Indian National Bank Employees’ Federation
(A Banking Wing of INTUC)
| Dr. G. Sanjeeva Reddy – M.P. President | | Subhash S. Sawant General Secretary |
INBEF/GS/SSS/2010/26 April 27, 2010
To
The Chairman Indian Banker’s Association World Trade Centre Complex, Centre 1, 6th floor, Cuffe Parade,Mumbai 400 005.
Dear Sir,
Reg: Pension cost sharing amongst existing employees.
Ref: MOU dated 25th February, 2008 and Record Note of the Discussions held on 27th Nov. 2009 Between IBA and UFBU.
This has reference to your letter No.HR&IR/MV/76/90/155 dated 21st April 2010 inviting us to sign the 9th Bipartite settlement on 27-04-2010. We would like to draw your attention to the discussions held on 16th April, 2010 in consonance to the modalities signed on 27-11-2009 that interalia stipulates - “30% (Rs.1800.54 crores) by all the employees who are in service of the banks as on the date of the Memorandum of Settlement/Joint Note to be signed between the parties in this regard. This amount will be recovered from the arrears payable on wage revision.”, you had informed us that all employees who are in service shall have to pay 1.6 times of the revised pay as on 01-11-2007.
To our utter surprise just on the eve of the signing agreement for which the entire workforce serving in the industry are eagerly awaiting, you have violated from the understanding reached earlier and now insisting upon us to agree that only the CPF optees shall have to bear the entire burden of 1800.54 crores by contributing 2.8 times of their pay as on 01-11-2007 in lieu of 1.6 times that was agreed upon.
This is a major deviation from the earlier understanding as our organisation could have submitted alternate proposal on 27-11-2009 for the benefit of the employees to which we have been deprived of.
Further since 01-04-2008 quite a large number of employees have retired from service for whom you have decided to recover 56% in addition to the Bank’s contribution that they will be surrendering for opting pension. This will definitely jeopardize the interest of both the serving and retired employees as the very basis of actuarists calculation will undergo a change.
In view of the above we would like to submit that we are signing the 9th Bipartite settlement under protest without prejudice to our rights to maintain the sanctity of the understanding reached earlier.
Thanking you,
Yours sincerely,
Subhash S Sawant
General Secretary
73 comments :
Mr. Subhash S. Sawant thanks for your protest regarding major deviation from the earlier understanding . But I am unable to understand that why you have signed the 9th Bipartite settlement when you utter surprise just on the eve of the signing agreement on the understanding reached earlier.
This is simply a gimmick. These people do not have any alternative proposal. Had there been one, nothing stopped them to get it passed through the mechanism. Mr.C.H. Venkatachalam has stated that the acutary cost was arrived at Rs.6000 crores taking only the PF optees into consideration and no cost analysis was taken up in case of existing pension optees because it is against the ambit of the pension provisions which is clear that after exercising option the pension optees would be paid pensin in lieu of bank's contribution to Pension at 10%. i.e. nothing other than BPF is payable by them during the pendency. However, this time around the cost bearing has been invented as a precondition (however, unfortunately)by the IBA in the form of a fresh offer. Any offer becomes an agreement once accepted and thereafter the offer conditions form part of the terms. So there is no scope for any legal remedy against it now. However, inspite of these clauses, one should not shy away from opting for pension,for, it gives you opportunity to think of quiting the bank job when under pressure apart from those ingredients of social security etc., And, even after this 30% sacrifice, believe me one would always get more than their BPF and 30% contribution by way of commutation money and then pension every month. To top it all, DA at 0.15% per slab is very attractive to bring you some comfort against the price raise. So my dear PF optees forget the past and embrace the new opportunity - opportunity never comes twice; but has come for the second time with a small price tag! Grab it and forget the sacrifice of money. It will give you all soothing effect for the entire life! Believe me and go on.
great sawant ji,
where you were when ur party government gave 70% to goi employee and 17.5% to bank employee?
sir, leaders of type who beleive in double talk should be hanged first. you sogned under protest but who forced you to sign? you could have walked out from the negotiation refusing to sign on the paper of injustice to all bank employees ( pension and pf optees both)
we have been deprived of our genuine share becausr of our own leaders and goi.
I request to all throw these leaders out immediately to safeguard us from future damages.
How ufbu has accepted the formula given by iba for refund of pf and 56% to opt for pension for retirees when they only calculated through actuaries the cost of pension as on 30-03-2008 for existing emp and retirees.Now iba said those who are on bank esta as on 27-04-2010 are treated as existing emp and others are retirees it is very very injustice to them.the who retired on 31-03-2010 has to shell out 156% and who is retiring to-day i.e.on 30-04-2010 has to pay 2.8%of Nov pay this is very injustice.Now no use as ufbu has signed the settlement.But doors of court is open and i request to come out and form some unity we will fight through good advocate.I request we should approach the great strong and stronch ex general secretary of Bank of India officers asso and ex president of AIBOC for this purpose.He will definitely guide us in the matter.Let us hope so.Now one thing whether retirees will get pension as per new basic pay those who retired from 01-11-2007 onwards pl clarify.
S.P.DESAI RETIRED FROM BANK OF INDIA ON 30-04-2009.MOB 919901437172
Mr. IYER ,please go to older post and
advice me accordingly.Thanks.
Mr. SHRIDHAR, I totally agree with your view point. I in my earlier post
have expressed same view that date of cut of should be either Nov 2007or April 2008 or 27 11 2009 (Date of MOU). iF AGREEMENT should have been signed in earlier months or would have been signed in a later months IBA should have accepted accordingly. Bur it is not natural justice there should be a logical date which seems to be lawful.We should move to court of law against date of effect and form a lobby to fight the case. my mobile no 9450308506.
My comment 30-04-2010 2.06pm I forgot the name of our beloved leader he is Mr.Eshwaran whose headquarter at Chennai.He also retired from Bank of India on 31-05-2009.He will be the right person to guide us in this situation.If he would have been in negotiating team as a retired representative things would have much much better than this.So let us approach him and get guidance at least those people who have retired from 01-11-2007.
