Pension issues in SBI–on fund and rules:


As reiterated in this blog from time to time, there is no paucity of funds to meet much overdue demand on enhancing pension once State Bank of India has a will to do it and they are so permitted by the government of India. Their cry on pension issues involving huge sum of money has no relevance in relation to availability of the requisite funds. KR Saini has been good enough to contribute most relevant a comment on the issue which explains it threadbare and readers are required to go through the same to get fully apprised of the actual picture supported by statistical factors. Readers are also advised to go through the Page on this blog as ‘NewsPage’ for time to time developments duly advised by KR Saini himself in regard to court cases on pension issue. His comment is reproduced below verbatim:

KESHAV RAI SAINI on July 19, 2014 at 1:16 pm said:

“…………….AS YOU ARE AWARE THAT THE REVISION OF OUR PENSION ON 7TH BIPARTITE PAY SCALES AND PAYMENT OF PENSION AT 50% OF THE LAST DRAWN AVERAGE PAY ARE SOME OF OUR MAJOR PENDING ISSUES,A SUM OF RS 200 CRORES PER YEAR WILL ONLY BE MADE AVAILABLE FROM OUR PENSION FUND.I HAVE MUCH DISSCUSED THESE TWO ISSUES IN THIS BLOG.IN THIS WRITE UP I AM GOING TO WRITE ON THE PENSION FUND OF STATE BANK OF INDIA.

PENSION FUND STATUS OF STATE BANK OF INDIA AS ON 31.03.2014
OPENING BALANCE (AMOUNT IN CRORES)
39564.21
ANNUAL CONTRIBUTION
872.37
INTEREST INCOME
3362.96
BENEFIT PAID
-2762.88
ACTURL GAIN
4200.33
CLOSING BALANCE
45236.99
THE POSITION OF THE PENSION FUND IN S.B.I INDICATE THAT IT IS QUITE SOUND AND IN A POSITION TO TAKE CARE OF THE RETIREES DEMANDS OF 50% AS PENSION OF THE LAST DRAWN PAY,THE REVISION OF OUR PENSION ON 7TH BIPARTITE SCALES,100% D.A NEUTRALIZATION TO PRE 2002 RETIREES.IMPROVEMENT OF FAMILY PENSION,AND UPDATION OF PENSION.
THE 7TH BIPARTITE RETIREES ARE ABOUT 23 THOUSANDS OF WHICH SIXTY SEVEN PERCENT ARE VRS OPTEES WHO DID NOT RETIRE AT MAXIMUM PAY SCALE.THUS,THE ADDITIONAL OUTGO ON ACCOUNT OF THIS REVISION WILL NOT BE MUCH, AND WILL BE WITHIN RS 36 CRORES PER ANNUM”




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25 thoughts on “Pension issues in SBI–on fund and rules:”

  1. Respected Sir,
    In your leadership Mr. K.R.Saini was doing struggle for S.B.I. pensioners. Very very thanks to Mr. Saini and pranam to you with with core of my heart. And pray to God to give you success in the struggle.

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  2. PENSION ISSUES IN STATE BANK OF INDIA.
    50% OF THE LAST DRAWN AVERAGE PAY OF LAST 12 MONTHS WITHOUT ANY CEILING.
    As you are aware,earlier,there was a maximum ceiling of Rs 750/p.m & Rs 1000/p.m in Basic Pension of junior officers and Senior Executives respectively,which was much above the 50% of B>P of the top executive of the bank.as such,all employees in Bank were drawing 50% of last drawn pay as Basic Pension.
    However,government had implemented the 50%/40% formula in 2002 w.e.f 1.3.1999 for payment of pension to the employees of s.b.i.Our Bank took up the matter with government of India vide letter no CDO/PM/16/SPL/1187 dated 31.10.2002,a foolproof case for pension in S.B.I@50% of the last drawn average pay without any ceiling was presented before the government of India.But government did not approve the proposal.Bank again took up the matter videletter no CDO/PM/16/SPL/1293 dated 24December 2007.the salient points below for the consideration of the government.
    a) that the Supreme court vide its judgement in Case No 307 of 1987 ruled against two separate ceilings on pension for officers and workmen staff even though for both of them the pension was payable at 50% of the last basic pay at thatpoint of time.
    b)The Pension Scheme has been one of the distinguishing features of State Bank of India 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 competitors financial market,S.B.I has lost the cutting edge in this respect.
    c)The restoration of theparity of pension between workmen staff and officers staff,which principle was accepted by the Government of India in 1987,while approving amendments of 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.
    d)The officers’ community,being the backbone of mainstream of the Bank’s operations,business development and profits,it would be fair to extend to them their legitimate aspirations of parity in pension formula vis-a-vis workmen staff.
    BUT GOVERNMENT OF INDIA DID NOT SANCTION THE PROPOSAL IN 2008.

