Demands relating to Pension:UNITED FORUM OF RESERVE BANK OFFICERS & EMPLOYEES HELD AGITATION AGAINST UNILATERAL WITHDRAWAL OF UPDATION OF PENSION ACCORDED TO PRE-1997 RETIREES.-MASS CASUAL LEAVE was observed ON 21ST OCT 08;...>>READ COMPLETE CIRCULAR DATED 16TH OCT. 08 and the other pending demands.
AIRBIOPF fully supports the United Forum in their struggle against the Government and the Bank.
In fact updation of Pension has become a joke in RBI.
Whenever the bank updates the pension as required under the RBI pension Regulations,the M/o finance asks the Bank to revert back- contrary to the recommendations made in para 153.31 of the 5th pay commission. The autonomous Bank faithfully and conveniently submits. And the retirees are made to suffer.Strangely enough, the Government, like a despotic king, in these periods of globalisation, does not allow others to give a fraction of what it has large heartedly disbursed to its own Babus. It is more paying to be a government employee -money wise and work wise -than a bank employee.
It is time to act in earnest against the M/o finance and the Bank , and consider all the remedies availabe for getting justice. We hope this time the United Forum will not allow the bank to keep the issues unresolved. Accepting empty assurances on the eve of the agitation from a helpless bank does not serve the cause.
In fact, the present Governor represented Central Govt. as a nominated director under sec 8(1) (d)of the RBI ACT and was the only one to oppose pension revision -says Economic Times -->> read more
Courtesy RBIOA
RBI Pension Scheme and Related Issues
The brief background of the case is as following:
•
Reserve Bank of India Pension Regulations was introduced in the Bank in lieu
of contributory Provident Fund in the year 1990 effective from January
1,
1986, basically on line of the Pension Scheme available to the Central
Government staff.
•
Since the employees were then demanding pension as third retirement
benefit, RBI explained to the staff of the advantage of the pension scheme
in
line with the Central Government employees and stated in writing through
Bank's circular dated March 13, 1992, that one of the positive features
of the
pension is regular updating of pension.
•
In their circular dated March 13, 1992, the Bank specifically mentioned ‘….
The general consensus is that globally pension is considered to be one
of the best social security measures as compared to others, because of
its certain unique features such as updation of basic pension,……’ . •
The Bank’s assurance on updation of the basic pension was the USP of
the
scheme and, indeed, this was one of the most important considerations for
employees to opt for pension overwhelmingly by surrendering the benefits
of
CPF.
•
For those joining the Bank’s service after November 1, 1990 the pension
scheme was made compulsory.
•
Pension updation refers to updation of basic pension pay after every wage
revision. This is based on a formula used extensively world wide wherever
similar schemes are available in the absence of other social security
measures by the state.
•
If a person had retired with a basic pay of “X” and after wage
revision, a
serving employee drawing a basic pay of “X” has his basic pay
revised
upwards to “Y”, the basic pension pay of the retired employee
is also suitably
enhanced by using well established principles. Similar principles are used
in
the case of Central Government employees.
•
Pension updation was a recurrent demand of the associations / unions within
the Bank and the concept of pension updation has been accepted by the
hon’ble courts in the country.
•
Subsequent to the introduction of the pension scheme, the pay of the
employees of the Bank have been revised on three occasions, viz., with effect
from November 1, 1992, : November 1, 1997 and November 1, 2002.
•
Accordingly, the first up-dation of pension was carried out by the Bank,
with
the prior approval of its Central Board of Directors, in 2002. The pension
updation
was introduced with effect from November 1, 2002 for pre 1997
retirees, which now stands withdrawn with effect from October 2008, after
six
years of its implementation.
•
In view of the objection by the of the wage settlement
of Nov 2002 {finalised in Dec 2006} have not yet been extended to
pensioners.
•
Had it been extended, the benefits would have gone to all pre Nov 2002
pensioners.
•
The background to the withdrawal of this benefit in RBI lies in difference
of
opinion during the last six years between the Central Board of Reserve Bank
and the Ministry of Finance on the powers of the Central Board to introduce
the scheme of pension up-dation without taking the approval of the
Government of India.
•
The Ministry of Finance had raised the objection on technical ground that
Reserve Bank did not seek permission from the Government of India to
change the definition of "average pay at the time of retirement",
though
Central Government is also having a similar definition of average pay for
their
pensioners that they have been changing after every pay commission.
next==>
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courtesy RBIOA
RBI Family Pension Scheme (RBIFPS)
The inequity conferred on pensioners and their family is more pronounced
in the
case of the family pension scheme of the Reserve Bank. The provision of Regulation
32(5) of the Pension Regulation are archaic in the present context and needs
urgent
revision. The amount of family pension is not only meagre and measly but
is paid to
the spouse on the basis of the pre-revised pay of the deceased employee.
The issue
is pending resolution for over a decade now and needs to be addressed urgently.
The Governments Family Pension Scheme ( GFPS) is uniformly fixed at 30%
of pay
without a ceiling and has 100% DA neutralization while the RBIFPS is not
fixed
uniformly at 30% of pay with a ceiling prescribed for very grade. Even 100%
DA
neutralization was achieved after repeated efforts of all associations in
the Bank.
As per present regulations, based on recommendations of 4th CPC, family
pension in
RBI is paid on a tapering basis and also has a highest basic pay ceiling
of Rs 2400/.
The present scale of payment of family pension is as follows: { This has
been fixed
on 1992 pay scales and has not been revised subsequently}:
Basic Pay Range % fixed Minimum Amount Maximum Amount
Upto Rs 2870/30%
Rs 720 pm ---
Rs 2871 – Rs 5740 20% Rs 860 pm --Above
Rs 5740/15%
Rs 1150 pm Rs 2400 pm
The difference in amount being paid between GFPS and RBIFPS is evident.
