Pension issues in SBI–an analysis of legal aspects: (Part 3)


 


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Picking up a thread from verdicts delivered by different courts including Supreme Court of India, K.R. Saini analyses the legal aspect of the issues law fully explaining the whole spectrum circumventing an outcome oriented decision in the matter. Readers need not forget that the author of these articles in series (K R Saini) is the one running from pillar to post to collect such a meaningful material to strengthen the pensioners cause and whatever he writes must be gone through thoroughly by each one meticulously adhering to the mission. His write-up is given below:

Keshav Rai Sainikrsaini
Aug 22, 2015 @ 02:55:43 Edit

IN CONTINUATION OF MY WRITE UP DATED THE 20TH AND 21ST AUGUST,2015 .TODAY I WILL WRITE AS UNDER.
OUR PENSION AND LEGAL ASPECTS–EXTRACT FROM SUPREME COURT JUDGEMENTS.
THE REVISION OF OUR PENSION ON THE 7TH BIPARTITE PAY SCALES AND PAYMENT OF PENSION AT 50% OF THE LAST DRAWN AVERAGE PAY ARE SOME OF OUR MAJOR PENDEING PENSION ISSUES.OUR PENSIONERS’ FEDERATION COURT CASE W.P (C) 1875/2013 COVERS THESE TWO ISSUES VERY WELL.
IN THIS CONNECTION ,I HAVE TO QUOTE SOME OF THE SUPREME COURT JUDEGEMENTS IN FAVOUR OF ALL THE PENSIONERS.I MAY ADD THAT UN NECESSARY COMPLICATIONS IN COMPUTATION AND PAYMENT OF PENSION IN THE BANK,WHICH LED TO UNMITIGATED FINANCIAL HARDSHIPS TO THE RETIREES,COULD HAVE BEEN AVERTED HAD THE BANK ACTED AS PER DIRECTIONS CONTAINED IN THE SUPREME COURT VERDICT 23.02.1989.THE APEX COURT HAD OBSERVED IN PARAGRAPH 12 OF ITS ORDER”WE ARE,THEREFORE,OF THE VOPINION THAT THEW PROPOSED CHANGES SHOUD BE EFFECTIVE FROM IST JANUARY,1986 AND CONSEQUENTIAL ADJUSTMENTS SHOULD VBE VMADE,WHERE NECESSARY,IN THE REVISED PENSION PLAN.”
THE BENCH HAS AUTHORITATIVELY RULED THAT PENSION IS A RIGHT AND NOT A BOUNTY AND THE PAYMENT DOES OFIT DOES NOT DEPEND UPON THE DISCRETION OF THE TREUSTEES OF THE PENSION FUND.PENSION IS GOVERNED BY RULES/REGULATIONS AND ANY EMPLOYEE COMING WITHIN THOSE RULES/REGULATIONS IS ENTITLED TO CLAIM PENSION.
THE JUDGEMENT HAS RECONISED THEREVISION OF PAYSCALES ARE INSEPARABLE.THE BENCH HAS REITERATED THAT ON REVISION THE BASIC PENSION CANNOT BE LESS 50% OF THE SALARYAT THE TIME OF RETIREMENT(S)..
THYE GOVERNMENT CANNOT TAKE A PLEAS OF FINANCIAL BURDEN TO DENY THE LEGIMATE DUES OF PENSION.
THE GOVERNMENT SHOULD AVOID UNWARRANTED LITIGATION AND NOT TO ENCOURAGE ANY LITIGATION FOR THE SAKE OF LITIGATION.WHEN PENSION IS UPHELD TO BE RIGHT AND NOT A BOUNTY AS A COROLLARY TO THE AVERMENT THAT REVISION PENSION AND REVISION OF PAY SCALES ARE INSEPARABLE,UP GRADATION OF PENSION IS ALSO A RIGHT NOT A BOUNTY.
TO BE CONTINUED.
K.R.SAINI

To be continued as Part 4

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6 thoughts on “Pension issues in SBI–an analysis of legal aspects: (Part 3)”

  1. PENSION SCHEME IN STATE BANK OF INDIA——STATE BANK OF INDIA PENSION FUND RULES WERE INTRODUCED W.E.F 1.7.1955.THE RULES REMAINED ALMOST STATIC UPTO 1986,THE MAIN FEATURES OF THE OLD PENSION SCHEME PRIOR TO 1986 MAY BE SUMMED UP AS FOLLOWS:
    1)MAXIMUM PENSION RS750/
    RS1000/(FOR SENIOR OFFICERS)
    2)CALCULATION OF PENSION AVERAGE BASIC PAYXLENGTH OF SERVICE DEVIDED BY 60(AVERAGE BASIC PAY:(60 MONTHS FOR IBI PENSIONERS & 36MONTHS FOR SBI PENSIONERS)
    WRIT PETITION FILED IN 1987 FOR INTRODUCTION OF MINIMUM PENSION AND REMOVAL OF CEILING OFRS750/&RS1000/ ON PENSION AND INTRODUCTION OF FAMILY PENSION..THIS IS THE BRIEF HISTORY OF PENSION SCHEME FROM1.7.55.I WILL DISCUSS THE PENSION SCHEME OF SBI AFTER THE VERDICT OF SUPREME COURT ON 23.02.1989 WHICH WAS APPLICABLE W.E.F 1.1.1986.
    K.R.SAINI

