Pension issues in SBI–Background clippings: {Part 3}



 

In continuation of Part 2 published on 3/6/2014:

 

KESHAV RAI SAINI on June 20, 2014 at 11:41 am said:Edit

PENSION ISSUES IN STATE BANK OF INDIA.
50% AS PENSION OF THE LAST DRAWN AVERAGE PAY OF THE LAST 12 MONTHS WITHOUT ANY CEILING.
HOW OUR PENSION IS PROTECTED LEGALLY AT THE RATE OF 50% OF SALARY OF RETIRED EMPLOYEES AT THE TIME OF .
OUR PENSION FUND REGULATIONS ARE WELL PROTECTED LEGALLY AS UNDER——————
1 State Bank of India Act 1955.
2 The Hon’ble Supreme court by the judgement dated 23.02.1989,in the case of Imperial Bank of India PENSIONERS’ Association and others v/s State Bank of India and others.
3 Constitution of India Article .
STATE BANK OF INDIA ACT 1955.
CHAPTER 3
SECTION 7—–Transfer of Service of existing officers and employees of Imperial Bank to State Bank of .India.
Any person who on appointed day,is entitled or in receipt of a pension or bother superannuation or compassionate allowance or benefit from Imperial Bank of India or any provident,pension or other fund or any authority administering such fund shall be entitled to paid by.and to receive from State any provident,pension or other fund or any authority administering such fund the same pension,allowance or benefit was granted and if any question arises whether he has observed such conditions,the question shall be determined Government and the decision of Central Government there on shall be final.
RULE FIXING PENSION AT THE TIME OF FORMATION OF STATE BANK OF INDIA.
iN IMPERIAL b ank of INDIA PENSION WAS CALCULATED AT THE RATE OF ONE- SIXTIETH PART FOR EVERY YEAR’S SERVICE OF AVERAGE MONTHLY SUBSTANTIVE SALARY DURING THE LAST 5 YEARS,AS THE FIXATION OF MAXIMUM PENSION IS CONCERNED,THE CEILING WAS RS 750/RELAXABLE UP TO RS 1000/
iN VIEW OF THE FOREGOING,OUR PENSION IS WELL PROTECTED AT THE RATE OF 50% OF SALARY AT THE TIME OF RETIREMENT UNDER STATE BANK OF INDIA ACT 1955
2
SUPREME COURT JUDGEMENT DATED 23.02.1989.
THE HON’;BLE Supreme Court by the judgement laid down as per 4 th Central pay COMMISSION WITH SINGLE CEILING OF RS 2400/ AS PENSION IN STATE BANK OF INDIA AGAINST THE BACKGROUND OF MAXIMUM MONTHLY SALARY OF RS 4800/ OF DEPUTY MANAGING DIRECTOR IN STATE BANK OF INDIA AT THAT TIME.
IN VIEW OF THE ABOVE PENSION IS WELL PROTECTED LEGALLY AT THE RATE OF 50 % OF THE SALARY AT THE TIME OF RETIREMENT AS PER SUPREME COURT JUDGEMENT.

3
CONSTITUTION OF INDIA ARTICLE -14
Equality – Before Law— The State not denied to any person equality before the law or equal protection of laws within the territory of India.HOWEVER THERE IS DISCRIMINATION IN THE SAME CLASS BY CREATING TWO CATEGORIES OF PENSIONERS BY STATE BANK OF INDIA AND BANK SHOULD FOLLOW THE ESTABLISH NORM OF PENSION BEING 50% SALARY LEVEL OF RETIRED EMPLOYEE AT THE TIME OF RETIREMENT”.
K.R SAINI

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11 thoughts on “Pension issues in SBI–Background clippings: {Part 3}”

  1. THE MAIN FEATURES OF OLD PENSION SCHEME PRIOR TO 1986 MAY BE SUMMED UP AS FOLLOWS——
    (1) MAXIMUM PENSION RS 750/
    RS 1000/(FOR SENIOR OFFICERS)
    (2)CALCULATION OF PENSION AVERAGE BASIC PAY X LENGTH OF SERVICE
    —————————- ————————————————————————-
    60
    THIS FORMULA IS STATUTORY IN NATURE AND STILL EXIST IN STATE BANK OF INDIA UNDER STATE BANK OF INDIA PENSION FUND RULE 23(1)K.R SAINI

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  2. IN 1987 A WRIT PETITION WAS FILED IN HON’BLE SUPREME COURT BY I.B.I PENSIONERS ASSOCIATION(DELHI CIRCLE)ON THE QUESTION OF REVISION OF PENSION AND GRANT OF FAMILY PENSION AND FORMULA WAS REVISED AS FOLLOWS—
    AVERAGE SUBSTANTIVE SALARY FOR THE LAST 12 MONTHS(INSTEAD OF 60 MONTHS FOR I.B.I & 36 MONTHS FOR S.B.I) EVERY PENSIONERS IN S.B.I ARE GETTING PENSION ON THIS FORMULA FROM THE YEAR 1986 EXCEPT 7TH BIPARTITE RETIREES WHO ARE NOT GETTING PENSION ON THE AVERAGE LAST 12 MONTHS BASIC PAY.THEY ARE SUFFERING FROM THE LAST 16 YEARS AND ALMOST ALL 7TH BIPARTITE RETIREES ARE ABOVE 70 YEARS OLD.K.R SAINI