WHAT NEXT
The dust /heat is slowly receeding and employees started reconciling by blaming the fate and the compulsions of UFBU ,somehow managed the pf optees also to board the PENSION TRAIN at heavy cost in the name of sharing .As CHV has pointed out the actuaries estimation in gap of 6000 crores relates to pf optees only including retirees. Pension regulation 1995 talks about estimation of deficit by actuaries and the gap should be provided for. Initially IBA/UFBU might have thought that this can be recovered from all existing employees and pf retirees. The sudden filing of case at HYDERABAD and legal opinion by some constituent of UFBU might have tilted the equilibrium and suddenly IBA cleverly demanded the entire share from pf optees . Sensing the probable delay if any ,UFBU particularly AIBOC/AIBOA/AIBEA might have accepted ,as the pension option has to be achieved at any cost to save 2.6 lakhs pf optees.
The pension settlement says that all other items other than the agreed areas is as per pension regulation 1995. Since commutation also forms part of the regulations, the retirees under nineth bipartite are assured of higher commutation amount as the old table may be used for computation of the commutation amount. Probably this may be the inside story of the notorious 56% extra recovery from the retirees till the date of settlement.
Earlier because of the urgency in making the VRS scheme 2001 a grand success , the IBA hurriedly approved the draft without deep scrutiny and the pension optees of VRS 2001 scheme got lump sum/pension/plus five years addition. They illegally refused addition. But Supreme court came to the rescue.
Hence IBA does not want to take risk this time and anyway they required 1800 crores whoever pays it.
Let us see how the circulars are going to come and what interpretations /misinterpretations ,the respective overzealous HRD officials of individual banks are making at the time of actual implementation,.
Since almost all may get into the PENSION FOLD barring few thousand employees if any, future sharing by pension optees does not arise as they are expected to provide pension as per the regulation. They may once again estimate and the gap has to be funded by themselves from the profit.They raise the usual story of non absorbing the expenditure for wage revision. I n this area only unions should be cautious. From 01.04.2010 onwards only NPS is going to come and the young blood joining the industry may not be happy if their salary increase is sacrificed for the pension fund. Unions will have same dilemmas and MOF will not as usual yield. HENCE GOING FOR FINANCIAL PAY COMMISSION MAY BE THE BEST CHOICE FROM 01.01.2016 AFTER RECTIFYING THE POSSIBLE ANOMALIES AND THE HUGE GAP CREATED IN THE SALARY LEVELS OF BANK AND VI TH PAY COMMISSSION.
ATLEAST FROM 01.11.2012.HRA SHOULD BE REVISED , INTRODUCTION OF EDUCATION ALLOWANCE ,CONVEYANCE ALLOWANCE ALL AS PER SIXTH PAY COMMISSION. THIS IT SELF WILL BE MORE THAN 40%. INLIEU OF GRADE PAY EITHER PERFOMANCE INCENTIVES OR POST ALLOWANCE SHOULD BE INTRIODUCED. ALL SHOULD BE FROM NON PENSIONABLE AREAS . ENTIRE ALLOCATION SHOULD BE ONLY FOR BRINGING PARITY.INDEX LEVEL SAME BASIC SAME DA RATE SAME. NO PENSION FUND ALLOCATION .
TO BE CONCLUDED
FOR GETTING GOOD WAGE REVISION /PARITY WITH SIXTH PAY COMMISSION ,IMPROVEMENT INPENSION ETC NON ACTIVE MEMBERS CAN CONSIDER THE CALL OF INDIAN NATIONAL BANK EMPLOYEES CONGRESS. AS MAJORITY OF THE MEMBERS ARE IN THE OPPOSITE CAMP, THE INBEF MAY NOT BE IN A POSITION TO CONVINCE THEIR POLITICAL LEADERSHIP. THE CALL OF THE LOCAL LEADRERSHIP MAY BE TIMELY AND MAY NOTBE FULLY TERMED AS OPPURTUNISTIC. EVERY ONE WANTS THEIR UNION TO BESTRENGTHENED AND INBEF IS TAKING THIS OPPURTUNITY AS THE ENTIRE RANK AND FILE IS IN A SAD MOOD GETTING DENIAL OF PARITY IN WAGE REVISION.
ONLY SONIAJI IS IN A POSITION TO HELP,IF SHE FEELS THE LOGIC IS CORRECT BY OVERLOOKING MUKERJEES,BABUS IN MOF,NAIRS IN IBA S ETC. TO CARRY THE CORRECT MESSAGE THEIR UNION SHOULD HAVE REASONABLE FOLLOWERS.EVEN THOUGH I WAS A STRONG FOLLOWER OF AIBEA DURING 1976-1982 AND THEN AIBOC SINCE THEN TILL 2001 YEAR OF MY VRS, NOW THIS MAY BE THE NEED OF THE HOUR AS WHAT UFBU A DIVIDED HOUSE COULD NOT ACHIEVE IN 30 MONTHS WILL NOT SUCEED IN THE FUTURE ALSO. THE EARLIER STRUGGLE BY THE COMMUNIST PARTIES SUCEEDED BECAUSE OF THEIR PROXIMITY TO POWER . ALWAYS THEY ARE GOOD ALLIES TO LATE INDIRAJI.
SO THERE IS NOTHING WRONG IN IBEF ALSO BEING STRENTHENED BY BECOMING A STRONG FORCE. WHEN THE GOVERNMENTS INTENTIONS ARE GOOD THEN A FRIENDLY TRADE UNION CAN ACHIEVE MUCH BENEFITS .
