Saturday, September 25, 2010

PIL on retirement age of civil servants

 A PIL was filed in the Lucknow bench of the Allahabad High Court today, seeking direction to extend the retirement age of officers of India Civil Services from 60 years to at least 65 years.

Neelendra Pandey, a local social worker, stated in his PIL that he is aggrieved with discrepancies in the retirement policy of different government services.

He said IAS, IPS and IFS officers retire at 60 years, while people of about 80 years and sometime even more continue as President, Prime Minister, Governor and Chief Minister, Minister and MLAs.

Professors and doctors of Central universities and institutions like AIIMS retire at 65 and primary school teachers retire at 62, Pandey said while terming the retirement policies as defective and challenging the same.

He requested the court to direct Central government to consider making a universal retirement policy for all public servants.

Source : PTI


akhilesh said...


Shridhar said...

Whether AIBOC Gen Sec is fool given letter to Govt/IBA to raise the retirement age to 65 years.In these days unemployment problem is the first secondly people in banks are they ready to work upto 65 years taking into consideration to-days working hours from 8 am to 10 pm or so.People are waiting to leave the job once pension option implemented.To-days generation boys are so brilliant banks are recruiting MBA students direct scale II officers at the age of 22-23 they will become 2 times GM ED and Chairman and our gen sec is telling that executives of to-day those who are in bank are very brilliant and once they retire the banks will be closed.People were telling what will be fate of India after Smt.Indira Gandhi see how is India progressing even after Indira Gandhi so banks will also run after retiring to-days executives not at all to bother sir.Let the bank people retire at the age of 60 peacefully and enjoy the retired life any how pension option has come.These are my views i dont know how many will agree with me.Thanks.

chandan said...

Shridhar September 26, 2010 9:42 PM:

Fully support the view. The need of the hours is to get full pension on 20 years completion of service like GOI and definitely not rising of retirement age in banks.


ramesh kumar said...
Smt. Usha Thorat
Dy. Governor & Incharge 29.08.2010
Dept. of Banking Supervision
Reserve Bank of India
MUMBAI 400001

Dear Sir/Madam,

Re: SATYAM type Frauds/Scam in the Bank Employees Pension Fund Trust perpetuated by Bank Management at the instance of Chairman IBA since 01.11.1997 (Proofs of the fraud enclosed)

Reserve Bank of India a regulatory body for ensuring orderly banking is India for Private Sector/ Public sector/ Cooperative sector/Foreign banks etc.

Reserve Bank of India is carrying out the All India Annual Financial Inspection U/s 35 of BR Act 1949 of each bank operating in India every year.

During the inspection U/s 35 of BR Act 1949 as regulator you are ensuring that the guidelines issued by RBI, Govt. of India, ICAI and other regulatory authorities are duly complied with (regulatory compliances are ensured).

We bring it to your kind notice that the top management of the Public Sector bank ‘s are indulging in fraud in the Bank employees Pension Fund Trust account and violating the Pension Fund Trust rule ( formulated in consultation with RBI) approved by respective Boards, to inflate the profits and to gain incentive bonus of Rs 7.50 to Rs 8 lacs paid to PSB CMDs & EDs on achieving SOI targets set by MOF.

1. The complete communication for Statutory Central Auditors with modus operandi, obligation of bank under BPS and its violation with a fraudulent intention of causing loss to the Pension Fund Trust accounts (Established under Statute passed by Union Parliament) is enclosed in the attached file.
2. The banks should ensure compliance of AS-15 which pertaining to staff benefits including retirement benefit.
3. The Bank should make provisions for staff benefits as per the service condition agreed upon between the unions & Management.

In Banking Industry the wages are settled by India banks Association & UFBU a body of (Employees & Officers organization).

The employees and officers were offered pension in lieu o Provident Fund in 1993-95 (Soft Copy of pension regulation prepared in consultation with RBI and approved by parliament enclosed).

Accordingly In-House Pension Fund Trust were established by each bank to pay pension to the employees as per scheme.

The Pension Fund Trust has to open a bank account.

The Corpus of the Trust was created by transferring accumulated PF balance (Management Contribution together with interest) of Pension Optee Employees. In this account management has to contribute 10% of Basic pay of each employee every month (Statutory Obligation), return on investment. Bank has to undertake actuarial valuation at the end of each financial year and short fall, if any, was to paid in the Trust Account out of current year profit.

ramesh kumar said...

w.e.f. from 01.11.1997 the IBA (as per mandate given by each bank) has entered into the wage settlement with Unions and accordingly following contributions should be paid in the pension fund trust.