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  3. ISSUES OF 7TH BIPARTITE RETIREES.
    The issue of pension revision of 7th bipartite retirees is quite genuine. The 7th bipartite comprise those who retired drawing salary as per 7th Bipartite Wage Settlement (period between 1.11.1997(Award staff)/1.4.1998(Supervising)to 31.10.2002).An injustice has been done to them,the position is explained hereunder—
    1)The 6th Bipartite settlement arrived at in 1995 was implemented from 1.11.1992/1.7.1993.At this time,pension of those retired was revised with effect from 1.11.1993 and ceiling was raised upwards from Rs 2400/toRs4250/by adjustment of D.A and difference between 600 points of Consumer Price Index(CPIN)and 1148 points.This revision was effected in principle,although in fact it did not significantly change the gross pension payable.
    2) the above ceiling of pension was again revised with effect from 1.3.1999-the new formula was introduced by which those getting a salary upto Rs 8500/ would get pension at 50% of the salary and those getting salary above Rs 8500/ woud get pension at 40% of the salary subject to minimum ofvRs4250/.As a consequence of this ,Clerks and Officers upto JMGS 1 would get pension at 50% of the average basic pay,whereas officers MMGS_2 onwards received pension at 40% of the last drawn average pay.
    3) In the case of 7th Bipartite settlement,which was for the period from 1.11.1997(Award staff)/1.4.1998 (Supervising staff) to 31.10.2002,the salary revision took place on 14.12.1999(Supervising staff) and 27.03.2000 (Award staff) respectively with retrospective effect.However,due to oversight a corresponding revision in pension did not take place for these retirees.Therefore,all these 7th Bipartite retirees are getting pension on the salary as per pay scales of 6th Bipartite settlement and not on their actual last drawn average pay.In fact,provident fund,gratuity,family pension were paid to these retirees on the basis of their last drawn pay.this is the only group of pensioners in the Bank which is not getting pension on their actual last drawn pay,which is inequitable.

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  4. JUSTICE DELAYED IS JUSTICE DENIED.THE OLD SAYING HAS A MEANING WHICH IS RELEVANT FOR ALL TIMES.CARRYING OUT JUSTICE ON TIME IS IMPORTANT AND THERE NEED HAVE ANY DOUBT ABOUT IT.WE MAY HAVE MANY EXAMPLES IN REAL LIFE AS A COMMON MAN IN OUR COUNTRY ESPECIALLY AS BANK PENSIONERS(7TH BIPARTITE RETIREES)
    WHO ARE ALSO QUITE SENIOR CITIZENS ABOUT ABOVE 70 YEARS OLD.SEEKING JUSTICE THROUGH JUDICIARY IS OFTEN FOUND THE LAST RESORT OF EVERY PENSIONER(7TH BIPARTITE RETIREES) IN THE COUNTRY AND SPEEDY DISPOSAL OF COURT CASES WELL CERTAINLY A GREAT RELIEF TO SUCH AFFECTED PERSONS.HOWEVER,THERE IS SOME THING 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 14 YEARS FOR JUSTICE..K.R.SAINI