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  2. AT THE TIME OF FILING WRIT IN SUPREME COURT IN 1987 THERE WAS REGULATION,R20(1)(A) RESERVING RIGHT TO TRUSTEES TO RELAX THE MAXIMUM LIMIT OF RS1000/ AS PENSION THEN THE HON’AQBLE COURT OBSERVED”PENSION IS A RIGHT AND NOT A BOUNTY,IT WOULD THEREFORE NOT BE PROPER TO LEAVE AT THE DISCRETION OF VTHE TRUSTEES IN EACH CASE AS DONE BY PROVISO R20(1) (A).TO DO SO WOULD BE TO LEAVE THE EMPLOYEES AT THE MERCY OF THE TRUSTEES WHO WOULD NATURALLY EXCERCISE THE DISCRETION IN ANY MANNER THEY LIKE INTHE ABSENCE OF GUIDELINES.THE SUPREME COURT THEREFORE SUGGESTED THAT THE PROVISO INTHEVPROPOSED R20(1)(A) SHOULD BE DEELEATED. ”
    TWO CEILINGS OF RS750/ RELAXABLE TO RS1000/HAD BEEN ABOLISHED W.E.F 1.1.1986 WITHONLYONE CEILING OF RS2400/ONTHE LINES OF 4TH PAY COMMISSION. SIMILARLY SUPREME COURT FORMED THEONE FORMULA FOR IBI PENSIONERS AND SBI PENSIONERS THATIS AVERAGE PAY OF THE LAST 12 MONTHS IS TO BE RECKONED FOR PENSION PURPOSE.
    K.R.SAINI

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  3. DURING THE HEARING OF WRIT PETITION IN THE SUPREME COURT BANK PROPOSED,IN THE CASE OF EMPLOYEES ON THE STAFF IN INDIA,ONE-HALF OF THE AVERAGE MONTHLY SUBSTANTIVE SALARY DRAWN DURING LAST 12 MONTHS’ PENSIONABLE SERVICE OR RS1300/PER MONTH WHICHEVER IS LESS,PROVIDED THAT THE LIMIT OF RS1300/PER MONTH MAY BE RELAXED UP TO RS2400/PER MONTH IN THE CASE OFOFFICER EMPLOYEES.
    HOWEVER,THE SUPREME COURT GAVE RULING THAT THE OUTER CEILING OF RS2400/SHOULD BE APPLIED TO ALL ITS EMPLOYEES AND NEW PENSION SCHEME WILL BE MADE EFFECTIVE FROM 1ST,JANUARY,1986.
    K.R.SAINI

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  4. THE ABOVE NOTED SUPREME COURT JUDGEMENT CAME ON 23.02 1989 AND APPICABLE WITH EFFECT FROM 1.1.1986 AND IN 1990 5TH BIPARTITE SETTLEMENT TOOK PLACE AND PAY SCALES ARE REVISED W.E.F 1.11.1987 AND BANK RECOMMENDED THE REVISED PENSION THAT IS 50% OF THE AVERAGE PAY OF LAST 12 MONTHS PENSIONABLE SERVKCE WE,F 1.11.1987.BUT GOVERNMENT DID NOT APPROVE THE PROPOSAL OF THE BANK AND THE 5TH BIPARTITE RETIREES ARE STILL GETTING MAXIMUM BASIC PENSION OF RS2400/ PER MONTH AGAIST THEIR LEGIMATE RIGHT OF GETTING MAXIMUM PENSION OF RS3775/PER MONTH.
    K.R.SAINI

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  5. THAT THE SUPREME COURT VIDE ITS JUDGEMENT IN CASE NO 307 OF 1987 DECLARED ON 23.02.1989 RULED AGAINST TWO SEPARATE CEILI NGS ON PENSION FOR OFFICERS AND WORKMEN STAFF EVEN THOUGH FOR BOTH OFTHEM THE PENSION WAS PAYABLE AT 50% OF THE LAST BASIC PAY AT THAT POINT OF TIME.
    THE RESTORATION OF THE PARITY BETWEEN WORKMEN STAFF AND OFFICERS STAFF,WHICH PRINCIPLE WAS ACCEPTED BY THE GOVERNMENT OF INDIA IN 1989,WHILE APPROVING AMENDMENTS TO THE PENSION SCHEME 1955 WITH EFFECT FROM 1.1.1986 WILL ENABLE THE BANK TO SUCCESSFULLY CONTEST THE PLETHORA OF COURT CASES LYING IN VARIOUS HIGH COURTS.
    THE OFFICERS’COMMUNITY,BEING THE BACKBONE OF MAINSTREAM OF THE BANK’S OPERATIONS,BUSINESS DEVELOPMENT AND PROFITS,I AM OF THE VIEW THAT IT WOULD BE BUT FAIR TO EXTEND TO OFFICERS ABOVE THE RANK OFJMGSCALES 1 THEIR LEGIMATE ASPIRATIONS OF PENSION FORMULA VIS A VIS WORKMEN STAFF AND JMGSCALE 1.
    K.R.SAINI

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