Pension Issues -an aftermath

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Much has been discussed and talked on the  matter of pension issues. The story is unending. This part is more important in the sense that the final curtain is to be drawn now. The latest happenings during the last few months on this issue are crucially important and K.R. SAINI has exhaustively and diligently summed up his views lucidly clarifying the plus and minus of the whole event to be gone through by the readers. His is the masterpiece coverage of the whole gambit bringing forth the intricacies involved to the surface. His write up on the issue is reproduced below:

STATE BANK OF INDIA EMPLOYEES’ PENSION FUND (AMENDMENT) REGULATIONS’2017—–NON INCLUSION OF PROFESSIONAL QUILIFICATION PAY AND FIXED PERSONAL PAY IN RE-ALIGNMENT OF PENSION OF THE 7TH BIPARTITE TALKS RETIREE PENSIONERS:

DRAWING A CONTEXT FROM THE GAZETTE NOTICATION DATED 4/10/2017 WITHOUT PREJUDICE TO OUR RIGHTS AND DEMANDS FOR 50% AS PENSION FOR ALL THE RETIREE PENSIONERS FROM 1.11.1987 TO 31.10.2017 (5TH BIPARTITE TO 10TH BIPARTITE TALKS). HOWEVER, THE  ANOMALY OF 5TH BIPARTITE RETIREES HAS BEEN SET RIGHT BY AMENDED REGULATIONS-2017 FRUGALLY EXTENDING SOME SORT OF A  SOLACE.

IN STATE BANK OF INDIA EMPLOYEES’ PENSION FUND REGULATIONS,IN REGULATION 23(2)” PROVIDED THAT THE MAXIMUM AMOUNT OF PENSION SHALL BE INCREASED FOR THE MEMBERS WHO RETIRED ON OR AFTER 1.11.1987,FROM RS 2,400/ PER MONTH TO RS 3,775/ PER MONTH (PRO RATA IN CASE OF PART TIME EMPLOYEES). 5TH BIPARTITE IS FROM 1.11.1987 TO 31.10.1992. 6TH BIPARTITE (FROM 1.11.1992 (FOR AWARD STAFF) AND FROM 1.07.1993 (FOR OFFICERS) FROM RS 2,400/ TO RS4,250/ (PRO-RATA IN THE CASE OF PART-TIME EMPLOYEES) AFTER ADJUSTMENT OF DEARNESS ALLOWANCE ON THE BASIC PAY UP TO 1,148 POINTS IN THE QUARTERLY AVERAGE OF THE ALL INDIA WORKING CLASS CONSUMER PRICE INDEX (GENERAL) BASE=1960. PROVIDED ALSO WITH EFFECT FROM 1.03.1999 THE MAXIMUM AMOUNT OF PENSION FOR THE MEMBERS WHO RETIRED OR RETIRE DRAWING SUBSTANTIVE SALARY IN THE PAY SCALE EFFECTIVE FROM 111.1992(AWARD STAFF) OR 1.07.1993 (SUPERVFISING STAFF) AND THEREAFTER TO BE COMPUTED TILL FURTHER AMENDMENTS IN THIS REGARD AS UNDER–

(a) WHERE THE AVERAGE OF SUBSTANTIVE SALARY DRAWN DURING THE  LAST  12 MONTHS’ PENSIONABLE SERVICE IS UP TO RS 8,500/ PER MONTH,50% OF THE  OF MONTHLY SUBSTANTIVE SALARY  DRAWN DURING THE LAST 12 MOTHS’ PENSIONABLE SERVICE (PRO-RATA IN THE CASE OF PART-TIME EMPLOYEES), AND

(b) WHERE THE AERAGE OF MONTHLY SUBSTANTIVE SALAY DRAWN DURING THE LAST 12 MONTHS’ PENSIONABLE SERVICE IS ABOVE RS8,500/ PER MONTH, 40% OF THE AVERAGE OF MONTHLY SUBSTANTIVE SALARY DRAWN DURING THE LAST 12 MONTHS’ PESIONABLE SERVICE MINIMUM OF RS4,250/(PRO-RATA IN THE CASE OF PART TIME EMPLOYEES).

                                 NON INCLUSION OF PQP AND FPP IN REALIGNMENT OF PENSION OF 7TH BIPARTITE RETIREES.

   ON PAYMENT OF AD-HOC ARREARS TO ELIGIBLE PENSIONERS ACCOUNTS’ ON ACCOUNT OF REALIGNMENT OF PENSION TO 7TH BIPARTITE RETIREES PQP AND FPP WERE NOT TAKEN INTO CONSIDERATION WHILE COMPUTING REVISED PENSION.THIS RESULTED INTO PAYMENT OF DISPROPTIONAL AMOUNT OF ARREARS AMONG SAME CATEGORY OF STAFF SERVING SIMILAR SERVICE WHICH CREATING LOT OF DISSATISFACTION AMONG THE RETIREES ESPECIALLY OFFICERS SCALE V AND ABOVE.

