Pension issues in SBI– ‘50% of the last drawn average pay’ by KR Saini:



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krsaini
Nov 03, 2015 @ 06:21:17 Edit

50% OF THE LAST DRAWN AVERAGE PAY OF LAST 12 MONTHS WITHOUT ANY CEILING———
IN MY PREVIOUS WRITE UP I HAVE EXPLAINED THE 7TH BIPARKeshav Rai SainiTITE RETIREES ISSUE IN S.B.I AND IN THIS WRITE UP I AM GOING TO EXPLAIN THE SECOND MAJOR PENSION ISSUE IN S.B.I AND NOT IN OTHER NATIONALISED BANKS.
I ADVISE THAT IN BANK’S LETTER NO CDO/PM/16/SPL/1187 DATED 31.10.2002,A FOOLPROOF CASE FOR PENSION IN S.BI@50% OF THE LAST DRAWN AVERAGE PAY WITHOUT ANY CEILIN G WAS PRESENTED BEFORE THE GOVERNMENT OF INDIA.THE SALIENT POINTS ARE AS UNDER;-
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 OFTHEM THE PENSION WAS PAYABLE AT50% OF THE LAST BASIC PAY AT THAT POINT OF TIME W.E.F 1.1.1987(PROPOSAL WAS PUT UP TO THE SUPREME COURT IN 1988 BY THE BANK FOR OFFICERS MAXIMUM RS 2400/ AND FOR WORKMEN MAXIMUM RS 1300/)BUT SUPREME COURTFIXED ONE CEILING OFRS2400/PER MONTH W.E.F 1.1.1986.
b)THE PENSION SCHEME HAS BEEN ONE OF THE DISTINGUINSHING FEATURES OF STATE BANK OF INDIA TO ATTRACT BEST AVAILABLE TALENT IN OFFICERS’ CADRE FROM THE MARKET,AFTER CIVIL SERVICES.HOWEVER,DUE TO SUCCESSIVE DISTORTIONS ARISING IN OUR PENSION SCHEME AND AVAILABILITY OF BETTER RETIRAL BENEFITS AMONGEST OUR COMPETITORS IN THE FINANCIAL MARKET,S.B.I HAS LOST THE CUTTING EDGE INTHIS RESPECT.
c) THE RESTORATION OF PARITY OF PENSION BETWEEN WORKMEN AND OFFICERS STAFF,WHICH PRINCIPAL ACCEPTED BYTHE GOVERNMENT IN 1989 ON THE VERDICT OF SUPREME COURT APPROVING AMENDMENTS TO 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 OFTHE BANK’S OPERATION,BUSINESS DEVELOPMENT AND PROFITS,IT WOULD BE BUT FAIR TO EXTEND TO THEM THEIR LEGIMATE ASPIRATIONS OF PARITY IN PENSION FORMULA VIS-A-VIS WORKMEN STAFF.
e)SUBSQUENTLY,DURING THE 5TH BIPARTITE SETTLEMENT(1.11.1987TO 31.10.1992) THERE WAS NO REVISION CONSIDERED INTHE PENSION CEILING AND SINCE THEN,THERE HAS BEEN AN ISSUE ON THE PENSION CEILING.PENSIONERS’ FEDERATION HAS BEEN TAKING UP THE CAUSE REPEATEDLY AND CONTINUES TO BE CONCERNED ABOUT THE ANOMALY AS IT AFFECTS THE OFFICERS’ COMMUNITY.
K.R.SAINI

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8 thoughts on “Pension issues in SBI– ‘50% of the last drawn average pay’ by KR Saini:”

  1. LEGAL POSITION
    THE KEY POINTS ARISING OUT OF LEGAL POSITION IN THE MATTER AS FOLLOWS——-
    a)PENSION RATES TO RETIREES HOLDINGVSAME POSTS AND WHO RETIRED ONDIFFERENT POINTS OF TIME ARE NOTVUNFORM BASIS–DIFFERENT RATES OF PENSION PAYABLE,NOT MERELY ON ACCOUNT OF DATE OF RETIREMENT BUT ALSO ON ACCOUNT OFTHE FACT THAT DIFFERENT PRINCIPLES WERE ARRIVED AT TO ASCERTAIN THEIR PENSION.THIS POSSIBLY IS THE ROOT CAUSE OF MOST PENSION PROBLEMS.WHILE ADDRESSING THE ISSUES MENTIONED IN THIS POST,IFVTHIS ISSUE CAN ALSO BE ADDRESSED BY FORMULATING GUIDELINES FOR THE FUTURE,THEN IN ABSENCE OF ANOMALIES,THE FRICTION AND PROBLEMS WILL ALSO BE LESS.
    K.R.SAINI

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  2. b) THERE IS A LARGER PROBLEM WHICH NEEDS TO BE ADDRESSED-IN VIEW OF THE CHANGES IN SALARIES THAT HAVE BEEN MADE,THERE SHOULD BE AN ACROSS THE BOARD REVISION OF PENSION ON HUMANITARIAN GROUNDS KEEPING IN VIEW ECONOMIC REALITIES.THIS WOULD INCULCATE IN THE EMPLOYEES A SENSE OFVLOYALTY.
    K.R.SAINI

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  3. c)IT WOULD BE APPROPRIATE FORTHE BANK TO RECOGNIZE THE DEFICIENCY IN THE PRESENTPOSITION SCHEME AND TO REVISETHE PENSION PLANS.IT IS NOT ONLY FAIR,REASONABLE BUT WITHIN THE PAYING CAPACITY OF THE BANK.I FEELTHAT GOVERNMENT WILL HONOUR THE DECISION OFTHE BANK PROPOSED IN TERMS OF STATE BANK OF INDIA EMPLOYEES PENSION FUND REGULATIONS–2014.
    K.R.SAINI