INDIVIDUAL MEMBERS WHO ARE NOT VERY ACTIVE IN THEIR PRESENT SET UP OF UNIONS CAN APPLY THEIR MIND IN THIS DIRECTION ALSO. AFTER ALL THE FINAL AIM IS TO GET A DECENT SALARY AND GOOD WORKING CONDITION . WHOEEVR IS TAKING SINCERELY THAT AGENDA CAN ABE ACCEPTABLE IRRESPECTIVE OF THEIR AFFILIATION INCLUDING THE RULING PARTY. WITH THIS PRESENT SET UP WHERE LALLUS , YADAVS , SORENS ARE THERE IN THE SYSTEM, AND THE NON COMBATIBILITY OF THE BJP, CONGRESS ALSONE CAN BE IN A POSITION TO TAKE LEAD . THERE IS NOTHING WRONG IN TAKING A PRACTICAL DECISION BASED ON THE INDIVIDUAL CONSCIOUSNESS
K BALASUBRAMANIAN RETIRED SENIOR MANAGER VRS 2001 PENSION OPTEE
ANYTHING AND EVERYTHING COUNTS:
AIBEA 2.25 LAKH
AIBOC 1.95 LAKH
NCBE 1.68 LAKH
BEFI 0.33 LAKH
AIBOA 0.24 LAKH
INBOC 0.13 LAKH
NOBW 0.12 LAKH
NBEF 0.09 LAKH
NOBO 0.03 LAKH
TOTAL 6.82 LAKH
BHARADWAJAWhatever may be the arguments put forth by members, several logical questions remains un-answered.
01.
Everywhere it is mentioned as “date of this settlement” and not as “date of signing of this settlement.
02.
Delay in signing the settlement was by IBA and Unions and employees are in no way responsible for such delays. In case the settlement was over before 01/11/2007 what would have been the position? Same position should prevail when settlement is signed at a later date for no fault of employees.
03.
What Finance Minister did not agree was payment of arrears of pension from 01/04/2008, which got preponed from 27/04/2010 to 27/11/2009, and there is no mention about the status of an employee as on 01/11/2007.
04.
For the purpose sharing of pension burden by PF optees, there can not be 2 types of calculations for those who were in service as on 01/11/2007, who are part of this BPS. Discrimination between the same categories of existing employees as on November 2007 may lead to litigations.
05.
In case of award staff, clause no 7reads as under
“Interest thereon has been worked out at 56% of the said amount of bank’s contribution to Provident Fund and interest thereon received by the employee on retirement."
Collecting 56 % interest from an employee who retired just a month back and not collecting from another employee who is retiring the very next month has no logic.
06.
The gap of Rs 3115 Crores to be collected from retirees now is the amounts mentioned in respect of retirees as on 31/03/2008 vide MOU dated 27/11/2009.If additional amount of 56 % is collected from all employees retired after this date collected amount will be much more than Rs 3115 crores.
07.
For any actions by IBA/Unions convincing explanation should be available.
08.
No body is aware of what is recorded in the minutes.
Anyway we shall hope that employees are not discriminated and penalized for the actions of unions and IBA. What is urgently required is to become pensioner first and then proceed further.
DEAR FRIENDS,
AS PER MR NADAF SAYS-negotiations have been concluded only in respect of those issues which are related to the salary scale and other related subjects. However, the other residual issues such as the leave accumulation, 5 days week, regulated working hours etc., shall be taken up with the IBA in the next round of discussions at the earliest opportunity.
I am an existing PF optee staying in bank quarters. Now I will opt for pension. For that I have made a priliminary calculation.
On calculation,now I found that, I have to borrow about Rs 26000/- to satisfy IT deduction and levy after contributing my arrear to pension fund. Many will be having same fate. So banks will have more staff borrowings.Bank credit will go up. So after settlement officers will end up as net borrowers.
Proclaimed as Prosperous,but actually a pauper..
Enjoy comrades...........shall we laugh or cry..? What about victory celebrations..?
Dear Mr. Raju
Now it is your choice to decide whether to get bumper arrears or life long pension. But do not make comments like this. Even most of the blog members love criticising the activities union leaders. Union leaders are not taking their own decision. It is a collective wisdom. It is really impossible to have a common view among the UFBU constituents. Still it was achieved by UFBU. Hats of to UFBU. Instead of criticising the activities of union leaders please suggest ways for them to proceed further in order to gain the lost strength. See the write up of Iyer, Balan and etc. How matured they are.
Mr.Iyer
Your views and comments are really excellent and I agree with your suggestion that PF optees should utilise this chance ignoring the small price.In this situation, one should stay calm and should take prudential decision.
Bank employees wage increase 17.5% pushed the attraction of a bank job far behind than that of a central government job, while compairing stress & strain involved between these two. Definitely unemployed will join in bank for employment, but not brains as it used to be happened in the days of Eighties & Nineties.One should observe that the so called wage hike every five years in banks have been quite minimal during the past decade or so whereas in central govt. there has been a quantum jump this time. As matters stand today the pay package in central govt. is quite high when compared with similar posts in banks. So naturally people who have other choices in hand will not join banks any more. And one should know that in banks now a days people have to toil hard even beyond ofice hours, that too being loaded with heavy risks all the time. In such a condition the present pay package wil not attract talents into banks.
Dear Frinds,
It is my humble request with every body to accept pension offer in banks now(ii option)...First accept pension take arrears and then move in to court of law for restoration of you rights....In fact the IBA demmand 56% of PF (BC)is against the principles of natural justice...as a person retired from 01.11.2007 to 26.04.2010 has to shell out rs 5.60 lac as cost where as the same cost to person retired in 1995(suppose one got rs 10.00 lac as pf(bc)..and person retiring on 27.04.2010 has to shell out only 2.80 times of his B.P.ason 01.11.2007(which is around 0.90 lac only) ....Why such discrimination....
MAY DAY GREETINGS!
19 SLABS INCRESE Wef MAY 2010(72.18%)
http://bankflash.blogspot.com
Mr. Iyer / Mr.Balan,
Will you please help thousands of retired persons by getting clarification from Mr.CHV about the date of commutation of pension for old retirees retired prior to 27-11-2009. Whether it is the age on next birhday after actual retirement or age on next birth day falling after 27-11-2009 or age on next birthday after settlement date(27-04-2010). Mr. Balan has given some good hopes on the issue in his blog.Many VRS optees with PF are waiting to get clarification on this particular issue.