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  5. 100% D.A NEUTRALIZATION TO PRE 2002 RETIREES.
    MAJOR ISSUE THAT IS BEING SERIOUSLY AND ANXIOUSLY EXPECTED BY THE BANK RETIREES (IN ALL BANKS INCLUDING S.B.I)-BE IT IS SUBORDINATE STAFF OR A CLERK OR AN OFFICER NOT EXCLUDING EVEN TOP EXECUTIVE RETIREES IS 100% NEUTRALIZATION OF D.A ON FULL PENSION.THE RETIREES ARE LOOKING TO IN-SERVICE UNIONS AT BANK LEVEL U.F.B.U AT THE INDUSTRY LEVEL OR FOR THAT MATTER OUR PENSIONERS’ FEDERATION FOR RESOLUTION OF THIS ISSUE OF GREAT IMPORTANCE TO US.WITH REGARD OF 100% D.A NEUTRALIZATION ON PENSION SAMS ANY TAPERING,THERE IS ABSOLUTELY JUSTIFICATION IN THE DEMAND OF THE RETIREES SINCE IN SERVICE EMPLOYEES WHO WERE HAVING DIFFERENT SLABS OPERATING UP TO 30.04.2005 HAVE BEEN RECEIVING 100% D.A NEUTRALIZATION WITH ONLY BONE SLAB OPERATE FOR THEIR FULL PAY WITH EFFECT FROM 1.05.2005.SIMILARLY 8TH AND 9TH BIPARTITE RETIREES ARE ALSO GETTING 100% D.A NEUTRALIZATION ON THEIR BASIC PENSION WITH EFFECT FROM 1.05.2005.
    PERHAPS IT IS THE FIRST TIME WHEN BIPARTITE SETTLEMENT MEANT NOT SERVING EMPLOYEES ALONE BUT ALSO FOR RETIREES/PENSIONERS.IN THE LAST SETTLEMENTS NOTHING REALLY WAS OFFERED SEPARATELY TO THE RETIREES.LET US EXPECT ”SOMETHING” FROM THIS 10TH BIPARTITE SETTLEMENT.LET US HOPE 10TH BIPARTITE SETTLEMENT WILL RESOLVE MAJOR ISSUES AND DEMANDS OF RETIREES/PENSIONERS IN COMING DAYS. K.R SAINI

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  6. IMPROVEMENT IN FAMILY PENSION
    FAMILY PENSION IN BANKING INDUSTRY IS 15% OF THE LAST DRAWN PAY UNLIKE 30% OF THE LAST DRAWN PAY IN GOVERNMENT SECTOR/R.B.I.IT IS VERY MEAGRE AND BECOMES VERY DIFFICULT FOR THE FAMILY TO MAINTAIN LIFE AFTER THE DEATH OF THE PENSIONER.LET US HOPE 10TH BIPARTITE SETTLEMENT WILL SOLVE THIS ISSUE OF RETIREES/PENSIONERS IN THE COMING DAYS. K.R SAINI

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  7. PENSION UPDATION OF PAST RETIREES.
    IN BANKING INDUSTRY(INCLUDING S.B.I) PENSION UPDATION EXERCISE HAS NOT EVER BEEN CARRIED OUT.AT PRESENT INFLATION HAS SKYROCKETED .G.D.P OF THE COUNTRY HAS INCREASED MANY FOLD,BANK BUSINESS AND PROFITABILITY HAVE GONE UP SEVERAL TIME.TIME HAS COME GOVERNMENT SHOULD ALSO IMPLEMENTED THE UPDATION OF PENSION IN BANKING INDUSTRY AS IN THE CASE OF THEIR EMPLOYEES AT THE TIME OF EACH WAGE SETTLEMENT .K.R SAINI

