Letter forwarded by V R Krishna Iyer to Finance Minister

C N Venugopalan Ex-Manager, Union Bank of India	Nandanam Kesari Junction, N Parvoor, Kerala – 683 513
Phone. 0484 2447994 Mob: 9447747994 E-Mail: ceeyenvee@gmail.com

No.20100622 22^nd June, 2010

Justice Mr. V R Krishna Iyer,

Former Justice, Supreme Court of India,

Ernakulam

Most Respected Sir,

Sub: Pension Option to Bank Employees

On 27^th November, 2009, Indian Banks' Association signed an agreement with Unions in Banking Industry to extend a fresh Option for Pension to bank employees, working and retired, who could not opt for it in 1995 because of a penal clause in the Pension Regulations which was later deleted in February, 1999.

While the agreement seeks to remove the anomaly of not granting pension, a fresh set of anomalies are engendered in it, making it a dark and sully one not conforming to any standard. Anomalies are mainly the following:

1. It envisages to recover from the retired (prior to 27 11 2009) the CPF and interest on it paid to them at the time of retirement along with another 56 percent of the amount i.e. total 156 percent. An employee who retired in 2000 who has enjoyed the benefit of retention of the money and another retired in October 2009 who has just received the money have to pay the same penalty of 56 percent for gaining entry into the scheme. This lacks fairness entirely.

2. The agreement provides for payment of Pension from its date of signing (without retrospective effect from date of retirement). An employee who retired in 2000 will stand to lose his pension from date of retirement to the arbitrary date of 27 November, 2009 which is a gross anomaly. The precedence has been that in the Pension Scheme commissioned in 1995, those retired from 01 01 1986 were given coverage. Through this, banks seek to meet establishment costs at the expense of the retired employees and out of their pension which is altogether a shame on the part of banks, Financial Sector and of the Government.

3. As per another term of the agreement, those in service who now opt will have to pay 2.8 times of their November, 2007 Basic Pay as their contribution to Pension Fund for becoming its members whereas no such levy was there to their counterparts.

4. The agreement provides for granting commutation, on the basis of the age as on the date of option instead of the age at the time of retirement. This goes to deprive the pensioner a substantial portion of the commutation of pension.

5. The agreement fails to recognize the eligibility to pension of the resigned employees who possess the requisite qualifying service. They are people who went out on their own for personal reasons as banks denied them voluntary retirement under their special scheme. While the latter who were paid incentives for going out are considered for pension, denying pension to the resigned is a gross injustice.

6. Recovery of the CPF and interest itself is not justified since Allahabad Bank, a state run bank pays to its employees three retirement benefits viz. Gratuity, Pension and CPF. Separate yard sticks are adopted for compensation in SBI, Allahabad Bank vis-à-vis other public sector banks flouting all legal etiquettes in the key industry of the nation.

7. Pension Payment in banks is under one and the same "Pension Regulations" The provisions of the agreement to impose unwarranted curbs and penalties on one segment, while all the benefits have been given to the counterparts in full, offend substantive law and ought to be scrapped.

The agreement prima facie lacks all fairness and cuts a low profile philosophy of its architects. Its effects are far reaching as it catapults all norms of law and justice, Constitutional doctrines. It causes a shame on the nation as it seeks to snatch away a major chunk of the pittance payable to the retired employees for running the state owned banks. The legal system of the nation that is saddled with heaps of suits which will also be affected badly through a huge influx of petitions, if the anomalies are not rectified forthwith

The agreement signed on 27^th November, 2009 is yet to be implemented adding to the misery of those who retired a decade back and the situation calls for speedy implementation. I earnestly solicit your kind intervention through addressing a suitable letter to Shri. P K Mukherjee, Hon'ble Finance Minister of India requesting him to render justice to the deprived who are suffering for more than a decade.

Thanking You, I remain.

Yours sincerely.

C N Venugopalan