Read more: http://paycommissionupdate.blogspot.com/2010/04/9th-bps-signed-hefty-pay-hike-for-bank.html#ixzz0me5VqnBn
Now no use as the great foolish leaders have signed the bp and pension issue.FM statement no where it is mentioned that effective date to treat the existing emp as date of settlement only he has told that date of pension can be made w.e.f.27-11-2009.So our leaders should have pressed and would have mentioned in minutes that those who are on bank est as on 01-11-2007 should be treated as ext emp and refund only 2.8%of nov pay.Now no clear cut whether the date for ext emp is 01-11-2007,feb 2008 when mou for pension signed or 01-04-2008,or 27-11-2009 or 27-04-2010.Secondly whether retirees from 01-11-2007 will get pension as per revised bp and da at 36.75%.What about gratuity whether they will get difference amt for increase bp ect.Pl clarify if some body give explanation for this.
i am a clerk with 8 remainig years.i had opted for cpf as many did on union leaders advice.i was shocked to learn from bps highlites that i will not get any arrears instead i will have to shell out some amount from my pocket to meet 2.88 times sal of nov 7 plus itax and union lavy.there may be employees like me.
now what should i do?opt for
pension or remain in cpf?
i have learned that mr subhash sawant of inbef has taken the matter of pf optees .is it true?
Dear Friends especially Mr Raju and Sathishji,
Please do not panick. I am very much confident there is some mistake in Mr Raju's arrear calculations. I have made a few sample arrear calculations and allocated funds for various heads. the result is that no body would be made to borrow funds to meet 2.8 times payment and tax on arrears, provided there have been no loss of pay during the period for a longer period. In fact even after meeting every thing excepting levy one can easily take 14.43% of arrears home. I would explain you with an example. Let us take a case of officer in Scale III drawing present basic pay of 22900, FPA 625 PQA 750 (PREREVISED) in his case the total gross arrears would be at Rs.192,000 upto May 2010, which will be distributed as under:-
2.8 times of pay Rs.95700 (49.85%)
MCPF diff at 10%Rs.30,200 (15.73%)
Income tax at 20%Rs.38400Net arrears Rs.27700 (14.43%)
Where is the question of raising loan for paying income tax? If any body is contributing maximum 16.67% PF then you have shed some more money and for that also 14.43% of net arrears still will have room.
Leaders are not fools to make you borrow unless there is technical snag like longterm loss of pay. This 2.8 times will go in a set pattern for all caders and stages and will not land any normal employee in to trouble. At the most you can restrict payment of levy on net take home arrears which generaly would be at 4%.
Please do not panick yourself and others. I have been repeatedly emphasiing for opting for pension. Still persons like Satish are having doubt. While it is you who should take a final call, wise persons would not commit the mistake for the second time. Because this opportunity would never come your way to grab.
Please read my previous write ups where I have suggested to calculate the compare the benefits at various intervels and decide.
Attn. Mr. Balan/Iyer,
No where in the joint note i can see that DA will be neutralised/merged to arrive at the revised Basic pension for those who retired after 01.05.2005. If so, the basic pay will be fixed as per last drawn basic pay plus other allowances eligible for PF and commutation will be paid on that basic pension. Please let me know if you have any other views on this.
It is better for all PF optees to opt for pension, after calculating their needs which will be beneficial even if it is at a cost by considering it either as a penalty for not opting earlier or as an opportunity cost. It is for sure that interest will never go beyond 10% in another decade, DA will compensate to some extent to offset the inflation rate.
Mr Iyer,
I thank you for the efforts taken to explain.You have missed a word in my post. I am not getting HRA- as staying in quarters. So I am right. And you are also right. I wanted just to caution similar members from overjoying about getting some lump sum, and planning for some good spend--- that is all.
mr iyer
thanks for guidance.
i have one doubt.in last 2 bi-partites existing employees (pension and pf optees)have shared for pension .in this settlement only pf optees are sharing.then why unions are not demanding refund for pf optees they shared in last 2 bipartites?
what can be plans of inbef for signing under-protest?
AFTER PENSION OPTION IS OVER, THE INBEC/INBOC SHOULD SHOW THAT THEY ARE REALLY INTERESTED/SERIOUS ABOUT THE WELFARE OF THE EMPLOYEES. THEY MUST FIGHT FOR INJUSTICE METED OUT TO PF OPTEES AT GOVT LEVEL AND ALSO FILE A WRIT IN HC/SC.
THE DAYS ARE GONE, BLINDLY FOLLOWING THE LEADERS ON TRUST. NOW TIME IS CHANGED. MEMBERS WILL REALISE THE NEED OF THE HOUR AND NATURALLY FOLLOW /JOIN A GOOD UNION/LEADER WITHOUT BEING ASKED.
INBEC / INBOC LEADERS SHOULD DISPLAY THEIR SINCERETY BY THEIR ACTION.
I am of the view expressed by Mr.C N Venugopalan May 2, 2010 5:59 AM:
"The amount to be paid as entry fees i.e. 2.8 times pay and Allowances is the only penalty for gaining entry now. This can be regarded as the punishment for not opting earlier. This is an amount which can be taken away from you if you fall prey to a disease or an accident. This can be borne splendidly when you are earning and you are comfortable. The sum payable shall not bar you from becoming a member of the social security project".
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Thanks.