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  8. THE STATE BANK OF INDIA EMPLOYEES’ PENSION FUND RULES.
    IN TERMS OF POWERS CONFERRED BY SECTION 50 OF THE STATE BANK OF INDIA ACT,(23) OF 1955),THE VCENTRAL BOARD OF THE STATEBANK OF INDIA,AFTER CONSULTATION WITH THE RESERVE BANK OF INDIA AND WITH THE PREVIOUS SANCTION OF THE CENTRAL GOVERNMENT,HEREBY MAKE THE FOLLOWING REGULATIONS TO PROVIDE FOR THE ESTABLISHMENT AND MAINTENANCE OF A PENSION FUND FOR THE BENEFIT OF THE EMPLOYEES OF THE BANK,IN PURSUANCE OF CLAUSE (O) OF SUB-SECTION (2) OF SECTION 50 OF STATE BANK OF INDIA ACT,1955,WHICH REGULATIONS SHALL BE KNOWN AS”STATE BANK OF INDIA EMPLOYEES’ PENSION FUND RULES”
    RULE 10
    THE BANK WILL SUBSCRIBE MONTHLY TO THE FUND A SUM EQUAL TO 10% OF SALARY PAYABLE BY THE BANK IN RESPECT OF ALL EMPLOYEES WHO ARE MEMBERS OF THE FUND.HOWEVER,WHEN AN EMPLOYEE CEASES TO BE IN PENSIONABLE SERVICE,NO SUBSCRIPTION WILL BE MADE BY THE BANK FOR THE PERIOD OF SUCH SERVICE.
    BUT THIS RULE NO 10 HAS BEEN AMENDED IN 2012 FOR MAKING ADDITIONAL ANNUAL CONTRIBUTION TO THE PENSION FUND AS PER ACTURIAL CALCULATION SUBJECT TO THE FOLLOWING——
    HENCEFORTH,PENSION STRUCTURE FOR DIFFERENT CATEGORIES OF OF PENSIONERS SHALL NOT BE CHANGED WITHOUT THE PRIOR APPROVAL OF THE GOVERNMENT.K.R.SAINI

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  9. CONCLUSION
    OUR PENSION ISSUES REMAIN UNRESOLVED DUE TO THE ADAMANT STAND BEING ADOPTED BY THE GOVERNMENT .THE PRESENT PERCEPTION OF THE OFFICIALS OF THE FINANCE MINISTRY NEEDS TO BE CHANGED.THE PERCEPTION ENTERTAINED BY THE VARIOUS OFFICIALS DEALING WITH OUR PENSION ISSUES OVER THE YEARS IS UNFORTUNATELY PASSED ON TO THEIR SUCCESSORS.WE ARE NOT SURE WHETHER OUR BANK HAS MADE ADEQUATE AND PERSISTENT EFFORTS WITH SUITABLE EXPLANATION FOR CHANGING THIS PREJUDICED PERCEPTION.OUR FEDERATION HAS BEEN MAKING ITS APPEAL TO THE GOVERNMENT FOR RECONSIDERING AND REVIEWING THE ADAMANT STAND. K.R.SAINI

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  10. Sir… Shri K.R.Saini , a great warrior of pension struggle has unshrouded the real face of SBI management and government who are marshaling the unacceptable and unreasoned statements to deny the genuine and just demand of SBI pensioners.. Their intention seems to be quite malafide… At last you will win as usual sir….