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  3. IT SHOULD BE NOTED THAT SUPREME COURT IN ITS JUDGEMENT DATED 23.02.1989 SAID THAT PENSIONERS ARE NOT AT THE MERCY OF TRUSTEES OF PENSION FUND SOME WERE GETTING PENSION RS 750/ AND SOME WERE GETTING PENSION MORE THAN RS 750/ UP TO RS 1000/ THEREFORE THE SUPREME COURT HAD DECIDED THAT THERE IS A UNIFORM FORMULA THAT IS 50% OF THE LAST AVERAGE BASIC PAY MAXIMUM RS 2400/(DEPUTY MANAGING DIRECTOR PAY WAS RS 4800/ AT THAT TIME.K.R SAINI

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  4. SUBSEQUENTLY,WHEN THE SALARY REVISION TOOK PLACE W.E.F 1.11.1987,BASED ON MERGER OF 600 POINTS OF CPI, THE SPIRIT OF SUPREME COURT SHOULD HAVE BEEN KEPT IN MIND AND PENSION CEILINGS SHOULD HAVE BEEN RAISED TO RS 4250/ PER MONTH WHICH WAS 50% OF THE HIGHEST BASIC PAY OF SENIOR MOST EXECUTIVE OF THE BANK.UNFORTUNATELY,THE PENSION CEILING WAS NOT REVISED AND 5TH BIPARTITE RETIREES ARE STILL GETTING MAXIMUM PENSION OF RS 2400/.THOUGH A PROPOSAL FOR RAISING CEILING OF PENSION WAS PUT UP BY THE BANK IN 1991 TO THE GOVERNMENT. K.R SAINI

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  5. in 2000 OUR PENSIONERS FEDERATION FILED A WRIT PETITION IN THE SUPREME COURT FOR 50% AS PENSION FOR THE LAST AVERAGE 12 MONTHS PAY WITHOUT ANY .BUT AT THE DIRECTIONS OF SUPREME COURT AND OUR PENSIONERS FEDERATION HAD TO WITHDRAW THE CASE FROM SUPREME COURT AND FILED A COURT CASE IN DELHI HIGH COURT IN 2002 THROUGH 6 PENSIONERS AND ONE FAMILY PENSIONERS.OUT OF 7 PETITIONERS 5 PETITIONERS HAVE ALREADY DIED.THIS COURT CASE HAS BEEN LISTED EVERY THURSDAY BUT IS PENDING FOR THE LAST 12 YEARS .MOREOVER THIS CASE IS BEFORE A SINGLE JUDGE OF DELHI HIGH COURT. K.R.SAINI

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  6. IN 2002 BANK HAD ADVISED TO THE GOVERNMENT VIDE LETTER NO CDO/PM/15/SPL/1187 DATED 30.10.2002,A FOOLPROOF CASE FOR PENSION IN S.B.I@50% OF THE LAST DRWN AVERAGE PAY WITHOUTV ANY CEILING QUOTING SUPREME COURT JUDGEMENT .IN 2007 BANK AGAIN RECOMMENDED TO THE GOVERNMENT VIDE LETTER NO DO /CDO/PM/16/SPL/1293 DATED 24TH DECEMBER 2007.THE SALIENT POINTS ARE GIVEN BELOW—–
    A) THE PENSION SCHEME HAS BEEN ONE OF THE DISTINGUISHING FEATURES OF STATE BANK TO ATTRACT BEST AVAILABLE TALENT IN OFFICERS CADRE FROM THE MARKET,AFTER THE CIVIL SERVICES. HOWEVER ,DUE TO SUCCESSIVE DISTORTIONS ARISING IN OUR PENSION SCHEME AND AVAILABILITY OF BETTER RETIRAL BENEFITS AMONGST BANK’S COMPETITORS IN THE FINANCIAL MARKET,S.B.I HAS LOST THE CUTTING EDGE IN THIS RESPECT.
    B) THE RESTORATION OF PARITY OF PENSION BETWEEN WORKMEN AND OFFICERS STAFF,WHICH PRINCIPLE WAS ACCEPTED BY THE GOVERNMENT IN 1987 WHILE APPROVING AMENDMENTS TO THE PENSION SCHEME WITH EFFECT FROM 1.1.1986,WILL ENABLE THE BANK TO SUCCESSFULLY CONTEST THE PLETHORA OF COURT CASES LYING IN VARIOUS HIGH COURTS.
    C)THE OFFICERS’ COMMNUNITY,BEING THE BACKBONE OF MAINSTREAM OF THE BANK’S OPERATIONS,BUSINESS DEVELOPMENTS
    AND PROFITS, IT WOULD BE BUT FAIR TO EXTEND TO THEM THEIR LEGITIMATE ASPIRATIONS OF PARITY IN PENSION FORMULA VIS-A VIS WORKMEN STAFF. K.R SAINI

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  7. PENSIONERS ARE ONE CLASS THERE SHOULD BE NO DIVISION OF PENSIONERS AS SOME EMPLOYEES ARE GETTING PENSION @ 50 % AND SOME ARE GETTING PENSION N@ 40 % .80% OF THE TOTAL PENSIONERS ARE GETTING PENSION@ 50% AND 20 % ARE GETTING PENSION @ 40% THIS VIOLATION OF ARTICLE 14 OF THE CONSTITUTION.ALL THE AWARD BSTAFF AND OFFICERS JMG SCALE1ARE GETTING PENSION @ 50% AND MMG SCALE2AND ABOVE AREGETTING PENSION @ 40 %.K.R SAINI

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  8. DearSriSaini, legalities apart the Bank which is known for its broadmindedness should view the matter in its prespective and give the pittance of raise the Pensioners want without taking a technical stance>iam sure the present Govt which has taken office recently will clear any reasonable proposal if the Bank were to approach it with aplomb.This will earn them the goodwill of the senior retirees who toiled to make SBI what it is today.

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