS FOR PENSIONERS THE BENEFIT WOULD NOT ACCRUE TO THE PENSIONERS WITH THIS FORMULA.THE FEDERATION IS SEIZED OF THE PROBLEM.THE PENSION TO 7TH BIPARTITE RETIREES ARE BEING PAID AT PRESENT ON THE BASIS OF 6TH BIPARTITE SETTLEMENT.K.R SAINI P.S THIS THE EVENT IS 2001

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  7. IN JUNE 2005 8TH BIPARTITE SETTLEMENT WAS FINALISED .EVEN THEN THE PENSION OF 8TH BIPARTITE RETIREES WAS NOT REVISED .THEY WERE DRAWING PENSION ON THE BASIS OF 6TH BIPARTITE SCALES.SO MUCH SO ALL THE PENSIONERS OF 6TH ,7TH, AND 8TH BIPARTITE RETIREES WERE GETTING PENSION ON THE BASIS OF SALARY OF 6TH SETTLEMENT.

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  8. ON RECEIPT OF REPORT SUBMITTED BY THE COMMITTEE ,STATE BANK OF INDIA AGAIN RECOMMENDED TO THE GOVERNMENT IN DECEMBER 2007 FOR RAISING THE CEILING OF PAY FOR THE RETIREES OF 1997/1998 TO 31.10.2002 IN LINE WITH THE CEILING OF PAY RAISED FOR RETIREES AFTER 31.10.2002 FOR ENTITLEMENT OF PENSION AT THE RATE OF 50% OF THE LAST DRAWN OR 40% AS THE CASE MAY BE WITH EFFECT FROM 1.05.2005.BUT GOVERNMENT DID NOT APPROVED THE PROPOSAL FOR REVISION OF PENSION WITH EFFECT FROM 1.05.2005.K.R SAINI

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  9. IN 2008 THE ERSTWHILE CHAIRMAN SHRI O.P BHATT RECOMMENDED FOR REVISION OF PENSION OF 7TH BIPARTITE RETIREES TWICE .BUT GOVERNMENT DID NOT APPROVE THE REVISION OF PENSION OF 7TH BIPARTITE RETIREES. K.R SAINI

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  10. IN 2010 THE ERSTWHILE CHAIRMAN SHRI O.P.BHATTAGAIN TRIED HIS BEST TO RESOLVE THE ISSUE OF 7TH BIPARTITE RETIREES .BUT GOVERNMENT DID NOT SANCTION THE REVISION OF PENSION OF 7TH BIPARTITE RETIREES. K.R SAINI

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  11. IN 2011 WHEN GOVERNMENT CONVEYED TO BANK THAT REVISION OF PENSION FOR 7TH BIPARTITE RETIREES HAS BEEN EXAMINED AND AFTER DUE CONSIDERATION GOVERNMENT HAS DECIDED THAT THE MATTER MAY BE TREATED AS CLOSED.THEN OUR FEDERATION FILED A WRIT PETITION IN THE SUPREME COURT IN MARCH 2011.THE PRAYER IS THAT ALL PENSIONERS SHOULD GET PENSION @ 50% OF THE PAY AT THE TIME OF RETIREMENT.BUT SUPREME COURT HAS TRANSFERRED THIS CASE TO DELHI HIGH COURT IN FEBRUARY AS W.P 1875/2013.THE NEXT DATE OF HEARING IS 25TH SEPTEMBER 2014 AT DELHI HIGH COURT.K.R SAINI

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  12. IT HAS BEEN OBSERVED WHILE WRITING COMMENTS IN THIS BLOG THAT THE GOVERNMENT /BANK DID NOT KEPT IN MIND AND VIRTUALLY SUPREME COURT JUDGEMENT DATED 23.02.1989 WAS IMPLEMENTED FOR A SHORT PERIOD FROM 1.1.1986 TO 31.10.1987 FOR THE 4TH BIPARTITE SETTLEMENT .SUBSEQUENTLY,WHEN THE SALARY REVISION TOOK PLACE W.E.F 1.11.1987 FOR THE 5TH BIPARTITE SETTLEMENT (FROM 1.11.1987 TO 31.10.1992 )UNFORTUNATELY THE PENSION CEILING WAS NOT REVISED THOUGH A PROPOSAL WAS PUT UP TO THE GOVERNMENT.FOR THAT OUR FEDERATION FILED A WRIT PETITION NO 1931/2002 THROUGH 6 PENSIONERS AND A FAMILY PENSIONER WHO RETIRED BEFORE 1.11.1993 FROM THE 7 PETITIONERS 5 HAVE BEEN DIED AND THIS COURT CASE IS STILL PENDING AT DELHI HIGH COURT.ALTHOUGH THIS CASE OF PEM VATI BAGGA & OTHERS LISTED EVERY THURSDAY BUT NO DECISION YET BY A SINGLE JUDGE.AT DELHI HIGH COURT.K.R SAINI

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  13. THE GOVERNMENT MADE THE ARBITRARY DIVISION OF PENSIONERS INTO TWO CATEGORIES OF 50% AND 40%.HOWEVER PENSIONERS ARE ONE CLASS .FOR THIS ANOMALY OUR PENSIONERS FEDERATION FILED A WRIT PETITION NO 184/2011 IN THE SUPREME COURT WITH ONLY ONE PRAYER THAT ALL THE PENSIONERS SHOULD GET PENSION@ 50 % OF THE LAST PAY FROM THE DATE OF THEIR RETIREMENT( FROM 1.11.1987)BUT SUPREME COURT TRANSFERRED THIS CASE IN FEBRUARY 2013 TO DELHI HIGH COURT.AND NEXT DATE OF HEARING IS 25TH SEPTEMBER 2014. (W.P 1875/2013)K.R SAINI

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  14. THERE IS SOMETHING WRONG WITH THE EXISTING POLICY ON BANK PENSION.THE FEDERATION OF S.B.I PENSIONERS HAS BEEN RUNNING FROM PILLAR TO POST FOR THE LAST 26 YEARS FOR JUSTICE.DESPITE ALL THIS ODDS/SETBACKS,OUR PENSIONERS FEDERATION SHALL CONTINUE TO TAKE ALL POSSIBLE EFFORTS TO RESOLVE THE PENSION ISSUES IN S.B.I. K.R SAINI

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