Pension issues in SBI–Yet more of a meaningful material:


There is an ocean of views and opinions in regard to pension issues in State Bank as from the readers and also dexterously competent people like Ramchandra Upadhyaya and K R Saini. In fact there is no dearth of the requisite material as on date to justify the pensioners claims if honestly adhered to by the authorities involved. While clearing heap of arrears on my laptop today I came across a circular letter addressed by Ramchandra Upadhyaya that highlights several factors supporting the issues. To enable it to reach bigger number of people, the same is reproduced below verbatim for the benefit of the readers.

4.6.2016

Dear Friends,

Amendment to SBIEPF Rules 1955.

Twin ceilings on maximum pension payable.

In the attached note, I have established that the amendment carried out to the SBIEPF Rules with effect from 1.3.1999 at the behest of the Central Government is unconstitutional, illegal and not in conformity with various Supreme Court rulings on Pension related matters.

2.I am aghast at the servile attitude of the management of the Bank towards the Central Government officials, which is very well evident from the manner in which the Bank was trying to justify the captioned amendment in paragraph 4.5 (page 12) of Annexure I to the letter no CDO/PM/16/SPL/1187 dated 30.10.2002. The excerpts from the relevant paragraph are reproduced which reads thus: “The above ceiling was probably based on a rationale that SBI officers are getting Contributory Provident Fund (CPF) where Bank is contributing 10% and hence in their case pension be calculated at 40% of the Basic Pay instead of 50% if they were drawing substantive pay of more than Rs. 8500.00 p.m but minimum pension of Rs.4250.00 p.m., which they would have drawn had their basic pay been less, be protected. The rationale which counted with the Government for fixing a ceiling of 40% for the officers drawing pay of Rs.8500.00 and above affected only the officers who constitute about 23% of the total staff strength whereas the facility of CPF where Bank makes contribution of 10% is equally applicable to such of the employees who are drawing pay of below RS.8500.00”

3. The Bank’s attempt to rationalize the Central Government’s instruction is inexplicable as it should have been aware that while contributions to CPF would end with the retirement of an employee, his pension starts accruing on the first day succeeding that of retirement and shall be payable monthly to the retiree and hence the benefit the employee had from the CPF can no way be linked with the pension payable to the employee on retirement.

4. While I was examining the Supreme Court’s order with regard to its directive on ceiling on maximum pension payable, I noticed that the order meant up gradation of pension. As I have been receiving phone calls seeking clarifications on whether the SBIEPFR .provides for up gradation of pension to SBI Pensioners, I thought of sharing my thoughts which are not my own but backed by the observations from Supreme Court rulings, relevant portions of which are reproduced in the attached note. I would like to reiterate that for offering up gradation facility, the Bank need not seek prior approval from the CG as this needs to be done in accordance with the existing Regulations, the provisions in respect of which were already cleared by the CG before the Regulations were framed. The up gradation would only require the approval of the Bank’s ECCB.

A copy of this letter will be forwarded to our advocate.

With kind regards,

Yours sincerely,

P.P.R.Upadhyaya

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3 thoughts on “Pension issues in SBI–Yet more of a meaningful material:”

  1. RULE NO 23 FROM 1.1.1986 AS PER SUPREME COURT JUDGEMENT DATED 23.02.1989.
    THE MAXIMUM PENSION SHALL NOT EXCEED 50%( ONE HALF) OF AVERAGE MONTHLY SUBSTANTIVE SALARY DURING THE LAST TWELVE MONTHS PENSIONABLE SERVICE OR RS2400/ PER MONTH(PRO-RATA IN THE CASE OF PART TIME EMPLOYEES) WHICH EVER IS LESS.
    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.
    AMENDED RULE NO 23 WITH E3FFECT FROM 1.11.1993.
    PROVIDED THAT THE MAXIMUM PENSION SHALL BE INCREASED FOR MEMBERS WHO RETIRED/RETIRE ON OR AFTER 1.11.1993 FROM RS2400/ AS MENTIONED ABOVE TO RS4250/
    why pension CEILING was fixed at rs4250/with effect from 1.11.1993 and not to rs7400/ (50% of rs14800 i.e 50% of the salary of deputy managing director.)6th bipartite)
    IT MAY BE POSSIBLE THAT GOVERNMENT WANTED THAT THE PENSION CEILING DID NOT EXCEED RS4500/ IN CASE OF STATE BANK EMPLYEES BECAUSE IN CASE OF GOVERNMENT EMPLYEES THIS CEILING DID NOT EXCEED RS4500/ PER MENSEM VIDE CHAPER-V PART-II OF 4TH PAY COMMISSION APPLICABLE W.E.F 1.1.1986 TO 31.12 1995.) 5TH PAY COMMISSION WAS IMPLEMENTED W.E.F 1.1.1996 THIS CEILING OF RS4500// IN CASE OF GOVERNMENT EMPLYEES WAS REMOVED AND PENSION WAS IMPLEMENTED AT 50% OF THE LAST DRWN SALARY IN CASE OF GOVERNMENT EMPLYEES W.E.F 1.1.1996.
    FURTHER AMENDED RULE NO 23 WITH EFFECT FROM 1.03.1999
    WITH EFFECT FROM 1.03.1999 GOVERNMENT OF INDIA MADE ARBITRARY DIVISION OF PENSIONERS INTO TWO CATEGORIES 50% AND 40% FOR PENSION PAYMENT IN CASES WHERE SALARY IS UPTO RS8500/ AND 40% WHERE IT EXCEED 8500/.
    MY PURPOSE OF MENTIONING THIS WRITE UP IS THAT GOVERNMENT HAD DECIDED ON THE JUDGEMENT OF SUPREME COURT DATED 23.02.1989THAT S.BI EMPLOYEES WILL NOT GET PENSION AT 50% OF THE SALARY AT THE TIME OF RETIREMENT.THUS THIS IS THE HIDDEN AGENDA OF GOVERNMENT OF INDIA.
    K.R.SAINI

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  2. While millions of SBI pensioners are keenly watching the development of their fate, it is really very painful that lot of very smaller institutions and even state government are increasing pensions of their employees but the top management of SBI is very cruel to their past employees. I took VRS in April 2007 and there is lacks of employees who retired much more earlier to my retirement and NO ONE HAS GOT A SINGLE PENNY INCREMENT IN BASE PENSION. SBI Managment attitude is totally non predictable to us.

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