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  11. THE BANK PROVIDES FOR PENSION TO ALL ELIGIBLE EMPLOYEES.THE BENEFIT IS IN THE FORM OF MONTHLY PAYMENTS AS PER RULES AND REGULAR PAYMENTS TO VESTED EMPLOYEES ON RETIREMENT,ON DEATH WHILE IN EMPLOYMENT OR ON TERMINATION OF EMPLOYMENT AS PER RULES.VESTING OCCOUR AT DIFFERENT STAGES,THE MAKES ANNUAL CONTRIBUTION TO THE PENSION FUND AT 10% OF THE SALARY IN TERMS OF S.B.I EMPLOYEES PENSION FUND RULE 10.BUT NOW RULE 10 HAS BEEN AMENDED FROM THE YEAR 2012-2013 ON WARDS.NOW THE PENSION LIABILITY IS RECKONED BASED ON INDEPENDENT ACTUARIAL VALUATION CARRIED OUT ANNUALLY .NOW FOR MAKING ADDITIONAL ANNUAL CONTRIBUTION TO THE PENSION FUND AS PER ACTUARIAL CALCULATION SUBJECT TO THE FOLLOWING.————”HENCEFORTH PENSION STRUCTURE FOR DIFFERENT CATEGORIES OF PENSIONERS SHALL NOT BE CHANGED WITHOUT THE PRIOR APPROVAL OF THE GOVERNMENT.”
    THIS MEANS STATE BANK CANNOT PROVIDE ANY TYPE OF IMPROVEMENT IN PENSION WITHOUT THE APPROVAL OF THE GOVERNMENT. K.R SAINI

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  12. INTRODUCING A ”DEFINED CONTRIBUTION”PENSION SCHEME
    AS YOU ARE AWARE A NEW PENSION SCHEME INTRODUCED IN THE GOVERNMENT OF INDIA,W.E.F 1.1.2004.THIS NEW PENSION SCHEME HAS ALSO BEEN INTRODUCED IN ALL THE NATIONALIZED BANKS W.E.F 1.04.2010.STATE BANK OF INDIA HAS ALSO INTRODUCED THIS NEW PENSION SCHEME W.E.F 1.08.2010.WITH THE INTRODUCTION OF THIS PENSION SCHEME,THERE WILL BE NO CONTRIBUTION TO PENSION FUND BY STATE BANK OF INDIA FOR EMPLOYEES WHO JOINED FROM 1.08.2010 ON WARD.SIMILARLY PENSION LIABILITY OF EMPLOYEES WHO JOINED BEFORE 1.08.2010 IS NOW FIXED. 5TH,6TH AND 7TH BIPARTITE RETIREES ARE SUFFERING DUE TO MEAGRE PENSION DUE TO NOT GETTING 100% D.A NEUTRALIZATION AND NO REVISION OF PENSION OF 5TH AND 7TH BIPARTITE RETIREES.
    IN VIEW OF THE FOREGOING ,I FULLY AGREE WITH THE VIEWS OF SHRI NEELKANTH JI REGARDING THERE IS NO PAUCITY OF FUNDS TO MEET SUCH OVERDUE DEMANDS ON ENHANCING PENSION ONCE STATE BANK OF INDIA HAS A WILL TO DO IT AND THEY ARE SO PERMITTED BY THE GOVERNMENT OF INDIA. K.R SAINI

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  13. My sincere thanks to Sh K.R.Saini for such a detailed in formations on pension, specially the State Bank Of India:s stand on Pension for their own retirees. It is a matter of shame for the Bank that they have not increased thepension of 7th bipartite retirees,when all other bank pensioner are getting pension as per their revision of salary in 7th bipartite settlement. for example Basic Maximum pension upto M.M.II in state Bank of india is Rs.4250?- and in other Banks Rs7200/-. nearly ,why this discremination with retirees of State Bank Of India,, Once again my thanks to sh Saini for the love and effection for the retirees of the State Bank Of India.
    What the union leaders are doing for the retirees, only waiting for the date from the Supreme Court, The justice will be as per will of the supreme court judge. thanks.

    Rajkumarnegi

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  14. Yes, the problem is not funds. The understanding of the issue by the Bank and the Government is that comes in the way of mitigating this longstanding issue of SBI Pensioners.

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  15. EAGERLY WAITING FOR NEWS FROM SHRI K. R. SAINI AS TO WHAT HAPPNED IN OUR CASE LISTED FOR THE FINAL HEARING (DECISION) ON 14/10/2014 IN THE DELHI HIGH COURT. HE MAY KINDLY WRITE A LINE TO REMOVE ANXIETY OF ALL PENSIONER BROTHERS.

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