PLEASE VISIT WWW.AIUBOF.COM TO VIEW CHART CONTAINING OLD AND NEW BASIC,DA,HRA,CCA,FPP AND PQA UNDER FEDERATION CIRCULARS TO CALCULATE ARREARS ETC- R JAYARAM
Madappa May 1, 2010 10.14 P.M
As explained by Madappa things seems discriminated / unjustified for P.F.Optee’s but when we go back in the history , we see that the demand for II pension option is about 10 year old , when interest rates were going down and payment of pension getting costlier. Looking to above developments unions and non optee employees raised demand with IBA to open IInd option of pension. But it was not possible for IBA to reopen it as banks have made provisions of fund required for existing pension optees only , banks have not make any provision for non pension optees as it was not required during that period. The shortfall in the pension fund is widened and it is 6000 + 3115 crores as on 31.03.2008 in respect of existing and retired non pension optee employees. This time demand of II option of pension is accepted by IBA, it is agreed that cost will be borne in the ratio of 70% by banks and 30% by the PF optees. The existing pension optee is no where in the picture. Although the 2.8 times November 2007 pay for existing non pension optees (27.04.2010) / 156% of PF received for retired (up to 26.04.2010) looks to be at higher side, which could have been minimized, if UFBU make some extra efforts. But things were changed so dramatically due to Hyderabad High Coutrt notice that no other alternative left with the UFBU to accept it.
It is simply an offer for non pension optees . Now it is up to them either accept it or reject it. In my opinion looking to the prevailing circumstances one should go for the pension option, do not look at the cost it will prove less in future. This opportunity may not come to nock your door again.
G.C.Kumbhat
Ret. Manager SBBJ
REF G C KUMBHAT MAY 2
PROVISION IS NOT THE MATTER. IF PROVISON IS NOT MADE FOR PF OPTEES, IT CAN BE MADE NOW OR IN FUTURE OVER A PERIOD OF TIME. IT IS NOT NECESSARY THAT PROVISION MUST BE THERE BEFORE OFFERING THE PENSION OPTION.
WAS THERE ANY PROVISON FOR VRS PAYMENT IN 2002? IT WAS CREATED IN BALANCE SHEET BY A DEBIT ENTRY WHICH WAS WRITTEN OFF DURING NEXT FIVE YEARS. ALL ACCOUNTING AND TAXATION RULES WERE CHANGEDA AS PER DIRECTION OF GOI.
ALL THESE THINGS WERE POSSIBLE. THERE WAS NO NECESSITY OF CONTRIBUTION FROM EMPLOYEES, HAD OUR LEADERS WERE FIRM WITHOUT EXPECTING ALMS FROM IBA.
EVEN NOW, AFTER EXCERCISING PENSION OPTION, THE IBA/UFBU CANNOT CONTROL/BIND THE MEMBERS AND THE ILLEGALITY CAN BE AGITATED IN COURT OF LAW.
Dear Friends, there have been many questions on effective date of commutation in case of already retired employees, definition of existing employee and retired employee to decide on 2.8 times/156% etc., By virtue of my friendship, I could get connected to Sri CHV and got his following answer. I hope this will set all the doubts in theminds of our friends:-
- existing employee means all who are in service on 27 4 2010
- retired employee means anyone who had retired prior to 27-4-2010.
- existing employee will pay at 2.8 times of Pay as of Nov. 2007
- retirees will pay Bank PF + 56 % less commutation
- commutation factor will be based on the date of application for commuttaion.
- commutation is payable from that date.
- till then full pension will be payable.
- those retired prior to 27 11 2009, arrears of pension will be payable from 27 11 09 (full pension) upto date of commutation and commuted pension from that day till it is sanctioned and paid.
t- hose who retired after 27 11 09 , arrears of pension is payable from the date of his retirement.
1 11 07 has no connection with this pension settlement.
1 4 2008 was attempted and agreed by ib and government.
hence date of settlement i.e. 27 4 2010 is the cut off date.
for existing employyes, earlier ufbu tried for a differential formula of sharing. due to legal implications this was not agreed by iba.
then we suggested equal sharing at 1.6 times by both pf optees and poension optees. iba was initially agreeable but later deue to court cases, legal opinions, etc. they did not want to take risk and hence 2.8 has come.
there are sentiments and feelings why all cannot share as originally suggested. knowing legal complications iba did not want to take risk. Unions had the choice either to accept 2.8 or leave the pension option issue. unions opted for the 2.8 formula because getting option was the foremost objective.
onething must not be forgotten. While they pay 2.8 times of pay to get this option, the Banks ae paying Rs. 4200 to the fund for the option cost.
This amount will not benefit existing pension optees. There are equal sentiments that but for pension option, this 4200 crores would have been available for wage revision and would have benefitted all with more than 17.5% wage revision, whereas now this 4200 crores is going only for the benefit of pf optees.
hence we cannot go by all these.
The main achievement is pension option . this is the greatest achievement of ufbu.
Referring to Madappa-May 2, 2010 5:28 PM
Now PF optees have got the TATKAL train tickets. Let them board the train first,occupy their respective berths.Afterwards they have plenty of time to discuss about the cost factor and future plans.Without boarding the train, discussion becomes irrevelant. There is no doubt that the present pension scheme is not free from difficiencies.Those who got retirement(Normal) from 1995 to 2000 are in the age group of 70 to 75 years who may not opt for pension at this age.
But it is a fact that for every Rs 30.00 shared by PF optee, Management has to share Rs 70.00 If an employee is returning additional amount of Rs 4.50 lakhs the bank is bearing Rs 10,50,000.00to him for purchasing annuity which will not be available if pension is not opted.
PF optees and Pension optees are quaralling among themselves but we all have forgotten one thing, both IBA and UFBU have in theory implemented the contributory pension ie what ever the short fall employees have to share.
In the present bipartite we are all sharing 13% of basic towards pension fund. We all the employees will be sharing this for all five years. And by next time because of huge retirements I hope this figure will go up to 20%, so even if we had a settlement for 30% in reality we may get 20% hike.
So better we should press all our leaders for a pay comission.
So all the young take care about your future settlements otherwise one day will come where entire settlement amount will go th shortage of pension fund.
