In the last 10th Bipartite settlement for Bankmen to increase the wages of the Bank employees has resulted in Reduction of Superannuation benefits to the Retired employees who retired from service with effective from 01.11.2012.The points are:
1.According to Pension Rules 1995 those allowances which bear DA are to be ranked to Superannuation be nefits. In the above settlement between IBA-UFBU a special component in the Pay Slip called -Spl.Pay / Grade Pay is created and the same was excluded from being reckoned to Superannuation benefits. The result is reduced Gratuity,Leave encashment,Commutation and Pension.
2.The said settlement provides for one additional stagnation increment to the employees but the application of the increment is deferred in such a way it is applicable to employees who are in service as on 01.05.2015 when the whole settlement in principle agreed to be effective with effect from 01.11.2012. This excludes the employees who retired between the said dates which results in Low superannuation benefits.
3.The reduction of Pension and recovery of Pension is being effected with retrospective effect from 01.11.2012 without amending the Pension Rules 1995 which speeak contrary.
4.The increase in commutation amount is with increase in Salary mosly due to merger of DA @ 60 % of 110%,This can not be quoted as justification in reduction of Pension.The option to chose revised commutation or Revised pension is not justified and correct as Commuatation of Pension and to receive the Pension are the essential components of the Superannuation benefits. One can not be received at the exclusion of others.
5.With merger of DA @ 60% + increase in Wages as claimed 15%,the 50% of this must be passed on to the Retirees without any exception to the Pay slip components as under existing Pension Rules 1995.
6.If the 50% of the Last Pay drawn is not considered for Pension, it is not justified to reduce the unmerged DA of 50% to 33% which is a gross loss of 17% on the Basic.
7.The 10th BPS agreement is with specific purpose of considering the increase in the waes of the in service employees as on date but no mandate to cause reduction in Pension to the Retired employees or Retiring employees. One can not be held to finanfce the other group.
8.By recovering Pension retrospectively the Banks are making undue profits even without amending the Pension Rules 1995 which is malafide.
9.As the bank retired employees are scattered allover India and belong to all classes and cadres what is the best legal / JUDICIAL FORUM and How to move the courts (by way of what?). In such cases what is the Juridictional limitations.Whether the above facts can be challenged in a court of LAW. Please advise us comprehensively with a suggestion to give us list of Advocates names and contact email IDs/ Addresses.
Thanking you.
.G.V.SUBBARAMAIAH
For.Action Group against reduction Of Pension In 10th BPS.