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  4. d)THE BANK NEEDS TOREVIEWVANDRECONSIDER ITSPOLICIES IN THEVLIGHT OF CURRENT JURISPRUDENCE IN WHICH PENSIONVTO RETIRED EMPLOYEES ISVNOT CONSIDERED AN ACT OF BOUNTY BUT ISVREGARDED AS ADUTYOF MODEL EMPLOYER.IT WOULD NOTVBE FAIR IFVS.BI DECLINES REMOVAL OFANOMALIES TO THEIR RETIREXD PENSIONERS ONBTHE GROUND APPROVAL/SANCTION FROM THE GOVERNMENT IS AWAITED.
    K.R.SAINI

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  5. EARLIER, THERE WAS A MAXIMUM CEILING OF RS750/ P.M& RS1000/ P.M IN BASIC PENSION OF JUNIOR OFFICERS AND SENIOR EXECUTIVES RESPECTIVELY,WHICH WAS MUCH ABOVE THE 50% OF BASIC PAY OF THE TOP MOST EXECUTIVE OF THE BANK . AS SUCH ,ALL EMPLOYEES IN BANK WERE DRAWING 50% OF LAST DRAWN PAY AS BASIC PENSION,
    WITH THE ADVENT OF BIPARTITE SYSTEM IN BANKING INDUSTRY,THERE WAS A SUBSTANTIAL INCREASE IN BASIC PAY OF EMPLOYEES AND OFFICERS.HOWEVER,THE PENSION CEILINGS REMAINED CONSTANT AT RS 750/AND RS1000/,WHICH RESULTED EROSION OF CONCEPT OF 50% OF PAY.MANY SENIOR OFFICERS STARTED DRAWING PENSION MUCH LESS THAN 50% OF THE LAST DRAWN PAY.THIS CREATED MUCH HEART-BURN.THE PENSIONERS’ ASSOCIATION APPROACHED THE HON’BLE SUPREME COURT FOR RELIEF,WHICH AFTER HEARING THE PETITIONERS GAVE A DIRECTION ON 23.02.1989 TO THE BANK TO ENHANCE THE PENSION CEILING TO RS2400/P.M W.E.F 1.1.1986.IT IS PERTINENT TO NOTE THAT WHEN THE SALARY SCALES WERE CONSTRUCTED AT 332 POINTS OF CPI,THE MAXIMUM B.P OF SENIOR MOST EXECUTIVE (Dy MD) WAS AT RS4800/ P.M.THE COURT UPHELD THE CONCEPT OF 50% OF B.P AS PENSION UPTO THE LEVEL OF DY MANAGING DIRECTOR.
    SUBSEQUENTLY,WHEN THE SALARY REVISION TOOK PLACE W.E.F 1.11.1987,BASED ON MERGER OF 600POINTS OF CPI,THE SPIRIT OF HON’BLE COURT SHOULD HAVE BEEN KEPT IN MIND AND PENSION CEILINGS SHOULD HAVE BEEN RAISED TO RS3775//P.M WHICH WAS 50% OF THE HIGHEST B.P OF SENIORMOST EXECUTIVE OF THE BANK.UNFRORTUNATELY,THE PENSION CEILING WAS NOT REVISED THOUGH A PROPOSAL WAS PUT UP TO THE GOVERNMENT.
    K.R.SAINI

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  6. HOW OUR PENSION IS PROTECTED LEGALLY AT THE RATE OF 50% OF SALARY OF RETIRED EMPLOYEES AT THE TIME OF RETIREMENT.
    OUR PENSION FUND REGULATIONS ARE WELL PROTECTED LEGALLYAS UNDER;—–
    (1) STATEBANK OF INDIA ACT 1955.
    (2) THE HON’BLE SUPREME COURT BY ITS JUDGEMENT DATED 23.02.1989,IN THE CASE OF IMPERIAL BANK OF INDIA PENSIONERS’ASSOCIATION AND OTHERS V/S STATE BANK OF INDIA & OTHERS.
    (3)ARTICLE 14 OF THE CONSTITUTION OF INDIA.
    THE STATE NOT DENIED TO ANY PERSON EQUALITY BEFORE THE LAW OR EQUAL PROTECTION OF LAWS WITHIN THE TRRITORY OF INDIA..AS ALL OF YOU ARE AWARE THAT PENSIONERS I ARE ONE CLASS AND IN STATE BANKOF INDIA THERE IS DISCRIMINATION IN THE SAME CLASS BYCREATING TWO CATEGORIES OF PENSIONERS BYTHE STATE BANK OF INDIA AND BANK SHOULD FOLLOW THE ESTABLISH NORM OF PENSION BEING 50% OF THE SALARY LEVEL OF RETIRED EMPLOYEE AT THE TIME OF RETIREMENT AND SHOULD NOT FOLLOW THE FORMULA OF50%/40%.
    K.R.SAINI

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  7. DEAR SHRI VISWA GI,I HAVE TO ADVISE THAT BANK HAS ALREADY UPLOADED THE COPY OF LATEST S.B.I PENSION FUND REGULATIONS–2014 IN THE OFFICIAL PENSION PORTAL UNDER THE HEAD ”RULES AND REGULATIONS.” YOU CAN VISIT THE WEB SITE.
    K.R.SAINI

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