I endorse the following points of bank wage revision,May 2, 2010 8:28 PM:
"Both IBA and UFBU have in theory implemented the contributory pension ie what ever the short fall employees have to share.In the present bipartite we are all sharing 13% of basic towards pension fund. We all the employees will be sharing this for all five years. And by next time because of huge retirements I hope this figure will go up to 20%, so even if we had a settlement for 30% in reality we may get 20% hike".
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Thanks.
Silver Lining on a Dark Cloud:
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Good news for PF optees who are to opt for pension. Union is to spare them to an extent and to charge levy only on the net arrears after deducting of 2.8 factors.This time levy amount on pension optees is much more than PF optees as decided by the union.However I have to be confirmed on this information.
Thanks.
it is apparent from BEFI web site the role of 2.8 times wages of Nov to be recovered was at the instance of one of the constituents of UFBU. So it is possible that the case in Hyd court was also inspired by the same people. Some of the blog writers gave stated that it may be treated as a penalty for entry this is because they do not have to pay it. These people were talking of litigation at the time of 1.6 times load for each and every employee. I would like to know what extra pension op-tees have paid all these years that they should be exempt from recovery of shortfall. The short fall was due to the payment of pension ,which in earlier settlements was recovered from all employees.
Dear Friends,
Madappa's post refering to Mr.G C KUMBHAT dated MAY 2 , 2010
It has valid points .But as MrShankar told ,Please first board on the train.Even pension optees are also not happy with the 2 nd option settlement as we feel that pension issues should not be considered as cost factor rather it should be considered as social factors.
SELVAKUMAR
Referring cheroor 2, 2010 9:42 PM:
Pension optees stitch in time in 1993-95. So they save nine afterwards. PF optees didn't. So they couldn't save nine. This is the simple story between them.
So let's come and sing:
'Stitch in time saves nine'
Thanks.
Q. Why & how did we achieve pension in 1993?
Ans. Because we agreed and signed for Computerisation.
Q. Why & how did we achieve pension for PF optees in 2009.
Ans. Because we finally agreed for NPS for new recruitees from Dt:01/04/2010.
Thank
BANKMEN NOT TO PAY LEVY AND KEEP ASIDE THE LEVY PORTION FOR CONTRIBUTING TOWARDS COURT CASES. THERE IS EVERY CHANCE OF WINNING THE CASE AND THE FORCED DEDUCTION FROM ARREARS TOWARDS PENSION FUND MAY BE REFUNDED WITH INTEREST.
AFTER ALL WHAT LEADERS WILL DO WITH LEVY? IT WILL BE DIVERTED TO THIER PERSONAL ENJOYMENT. UNOINS ARE ALREADY CASH RICH AND LEADERS WANT TO ENRICH THEMSELVES AGAIN BY LEVY.
THEN WHY TO PART WITH OUR HARD EARNED MONEY TO THE ENJOYMENT OF LEADERS? IF THE SAME AMOUNT IS USED TO FIGHT COURT CASE, AT LEAST THERE WILL BE A CHANCE OF GETTING BACK THE HUGE SUM OF MONEY DEDUCTED TOWARDS PENSION FUND.
PLEASE THINK TWICE BEFORE PAYING LEVY.
Dear colleagues of different Banks in India. I am sure many of us would have consoled themselves by now.
I wish to give some sweet to my friends.
1) Although pension is offered to many of us only on payment of hefty sum of Money.
2) The 2.8 times contribution as of Nov 2007 is equivalent of only 2 months salary as of May 2010. When everybody was prepared to pay 1.6 months pay. let us not hesitate to pay 2 months and ensure social security to all of us.
3) Let every officer vote out UFBU and demand constitution of Bank Pay commission to save bank employees and Indian Banking Industry.
4) The cheating leadership is unfit for the future bank employees. Let youngsters participate in union/association activities to build up future Indian banking Industry.
5) Every Bank employee should decide his future, his family and his happiness.
Best wishes to all.
Referring Chandan-May 2, 2010 11:00 PM
You are absolutely right.No body is aware of the benefits under New Pension Scheme introduced to newly joining bank employees with effect from 01/04/2010.
Let us hope that the NPS will be more attractive than the present one and all new recruits will stay in banks till their retirement and ensure that the banking industry providing plenty of employment oppertunities to our youngstors.
rEFERRING TO WORKPLACE BULLYING-May 3, 2010 9:14 PM
No doubt that 2.8 times of New basic salary as on 01/11/2007 is 2 months gross of May 2010.
But for those who are required to pay 56 % additional amount of what they have received at the time of retirement, the pension option offerred may not be attractive.Some Senior Managers who have received Rs 9 lakhs in March 2010 are required to refund
Rs 9.00+5.04=14.04 lakhs if he wants to opt for pension.This is not attractive,which fetches Rs 10530.00 per month as interest under Senior Citizens investment plan and the original amount of Rs 14.04 lakhs remain intact.
Hi Jayaram,
How you arreived the basic pension of Rs.19500/- when your revised basic salary is only Rs.32400/-?.Please check the example and recalculate.
Dear friends, please start discussing 5 day week,300 p leave,regulated working hours and leave wage/pension issue/156%/2.8 times, whose fate to be decided by court very shortly and now there is nothing left in the hands of iba/union.
hello all.
now there is no alternative but to board the pension train for pf optees.the 2.88 we are paying is going to pension fund.as pension has social aspect,can the 2.88 amount paid back to bank will be exempted from income tax?
if it will be exempted it will be a small relief.
MR.AJITNAIK 04.05.2010 8.20 AM;
I GIVE BELOW THE REVISED CALCULATION TAKING BASIC PENSION AS 16200 INSTEAD OF 19500.THE COMMUATATION THEN WILL BE 6.35 LAKHS .HENCE THE DIFFERENCE WILL BE 13.14-6.34 =6.80 IS PAYABLE TO THE BANK.PENSION ARREARS WILL BE FROM DEC 09 TO APRIL 2010 WILL BE 1.10 LAKHS.PENSION FOR APRIL 2010 AFTER COMMUTATION IS 16755.HENCE ALL ARREARS THAT IS DUE TO SALARY LEAVE ENCASHMENT AND GRATUITY WORKS OUT TO BE 1.70 LAKHS PLUS 1.10=2.80 LAKHS.HENCE ACTUAL CASH OUTLAY WILL BE 6.80 LAKHS MINUS 2.80 LAKHS=4 LAKHS FROM CPF
AMOUNT OF 8.42 RECEIVED.