Salient features of Government Family Pension Scheme (GFPS ) & its
comparison with RBIFPS
(i)
Family Pension is 30% of basic pay, without any tapering & ceiling. Thus
in our scale applicable till 31.10.2007, the family of an RBI CGM at the
highest end of scale of Rs 35600/-will have a basic pension of only Rs
2400/-.
(ii)
The maximum pay as per 6th Pay Commission has been fixed at Rs
90000/-. So the basic pay of a family of an employee drawing this salary
would be Rs 30,000/-. The basic pension of an officer drawing a basic
salary of Rs 80,000/-will have a basic pension pay of Rs 24, 000/-.
(iii)
Under GFPS, the minimum family pension should not be less than 30% of
the start of the revised scale of the grade in which the deceased employee
had retired.{ 5th pay commission}
(iv)
The fixation of basic pension will be subject to the provision that the
revised pension shall not be lower than 50% of the pay in the band plus
the grade pay corresponding to the pre-revised pay scale from which the
pensioner had retired. In the case of HAG + scales, this will be 50% of the
minimum revised pay scale.{ 6th Pay commission}.
(v)
Family pensioners will get full pension for first 10 years in the Government
and other PSU’s and regulatory organisations to whom this applies.
(vi)
Under RBIFPS, in case an employee dies in service, family pension is paid
at 50% of pay last drawn or twice the ordinary rate of family pension,
whichever is less, for 7 years or till the deceased employee would have
attained the age of 65 years had he survived, whichever is less.
(vii)
The GFPS has widened the definition of “family’ to include dependant
parents and widowed / divorced dependant daughters. Comparatively, the
“family” of an RBI pensioner comprises (a) widow / widower (b)
dependant
son up-to 25 years of age (c) unmarried daughter up-to 25 years of age.
This position within the Bank is highly discriminatory and not even sufficient
to
ensure a sustainable living.
Important Information: <<Photo Album>>
3rd Annual Conference of All India RBI OERS Pensioners' Forum held on
8th -9th Nov.2008 at Kolkata concluded.13 Units from all over india took part
and resolved to defend their rights at all costs.Forum greets kolkatta unit
for the hospitality shown.See Photo Album
See list of office bearers of the Forum
RBIOA
RBI Pension Scheme and Related Issues
The brief background of the case is as following:
==>contd
•
If the Ministry so desired, the approval could be given a post facto. It is
further
understood that the ministry also conveyed that this up-dation of pension by
RBI might prompt retirees from other institutions to raise similar demand
resulting in greater pension outgo.
•
Under the direction of the Government, the Reserve Bank management
withdrew the aforesaid Administration Circular No. 2 dated September 1,
2003, vide its circular dated October 10, 2008 and reverted the basic
pension to the level originally sanctioned, prospectively from the month of
October 2008.
•
The pension scheme of the Bank is entirely funded by the Bank and, unlike
the pension scheme of Government employees, is not a burden on the
exchequer.
•
RBI pension fund is self-sustaining. The entire CPF of those employee
who had opted for pension scheme in 1990 and again in 1995 when the
option was again re-opened had to be surrendered and the bank made a
contribution and the Pension Corpus was thus created.
•
While pension has been made available to Central Govt. employees, Bank
and Insurance employees in lieu of their PF @ 8.33%, the sacrifice is more
for
RBI employees, as they were entitled to 10% CPF. However, instead of
making this differential to be factored in while computing pension benefits
of
RBI staff as and when they retire, the RBI employees were forced to accept
this withdrawal decision.
•
We also understand that various legal opinion the Bank had sought from the
legal experts on the issue did not find any illegality in updation of basic
pension by the Bank
•
The 5th pay commission clearly stated that an autonomous institution like RBI
can have their own pension scheme provided their fund permits.
•
The 6th pay commission clearly stated that the salary structure designed by
them applies to all including regulatory organisations. This paves the way
open for RBI to devise a truly independent pay, perquisite and superannuation
structure.
•
This has altered the basic nature of the scheme unilaterally although the
original scheme was introduced after elaborate deliberations with all
recognized Associations / Unions of the employees of the Bank. The
assurances given by the Bank have been seriously compromised.
•
All present employees will be adversely affected as and when they
retire.
•
Existing employees are undergoing a trauma as the basic premise of
their superannuation calculations are now found to be completely
missing.
•
For all future retirees, pension updation is critical since (i) we are
certainly going to retire, (ii) cost of living will continuously go up, (iii)
future rate of interest though unpredictable, is likely to be low, may be
even lower than today, (iv) as retirees, we don’t have fresh earnings.
(v)
salary structure is not so high as to enable existing employees to plan a
suitable investment policy creating a personal old age insurance in the
form of annuity payments.
•
In case of Central Government pensioners, however, pensions are upwardly revised
after every pay commission and the pay commission had
introduced certain other welcome features also like gradual increase of
basic pension with retirees' age.
Some of the benefits to central government retirees after the Pay
Commission are briefly:
*****
Maximum and minimum pension raised from Rs. 33,075/-and
Rs.2813/-to Rs. 52.200/-and Rs. 4060/-respectively.
*****
Full pension after 20 years of service.
*****
The recent 6th pay commission have even recommended gradual
increase of basic pension with the retirees’ age even suggesting
that if a pensioner reaches the age of 100, his/her basic pension will be
doubled.
*****
Family pensioners will get full pension for first 10 years
*****
The altered pension scheme of the Bank is now substantially inferior to the
Government scheme even excluding the recent improvements, even though
the employees of the Bank had to make larger sacrifice to get the same.
Compiled by Reserve Bank of India Officers Association.