                  HOWEVER, THE GAZETTE OF INDIA DATED 4.10.2017 IS SILENT ON INCLUSION OR OTHERWISE OF COMUTATION OF PENSION OF  PQP AND FPP COMPONENTS.AND THE BANK STRICTLY WENT BY THE GOVERNMENT OF INDIA APPROVAL LETTER WHILE RELEASING AD-HOC ARREARS WHICH DID NOT INCLUDE PQ P AND FPP.

         FROM THE GAZETTEE NOTIFICATION,IT IS CLEAR THAT PENSION HAS TO BE PAID ON SUBSTANTIVE SALARY NOT ON BASIC SALARY ON WHICH AD-HOC ARREARS HAVE BEEN PAID BY THE BANK (ON BASIC SALARY).

                                                     SUBSTANTIVE SALARY

 THE MEANING OF ”SALARY” HAS BEEN DEFINED IN SECTION 2 OF(I) OF SBI PENSION REGULATIONS 2014 SUBSTANTIVE OR BASIC PAY. HOWEVER, SUBSTANTIVE SALARY SHALL INCLUDE OTHER EMOLUMENTS OR SUCH PORTION THERE OF A MEMBER AS MAY BE FOR THE TIME BEING PERMITTED BY THE BANK TO  RANK FOR SUPERANNUATION BENEFITS   UNDER THE RULES/SERVICE CONDITION AS APPLICABLE TO THE MEMBER.

                                               MOST IMPORTANT POINTS TO BE NOTED

1   STATE BANK OF INDIA EMPLOYEES PENSION FUND REGULATIONS(AMENDED) 2017 COVERS ALL THE BIPARTITES FROM 5TH TO 10TH AND HAS

MENTIONED THAT PENSION PAYABLE ON SUBSTANTIVE SALARY NOT ON BASIC PAY THE CEILING OF RS6833/ FROM DATE OF RETIREMENT TO 30.04.2005 CONSIST OF BASIC PAY ONLY SIMILARLY CEILING OF RS7120/ FROM 1.05.2005 TO 31.08.2017 CONSIST OF BASIC PAY ONLY AS SUCH BANK HAS TO INCLUDE THE PQP AND FPP AT THE TIME OF FINAL PAYMENT.BECAUSE CEILING OF RS14240/ COMPARE WITH RS21040/OF 8TH BIPARTITE IS ALSO BASIC PAY.ASSUCH BANK HAS TO INCLUDE HALF OF PQP AND HALF OF FPP AT THE TIME OF FINAL PAYMENT TO 7TH BIPARTITE RETIREES.

2     IN THIS CONNECTION PLEASE REFER D.O NO 4/8/6/2006-IR ISSUED DATED 7TH DECEMBER,2007 BY MINISTRY OF FINANCE, DEPARTMENT OF FIANCIAL SERVICES SIGNED BY SHRI RAKESH SINGH  JOINT SECRETARY.

FIXED PERSONAL PAY

”THIS MAY BE RECKONED FOR THE PURPOSE OF SUPERANNUATION OF PENSION.WE WOULD REUEST YOU TO TAKE FURTHER NECESSARY ACTION IN LINE WITH THE DECISIONS TAKEN IN THE MEETING ”LETTER ADDRESSED TO SHRIO.P BHATT CHAIRAN S.B.I.”

3  KINDLY REFER TO C.O LETTER NO CDO/IR/CIR/29/DATED 30.07.2001.

ECCB HAS APPROVED CHANGE IN NOMENCLATURE OF ”FIXED PERSONAL ALLOWANCE” AND” PROFESSIONAL QUILIFICATION ALLOWANCE” TO”FIXED PERSONAL PAY” AND” PROFESSIONAL QULIFICATION PAY”

      ROFESSIONAL QULIFICATION PAY

(EARLIER CALLED PROFESSIONAL QUILIFICATION ALLOWANCE) (EFFECTIVE 01.11.1999)

REVISED RATES AS APPROVED BY GOVERNMENT OF INDIA NOW.

1     THOSE WHO HAVE PASSED ONLY CAIIB-PART I–RS 150/PER MONTH AFTER ONE YEAR ON REACHING TOP OF THE SCALE.

2 THOSE WHO HAVE PASSED BOTH PARTS OF CAIIB

(a) RS 150/ PER MONTH AFTER ONE YEAR ON REACHING TOP OF THE SCALE.

(b) RS 360/ PER MONTH AFTER TWO YEARS ON REACHING TOP OF THE SCALE.

            HAVE PATIENCE AND TRUST ON GOD AND LET US HOPE FOR THE BEST.

WITH BEST REGARDS.

K.R.SAINI


This article is needfully edited.

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