PLEASE NOTE I HAVE NOT INCLUDED FPP AND PQA IN THE PRESENT CALCULATION THOUGH IN THE ORIGINAL IT WAS ADDED,
THANK YOU VERY MUCH FOR POINTING THE ERROR.I SINCERELY REGRET THE ERROR AS THE SAME IS DUE TO MIXING OF CALCULATION FOR TWO DIFFERENT RETIREES.R JAYARAM
Now 9th Bipartite settlement has been over and all bankers are feeling
being cheated. In my opinion it is not for first time, it is continue from 1985. Unions never fight for wage negotiation they call strike on issues like Against policy of union govt or against inflation. They actually exploit to banker community.
These unions are fully responsible for the plight of bankers.
service condition are continually deterioting and these people are forcing to members to celebrate.
Please find alternate because such wage revision will change socio- economic effect on community.
When banker could not fulfill their responsibility, What implication will come on the society this should be understood by IBA and Govt also.
Now they are asking levy on the name of Some institute,What a way of asking levy.
Dear Friends,
Can any body give me/post me the 7th bipartate settelement ( 2001 VRS) for officers to arrive at my last drawn salary + 10 months avarage .
Also please tell me as I have served for 18 years and took VRS at 41 years of age, wether i will get that 5 years notional benift of service in pension calculation, after second option.
Regrds,
Ratna Kumar(ratanboda@yahoo.co.uk)
Comrades AIBOA released a cir.14 explaining all the facts relating to wage revision since sixth BPS to present one. Please go through and then decide the future action, if required. I think the UFBU has done a good job in prevailing circumstances.
G.C.Kumbhat
Ret. Manager SBBJ
further to my post dt 04th may
kindly tell whether the 2.88 times amount paid to the bank for pension fund can be treated as investment under section 88 of i tax like nsc/lic/pf etc ?
PENSION & P.F. BALANCING DONE IN THE PREVIOUS BIPARTITE SETTLEMENTS
A : 8TH BIPARTITE SETTLEMENT:
PF optees were given the benefit of PF for the full term of 5 years of the Bipartite period from 01.11.2002 to 31.10.2007 by extending PF @ 10% for 5 years; ie., 50% on the applicable pay.
0 2. But Pension optees were given the benefit of Pension for a period of 2 and half years ie., from 01.05.2005 to 31.10.2007 because the additional Pension load of 9.25% was shared from the Bipartite Load. Hence, the load of Pension was 19.25% for two and half years (10% in lieu of PF and 9.25% towards additional cost of Pension) which works out to 48.12% (19.25 x 2 and half years).
0 3. From the above, it is evident that in the 8th BP Settlement, PF Optees’ load was 50% for 5 years and 48.12% for Pension optees.
0 4. But for Pension optees, due to additional cost caused by BP going up in wage revision, Bankers have to provide additional contributions on yearly basis based on acturial calculations. That is how Pension became more costly.
0 5. The Bankers’ contribution of 70% ie, Rs.4,200 crores, now in the 9th BP Settlement is for PF Optees only. This is on account of extending one more Pension option.
B : 7th BIPARTITE SETTLEMENT :
0 1. The PF optees were given benefit of PF on revised pay at 1684 points of consumer price index after loading from the BP load.
0 2. The Pension optees were not extended the benefit of fitment at 1684 points of consumer price index. The Pension was revised only at 1616 points of consumer price index. Further, no loading was done for Pension at 1616 points out of the BP load.
0 3. The net effect of the fitment of Pension at 1616 points without loading was that the Pension was reduced to 43% of the last pay for the employees/officers who retired/went on VRS/SVRS/passed away during the period from 01.11.1997 to 31.10.2002. The same was however restored in the last Bipartite [VIII] giving benefit from01.05.2005 without retrospective effect or payment of difference in commutation / arrears of Pension.
0 4. Further, the employees/officers retired/went on VRS/SVRS during the period from 01.11.1997 to 31.10.2002 got much less in commutation.
0 5. From the above, it is very clear that Pension load in the 7th BP Settlement was at par with PF optees from the BP kitty.
C : 6TH BIPARTITE SETTLEMENT :
The Pension was introduced from 01.11.1993 as per the Pension Settlement dt 29.10.1993. Out of 6th BP Settlement total kitty , nothing separate was provided for Pension as the settlement was signed separately and load of Pension was also separate. Everybody was given the opportunity at that time to opt for the Pension. Further, the benefit of PF was extended to PF optees at 1150 points of consumer index ie ., actual CPI by merging DA into Pay at that time.
i would like to know whether arrears will be received in may 2010 or not and fresh option of pension will be given in may 2010 pl inform me
dushyant
dear friends,
All the constituets of UFBU
now settlement on pension part is over.
pl. press the banks to start implementation process of pensin option immediately. because commutation depends on the next birth day from the date of application. the retirees already lost a factor of commutation for 15 years ( because now option is opened from 1995 ) . Interim applications for option for pension should be invited immediately so that there may not be further loss of commutation.
