Enhancement of family pension for bank retirees

Bank Employees Federation of India

NARESH PAUL CENTRE

53 Radha Bazar Lane, 

Kolkata – 700 001

                                

Circular No.86/2020     

20th Dec 2020

To all Units, Affiliates, Office Bearers, CC & GC Members

Dear Comrade,

Enhancement of family pension for bank retirees 

The Department of Financial Services, Govt. of India accorded necessary approval, addressing a letter to the Chief Executive, Indian Banks' Association for implementation of 11th Bipartite Settlement/Joint Note signed on 11.11.2020 and consequential benefits pending amendments to relevant regulations as per laid down procedure.

In the said letter, the DFS advised IBA to submit financial implications/liabilities in respect of family pension and employer's contribution under the new pension scheme. The IBA since last one year had been informing that the matter has been referred to Govt. of India. Now, given the DFS letter we understand that more time will be required for its approval. In addition, different amounts are being mentioned as cost requirement for enhancement of family pension to 30 percent without ceiling spanning from Rs 9000 crore to Rs 20000 crore. The IBA never shared the details with UFBU officially. As the amount will be provided from individual bank's balance sheet, we feel that all the stake holders including the Unions/Associations have right to be informed regarding exact requirement.

We addressed a letter to the Secretary, DFS, Ministry of Finance today, text of which is appended.

With greetings,

Yours comradely,

(Debasish Basu Chaudhury)

General Secretary

TEXT OF THE LETTER TO THE SECRETARY, DFS

___________________________________________

Quote: "We have come across a communication of Shri S. R. Mehar, Director, Govt. of India, MoF, DFS addressed to the Chief Executive, Indian Banks' Association bearing No. F No 4/2/2/2/2015-IR dated 18.12.2020 in response to IBA Letter No HR&IR/KSC/Govt/665/9308 & 9309 dated 11.11.2020 on 11th Bipartite Settlement and Joint Note.

In the said communication, the understandings reached between IBA and Unions/Associations  have been approved for implementation. In the matter of Family Pension, in principally agreed by IBA almost a year ago, the DFS communication advised IBA to submit detailed proposal along with financial implications/liabilities. You  will please appreciate that the spouses of the deceased bank retirees, drawing a paltry amount of family pension, are waiting eagerly with desperate need of increase in the amount. We feel that approval for enhancement brooks no further delay. We like to draw your attention that during the wage negotiation, the IBA, though confirmed that actuarial calculation has been undertaken in this regard, but did not share the same with the negotiating unions/associations. We suggest to share the actuarial calculations with unions/associations as several amounts are referred as  required costing in different medium.

Moreover, the banking fraternity have been demanding for revision/updation of pension since quite a long time as it was never revised since introduction of the scheme in 1995 with effect from 1st Jan 1986. During the negotiation for 11th Bipartite Settlement, the issue was discussed on several occasions but, we feel, IBA was never positive to take it forward. The Ministry of Finance approved pension updation for retirees of Reserve Bank of India last year which created lots of hope in the minds of other bank retirees. The Hon'ble Union Minister of Finance recently acknowledged that this  legitimate issue of bank employees are pending since long. Hence, pension of bank retirees formulated as per RBI pension scheme requires to be revised as per RBI pattern implemented last year. We urge upon you to take necessary initiatives for revision/updation of pension in RBI pattern.

Your needful action is solicited."