• As per statute 10% of basic pay should be deposited in the pension fund trust account each month.
• IBA/ Bank’s entered into a Bipartite Settlement with Unions and have agreed that the incremental cost of pension will be recovered from employees and will be transferred it to pension fund trust since 01.11.1997.
• As per Bipartite Settlement from 01.11.1997 to 31.10.2002 (7th BPS), incremental cost of pension was agreed 16.50% to be shared by Management share 8.25% + employees share 8.25%
• As per 8th BPS 01.11.2002 to 31.10.2007 the incremental cost was advised as 18.50% which was to be shared 8.25% by employees and 10.25% by management.
• As per 9th BPS 01.11.2007 to 31.10.2012 the incremental cost was advised as 26% which was to be shared 13% by employees and 13% by management.

• IBA/Bank reduced the wages of employees and officers to the extent of incremental cost and agreed that incremental cost of pension will be transferred to pension fund trust.
• IBA never advised the accounting procedure to be adopted by the banks for depositing incremental cost of pension to pension fund trust.
• Further Banks made a breach of trust because it agreed to transfer incremental cost of pension to pension fund trust of all employees as per settlement but never transferred such wages to pension fund trust to inflate the profits & to please the bosses sitting in Ministry of Finance.
• In this way Banks falsified the Balance Sheet which was audited by SCAs as fair and transparent statement of accounts as on date.
• The SCAs also certified the compliance of AS-15 which was infact not complied with.
• The amount involved in the scam in the banking industry is more than Rs 40000 cr which started since 01.11.1997.

ramesh kumar said...

Fraud by all Public Sector Bank like Canara Bank, Union Bank, Bank of Maharashtra, Corporation Bank etc during April June 2010 quarter (except Andhra Bank PNB & BOI See June 2010 quarterly result of all Banks).

The Bank’s have entered into agreement to provide another option of pension to retired and existing employees.

According to actuarial valuation the cost of pension for new employees opting pension is rs 6000 crores and it is to be shared in the ratio of 70% (4200 cr) by bank and 30% (1800 cr) by employees.

The banks have recovered Rs 1800 cores from employees from there wage arrears in June 2010 but have not contributed Rs 4200 cr (there share in the pension fund).

The accounting note in the June quarter of above banks confirms that the liabilities on account of new pension optees will by provided on crystallization.

RBI should note that when the 30% recovered from employees stand crystallized why Bank’s liability of 70% has not been crystallized. They have inflated the profits to this extend.

What RBI must ensure that Bank must deposit following amount in the Pension Fund Trust Account from the date of 7th BPS i.e. 01.11.1997.

• Statutory 10% of contribution of Basic Pay Plus
• Incremental cost of pension (Bank share 8.25% from 01.11.1997 Then 9.25% from 01.11.2002 and then 13% from 01.11.2007) Plus
• Incremental cost of pension (Employees share 8.25% from 01.11.1997 Then 9.25% from 01.11.2002 Plus
• Transitional liability since 2007 as per AS- 15 plus
• Deficit if any as per actuarial valuations must be deposited in the pension fund trust account.
• the corpus of the pension fund has been given by the Employees by transferring there PF and they have agreed to forego there wage as per above settlements to the extent of incremental cost. Therefore it is employees fund and not the management reserve fund where they may dip to inflate the profit and distribute it as dividend.

Further RBI Inspecting officer must ensure in AFIR 2010 (ensure during 27.04.2010 to 26.07.2010)

• Auditor to ensure that banks deposit in the Pension trust statutory 10% Statutory 10% contribution on revised basic pay every month. Plus
• Incremental cost of pension (Bank share 13% from 01.11.2007) every month. Plus
• Incremental cost of pension (Employees share 13% from 01.11.2007) every month. Plus
• Amount recovered from the employees @2.8 times of Nov 2007 revised basic. Plus
• Entire Banks share of PF of those employees (serving as well as retired) now opting for pension Plus
• The auditors should ensure that Bank contribute 70% of 6000 crores (4200cr) plus 70% of 3116 crores 2182.55 cr during April June 2010 as per IXth BPS because they are recovering 30% share from employees,so they must contribute their share.
• Transitional liability as per AS-15.

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