I will suggest my learned friends that now option letter of pension should be treated as of date dated. 27.11-.09. because this the date when MOU was signed. commutation application should be treated as of date 27.11.09 so that time gap in implementation process cannot harm the new optees atleast now.
hope that management will not be allowed more time on the pretxt of implementation.
ashok goel
all the participants and viewers are requested to urge their unions for an early implementation.
thanks.
ashok goel 06.05.2010
Dear Shri Ashok Goel, your feeling is understandably justifiable. However, as per the terms of pension regulations, date of commutation is the date of application for making commutation which is possible only when a person is termed to be a pension optee. Hence, one should give pension option and letter seeking commutation simultaneously so that it can be treated as on the date of accepting the option by the management. No doubt the process should be initiated at once. I thing banks need not wait for disbursing arrears to float 2nd option scheme,for, both the issues are different. And the entire industry should simultaneously open the pension gate. May be due to procedural rituals it may get delayed. However, AIBEA had stated that it will be within 30 days. Let us hope for the best.
Mr.Iyer,
Already retired persons have no say on any issues. Whatever they get is just like BHIKSHA. Even Supreme Court judgements are not respected by Vijaya Bank and Allahabad Bank Chairmans. The benefits of 5 years addition to VRS retirees has not yet been given in these banks as per my retired (VRS) friend in these banks. So implementing the agreement of giving the second option to retirees may also be delayed. The attitude of the above 2 banks was referred by me twice in these blogs. Unfortunately there is no responce from anybody. I request you to take the above issue of these 2 banks with Mr.CHV. Please help the reitirees.
NEBF is a wing of government and let them pressurize the government to implement the increase of gratuity ceiling from Rs 3.50 lacs to Rs 10.00 lacs now so that retirees from 1.11.2007 to 27.4.2010 will be benefited. Let the increased gratuity may be made available from 1.1.2007 if not from 1,1,2006 as applied to GOI employees.(it shows the seriousness of the leadership in welfare of bank employees)
no one is taking cognizance of my post.is it not worth considering?
Congratulations for settlement
GOOD NEWS.
STAY ON SETTLEMENT BY HONRABLE MUMBAI HIGH COURT.
Aaj tak
pl give details about stay.
Dear sri aaj takji,
Are you sure that Mumbai high court has granted stay?
If so come out with full details.
Please be serious&pl don't spread
rumours.
mr aajtak please give detail about the stay by mumbai high court immediately we are eagerly waiting for the details of stay
GETTING STAY ON IMPLEMENTATION OF THE WAGE/PENSION IS NOT A JOKE. NO COURT WILL NORMALLY INTERFERE IN THE NEGOTIATED SETTLEMENTS. IF AT ALL THE STAY IS POSSIBLE, IT CAN ONLY BE PARTIAL WITH REGARD TO OBNOXIOUS CLAUSE OF ILLOGICAL AND ILLEGAL DEDUCTION TOWARDS PENSION FUND. HENCE,STAY ON TOTAL IMPLEMENTATION OF WAGE SETTLEMENT IS HIGHLY UNLIKELY.
MEMBERS SHOULD BE DOUBLY SURE BEFORE SPREADING SUCH RUMOUR.
Referring to raamraam-May 8, 2010 4:48 PM
As Madappa has said stay on negotiated settlement is not a joke. Even AP high court informed that any settlement will be subject to the order of that court and did not stay the process of settlement.We must wait to get the authentic news from unions website.
Is there no one from bombay to cleariy about stay?
In AIBOC website message it is informed that steps are taken for disbursement of arrears within a few days and for considering exemption of entire amount contributed to pension fund from payment of Income tax.There is no news about stay by Mumbai High Court
Rg to Chandan-April 25, 2010 11:03 PM
After paying 56% of additional sum of CPF received by retirees from 01/11/2007 to 27/04/2010 and when they have drawn revised basic salary from 01/11/2007 as per 9 th BPS now they should be fixed pension as per revised BP of 9 th BPS.
But in your above view you have mentioned that the Basic pension will be as per old BPS +24.86%
Can you elaborate?
My friend retired in 2008 June and his Basic was 22900.00.What will be his Basic pension as per your above clarification?
my father was working in bank from last 29 years,he expired on 28.12.09.his retirement was in june 2016.can my mother opt pension now?Is she eligible for enhanced family pension or family pension?plz tell me we should opt pension or not?we didn't get any PF from the bank.how much we have to retfund if we got the amount?
Referring SHANKAR 11, 2010 6:04 AM:
Sir,
This is one of the disturbed areas in bank employees' service condition, where I feel pain being an erstwhile govt employee.
Here the case that you have mentioned is as follows:-
Old Basic Rs 22900/- (Let it be the same amount on Dt: 01/11/2007 & June 2008)
So 50% of old basic i.e as per Eighth BPS the amount stands Rs 11450/-.
As because he was on service on the implement date of Ninth BPS i.e Dt: 01/11/2007, he is lucky enough to get the DA as per revised rate of Ninth BPS (0.15 per slab). For this purpose the existing DA 24.66% (0.18x 137slabs) is to be merged with his basic pension Rs 11450 and results a new basic for pension i.e Rs 14274/- and it is fixed for ever as per present system. So in his case he will get only DA updation though he will draw arrears in new basic as per ninth BPS from Nov-07 to June-08.This is the paradox in our system of service condition available in PSU banks.For this you can also observe the happenings in Eighth BPS period from Dt: 01/11/2002 to before date of signing in June-2005. In case of SBI their situation is worse than ours, in this matter.Many of them even retired after signing of Seventh BPS in 2000 are still drawing pension as per basis of their old basic of Sixth BPS. No DA, nothing updation is available to them despite seven days so called historical strike for pension in SBI in 2006.
When I talked with one of my known Section Officers of our state secretariats on this subject, on a get together, he was surprised to know this history of ours. Great Banking, Great Job.
Thanks.
(FPP, PQP etc are not included to make the calculation easy, as a case study)
referring to Chandan-May 11, 2010 11:34 PM
I was informed by local AIBOA leader while interacting that for retirees from 01/11/2007 to 26/04/2010 pension will be based on revised average basic pay as per 9 th BPS and that is why they were forced to agree for collection of 56 % of CPF from all retirees prior to 27.04.2010.
They are intending to interact with their members at Bangalore on 14/05/2010 and to inform the devolopments in detail.I may get some additional information after 14/05/2010.
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