LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

vipinkalia   18 March 2015

Sbi vrs - pension and leave encashment not paid

I seek your advice & comments on a VRS Retirement under govt approved scheme case the details of which are as under: SBI launched a Voluntary Retirement Scheme in Dec 2000 like other Public Sector Banks after taking approval from Govt of India. Employees having completed 40 years of age or 15 years of service were eligible to apply for the VRS. Benefits like Provident Fund, Gratuity, Ex-Gratia, Encashment of Privilege Leave as applicable, Pension in term of SBI Employees Pension Fund Rules were payable to the employees applying for this scheme. In Jan 01 Bank issued a circular clarifying that under existing Pension Rules only employee having completed 20 years pensionable service are eligible for Pension. Last Date of Withdrawal of VRS Application was 15.02.2001 and date of relieving from the bank was 31.03.2001. Other Public Sector Banks had already launched their VRS from Sep 2000 onwards. In Other PSB, there is only Contributory PF or Pension available as superannuation benefits to the retiring employees while in SBI, it is PF and Pension both. IBA issued a circular in Dec 2000 to all PSB, after direction from Govt of India in Sep 2000 that Pension Regulation may be amended so that all Pension VRS Optees having less than 20 years are eligible for Pension on pro-rata basis and all benefits be paid to such employees as are admissible to employees on superannuation. On receipt of this circular, I wrote to SBI Management for amending the pension regulations of SBI Employee Pension Rules but no reply was recd till my retirement ie 31.03.2001. They replied back on 25th April 2001 that no rules are being amended and VRS optees employees with 20 years service are eligible for pension. I along with few other such employees, filed a writ petition [WPC 4355/2001] in Delhi high Court in 2001, judgement for which did not came in our favour, we appealed to division bench vide LPA NO 410 of 2002 which was dismissed. We did not pursued the matter further and tried to communicate with SBI/Finance Ministry etc directly. In the meantime, we were following up on cases filed by employees in other High Courts. Few cases came to Supreme Court which were against the Bank and now judgement for these combined matters have come [Civil Appeal 2463 of 2015], both judges have given conflicting judgement. My query is as under : i) What is the future course of action in such cases ii) Can employees who have not taken up any case against bank this case directly as fresh applicants or what remedy is available to them. iii) What option is available to me to join the case on the basis of High Court Division Bench Judgement. Can I file a fresh SLP and tag the matter with current case or it has become time-barr. iv) Also suggest few advocates experienced in Service Matter so that incase we are allowed to take up the matter in Supreme Court, case is in safe hands. Thanks in advance Vipin Kalia


Learning

 3 Replies

N.K.Assumi (Advocate)     18 March 2015

Thanks for the classic reported case.

Kumar Doab (FIN)     18 March 2015

IBA has issued circular.

You could have followed simple route thru IBA,Ministry of Finance. 

It is felt that all other affected employees can join.

If you wish you may discuss with LCI experts Shri. P.S.Dhingra, S. H.S.Thukral

slakshmanrao (accounts officer)     15 September 2015

The minimum qualifying service required to earn monthly pension is 20 years.Kindly contact pension grievances cell to get suitable clarification.Since Banking Industry is covered under Negotiable Instrument Act,the new idea may be of some use to fairly protect the families.at any given point of time.Regards slakshmanrao3@gmail.com


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register